Easy sell

From garage doors to desks to ‘dozers, GovDeals makes unloading surplus property a snap

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By Terry Bazzoon
GovDeals

Online auctions have changed the way local governments handle surplus vehicles, equipment and other assets. In the past, governments would accumulate property and equipment such as retired law enforcement and utility vehicles, computers, heavy equipment, seized and confiscated property and other assets, and later hold an auction on some regular basis or perhaps sell via sealed bid.

These methods were necessary primarily because local auctioneers did not want to conduct an auction until enough items were accumulated to make it worth their while to conduct a sale.

Unfortunately that delay has a negative effect on the value of property due to depreciation, deterioration, weathering and pilferage, and it also requires significant storage space to accumulate assets. Local auctions were not well attended, and the values achieved reflect that fact.

This model of managing assets is not designed with the needs of the local government in mind. Ideally, governments would use an asset until it reaches the end of its useful life and then sell it for the highest possible price at the lowest cost to the government. The asset would also be sold in place without costs for moving or storage, and the transaction would be dependent upon the buyer paying quickly with certified funds and picking the asset up at their expense.

The old accumulate and auction model is history. The Internet has helped to bring county government surplus auctions into the 21st century.

GovDeals pioneered online auction services focused solely on governments more than six years ago. In North Carolina, GovDeals is used by more than 170 different governments and agencies, including 40 different counties, numerous cities, utility districts, school systems, law enforcement and other governmental agencies. The NCACC, N.C. League of Municipalities and N.C. School Boards Association all endorse GovDeals.

The way GovDeals works is quite simple. GovDeals provides a framework within which a government client can list assets for sale, including descriptions, photographs and other details necessary to communicate the particulars of the asset to potential buyers. Property can be sold year-round, thus eliminating storage issues and the cumulative depreciation of assets.

Items such as Ford Crown Victorias sell in as little as five to seven days, while assets such as heavy equipment will typically sell in 14 days. More specialized assets might require a 30-day auction to allow targeted marketing time to attract bidders.

GovDeals provides a large database of pre-screened and qualified bidders, as well as support in the form of asset valuation, marketing, advertising, public relations, training and ongoing technical expertise. All support functions are provided at no charge, and sellers are charged one flat fee of 7.5 percent. Typically, sellers pay 10 percent (or more) in commission and/or a 10 percent buyer’s premium at a local auction.

GovDeals will consult with sellers on how long to list an asset, if and when to use a reserve bid strategy, and other auction details. GovDeals employees include professionals with backgrounds as varied as former government employees, purchasing professionals, sales and marketing professionals, technology professionals, and a licensed auctioneer and appraiser.

Terry Bazzoon is a licensed auctioneer and appraiser and has more than 20 years experience in strategic marketing and auction marketing. He can be reached at (865) 406-3783 or tbazzoon@govdeals.com.