How Does the Auction Process Work?
Below are the general operating procedures followed by many affiliates, however, it is important to recognize that affiliates are independent businesses whose practices may vary.
- Initial Contact with Affiliate – The seller provides the affiliate with information on the asset(s) they have to sell.
- Consignment Agreement – After the terms of the sale are negotiated, the affiliate is responsible for drawing up a consignment agreement that details all relevant issues and expectations of the sale. Both parties sign the agreement.
- Asset Descriptions & Pictures – This is the most crucial step of any auction. The quality and reliability of an asset’s description and pictures directly impacts the final bid price and ultimately the successful sale of the asset(s). Sellers provide the affiliate with detailed information about their asset(s); the affiliate translates this information into an item description specific to that asset. The affiliate also photographs the asset ensuring the photos accurately depict the asset.
- Important Note: Full disclosure is a fundamental requirement for every asset listed on Equip-Bid.com. Item descriptions and pictures are assumed to be complete and accurate. Bidders are not penalized for not honoring bids for assets with item descriptions that failed to disclose information material to the asset’s value.
- Auction Published - Once an auction goes “live”, the affiliate is responsible for fielding all questions relating to the auction. The affiliate will hold an inspection for the auction, allowing interested bidders an opportunity to see, touch, and ask questions about the assets being sold.
- Auction Closes - After the auction closes, auction invoices appear on the dashboard of winning bidders.
- Removal Day – The affiliate is responsible for managing all aspects of the auction removal, from ensuring invoice and payment accuracy to dispensing assets to the winning bidder.
- Settlements and Sales Taxes – Two weeks after the auction closes, the affiliate provides the seller with a detailed settlement sheet and payment for the assets sold on the auction (final bid prices less any commission and fees detailed in the consignment agreement). The affiliate is responsible for submitting the sales taxes collected for the auction to the appropriate state agency.
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