The Colorado Auctioneer Newsletter 1st Quarter 2022

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AUCTIONEER

thecoloradoauctioneer www.coloradoauctioneers.org FIRST QUARTER • 2022
QUARTER • 2022 The Quarterly Newsletter of the
Auctioneers Association
the COLORADO
FIRST
Colorado

Identify Yourself as a CAA Member

Demonstrate to your Buyers and Sellers that you are a proud member of the Colorado Auctioneers Association. Use the CAA logo in all your ads, on your business cards, on your stationery and on your website.

If you’re not using it, we strongly urge you to proudly display the official CAA logo. We have 2 styles / size / shapes that can be used.

The logo can be downloaded from our group, Colorado Auctioneers Association (CAA) Members Only on Facebook (https://www.facebook.com/ groups/59956710490/files/) or contact our Executive Secretary, Cissy at admin@coauctioneers.com

BOARD OF DIRECTORS

Chairman Of The Board Shawn Hagler 34911 N 7th Ave • Phoenix, AZ 85086 303-709-3725 • auctioneer@shawnhagler.com

President Dean Gunter Mile High Car Company 1480 Ainsworth St • Colorado Springs, CO 80915 719-650-8184 • deangunter21@gmail.com

1st Vice President Mike Whitfield Peak Auto Auctions 5126 Brighton Blvd • Denver, CO 80216 719-238-8300 • whit@peakautoauctions.com

2nd Vice President Harold Unrein 15333 CR 16.5 • Atwood, CO 80722 970-520-5257 • haroldauctioneer@gmail.com

Treasurer / Director Marissa Walters (2022-2023) Wild Hair Auctions and Events 5321 E Colorado Ave • Denver, CO 80222 720-984-4252 • marissa.v.walters@gmail.com

Halie Behr (2020-2022) Halie Behr, Fundaneer 17482 Bluetrail Ave • Parker, CO 80134 303-906-0708 • halie@haliebehr.com

Casey Giddings, CAI (2018-2022) Rocky Mtn Estate Brokers 24 Oak Ave. • Eaton, CO 80615 970-454-1010 • casey@whitleyauction.com

Edith Parrish-Kohler (2020-2022) Colorado Premier Realty & Auction Services 10162 Dresden St Firestone, CO 80504 303-565-0509 • e.parrishkohler@gmail.com

John Schaffner (2022-2023) Schaffner Auctions 36470 CR Z • Wray, CO 80758 970-630-3402 • jschaffner51@yahoo.com

Craig Weichel (2020-2022) PO Box 623 Weldona, CO 80653 970-302-0018 • craigrweichel@gmail.com

David Whitley (2019 - 2023) Rocky Mountain Estate Brokers 24 Oak Ave. • Eaton, CO 80615 970-539-1269 • david@whitleyauction.com

Cissy Tabor • Executive Secretary 303-729-1195 • admin@coauctioneers.com

thecoloradoauctioneer www.coloradoauctioneers.org FIRST QUARTER • 2022 2
CAA PARTNERSHIP PROGRAM OFFICEDEPOT - Store Purchasing Card. CAA Members can use their discount in store or online. www.officedepot.com Discount Code: 80131391907 RENAISSANCE DENVER STAPLETON HOTEL - CAA Corporate Rate $149.00 per night. (303) 399-7500

From The President

2022: Building our Association

Iwould encourage all auctioneers to get involved in your state association. This year we offered a tremendous amount of training and educational opportunities at our annual convention. When we gather together, we see auctioneers not only receiving encouragement from their peers, but we also see them soaking up training from the best in the business.

George Michak offered several sessions on contracts and digging deep. These sessions were rich with information and had great interaction.

Jay Cash, from Tennessee, delivered a fun and action packed session called, “The Relentless Auctioneer.” He followed the next day with another incredible session titled, “Becoming a Monster Producer.”

Next up on the block at convention was John Nicholls from Virginia. His first session talked about building a championship team and being a good team member. His second session was titled, “Preaching the Real Estate Auction Gospel.” He gave absolutely valuepacked presentations, displaying why he is a true NAA Pro, Past President and IAC Champion.

