Know your online auctions
EXPLAINED: WEBCAST, SIMULCAST, TIMED ONLINE
‘The future lies in online bidding and will become the standard.’
Don’t be fooled into thinking that all online auctions are the same. That’s the word from Park Village Auctions’ (PVA) director Clive Lazarus who explains the various types of online auctions in which buyers and sellers alike can participate.
PVA introduced online bidding to SA in 2011, revolutionising the way that auctions are conducted.
“Our system was the first to allow real-time bids and let all participants see who is bidding against them online and on the floor. Before then, bids were restricted to static bids which excluded buyers from the action while it was happening,” he says.
Today, PVA offers three types of online auction options designed to suit its clients’ specific needs and objectives.
Webcast Auctions
A webcast auction sees proceedings run “as per normal” except that all the attendees are online. A live webcast shows the auctioneer conducting sales in lot order.
Online attendees bid against each other in real-time. Bids and sold prices are displayed on an on-screen dashboard throughout. The results are immediate and the goods are sold on the fall hammer. This type of auction is ideal during higher lockdown levels. Webcasts also lend themselves to situations where leadtime is limited as they can be arranged relatively fast.
Simulcast Auctions
Simulcasts auctions see an onsite and internet auction run concurrently. Screens on the floor display online activity, allowing bidders online and on the floor to compete against each other in real-time.
Lazarus advises that all of PVA’s on-site auctions accommodate real-time remote bidding. “This allows greater global reach, yielding better results for our clients.”
Simulcast auctions prove to be a suitable solution when venue capacity is restricted as it allows more bidders to bid on the floor and from anywhere in the world.
PVA favours this option for “multi-location auctions”, where assets are located at more than one of their national branches.
Timed Online Auctions
Timed auctions allow bidders to view and place bids online, but the bids are not contested in real-time. Instead, the auction continues over a predetermined timeframe, for example, 24 or 48 hours. Bids can be placed at any time before the auction closes, after which the highest bid on each item wins.
An example can be seen live on PVA’s website, where an earthmoving equipment timed online auction until Tuesday.
This option’s perk is that it allows time for more considered bids. “With the advent of social distancing and lockdown restrictions, our digital bidding solutions enables the business to continue with minimal disruption,” says Lazarus, who explains that clients adopted online auctions without hesitation last year. “Where there are physical attendees at viewings or on auction day, we adhere to the strictest hygiene protocols before, during, and after. We limit the number of entrants; entry is subject to wearing a mask, sanitising and no-touch policy. We also keep meticulous records of all participants.”
He believes that, while there is a place for online and on-site auctions, the future lies in online bidding and will become the standard f it hasn’t over-taken physical auctions. –