About Wayne Jordan

Wayne Jordan has been a member since March 4th 2011, and has created 13 posts from scratch.

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Retailer Inventory Reduction Live Auction Sale


Retailers are optimists by nature.  You wouldn't believe it to talk to them but it's true.  They keep hoping that they will have a run on their slow-moving merchandise.  They are not willing to continue to drop their prices, because if they do, their cost of goods sold will go up, and their profits will go down.  Their Balance Sheet will take a hit, and when that happens their ability to borrow suffers.  


Having a Liquidation Sale or Auction at their location is out of the question, because their customers might get the wrong impression.  So, month after month they sit on their inventory hoping it will sell.  Their inventory turns slow down.  Since cash is tied up in slow moving merchandise, they borrow more money to keep the business running.  The balance sheet looks great because they have a large inventory asset, but eventually there is no cash to run the business.  Why do most businesses fail?  They run out of cash.


My Mobile Market Auctions Are Your Liquidation Solution

Liquidating inventory in your local market uses up your "ready-to-buy" market.  It makes no difference whether you hold the sale yourself or consign your inventory to a local auctioneer, the result is the same:  you burn through your customer base.  What's needed for effective liquidation is NEW customers, not your existing customers.  I find your new customers through my Mobile Market Auctions concept.  My concept is simply this:  I go where the new customers are.  I "piggy-back" my auctions onto events where large numbers of people will already be gathering:  Home Shows, Fairs, Resorts, Arts & Crafts Shows, etc.  The attendees at these shows have come to shop, and I give them something to buy where they can name their own price.  You move your inventory without losing a customer back home.  


It Worked For Me, It Can Work for You

I owned two retail stores for fifteen years.  I was in love with my inventory.  I figured that if I didn't have an item in stock, I couldn't sell it.  I wasn't just going to give my inventory away.  Then cash started to get tight, and I started to look for liquidation solutions.  I consigned a few items to the local auction house, and they sold quickly.  The next day I phoned a prospect to follow up on a product inquiry, only to be told that they had purchased a suitable item at the auction house the previous day.  My item.  The one I consigned to the auction house.  The one the customer didn't want to buy in my store because it "wasn't exactly what they were looking for".  I had shot myself in the foot by consigning to the local auction house.  I got rid of a slow moving item, but I lost my sale.  What was the solution?  I still needed to move my excess inventory, but I also needed to keep my customers and my profitable sales. That's when I realized I had to "take my show on the road".


Here's How Retailers Benefit From My Mobile Market Auctions:

  • They increase Inventory Turns
  • They increase Profits
  • They increase Cash Flow
  • They reduce the need for borrowing money
  • Their interest expense drops
  • They are open to buy new inventory


Consigning Your Inventory Is Easy

Whether your need is one-time or ongoing consigning your excess inventory, damaged freight, or estate property is easy.  Send me an email, or call me at 276-730-5197.  We'll discuss your situation CONFIDENTIALLY.  You tell me what you hope to accomplish, and we'll discuss some strategy basics.  Then, we'll get together and work out a plan.  When your items are sold, you'll get a check. It's as easy as that.


Don't you owe it to yourself…your business…your employees…to call today?  


Affordable Estate Property Appraisal


Let's face it:  few items in an estate are worth much.  Ninety-five percent of an estate consists of consumer goods that can be purchased new anywhere and sell for pennies on the dollar at a thrift store. The remaining five percent of an estate is split between memorabilia and a few "special items". 


It's these "special items" that can get an executor (or an appraiser) in trouble.  Items like the Commemorative Coin Set that the TV said was "guaranteed to go up in value".  Or the antique desk that was purchased cheap at an auction but the auctioneer said "was worth thousands".  When the estate is liquidated, and the "special items" don't bring much money, the heirs feel cheated.  They want answers.  And they start making accusations in your direction.


The Inventory and Valuation Survey Report lists the estate property by group, notes items of potential high value, gives a value range for each group and a total value range for the estate.  References are given for value conclusions.  Comparable sales data, historical profiles, and provenance are not established, eliminating the high cost of research for a complete appraisal.  If no "potential high value" items are found, the report can stand as-is.  If high value items are found, further investigation can be done if requested.


Here's The Format for the Inventory and Valuation Survey Report:

1.  State the circumstances of the report (who, where, when, why)

2.  General description of the estate

3.  Narrative description of property by group (furniture, vehicles, etc.)

4.  Probate Inventory form filled out & completed

5.  Identification of potential high-value items

6.  Summary of value range

7.  Credentials and limitations

8.  Photos if requested


A Complete Appraisal  Can Be Done For High-Value Items

In cases where a complete appraisal is warranted, I will inspect, photograph, and research the items(s) needing appraisal and provide a written report that conforms to the Uniform Standards of Professional Appraisal Practice. For appraisals outside my area of expertise,  I will partner with respected appraisal specialists to provide you with a reliable appraisal of your Virginia and North Carolina personal property.


Cruise Ship Art Auctions


There is much debate surrounding cruise ship art auctions and whether or not the art sold represents a good value for the art purchaser.  Some folks think that cruise ship art auctions are the spawn of the devil, and others are delighted with their experience.  Reading posts on the web about cruise ship art auctions is like reading posts on politics and religion: everyone has their own opinion.  Rather than join in the “fight”, I thought I’d share my unique perspective on these auctions.