Scott Goodhue and Shawn Hagler got down and gritty with their presentation on auction team bid calling followed by one-on-one big calling sessions that continued throughout the weekend. These gentlemen are not only champions, but true professionals.

Angie Meier and Shawn Hagler teamed up for a session titled, “Effective Communication Building an Auction Team.” Their focus, knowledge, and experience as professional auctioneers were apparent as they taught key points about the relationship between the auctioneer and the ringman.

David Whitley and Casey Giddings absolutely brought to life the value of online auctions in their session, titled, “Getting Started with Online Auctions; Better Known as a Computer Can Never Do My Job.”

Andrew Newland brought knowledge and humor with his informative and interactive session, “Facebook 2.0.” He had many good points and attendees walked

www.coloradoauctioneers.org

away more armed with information about social media and SEOs.

If you are getting the idea that this year was packed with valuable training and education, you are right!

● Colorado State Auctioneer Championship

● Novice Bid Calling Championship

● Junior Bid Calling Championship

● Auction Team Championship

● Ringman Championship

● Marketing and Photo Contest

● Hall of Fame Dinner

● Kids Auction

We will build our association through interactive, oneon-one, personal and powerful networking. We are a family and in the midst of a changing and challenging world, we need each other. We have to evaluate how we, you, and myself, are building unity within our family that binds us together.

When do we have unity?

● When we have humility - the opposite of pride and arrogance that exist in our character.

● When we have patience - understanding the lives of those around us, within our auction family. We have to see the hurts and compassionately reach out in help to those in our family.

● We have love for one another - that means forgiving when we are wronged, and when we have wronged others, forgive and say, “I’m sorry.”

● When we show tolerance for one another - we may find ourselves in the same arena someday.

● When we serve one another - seeking the good of the other auctioneer, bid caller, clerk, ringman, the list goes on. Press on for the good of others, not just ourselves.

Semper Fi,

Dean Gunter, President Colorado Auctioneers Association

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Foundation

Colorado Auctioneers Foundation recognizes years of service by Doug Carpenter.

Doug Carpenter had a vision along with OJ Pratt and Walt Partridge of establishing a Foundation for the Colorado Auctioneers Association to provide a non-profit status to receive donations and build an education fund for scholarship reecipient. The Colorado Auctioneers Foundation (CAF) is a 501(c)3 and not only has the capability to receive donations, receive donations to honor members that have passed, such as one of our CAA Founding Members, Art Parker, but also provides the capability of raffles / sweepstakes as they have previously hosted to help raise money to benefit CAA Members and their families.

In addition, they added a level of fun, fundraising and entertainment to our annual conventions by sponsoring the Kids Auction that has kicked off our evening events since 2017!

The Foundation was established and came to fruition in 2015, but began long before that with hard work, obtaining an attorney to assist in writing the bylaws and in setting up the vision for the foundation. The Foundation even has its own designated page on the CAA website to share their purpose, provide a “landing page” for them along with sharing information about their hosted events and scholarship opportunities.

Doug has served since its inception and chose to “retire” from the CAF Board at this time to give other members of the Colorado Auctioneers Association an opportunity to serve. ALL current, active members of the CAA are a member of the Colorado Auctioneers Foundation and have the opportunity to serve on the board, a committee or be a volunteer at the Mile High Auctioneer Open.

As many of us know, it takes time, hard work and dedication to serve and not only has Doug served since its inception, but also has served on the CAA Board and as a CAA President. So, with that being said.....

thecoloradoauctioneer www.coloradoauctioneers.org FIRST QUARTER • 2022 4
you for your
Thank
service Doug!

I found the auction industry in 2017 thru an event I was planning at my kids' school. I was hooked when I hired Libby Pollack and watched her work her magic at our live auction. I have a long history of volunteerism with non-profits and schools and realized that I could combine that passion with my outgoing personality and significantly impact organizations by being a benefit auctioneer. I asked Libby if she would be my mentor, so we began a friendship and partnership that endures today.

I graduated from auction school in 2019 and was even more in love with the auction method of marketing because of the infectious teachings of the auctioneers who came to share their experiences and life's work with us. I was ready to find my place in this industry. I began working at Colorado Premier Realty and Auction Services once a week at their weekly Tuesday auction and attended as many galas as I could to hone my presence and learn from others.

