You may be pleasantly surprised by how much money you can make with auction consignments. Whether you’re cleaning out closets and garages or securing external items for the purpose of reselling, auction consignment provides a simple, safe and worry-free experience. Once you enter into an agreement, you can sit back, wait for your items to sell and collect your cash! Learn more at www.auctionandappraise.com

1. HOW TO
Make Money
WITH AUCTION CONSIGNMENT
a u c t i o nANDa p p r a i s e .com

2. Have you ever wondered if you can make money selling the stuff in your home you no
longer use? Maybe you’re an avid collector and want to part with some of your pieces
to earn some extra cash. You might have just inherited some property you’d rather sell
than keep. Or, perhaps you’ve often considered starting a reselling business where
you buy items from various sources at the lowest cost possible and then auction them
to the highest bidder.

3. Yet another way some people earn money is establishing a consignment relationship
with a company to sell their goods. In this example, the company would “lend”
you the merchandise to auction with no upfront cost. If an item sells, you would pay
the company the agreed upon purchase price from the proceeds. The remaining
difference would be your profit. You make money without expending a lot of time,
energy and money procuring items for sale.

4. WHAT’S IS
Consignment?

5. The term “consignment” comes from the French word “consigner.” It means “to
hand over or transmit.” When you consign an item, you’re placing it in the hand of
another. However, you retain full ownership until the item is sold.
With an auction consignment, you’re putting an item up for auction and agreeing
to have the auction company sell it for you. If the item is sold during auction, the
auction company receives a commission, or percentage, of the sale. The auction
company distributes the remaining balance from the sale to you.

6. WHY
Auction Consignment
MAKES GOOD BUSINESS SENSE

7. Why would you agree to let an auction company keep a percentage of your sale
proceeds when you can keep all the money by selling it yourself? Here are some of
the reasons why you would want to consider auction consignment:
• Auctions create the perfect marketplace by instilling competition. If they really
want an item, bidders will try to outbid the competition, which will raise the
selling price. So, auction sales provide an opportunity to earn more profit.
• Auctions are exciting, especially the live events. When you attend an auction,
you’ll usually find a good number of bidders very interested in the items and the
process. The high-energy nature of the auction event creates a lot of “buzz” and
encourages driving up bids.

8. • Established auction companies will know how to attract the largest audience
possible. Depending on the types of items being sold, a good auction house
will have the right kinds of buyers in attendance. By having multiple prospects
looking at your items, you increase the odds of someone wanting to place the
winning bid.
• Auction companies have specialized expertise about buying and selling. When
you select an auction company that has specific knowledge with, and experience
in, your item type, you can rest assured your item will be correctly valued,
effectively promoted and marketed to the right kind of bidders.

9. • When you auction your items, the sales process is typically much quicker than
other methods. The event is held over a short time period, after which you
receive your money for any items sold. Why wait for an item to sell at a retail
location or hassle with placing an ad? With auctions, your item can sell during a
single event.
• You can also control the minimum price for the item. By having the auction
house place a “reserve” on the item, you won’t sell the item for lower than your
established acceptable minimum.
• Auction consignments carry no risk. If your items don’t sell at auction for the
minimum reserve price you established, you have the freedom to try another
auction or sell through another venue. You still own the item, so you don’t lose
anything.

10. THE
Auction Consignment
PROCESS

11. With auction houses handling everything associated with the sale, they make your
life a lot easier. You simply collect all the information you have about your items,
take them or ship them to the auction house, enter into an agreement and wait to
receive your sale proceeds.

12. Here’s what typically happens when you consign items to auction:
1. Select an auction company – Your goal is to find an auction service with
experience buying and selling your item type. Specialized expertise is important
to the marketing of your items, and ultimately in the amount of money you make.
In addition to expertise with your items, find an auction company that’s
established and has a good reputation. One with a physical location and
warehouse facility is important too. Ultimately, you want to form a long-term,
mutually-beneficial partnership with the auction house, so do your homework
carefully.

13. 2. Appraise your items – Before entering into an agreement, you need to know
what your items are worth. The best auction companies will have professional,
in-house appraisers to handle your appraisal. They will carefully inspect your
items to determine condition.
Once they determine condition and estimate value, you can decide on whether
to include a reserve, or minimum, selling price. After your item is appraised, the
auction house will store the item in its facility until the auction event concludes.

14. 3. Enter into an agreement – The agreement between you and the auction
house should be straight forward, but include all the necessary terms. The most
important term is the consignment percentage awarded to the auction house
when the item sells. You must know exactly how the commission amount will be
calculated.
Also, look for any hidden charges. Everything you’ll be expected to pay should
be clearly defined in your agreement. All charges associated with the sale of
your item need to be disclosed upfront and included in the agreement.

15. 4. Photographing and cataloging the items – The auction house will prepare
your items for an upcoming auction by professionally photographing and
cataloging them. A photographer will take various images of your item from all
angles. The auction house staff will write a detailed description of your item,
highlighting the positives, as well as any issues like scratches, dents, non-working
condition, missing parts, etc.

16. 5. Promote your items – If you’ve selected a well-qualified auction house, you can
expect your items to be successfully promoted. But find out specifically how the
auction house attracts potential bidders.
What’s the size and make-up of their mailing list? How and where do they
advertise the auction event? Do they have a strong web and social media
presence? Do they have multiple ways for bidders to participate in the auction,
such as attending the live event and bidding online? How many bidders have
they attracted to past auction events?

17. 6. Prepare for preview inspections – Prior to the auction event, interested bidders
can inspect all the auction items. The auction company will help ensure your
items “show” as effectively as possible. Inspection periods usually are conducted
over multiple days and times.
7. Conduct the auction event – Professional auctioneers will manage the buying
and selling process. They know how to get the most money for each item.
8. Close the sale – Good auction companies will have advanced technology to
handle payment processing, invoicing and tracking of all items sold. You’ll know
exactly what the item sold for, the commission to be paid to the auction house,
and the balance amount due you. Established auction houses will provide you
with payment within a short period after the sale, but no more than 30 days from
the auction date.

18. You may be pleasantly surprised by how much money you can make with auction
consignments. Whether you’re cleaning out closets and garages or securing
external items for the purpose of reselling, auction consignment provides a simple,
safe and worry-free experience. Once you enter into an agreement, you can sit
back, wait for your items to sell and collect your cash!

19. LEARN MORE ABOUT
Auction Systems
AUCTIONEERS & APPRAISERS
Auction Systems Auctioneers & Appraisers, Inc. conducts all kinds of auctions on
a regular basis. To find out more about our company, visit our website or
contact us. Or, check our auction schedule for upcoming auctions.

20. About the
AUTHOR DEB WEIDENHAMER
PRESIDENT
Deb Weidenhamer is President of Auctions Systems Auctioneers & Appraisers, Inc.,
based in Phoenix, Arizona. They specialize in auctions and professional appraisals. Visit us
at www.auctionANDappraise.com or call 800-801-8880 for more information about
Auction Consignment.