Schultz Auctioneers Creates New Sales Method from Old Concept

Filed as: Updates 
Posted on: Friday, January 9th, 2009

UPSALA, MN—In the 1970’s and 1980’s auctioneers used telephone conference calls to allow remote bidders to compete against each other at feeder pig auctions.  Fast forward into the new millennium, where online-only auctions and simulcast auctions have become an industry staple.  As 2009 approached, Schultz Auctioneers wanted to take live Internet bidding to a new frontier: live online only auctions.

Their first auction of this kind had no onsite bidders and 66 bidders participating live—exclusively online.  Having accepted pre-bids totaling over $18,000, Mike, John, and Jan Schultz began the live auction from their office.  When the live bidding came to a close, the total sale results closed at almost $22,000—more than 20% of an increase over what the neo-traditional online-only model had generated.

After the auction, John Schultz revealed, “We were not sure what to expect heading into this auction with an entirely online only crowd. However, we were pleasantly surprised with the results. To have over 100 registered bidders and 66 active bidders in the auction was excellent. Both sellers and buyers we have contacted were pleased with the results, and we received no negative feedback about the live online only method. In fact, it was so successful we are already looking forward to conducting a similar auction in the next 45 days.”

One of the sellers commented, “We watched the entire auction online and really enjoyed it. After a few items we began to learn the personalities of the online bidders, and if they’d bid again or not. We even found ourselves cheering for the bidders to bid again. The results you obtained where on the high end of your pre-auction estimate for our collection. We couldn’t have been happier.”

Reviews proved positive from the buyers, as well.  Said one winning bidder, “The weather outside was very cold, and we’re not sure if we would have traveled to the auction. However, we were able to participate live from the comfort of our home. We frequently participate in online only auctions. However, this is the first live online only auction in which we have participated. We really enjoyed the process, and the excitement that the live close brought back to the online only auction.”

Mike Schultz talked about the strategy leading up to this ground-breaking “virtual live auction” event.  “The primary reason we tried this model was that we felt we could take the online only method and increase our results through a live auction, all the while continuing to realize the benefits of an online only auction.  We were proven correct, as our overhead associated with holding a live auction was completely eliminated, and our attendance and results were higher.” 

John Schultz added, “Really, what all we’ve done is to resurrect a marketing technique that proved effective two decades ago.  It’s just that the implementation is exceedingly easy with the advent of the Internet and live online bidding.”

Mike and John Schultz can be reached at 800-457-2967 or through email addresses available on www.SchultzAuctioneers.com.  Schultz Auctioneers conducts auctions of almost every type but specializes in lakefront, residential, and recreational real estate and historic collectibles.

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