I realized the importance of joining a professional trade organization for continued education, connections, and growth, so I attended my first CAA convention in 2020. I was blown away by the sense of family when I walked in the door. My original intent when joining the industry was benefit auctions, but my eyes were opened even more that week to all of the unique opportunities in this industry. I made friends and new connections and left feeling optimistic about my future. Then March 2020 happened. It slowed the growth of my business, but I had the privilege to help other auctioneers over the next two years, thanks to the connections I made thru the CAA. And the benefits did not stop there. As the world has opened up, I began to build my business on my own and benefitted from referrals from other CAA members.

I was reluctant to attend the yearly convention this year because I had too much on my plate. I made the lastminute decision to attend, and I am glad I did. I reconnected with old friends and learned some interesting things from the speakers. I was honored when I was approached to join the board. I was shocked and excited that the board and other members thought I could positively impact our organization. I see great things ahead for the CAA. I am looking forward to the next year and promoting our organization and the industry as a whole.

I was asked why I was interested in being on the board of directors of CAA again. Afterall, I had been elected to the board several years ago and had worked my way up the line and served as Vice President in 2013. In that capacity, I coordinated the 2014 CAA Convention and served as President that year. When that term was completed followed by 1-year as Chairman of the Board, I was re-elected to another two-year term as a Director.

So, why would I even consider running for another term at this year’s convention? I like being involved and I owe a lot to the CAA. I may not be as successful, money-wise as others in the auction business, but I don’t always count success in term of dollars. I would not be where I am in the auction business if it were not for the CAA. I enjoy helping others, whether they be my auction customers or other auctioneers getting started in the business.

I feel that by being on the CAA Board of Directors I am, in a small way, paying back for what CAA has done for me. I believe that in this capacity I can be welcoming and encouraging to new auctioneers the same way that I was treated when I joined the Colorado Auctioneers Association so many years ago that I can’t even remember what year it was. I believe the CAA needs to continue as a strong organization, and that can only be done by those new auctioneers coming into the association.

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thecoloradoauctioneer
FIRST QUARTER • 2022
John Schaffner
5
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Legislation

PLEASE BRING YOUR MASK (Be Prepared)

• Meet & Greet w/ Tanya Van Beber

• Tony Wisely, 2022 Colorado Auctioneer Champion, will auction a flag to the attending members of the House of Representatives assisted by Colorado Ringman Champions and attendees.

• The Colorado Auctioneers Association will be recognized on the floor to the House of Representatives

• Attending members will assist Tony, providing Ringmen services for the flag that will be auctioned.

CAA Members, Family & Friends gather together to represent the Colorado Auctioneers Association in recognition of National Auctioneers Week.
PLEASE
US AND MAKE THIS YEAR THE LARGEST ATTENDANCE YET!! RSVP
- Legislative Chairman,
JOIN
Questions
Craig Weichel @ (970) 302-0018

Hackers Using Facebook Quizzes to Harvest Personal Data

Want to know what you spirit animal is?

So do hackers, apparently. WFLA.com reports that hackers have been using seemingly harmless Facebook questionnaires to harvest data about you and your preferences.

According to Sri Sridharan of the Florida Center for Cybersecurity, “you never know who’s really asking you for that information.” He doesn’t recommend you take those quizzes unless you can identify the source and know that they’ll protect your data.

To prevent your private information from becoming compromised while you try to discover which Beatle you are, the Florida Center for Cybersecurity recommends a few precautions.

First, hover over a link before you click it, so that you can see where you’re being directed. Better yet, use a link scanner.

Next, don’t treat your personal e-mail or login information any differently than you would your money. In the case of identity theft, the two are often one and the same.

And for the love of “Which Celebrity Dog Are You,” don’t just pony up your information when an anonymous source asks for it. Report it and move on.

Sorry, grandma. Looks like you’ll never find out what sort of Christmas cookie I am.

Chaplain’s Corner

Wow!!! The year 2022 just started, so it seems, and already the first three months are behind us. That reminds me of the story I heard about two bullfrogs sitting, late one evening, at the edge of a pond. The night air was hot and the flies were abundant. The bullfrogs were enjoying their feast of flies when one of them commented that it was already well past midnight already. The other frog replied, “WOW. Time sure is fun when you’re having flies.” But, I digress.

