May 28, 2007

Auctions

Contractors turning to e-bidding for equipment

Ritchie Bros. Auctioneers

Aerial view of the Ritchie Bros. Auctioneers Singapore auction site. The auction was held on May 7th of this year and attracted more than 350 registered bidders from 40 countries.

Jean Sorensen

correspondent

VANCOUVER

Approximately one in four equipment buyers, hard-pressed for time, are turning to e-bidding to find that piece of equipment sold at auction. Not just e-mailing a bid, but participating in real time at an auction that can be viewed – like a window to the world – via a computer terminal.

“Without a doubt, our database (of registered e-bidders) has grown,” says Kevin Tink of Ritchie Bros. Auctioneers, headquartered in Richmond, B.C. and one of the world’s largest equipment auctioneers.

Ritchie Bros. offers real-time bidding through its 2002-initiated rbauctionBid-Live program. “We now have 61,000 registered users (in 150 countries). Users have gravitated towards it and towards the Internet,” says Tink.

While the number of Internet bidders varies at each auction for Ritchie Bros., but e-bidders represented approximately 24 per cent of registered bidders in 2006.

Figures in 2006, showed that 9,600 customers used rbauctionBid-Live to bid on and buy $440 million US worth of trucks, equipment and real estate. In total more than $1 billion US worth of equipment has been sold via Internet bidding since Ritchie Bros. started the process.

Tink says that e-bidding at auctions is not unique to Ritchie Bros., but the company has developed a system that virtually puts the user right in the midst of the action.

The system allows individuals access to a list of auctions internationally and a catalogue of equipment to be auctioned. There is a search tool that allows potential buyers to “drill down” and find that desired piece of equipment, says Tink. There is also information on sales at previous auctions to give buyers an idea of sales prices.

Ritchie Bros. Auctioneers

Pictured above is a Lima 550TC 60 ton truck crane on display at the Fredericton, New Brunswick auction site. The auction is scheduled for May 17, 2007.

A user can determine where a desired piece of equipment is located and then arrange to have an inspection done by an agent. If the equipment is satisfactory, the individual can register on-line to participate in the bid process. “When you register and log in for that particular auction, you will hear a live feed audio (of the bids),” says Tink, adding that if the e-bidder wants to participate, an offer is made by activating a bid button on the screen. The individual uses a mouse for the activation, which prevents accidental key slips. Those contractors who can’t stay around the terminal for extended periods can go to a “view” button and see what equipment is up and determine how far downstream the desired item is.

Once the contractor has sent in the bid, it is relayed to a number of computer centres operators who quickly relay the bid verbally to the auctioneer via a speaker. The auctioneer is listening to bids from the floor and from the speakers beside him.

“The auctioneer is kept busy – in addition to 3,000- 4,000 people attending an auction – he may have 500 to 800 registered on the Internet. It is pretty active,” Tink says.

If the Internet bidder is successful, the auctioneer will announce that the item “sold to the Internet”, says Tink. The Internet staff relaying bids will relay the five-digit identification number and the area to the auctioneer, who then re-affirms the Internet bid, ID number and area (Alberta, Saudi Arabia, B.C. or other international area).

Tink says that there are checks built into the system to ensure that a bidder is genuine and has the financial resources to bid. This occurs during the registration process.

Not only are contractors busier these days, but he points out that some may also use the Internet system because there is only one or two pieces of equipment that they are interested in and do not want to expend the travel costs in visiting the site.

Will there ever come a day when companies like Ritchie Bros. simply receive all their offers by live e-bids? “That is something that has been talked about,” says Tink, who believes the e-bidding will continue.

But, he says, there is still that segment of the market that enjoys going to the site, kicking tires, and “networking” with friends and associates.

Anyone wanting to see how the live-auction can gain access to the Ritchie Bros. site during a scheduled event by going onto the company site. Visit:www.rbauction.com .

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