Online action making a dent in auction business
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Relating to the growing world of collector machinery items he sees a new segment of people, often older farmers and retired farmers wanting to add that special 40-year-old tractor that was a prime power when they were active, but smaller farmers. “Powerful memories with a guy with a hunk of disposable income is where the premium money is being paid for these tractors.” You would think the auction business was mostly seasonal, mostly because of weather and the “farming time” of farmers. That used to be the routine with little auction time during the St. Patrick’s Day to early fall period, then pick up until the end of the year and into March. But today auctions are a year-round event with timing sometime a factor. “We’re seeing more nice farm auctions close to the start of planting, especially if it’s good equipment. Also quite a few auction companies now have their own indoor facility so year-round auctions can work, regardless the challenges of the weather,” said Peterson, now 46 years old. Because he loves what he’s doing he ventured that hopefully 30 years from now he’d still be quoting farm equipment prices. He wants as much total information to validate values. Like even pricing a set of 18.4-38 duals priced at $1,200 he wants to know if its 60-percent tread or 80-percent tread. “As best we can, we want to place the buyer at the auction and that means all the detailed information we can give a potential buyer. And that’s really the fun of my work. We’re constantly digging for info.” Peterson can be contacted at (800) 381-0423, greg@machinerypete.com or log on to MachineryPete.com. ❖
THE LAND, MARCH 9, 2012
PETE, from pg. 6B information is very helpful. So I listened to my father and that was the start of compiling auction prices.” ... traditional auctions now bringing in online bidding ... That’s bringing a new level For the first five years Peterson had two part-time jobs to make this thing swing, of sophistication and competitive bidding but since 1995 this has been a full-time job into the auction world. and then some. — Greg Peterson Business has been good for Machinery Pete. His staff includes three people but he still keeps his finger on much of the auction pricing regardless the time frame. Like at 11 p.m., midnight or later he may ment, partly because it costs so much but also be scanning Facebook and drop in with a note “I just saw because most farmers now have quality shops and this John Deere 4020 sell for such and such. So quite sheds for the maintenance and storage of their often at midnight I’m doing some Facebook correspon- machinery. “The thing about a farmer selling his own equipding. It’s been part of my life for 22 years now. The fun I ment on his own farm is that you don’t have the have is interacting with people.” So is “retail auction” still the better way to sell dynamic of suddenly three or only two bidders at the used equipment versus private treaty? He talks end willing to be the last bidder,” Peterson said. Online and internet action is making a huge dent about the changing scenario of farm auctions today. “It’s much like the celebration of a life. Quite often in the auction business. we see tears at a farm auction, but tears of joy. A The price gap between traditional auctions and online good auctioneer can give that ‘forward lean’ to a sale; auctions is narrowing considerably, Peterson said. “As in essence he/she knows how to coax those extra dol- these websites become more savvy and work in more lars out of a given piece of equipment. video and pictures, they’re becoming a real growing “There aren’t as many auctions these days. So know marketplace in the machinery world. Buyer’s premium when a sale does show up with really good quality depends upon each online auction firm with lots of difequipment you get more people attending and ready to ferences from one to the next. Consistency is the key go. Then the ‘auction dynamic’ kicks in and we push to with these firms developing online auctions. these high prices, currently often record highs over any “But I’m also seeing traditional auctions now bringprevious sale for a particular piece of equipment.” ing in online bidding so besides your local bidders you Quality equipment that has been prepped for the might have bids from several different states. That’s sale is the real determiner of value. He thinks farm- bringing a new level of sophistication and competitive ers are in fact taking much better care of their equip- bidding into the auction world,” he said.
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