Time is moving fast, but I have enjoyed the first three months of 2022 for the most part. Like all auctioneers, I enjoy the auction business for the most part, especially on AUCTION DAY. Our little country auctions in a rural setting are as much social events as they are auctions. One of the best parts of the auction business is that, if handled right, it is actually an auction SERVICE. I enjoy being of service to my customers. Auctioneers are masters at helping others solve their problems of how to dispose of their personal and real property in a fair and timely manner. We are also counselors and sympathy givers on many occasions. Personal administrators of estates often need advice as well as a shoulder to cry on when they have lost a loved one. Even when there is no estate involved, our clients often need to work with someone who cares about their feelings.

I am reminded of an auction that was referred to me many years ago in another state when I was a young inexperienced auctioneer. The auctioneer who referred it to me didn’t want to mess with it. The seller was a little bit mentally challenged and was known in the area as one of those people who liked collecting things at auctions that no one else would bid on. I didn’t have to do much auction set-up because most of his merchandise was already in piles in his back yard where he had unloaded them from the many auctions he had attended. A few days before the auction I began to have remorse for ever taking on such a challenge. A friend of mine told me to remember Philippians 4:13 that says, “I can do all things through Christ who strengthens me.” That verse gave me the courage to handle that auction the best it could be handled. I think the only thing I gained was experience. However, when I handed the man his check he said, “Now I can go buy groceries.” That is the part of the auction service that makes it worthwhile. I hope you all feel the same.

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Several important changes to federal and state employment laws have occurred over the past few months.

The Ban on Arbitration Act amends federal law to prohibit mandatory arbitration of certain employmentrelated claims. In Colorado, the Legislature amended the noncompete statute to impose criminal penalties against employers who violate the law.

The Ban on Arbitration Act prevents employers from implementing and enforcing mandatory pre-dispute arbitration or joint-action agreements for claims involving allegations of sexual harassment or sexual assault.

Prior to the act, employers often required new hires to sign such agreements, which provided that any or certain claims employees might later bring against the employers would be subject to arbitration rather than litigation in federal or state courts.

The act states that at the election of the individual alleging sexual harassment or assault, any pre-dispute arbitration agreement or pre-dispute joint-action waiver — agreements foregoing employees’ ability to participate in a class action or joint action against their employers — is unenforceable. An employee may choose to proceed through arbitration or court at their sole discretion when their claims relate to sexual harassment or sexual assault.

For now, the act only applies to pre-dispute agreements pertaining to claims related to sexual harassment or sexual assault. However, additional categories of employment-related claims could be subject to future legislation. Further, the act applies to any disputes “related to” sexual harassment or sexual assault. This means the act could encompass cases involving other types of alleged discrimination or harassment, but which also contain allegations of sexual harassment or assault.

Employers are still permitted to enter into arbitration agreements or joint-action waivers with employees after the dispute related to sexual harassment or assault arises or accrues. Whether a dispute is subject to the act is determinable only by a court of law, not an arbitrator. Employers should amend existing pre-dispute

arbitration agreements to exclude mandatory arbitration over matters involving sexual harassment or assault.

A Colorado law states that, generally, any agreement preventing employees from obtaining subsequent employment is void and unenforceable. This includes noncompete and nonsolicitation agreements subject to four enumerated exceptions.

The Colorado Legislature recently amended the law to provide that a person who violates the law commits a class 2 misdemeanor punishable by up to 120 days in jail, a fine up to $750 or both. As such, implementation of an agreement that violates this statute is a crime.

While such criminal penalties are not new, the Legislature’s decision to amend the statute to provide for such penalties directly in the noncompete statute signals the Legislature’s desire to find ways to deter employers from using such agreements — and potentially signals changes in enforcement of such penalties.

Noncompete and nonsolicitation agreements are often subject to intense factual analysis before a court or arbitrator. Such agreements may only be enforced if one of the four exceptions of the statute applies and where the restrictions are reasonable. Whether the agreement is reasonable depends on many factors, including the temporal and geographic scope of the restrictions.

