8:44 am, July 14, 2008
MANHEIM Auctions has issued some advice to commercial vehicle vendors – that’s actually of relevance to us all.
It’s stressed the importance of pricing realism during the current economic uncertainty.
Recently, it’s noted duplicated stock, damaged vehicles and older models in its auctions. These all impact on sales values – something fluctuations in buyer activity and demand all impact further upon.
Vendors, it says, fall into three camps – and there are tips here for you to know what you’re up against at auctions:
• Optimistic
Convinced the market will recover, their policy and structure dictates the reserve pricing. This restricts the disposal manager’s ability in reacting to changing conditions.
• Pessimistic
Believe the market will not recover, and distress-sell at ‘first bid’, which unsettles other vendors and buyers alike. The actions of this lot lead to pressure on other vendors to ‘sell, sell, sell’ in order to maintain conversion rates.
• Realistic
Understand the current market, and maximise conversions without following the ‘first bid’ route. They set realistic reserves, based on valuations and market data, rather than value guides.
Alex Wright, sales director, commercial vehicles at Manheim Auctions said: ‘During the coming days and weeks, I would ask all vendors to acknowledge that the days of ‘getting lucky’ as a vendor are now gone. Every auction is attended by both physical and online trade buyers and, now more than ever before, by end-users.’
‘All these buyers have plenty of choice and know what they will pay. Auctioneers and vendors alike can no longer push bids as may have been possible in the past three years. Realistic vendors with realistic expectations make their own luck and can bring stability to the market at a time of uncertainty.’
