Auctioneering, a durable tradition
Friday, January 29th, 2010This weekend the Manitoba Auctioneers Association holds their convention in Brandon. The annual gathering of the local Manitoba bid callers is a fun time to see how others are doing in the business, how the spring bookings are coming along and what’s new in the auction industry.
In Manitoba, auctioneers are under used and under appreciated. The “auction” is a fundamental market place mechanism in the farm machinery trade, some of the cattle trade and to a small, small amount in the real estate industry. In many parts of the world, and especially so in the United States, the auction is a much more readily used instrument for determining fair prices for a range of goods.
In Manitoba, livestock such as cattle and horses, are often the subject of auction sales. Hogs used to be auctioned but that is almost a thing of the past. Hogs are priced by some convoluted accumulation of prices from various markets and then they are simply announced. There’s no argument, no discussion, that’s the price. As more and more livestock sales have moved under marketing boards over the years much of the auction action has dwindled. It’s too bad. The auction is the only really fair way of determining price on livestock. Even when deals are made between two parties privately, they refer to an auction somewhere to get a base for their discussions.
With today’s technology, there’s less need for livestock to be trucked to an auction, an internet auction can be conducted without the animals leaving their home farm and price can be determined before they are transported. The auctioneer and the auction bid process is being used as it adapts to new realities and new technologies.
When it comes to selling real estate, auctions are much more common in other parts of the country and the continent than here in Manitoba. The big advantage of land or real estate auction is that everybody gets a chance to bid if they wish. Long a problem in rural areas has been the hard feelings caused when a piece of land is sold by one person to another and the neighbours may not have had a chance to bid on it. One disadvantage is that potential bidders have to have their money in place up front. That’s a bit of a hard nut to crack as in Manitoba we are used to getting the price set first and then going to get the financing. Getting the financing may mean borrowing from a bank or FCC or from a relative, but we have grown accustomed to having the price fixed in a conditional sales agreement before we seek the financing.
If a shift could be made in thinking about preparing financing, then the auction method of land and real estate sales would flourish. Real estate firms would have one of their people trained as an auctioneer or would use the services of an auctioneer to set up a well advertised real estate sale. It works other places and, aside from the pre-arranged financing, the auction method may well be a better way of determining price.
Compared to other ares of North America, auctioneers in Manitoba are somewhat limited in the way the public sees and uses their service. Strangely enough, the biggest decision a farmer will ever make, that of selling off his machinery, is often entrusted to the auctioneer. It’s just an accepted way of selling assets when a farming operation is winding down for whatever reason. There’s nothing quite like farm dispersal sale. The neighbours and family pitch in, the auctioneer does way more prep work ahead of time than the actual auction day entails and the prices are pretty transparent. Oh yes, there’s the highlight of the farm sale, the lunch counter. An auction sale hamburger and piece of apple pie is an absolute must.
The most common sale in Manitoba is the household disbursement sale. The largest and best sales are bittersweet affairs as often the owner has died and the family is left with the onerous task of dividing up the estate. It’s a huge job and one best done with the aid of an auctioneer. The earlier the auctioneer is called in the better. Unfortunately families usually have one or two overly zealous members who insist that a bunch of “stuff” has to be thrown out before the auctioneer is called. That’s probably the biggest mistake a family makes. Before anything is tossed, the family should consult with the auctioneer. Case in point, a few years ago when I was in still in the auction business, I was called to a home where a lot of prep work had been done and the family members were busy washing relatively worthless quart sealers and packing them in boxes. That wasn’t so bad but they were using highly collectible Roy Rogers calendars to wrap the sealers. The calendars were worth a lot of money, the sealers, well maybe not so much. If I can offer one word of advice, call the auctioneer as early as possible when a sale is being planned.
Very few auctioneers in Manitoba work at it full time. Auctioneering is usually a side line or a second source of income. Few have made enough money at auctioneering to say it’s their sole source of income. Nevertheless, the auction business in Manitoba is alive and well, a mainstay of both tradition and price setting. The Manitoba Auctioneers’ Association has worked hard over the last 20 years or so to raise standards, to educate members and the public and to provide service with integrity to Manitoba.