In 2009, I completed a six month assignment aboard three ships as an art auctioneer.  I have worked as a licensed professional auctioneer and appraiser for years.  As an Auctioneer, I have crossed the U.S. from Florida to Alaska, and internationally to sixteen countries from Russia to Panama.  I have sold a variety of goods at auction: cars, real estate, jewelry, fine art, antiques, business assets, and estate property.  I am widely experienced in auction selling formats and I have "insider information" regarding cruise ship art auctions.  


Travelling the world selling art was fun, but for business reasons I have decided not to go back to sea.  At this point, I am a neutral third party with nothing to gain or lose by commenting on cruise ship art auctions.  I hope that my insights will prove useful to those planning to go on a cruise and attend an art auction. 


So, let me get right to the point: can you confidently and comfortably purchase art on a cruise ship?  Yes, you can.  Plus, if you understand the process of buying art at auction, you can acquire some nice pieces and have fun doing it.  My intent in this post is to give you an understanding of where folks get into trouble regarding their purchases, so that you can avoid making the same mistakes.  Here is what you have to understand about cruise ship art auctions:


1.  Arrive early.  Showing up the minute the auction starts puts you at a disadvantage.  The auction preview and the first ten minutes of the auction are important.  The preview gives you time to look closely at the art and ask questions of the auctioneer and the art associates.   You won't be able to ask questions during the auction.  If you are not satisfied with the answers you get or the attitude of the auctioneers, then don't buy anything.  If an individual who is trying to get your money is rude and pushy BEFORE they get your money, how do you think they will act AFTER they get your money?  If you are happy with what you learn at the preview, you can feel comfortable bidding at the auction.  The first ten minutes of the auction is when the terms and conditions of the auction sale will be explained.  Don't be late, and pay attention.  


Continue Reading: How To Bid At A Cruise Ship Art Auction

How To Bid At A Cruise Ship Art Auction

Continued From Cruise Ship Art Auctions


2.  Know what's included in your purchase.  Does it come with a frame?  Will it be shipped, or do you have to carry it off the ship?  Is there sales tax?  What about Customs charges?  When can you expect delivery?


3.  When in doubt, don't bid.  Remember, this is an auction.  You are under no compulsion to bid.  Artworks have a minimum price, but no maximum price.  Prices go up as the bidding progresses.  A bid is a legal commitment to buy.  If you overbid for an item, you have only yourself to blame.


4.  Understand the difference between hammer price and final price.  Hammer price is the highest bid; it is the last price offered before the auctioneer declares an item sold.  If you bid $300 for a work and the auctioneer said "sold", that would be the hammer price.  It is commonplace for auctioneers to add a surcharge called a "buyer’s premium" of 10 to 20 percent of the hammer price.  Buyer’s Premium was instituted by the major New York and London art auction houses a couple of decades ago and is now in almost general use at all types of auctions.  If the buyer’s premium was 15% and the hammer price was $300, the buyer’s premium would be $45.  If you will not carry your items off the ship with you, then a shipping charge will be added; sometimes, there may be handling fees or insurance charges.  If you  live in the state where the auction house has a facility, there may be sales tax as well.  Your formula for figuring final price in this instance is: hammer price + buyer’s premium + sales tax + shipping & handling + insurance = final price.  Bid accordingly.


5.  Understand what an appraisal is (and isn't).  Typically, Certificates of Appraisal are offered with the artwork you buy a cruise ship.  There is a charge for this service.  Sometimes, a bidder gets carried away in the moment and bids more than they had planned.  This happens so often at all types of auctions that there is a name for it:  auction fever.  These folks get home, get their bills from the cruise, and get a bad case of buyer’s remorse.  When the art arrives, they take it down to their local gallery or auction house to get an "appraisal".  The buyer wants to find out if they got a good deal or not.  Nine times out of ten, the buyer will be told that the appraisal that came with the artwork is too high.  Why is this?  Two reasons.  


Final Reading:  Cruise Ship Art Prices


Cruise Ship Art Prices

Continued From:  How To Bid At A Cruise Ship Art Auction

 

First, it's important to realize that all items -including art work- have more than one value.  An artwork can hang in a gallery and be priced at $1,000.  Then the gallery goes bankrupt and has a liquidation sale.  The $1,000 artwork sells for $150.  Retail value, liquidation value.  There is also insurance value, gift tax value, auction value, fair market value, and cash value.  The highest appraised value for anything is insurance value.  Cruise ship art appraisals are based on insurance value, and this is stated clearly in the terms and conditions at the beginning of the auction.  If an item is being insured, you have to have enough coverage.  The lowest is liquidation value, sometimes called auction value.  If you took your artwork to an auctioneer for his opinion, which value do you think he will give?  Auction value, of course.  And the owner at the retail art gallery?  Retail value.  Same item; six different values.  


Secondly, appraisal is a research job.  An appraiser must support his conclusions with evidence, not just opinions. The appraisals offered with cruise ship art are backed by data from hundreds of weekly auctions and gallery sales. Appraisals just backed up by an individual's opinion are thrown out of tax court every day, regardless of the credentials of the evaluator.  Have you ever seen Antiques Roadshow?  When stating a value, the Roadshow experts always say something like "I believe this item could bring $XXX at auction": auction value.  A thorough appraisal can take days.  Don't expect that an off-the-cuff opinion by your local gallery owner or auctioneer qualifies as an appraisal.  


Cruise ship art auctions are fun, and the art purchased on a cruise can give you pleasure every day that it hangs on your wall.  Don't let naysayers keep you away from what could be a wonderful experience on your cruise.


Read the Previous Posts:

Cruise Ship Art Auctions
How to Bid At A Cruise Ship Art Auction