It remains unclear whether or not the criminal penalties are triggered at the time the employee signs an unenforceable agreement or the employer attempts to enforce the void agreement. Either way, employers should review their existing agreements and carefully analyze their terms for compliance with the law.

This column is intended as general information and is not to be construed as legal advice. Those who need legal advice should consult a lawyer.

Michelle Ferguson and Jennifer Kinkade are employment law attorneys at Ireland Stapleton Pryor & Pascoe. They represent employers in all types of employment law matters. For more information, visit the website at www.irelandstapleton.com/practiceareas/employment

This column was provided by the Western Colorado Human Resource Association. For more information, log on to www.wchra.org

thecoloradoauctioneer www.coloradoauctioneers.org FIRST QUARTER • 2022 12
thecoloradoauctioneer www.coloradoauctioneers.org FIRST QUARTER • 2022 13 CAA Convention Thank you for your continued support of the Colorado Auctioneers A John Korrey

CAF Scholarships

Licensed in all 50 states Member, National Auctioneers Association B O N D S & I N S U R A N C E THE COVERAGE YOU NEED: w Liability Insurance w w Property Coverage w w Cyber Liability Coverage w w Consignment Property w w Errors and Omissions w w Employment Practices Liability w w Bonds to support your License w w Bankruptcy Court Auctioneer Bonds w We can place coverage in as little as 3 days 877-376-8676 Press 2 for Bonds or email bonds@ermunro.com Press 157 for Insurance or email gmagnus@ermunro.com WWW.ERMUNRO.COM
receiving on behalf of his
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As an auctioneer, you work long hours, spend time away from your family, learn the best marketing and advertising tools and invest in the latest auctioneer platform, all to build up your business.

Because you are a business owner, you become a target. The general public perceives most business owners to have an endless stream of money...and they want some of it.

So even if you do nothing wrong, you may be sued and you need to defend yourself. General Liability Insurance provides a defense.

Auctioneer Liability Insurance is built to safeguard your business. Liaability insurance protects your assets should you be held responsible for accidents, injuries or damage that occur during your auction. Insurance protects you even if you are falsely accused of misconduct. General liability insurace covers the fees occurred while defending yourself in court or if sued.

For example, there was an auctioneer who was holding a live estate auction off a busy highway. There was not enough parking on the property so the attendees parked along the road. Nearby was an intersection where a vehicle was pulling from a stop sign alleging, they could not see if it was clear to pull out because the parked vehicles blocked their view.

They pulled out from the stop sign into the intersection and collided with a motorcyclist. The motorcyclist was severely injured. Naturally they filed a lawsuit against the driver of the automobile. They did not stop there. They also filed a lawsuit against the auctioneer blaming him for setting up a hazardous condition by attendees parking on the road. The auctioneer never instructed the attendees to park their vehicles along the shoulder of the road.

Luckily the auctioneer had an insurance policy which to date has paid over $40,000 in attorneey fees to defend this case. A good attorney is not cheap. Can you afford a lawyer at $200 or $300 an hour? If not, you may want to consider protecting your small business with an insurance policy.

E. R. Munro and Company has been protecting small businesses since 1885. Our family-owned company has provided bonds and insurance for auctioneers for more than two decades. From commercial liability policies for one-person operations to complete insurance programs for companies, including property and automobiles.

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FIRST QUARTER • 2022 17
www.coloradoauctioneers.org
Can You Afford A Lawyer At $200 - $300 Per Hour?
and
Colorado Auctioneer Foundation Scholarships can be submitted throughout the year. Application can be found on website; www.coauctioneers.com/foundation Or contact Exec Secretary, Cissy Tabor, admin@coauctioneers.com
Submitted by E.R. Munro
Company

Kids Auction

A Big Shout Of Appreciation is sent to the Colorado Auctioneers Foundation in sponsoring the Annual Kids Fun Auction that has now become a tradition for kicking off the auction events at our annual convention.

We have watched our kids and grandkids grow in our auction family. It is evident through the years of pictures. The majority of bid callers for the first, twoyears for this event have grown, competed, won a Jr Bid Calling Championship or two, and even earned Reserve Championship Auctioneer Titles such as Shelby Shuman!

