A STEP-BY-STEP GUIDE TO THE AUCTION PROCESS
When SA Group receives an enquiry regarding the sale of assets, the Business Development Manager (BDM) contacts the inquirer and requests further information on the assets and proceeds to setup a meeting between the auctioneer and the client.
- During the meeting, the best auction solution, proposed timeline and other details are discussed with the client.
- Once the initial meeting has taken place, the auctioneer and the BDM prepare an auction proposal that includes a description of the assets, a recommendation to whether the auction should be held onsite or online, the timeframe, marketing budget and target market, as well as a detailed description of the cost structure. The proposal is delivered to the client with a mandate.
- If the proposal is accepted, an agent will inspect the assets listed in the mandate, test (if required), photograph and complete a detailed description of each item. A minimum reserve price is set (if applicable – any reserves requested by the client will be discussed with the client and approved by the auctioneer, in order to ensure the reserves are market related, fair, and reachable and not farfetched). These details are used by the Key Account Officer (KAO) to populate the listing on the SA Auction website.
- The KAO then loads the auction on the website, together with all the lots as received from the agent.
- The agreed upon marketing strategy commences. Marketing strategies are thoroughly researched and targeted. We work as a team with our contracted partners to launch the marketing campaign. Our Graphics designer is responsible for the drafting of all marketing material required.
- For online auctions, once the assets have been listed, the public may make an appointment with the agent to view the items at the premises, or on the specified viewing date.
- Before the auction date, the seller receives progress reports and a pre-auction report that includes the marketing strategy implemented, target customers reached, website, and other statistics and analytics that are relevant to the auction.
- Buyers follow a strict registration process that includes compliance with FICA regulations.
- Most auctions opens for online bidding the week before the auction date. From then, registered and activated bidders can already start placing their bids online.
- On the auction date, the lots close at a certain time, with a 2 minute interlude between lots. As long as there is active bidding on a lot, the time will extend. When there is no more active bidding on a lot, the lot will close.
- When the auction closes, the client receives a full post-auction report. The report captures the item Lot number, item description and the highest bid obtained on auction for each item. It is now up to the client to decide if they accept the highest offer obtained, which must occur within the confirmation period set; however: should the reserve price be met on auction as indicated by the seller in the mandate, the auctioneer is fully authorised to accept the highest bid on behalf of the seller.
- Once the seller accepts or declines the offer(s), the decision is communicated to the bidders.
- When a bid is accepted by the client, the buyer will receive a pro-forma invoice for payment. Items will only be released to the buyer when the invoice is fully settled, and monies successfully received.
- The proceeds from the auction along with a complete reconciliation and statement are sent to the client.