Note to Affiliates:
As you know, K-BID has been spending a lot of time assessing and addressing detailed performance data. The goal of these efforts is to ensure the website and the affiliate network are in the best position possible for continued growth and success.
While K-BID appeals to a broad range of bidders, interested in a broad range of asset types, there are markets where our presence isn’t as strong as we’d like it to be. One of those markets is assets with auction value above $25,000. We recognize the 10% buyer’s premium has been a stumbling block for those affiliates operating in, or attempting to break into, markets such as ag and big iron, major commercial and industrial equipment, high value vehicles/boats, etc. To facilitate growth and lower the consignment barrier for affiliates interested in selling high value assets, K-BID will begin capping buyer’s premium for individual lots at $2,500, effective 1/1/17.
Suggestions and need to know details
- The cap goes into effect for auction lots closing on or after January 1, 2017.
- The cap will be programmed into the software. Winning bidder invoices will reflect a 10% BP for lots selling under $25,000, and a $2,500 BP for each lot selling at or above $25,000.
- K-BID will notify (and continue to remind) bidders of the $2,500 BP lot cap beginning 1/1/17.
- Affiliates marketing to sellers with high value assets, will want to include the $2,500 BP cap in their marketing materials. Sellers, especially first timers, may not make the connection between the BP cap and the probability of higher bid prices. It’s worth taking the time to educate sellers about bidder sensitivity to BP percentage on high value lots.
- Affiliates are encouraged to include information about the BP cap in lot descriptions for assets with auction values above $25,000.
We believe this move has the potential to be a game changer for affiliates interested in high value asset consignments. However, it’s important to point out….an increase in consignment opportunities for high value assets is only great if the items sell. If K-BID has a high number of ‘Reserve Not Mets’ in this asset market, we’ll lose our relevance and any chance of selling high value assets for real (motivated) sellers. Be sure to know the auction value of every asset requiring a reserve, before agreeing to take the consignment. If a seller isn’t willing to set a reasonable reserve (50% - 60% of asset auction value), the affiliate will be time and money ahead by refusing to sell the item.
Chris (firstname.lastname@example.org) has put together a terrific sales and marketing packet affiliates are welcome to use and customize for meetings with potential sellers. Please contact Chris with marketing questions and/or assistance in developing a marketing plan to meet your needs.
If there are any questions, please let us know!
Becky Farniok Chris Schwartz