One thing for sure is the confidence in the children who have come up on the stage and auctioneered the donated toys is growing!

Throughout the years, we’ve enjoyed watching the grandkids of Walt Partridge, Dean Gunter and Sammmy Hamblen, along with seeing Scott & Krista Shuman and Rob & Liz Hart children have fun stepping on stage and selling!

Majority of the kids we have “hosted” during our Kids Auction event are almost grown and competing in other arenas / sports / cheer and even horseshoes at our annual Summer Picnic. Some have even grown, graduated from high school and onto college. Man, how time flies!

Of course, we missed seeing them as they grow and do hope that they will join us again in years to come, even if it’s to say “Hi” to the CAA Family and share with us their successes. Our dinner table and class sessions are always open to have them join us.

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Online Auctions: Adapting to Thrive with the E-Commerce Business Model

In our small town, Friday night at Eric’s Auction was an event. There, you could get your nicotine intake at no charge, experience the buzz of an auction taking place, and maybe pick up a deal or two to bring home. I worked at a furniture store and the owners would let us take any of the old pickups as a bonus, so we would take them to the auction house. Sometimes, the other delivery person and I would bet on who would get the price closest on the mattress, and the winner would take all of the proceeds.

So much has changed in the last 20 years. No more smoking in the auction house, and no more selling used mattresses. There were also changes on a larger scale related to regulations, competition and mergers. But by far, the biggest change to the auction industry has been the seismic shift from live auctions to online auctions. Auctioneers and buyers have both moved their auction experiences online.

E-commerce has taken over the way auctions are done, and the auction industry will never be the same. The e-commerce and online auction industry is expected to be a $739 billion market in 2022, with continued growth anticipated for the foreseeable future.

In 2018, UPS set out to invest $20 billion in their automated facilities, and looking back on the growth in e-commerce in 2020 (thanks to the accelerated growth due to the global pandemic), it’s easy to see that it paid off for them. They were years ahead of USPS exactly when they needed to be.

Rather than viewing the new business landscape as an insurmountable obstacle, successful auctioneers have seized the opportunity to adapt to the new e-commerce model to thrive.

In addition to offering auctioneers access to a bigger and better pool of buyers, online auctions offer more control for sellers, while allowing small auction houses to compete with much larger firms, including Facebook Marketplace, auction platforms, Amazon and other big e-commerce competitors.

But with a constantly evolving business model, it’s easy to fall behind on new software and technologies. For independent online auction houses, the business bottleneck has always been how to get sold items to distant buyers.

Auction buyers aren’t from your town anymore. They are across the country or even the world.

Having the pickup option seems harmless, doesn’t it? However, not only is it inconvenient for the buyer, especially if they have to pick it up from a few hours away, but your employee has to spend time waiting for the pickup to happen. Of auction house respondents, 87.5% said that a pickup can

take over five minutes, which costs approximately $1.25 per buyer for pickup. This doesn’t seem like much, but multiplied out over several sales and that labor adds up to a lot of lost expense. Shipping items can increase revenue up to $12 per sale and free up your employees.

Pick-up isn’t always an option, so how do you get their purchased items into their hands?

Clearly, shipping is the answer, but the solution isn’t as easy as it sounds.

After surveying auction houses that had started offering shipping, it was found that without marketing the option to ship items, 30% of buyers chose to have their items shipped instead of picking them up. Imagine what that percentage would turn into if shipping was advertised!

Auctioneers who deal with online sales agree that making their operations efficient (profitable) is a top priority. Auction items come and go even faster with online auctions. You have bids coming in from people all over the country and potentially the world; you have to keep up.

This goes hand in hand with adaptability - being able to conform to what is demanded in the moment. Starting in 2020, when COVID struck down most in-person events, auction houses had to adapt and become more friendly to online sales, or they were limiting themselves. This is when a lot of light bulbs turned on when it came to increasing the auctioneer’s market range. When change happens — and it always does — it’s easy to miss out on efficiency while trying to adjust to new growth.

The shipping process doesn’t need to be complicated. Between trying to ensure you have every label printed that you need, and having it coordinating with USPS, FedEx or UPS, there’s hardly any room for offering more sales. It takes time from what you love to do, diminishes potential revenue, and takes space in your auction house that could be used for bringing in different items to sell. Having logistics software to handle these things can save your auction house thousands of dollars and dozens of hours of work!

