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Auctions have been around since the beginning of humanity. Some dare to say that Auctioneering was the first profession, as price needed to be determined before any services could be performed! But, American Auctions are uniquely important.
True to the entrepreneurial spirit and nature of the first settlers in the New World, American Auctions were devoid of controls, restrictions and restraints that were typical in the Old World, European models (1). The American Auction system was pure energy and capital in motion (2). The populace believed in the competitive bidding system for arriving at the best market prices for such commodities as fish (3), fur (4), produce (5), crops (6), furniture, imported goods, timber, grass (7), tobacco, livestock (8), used equipment, contents of homes and farms (9). Further, real estate was sold extensively at auction (10).
Americans valued their bundle of rights and liberties, thus embracing the sales method of a competitive bidding system that fostered capital investment growth. It was a time that each individual was totally responsible for his or her own actions. There was no need for “reserves.” Where else were the sellers going to go to sell their perishable assets if they did not accept the prices that the local market would fetch? The buyers had a say in the construction of the price and the seller received “current market price” for their commodities due to the competitive bidding system.
Auctions were local, public events, often operating in the “common” or “market” square” of each community (11). Transportation was primarily by foot or by horse resulting in a familiarity of all the participants with each other and the Auctioneer (12). Therefore, the auction method allowed for the most open, arms-length and competitive transaction of any and all assets. Community members brought their assets for physical inspection (Preview) allowing the rest of the community to view prior to bidding. The competitive bidding system of Auction determined the selling prices with the successful bidders paying and removing immediately upon the conclusion of the Auction. The Auction Method of Marketing as a public event bore witness to the title change of assets. Auction prices were accepted as the true value of the assets sold at the time of the sale.
America expanded as competitive bidding fostered growth and wealth. Americans followed their dreams and desires for a better standard of living by acquiring more land and livestock for farming. The boundaries and borders of our young country were expanded in pursuit of the valuable beaver pelts and timber needed for domestic use and exportation. Expansion was to the North, West and South with the Auction Method of Marketing leading the way. Entire towns and villages were planned, mapped out and sold through competitive bidding at “Auction. (13)” Municipalities utilized the Auction method in the sale of surplus and seized assets. Our military leaders understood the value of competitive bidding by having their Quarter Masters, often “Colonels”, act as Auctioneers in the liquidation of surplus and seized assets. In fact, it is well documented that our “Founding Father,” George Washington, was a proponent of Auctions, often buying and selling his personal assets in this fashion.
The American Government periodically experimented with other forms of liquidation from giving it away in “Land Grants” and “Land Runs” to “Private Treaty” offerings. But, finally settled in on the competitive bidding strategy of “Auctions” as the primary sales method. The Federal Government uses the competitive bidding system for the sale of oil and mineral rights on the Native American Reservations (14), as well as for the privatization and development of U.S. owned land to it’s citizens. Recently, the FCC has utilized Auctions successfully to sell “airwave rights.” Further, many federal agencies such as U.S. Marshal’s Service, U.S. Customs, Department of the Treasury, Secret Service and HUD utilize competitive bidding for the liquidation of their assets.
As the citizenry of our country expanded and accumulated wealth it chose the Auction Method of Marketing to buy and sell fine art, books, antiques, furniture and most recently, collectibles (15). Today, Auction Centers across America offer the complete contents of homes, vehicles, equipment and real estate on a regular basis and to the world in an open and competitive manner. Many of these firms include the latest technology to enhance the bidding opportunities and marketing strategies. Today, sellers assets are exposed to a much larger audience with the use of digitized images on websites, faxed informational packages and illustrated catalogs online. Further, buyers can participate in person, by fax, telephone and in some cases by bidding from their personal computer from home simultaneously with the “live” Auction crowd.
The competitive bidding strategy of “Auction” is being used more then ever before in America with the inclusion of Ebay and other online auction services. Traditional Auctioneers are networking and conducting business in a much broader range of territory then ever before. Auction Marketing strategies today are finding buyers world wide competing for objects that used to have been sold only locally. Not for Profit organizations are utilizing the “Benefit Auction” services of professional Auctioneers offering that specialty more then ever before in U.S. history. These organizations do not mind compensating for these services that enhance the monetary return for their cause. Benefit and Real Estate Auctions are the fastest growing segments of the Auction Method of Marketing (16).
What does all this mean? Quite simply, the Auction Method of Marketing via competitive bidding strategies is still building America. It is keeping the free enterprise system alive, and continuing to fostering entrepreneurship. With today’s technology comes new opportunities such as the sale of “Intellectual Properties” at Auction. Regardless of what new developments and improvements are invented, the Auction Method of Marketing through competitive bidding will still be the best method for selling it, proving that Auctions work.
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