In today’s marketplace, there are many different types of auctions, and each auction company has different methods, procedures and bidding practices. Before a buyer or seller engages in any auction, it is important that he or she knows which type of auction they are dealing with.
What is an absolute auction?
An absolute auction is an auction with no minimum purchase price and no reserves. When the sale occurs, the lot is automatically awarded to the highest bidder.
At JJ Kane, we operate using an absolute auction system. All of our auctions are hosted online via Proxibid and open to the public. A full list of our current and upcoming auctions can be found on our online calendar.
At what price does bidding start in an absolute auction?
In an absolute auction, there is always a low starting bid, making the bidding process easy and affordable. In a JJ Kane auction, the public opens the bidding price on each of our lots. We do not sell items with a reserve price, so bidding is as simple as registering with Proxibid and clicking the “Place Bid” button on an item you’re interested in.
Who wins an absolute auction?
The item for sale in an absolute auction is awarded to the individual with the highest bid, regardless of the price.
At JJ Kane, our auctions are timed auctions, and each lot displays a countdown of the days and time remaining to bid. Once the time closes, the lot is awarded to the highest bidder.
What are the benefits of an absolute auction for sellers?
- Guaranteed Sale: A seller’s property or asset is guaranteed to sell in an absolute auction, eliminating holding costs, storage fees or ongoing depreciation.
- Strong Bidding Competition: Because there is no reserve price at an absolute auction, buyers are often more willing to participate, which can encourage competitive pricing.
- Market-Driven Value: Sellers in an absolute auction get the true market price on auction day, avoiding the risk of overpricing and retaining the asset for longer than necessary.
- Serious Buyers: The absolute format attracts motivated bidders that are ready to buy.
If you’re interested in consigning to an auction and selling your equipment, please contact us.
What are the benefits of an absolute auction for buyers?
- Equal Opportunity: With no reserve price, everyone has a fair shot at an absolute auction.
- Competitive & Transparent Pricing: Because of the open bidding process, buyers can more clearly see the competition and the asset’s real-time market value than they might see in another type of auction. At JJ Kane, we also notify our bidders when they are outbid, giving them more awareness of the bidding process and another opportunity to place a bid if desired.
- Simple & Trustworthy Process: The format of an absolute auction ensures that a seller won’t reject the highest bid after the auction. At JJ Kane, we do not allow sellers to bid-up the asset(s) they are consigning or buy back any of their items. All items in our absolute timed auctions go to the highest bidder regardless of price.
If you’re interested in bidding in one of our upcoming absolute auctions, you can create an account and bid online.
In general, absolute auctions provide a win-win scenario to everyone involved. At JJ Kane, we hope to provide an enjoyable absolute auction experience to all of our customers.
For more information about our auction process and what to expect, please visit our FAQ page. If you have any further questions, please feel free to reach out via email or phone at contact@jjkane.com or by phone at (855) 462-5263.