Even though the demand for shipping due to online auctions is rising, your stress level shouldn’t. It’s predicted that by 2024, 20% of all sales will be specifically from e-commerce, which takes a lot more adapting. Will your auction house be ready?

Paul Gibson is the president and founder of Shipping Saint, a webbased pack-and-ship logistics software company. With a background including accounting, business management, and organizational efficiency consultation, Gibson founded Shipping Saint in 2018 to meet the needs of the growing online auction industry.

thecoloradoauctioneer www.coloradoauctioneers.org FIRST QUARTER • 2022 20

Are your contracts and bidder terms and conditions still good?

John F. Kennedy said, “The only unchangeable certainty in life is that nothing is unchangeable or certain.” Just when we think we know how something is going to go, we are slammed in the face with something new we did not expect. Auctioneers, more than most anything else, are problem solvers. We are used to adapting to change, putting out fires and learning from our mistakes.

Many things have changed in our world over the last several years. We have been forced to deal with lockdowns that may come with short notice preventing us from conducting our business. We may experience illness among our staff or our sellers. We may now offer some type of internet bidding. These things create new sparks that can become raging fires for auctioneers to extinguish. They can create scenarios that result in auctioneers learning very expensive lessons. I will try to give you several things to consider to help keep these problems from emptying your wallet.

As a reminder, we have agreements with our clients (sellers) that outline the responsibilities and obligations of both parties. We also have agreements with our customers (bidders) that do the same. While not giving you specific language, I will give you points to consider or to discuss with your attorney so that both agreements cover much of what is currently happening in our world. Below are things to consider in your auction agreement with sellers. Watch for part two dealing with auction terms and bidder agreements.

• Who are the parties to the agreement and what are their addresses?

• What property is subject to this agreement and where is it located?

• What is the date of the agreement?

• On what date will the auction be conducted, or the agreement terminate?

• Where will the auction be conducted? If it will be conducted on seller’s property what access does he or she give you to accomplish the work?

• Does seller warrant they are the owner of the property and have the right to sell it?

• What happens if you cannot have an auction event due to a lockdown? Does that cancel the agreement, or do you work together to choose a new date?

• What happens if you or your staff or seller or seller’s staff contract COVID or another illness that prevents you from completing the

auction in the time you agreed to?

• If you must postpone/reschedule an auction, who pays for additional advertising?

• Do you have the authority to sell seller’s property through other methods than just an auction?

• Do you have a removal clause if seller removes items you believe were included in the auction? How do you get paid on those items?

• Do you advance labor or money to get seller’s items ready to sell? Do you advance other money to affect the auction? If so, how do you get paid? Does seller pay you before the auction or do you deduct these amounts from the proceeds of the sale? Is commission charged on the gross sales or net sales after these expenses?

• Will you conduct previews/open houses due to COVID? If so, how will they be managed to comply with any COVID requirements?

• If you conduct an auction load-out, how will it be managed to comply with any COVID requirements?

• Do you require seller to maintain insurance on the goods subject to the auction agreement?

• Who is liable for damages occurring from the auction event or anything having to do with its set-up or load-out? Does seller agree to hold you harmless and indemnify you against these damages?

• Who is paying for marketing? If seller is, how are you paid?

• Who is paying for the cost of any internet component?

• What happens if any internet component fails to work properly? Do you have the authority to change ending times, postpone or reschedule the sale? If this happens, who pays for any additional marketing?

• Do you accept absentee bids? If you do, what is your policy for implementing them?

• May the owners/employees of the auction company bid at the auction?

• Who does the personally identifiable information provided to you by the bidders belong to? Will you share that information with the seller?

• Does seller warrant that the items are free from any lien or encumbrance including liens from taxing authorities? Does the seller

thecoloradoauctioneer www.coloradoauctioneers.org FIRST QUARTER • 2022 22

give you the authority to pay any liens from the proceeds?

• In what order are you paid? Before or after lienholders?

• Do you have the authority to inspect title and ownership of the items? If the ownership of the items is unsatisfactory to you, what happens?

