In the auction industry, it’s so important that you are setting the right price valuations for all of your auction items. Whether you are auctioning heavy equipment, automobiles, real estate or retail, finding the right value of your items allows you to set the right bidding price and make the most profits off your auction items!
At InnovA, we offer pricing valuation services within our back office software to help auction companies gain a better understanding of the value of their auction items and determine the expected value of their entire inventory!
When on the topic of price valuations, there are two valuations all companies should consider: auction and market value. In this post, we will discuss the differences between auction and market value as well as explain how our pricing valuation service can be of benefit to your company!
Traditionally, market value has been dictated by the supply and demand of certain products and industries. When a product is in high demand, the price valuation usually reflects this and in turn increases in price. When demand is low, the market value of a certain product usually drops. The same goes for supply. If an item is rare or in limited supply, consumers are usually willing to pay more and vice versa.
What is auction value?
Auction value, on the other hand, is more difficult to gauge. During auctions, bidders can pay more than market value for certain items. This is what makes auctions exciting for bidders, as they can bid as much or as little for any item. However, for auction companies, knowing market value will help in understanding the auction value for your items.
How to determine your starting bid price
You’ve researched and know what the market price is for your auction items, so now how do you set your starting bid price considering the auction value? The number one thing to always remember is: the goal for auction companies should not be to get potential buyers to agree with your valuations, but instead encourage bidding. This is certainly something all auction companies should remember because during an auction, the value of an item could increase or decrease depending on the amount of bids.
Now, how should you determine a starting bid price? Well, according to a recent study, potential buyers are more likely to bid on an auction item when the starting price is lower than market value. As this seems pretty obvious, the study also points out that more bids usually translates into a higher selling price!
How InnovA’s software can benefit your company
So now you understand how market and auction value are somewhat intertwined, and how a lower starting price is likely to translate into a higher selling price, how does our price valuation services help you out? With InnovA’s auction management software, all of your auction inventory will go through a pricing valuation process to determine the expected value the item will be sold for. This is especially beneficial for equipment and automotive auctions, as equipment valuation can be affected by a number of factors.
Once your inventory goes through the valuation process, the person who evaluates your inventory will have access to all the transaction history for the exact and similar inventory, and you will be given an estimated auction value for all of your items! Pretty cool, huh?
Finding the right equipment valuation for your auction items can be time consuming and confusing. However, with InnovA’s pricing valuation service, we help reduce the time it takes to find the auction value for your inventory!
If you have been struggling to find the right equipment valuation for your recent auctions, do not worry! We are here to help streamline your auction business and bring you more profits! Visit our website to request a free demo today!