How to Conduct Your Own Public Auction

Public auctions provide a way to dispose of large quantities of inventory.

Public auctions offer new and used merchandise to the general public. They are often run by police departments seeking to rid themselves of firearms, autos or other merchandise seized in criminal investigations. They are also operated by businesses seeking to dispose of inventory or furnishings. Nonetheless, there is no reason that only governments or businesses should conduct public auctions, you may also do so as a private citizen. You need only have items on hand that you think are in demand and a willingness to turn that merchandise into money.

Instructions

1. Identify the merchandise that you will put up for bid at the auction. Look through your inventory for items that are likely to interest the public. Get help from a shop owner or another person with knowledge about retail sales.

2. Find a space to conduct the auction. Check with the county fair grounds in your locality or rent an appropriate space. Ensure that traffic can enter and exit safely and that there is space for parking.

3. Secure any licenses to conduct the auction. Some states require a license to carry out an auction, if you are selling new equipment (see Ohio Reference). Be sure to comply with all requirements so that your auction will not be shut down by local authorities.

4. Publicize your auction locally in newspapers and online. Give the date, location and time of the auction as well as the type of merchandise up for bid. If you have particular dealers that you know, you may wish to invite them to the auction by special invitation.

5. Post the rules of the auction prominently in the auction space. Make sure that participants know the rules of the auction, including how to inspect the goods they bid on and where to pick up the goods. Specify the type of payment you will accept -- credit cards, cash, money orders or bank transfers.

Tips & Warnings

• Some public auctions permit pre-bidding online. In such a case, you will need to set up a website for your auction. Then, take photographs of the merchandise and post them online. Permit interested buyers to contact you through the website or by e-mail to made a bid on the merchandise in advance of the auction. This is a good way to generate some buzz about your auction.

References

• State of Ohio Revised Codes: Application for license to conduct new merchandise public-auction sale
• Charity Village: Charity art auctions ---Do It Yourself or Hire Professionals
• PureCharity.org: How to Auction