• May you add other merchandise to seller’s auction?

• How are you paid? Is it a percentage commission? Is it based on the gross proceeds of the sale of seller’s property or on some other figure? Is it a flat fee?

• Is a buyer’s premium charged and if so, does it become a part of the sale price or is it additional commission retained by you?

• What forms of payment will be accepted? If you accept checks, who is responsible for collecting bad checks?

• Are credit cards accepted and are any fees charged for accepting them? Who is responsible for money lost to credit card charge backs?

• Is sales tax required? If so, who will collect and remit it?

• When is an item actually sold under this agreement? When the auctioneers says “sold” or when payment is received and honored?

• What happens to items that are not paid for? Are they sold or do they remain the property of seller? Do you still have the right to sell these items?

• When will seller be paid? What reports will seller be given?

• Who is responsible for the cost of portable toilets if needed?

• Will there be a food vendor?

• Will seller provide water, sewer, heat, air conditioning, electricity, internet access or other things you may require at the auction location during set-up, preview, the event and load-out?

• Who is responsible for lost or stolen items?

• Who is responsible for items that may be regulated in some way or deemed hazardous waste?

• Who is responsible for “no-sale” items?

• Who pays for the cost of trash disposal?

• What condition will the property be left in?

• Do you have a “force majeure” clause? You should.

• If the auction is cancelled, do you get paid? If you do get paid, have you agreed to what that amount is in advance? How do you ensure you will get paid if a seller cancellation occurs?

• How is notice of a change to the agreement given? Must the notice be given in writing? Is email acceptable?

• Is your agreement binding upon and does it inure to the benefit of the parties themselves, as well as their respective representatives, successors, permitted assigns, heirs and estates?

• Does your agreement include a “merger clause” where all previous discussions and or agreements are void and the current agreement in hand is the entire agreement of the parties?

• Are electronic signatures allowed?

• If there is a disagreement between the parties in what jurisdiction will it be heard? What law applies?

• What happens if a court finds part of the agreement to be unenforceable?

• Do you prefer binding arbitration over going to court?

• Who pays for attorney fees in the event of a disagreement?

• Who pays for attorney fees to enforce the agreement or to prevent other parties from interfering with the agreement?

This is not a complete list. All these items may not apply to you.

Nothing in this article is or should be construed to be legal advice. Seek competent legal advice from someone licensed to practice law where you live.

Copyright © 2021 David P. Whitley All Rights Reserved.

www.coloradoauctioneers.org FIRST QUARTER • 2022
Don’t Forget To Renew Your CAA Membership!

AuctionCrew

was created by auction professionals for the auction industry. Everyday auction companies and auctioneers are working hard to book sales and keep their employees busy. The problem is you may be busy for two weeks straight and slow for the next two weeks. This kind of up and down work load makes it hard to keep a full time staff.

AuctionCrew helps you staff your auctions during the busy times by giving you the ability to find talented auction professionals on an as needed basis. AuctionCrew also gives auction professionals the ability to fill up their schedules with multiple companies so they can keep doing what they love.

AuctionCrew is a free service to the professionals in the auction industry. Help us make it great by telling your friends and colleagues about AuctionCrew. The larger it gets the more valuable a resource it becomes.

thecoloradoauctioneer www.coloradoauctioneers.org FIRST QUARTER • 2022 25
Congratulations

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Colorado Auctioneers Association

PO Box 1133 Rifle, CO 81650 (303) 729-1195 www.coauctioneers.com

2022 Industry Calendar

April 2022

CAA Day at the Capitol

April 25, 2022 Denver, CO

NAA Day on the Hill

April 26-27, 2022 Washington, D.C.

May 2022

National Auctioneers Week May 2 - 7, 2022

July 2022

NAA Conference & Show

July 26 - 30, 2022 San Diego, CA

Benefit Auction Summit

July 26 - 28, 2022 San Diego, CA

CAA Summer Picnic

August 2022

Midwest Auctioneers Championship

August 10, 2022 Tipton, MI

Battle of the Bluegrass

August 19 - 20, 2022 Lexington, KY (816) 226-5743

thecoloradoauctioneer www.coloradoauctioneers.org FIRST QUARTER • 2022
28
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