New to the auction world? Let's decode auction lingo and help you navigate the process more smoothly!
Grocery and Supermarket FF&E (furniture, fixtures and equipment) equipment auctions can be exciting opportunities to acquire valuable tools for your business. However, if you’re new to the auction scene, there may be some terms that are newer to you.
Here’s a straightforward guide to help you understand the lingo and feel confident at your next grocery, restaurant or bakery equipment auction.
Let’s break down the essential auction terms that will help you maneuver the process smoothly.
The price proposed for an item being auctioned. It reflects a potential buyer's offer for purchasing goods at auction. By placing a bid, a participant commits to buying the item from the auction house if they hold the highest bid.
The minimum amount by which a bid can increase. These increments are determined by the auction house.
An individual participating in competitive bidding at an auction.
A unique number assigned to each registered participant at an auction, also referred to as a Paddle Number.
The bidder who successfully places the highest bid and wins the item at the auction's conclusion.
A fee that sellers may charge buyers, which is added to the final purchase price of an item. These fees are an industry standard and help to support operational costs of sellers and consignors. This premium can either be a percentage of the winning bid or a flat fee. Additional costs, such as taxes and shipping, may also be included in the total amount owed by the winning bidder. These fees should be detailed in the event's Terms of Sale.
The time when the final bid will be accepted, marking the end of the auction.
The entity that legally owns any rights or interests associated with real or personal property. Typically a grocery store or restaurant wanting to liquidate their assets.
A feature of timed auctions that adds extra time to the bidding period when a lot receives a bid in the final minutes, continuing until time runs out or no further bids are made.
A specific item or group of items offered for bidding at an auction. Each lot is typically numbered and described in detail, so potential buyers know what they’re bidding on.
Individual items sold together as a group, either for a single price or by multiplying the highest bid by the number of items.
The 'hammer price' refers to the final sale price of a lot, determined by the last bid acknowledged by the auctioneer before the hammer or gavel is dropped. This price excludes any additional fees charged to the bidder.
High Bid: The current highest accepted price for an item in an auction.
The lowest amount a bidder can enter, established by the seller, also known as the minimum bid.
A predetermined limit a bidder is willing to bid up to. When a maximum bid is entered, auction sites such as Proxibid will place bids on the bidder's behalf without exceeding that limit. For more information, see Maximum Bids.
A designated date and time when potential buyers can view and inspect the property, also known as an “Open House” or “Inspection.” Preview dates will be mentioned in the event's Terms of Sale.
The lowest price a seller is willing to accept to sell an item at auction, also referred to as the Reserve Price or Ask Price.
The status given to an item when the bidding has reached the minimum required amount, and the auctioneer declares it as “Sold.”
Understanding auction terms can enhance your experience and confidence when participating in auctions. Whether you’re a seasoned bidder or a first-timer, knowing the lingo will help you navigate the process smoothly. Next time you’re participating in an online auction, you’ll be ready to bid with clarity and purpose. Head over to SAMauctions.com and start your bidding journey today!
Happy bidding!