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COLORADO AUCTIONEER

First Quarter • 2015

The The Quarterly Quarterly Newsletter Newsletter of of the the Colorado Colorado Auctioneers Auctioneers Association Association

Wisdom of the Ages By The Manager’s Intelligence Report

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f you gathered 100 experienced managers together and asked for their advice, they probably wouldn’t say much about “competing value models” or “temporal rhythms.”

Steve Jobs

Instead, this is a good idea of what you’d hear: “Don’t be afraid of the phrase, ‘I don’t know.’” If you don’t know the answer, don’t try to bluff. If you’re at fault, take the blame. If you’re wrong, apologize. A wise person once said, “If you always tell the truth, you never have to remember anything.” “Never gossip.” And if someone wants to gossip with you, politely say you’re not interested. This corporate adage rings true: When someone gossips, two careers are hurt – the person being talked about and the person doing the talking. “No task is beneath you.” Don’t think you are above anything. Be the good example and pitch in – especially if the job is one that nobody wants to do. “Share the credit whenever possible.” Managers who spread credit around look much stronger than those who take all the credit themselves. “Ask for help.” If you think you’re in over your head, you are. Before it gets out of hand ask someone for help – most people enjoy giving a hand. Besides saving yourself from embarrassment, you’ll make a friend and an ally.

• Love What You Do • Distinguish Yourself • Don’t Dwell On Mistakes • Acknowledge People That Helped You Succeed

“When you don’t like someone, don’t let it show.” Especially, if you outrank them. Never burn bridges or offend others as you move ahead. “Let it go.” What shouldn’t happen often does: You weren’t given the project you wanted, you were passed over for the promotion you deserved. Be gracious and diplomatic…and move on. Harboring a grudge won’t advance your career. “When you’re right don’t gloat.” The only time you should ever use the phrase, “I told you so” is if someone says to you: “You were right. I really could succeed at that project.”

The Colorado Auctioneer is published by the Colorado Auctioneers Association, Inc. 1685 S. Colorado Blvd., Unit S-160 Denver, CO 80222 303-729-1195 The Colorado Auctioneer Newsletter is published quarterly, to serve as a communication tool between association meetings. Please contact: Cissy Tabor (970) 985-8228 • cissysauction@gmail.com

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Government

From the Desk of The President By O.J. Pratt, CAI

Time flies when you’re having fun. I am amazed that ½ of my year as president of the CAA has already passed. The board has been working on a number of projects to help plan the way for the CAA of the future. “News Flash” - Time passes very quickly and it is more difficult than you think to accomplish certain goals. In a board meeting earlier this year, David Whitley pointed out that when he became CAA president he was give great advice by some old timers, “Don’t mess things up!” We are very fortunate that those who started and maintained the CAA have given us a fantastic organization. In the final analysis, my goal is to leave the organization unharmed and headed in the right direction for the future. Your CAA board continually works to make our organization better. A first ever event occurred this year in that we were able to send 1st VP Butch Hagelstrom, 2nd VP Eric Arrington and our Administrator, Diana Raven, to the State Leadership Conference in Kansas City. The NAA has done a fantastic job of studying state organizations and providing detailed ideas for guiding and improving them. I’m thrilled that we were able to send all 3. This will absolutely improve our organization now and in the future. All our board members have been at work for the organization. A few have gone above and beyond the normal call of duty. Cissy Tabor is doing a fantastic job with our newsletter. We have not yet entered any contest but I am certain “award winning” will be tacked onto our newsletter header in the near future. Michael Nichols did a great job of setting up the Day At The Capitol. We now have a new representative friend in Jon Becker (District 65). Jon is a great fan of auctions (he claims that Chuck Miller gets a lot of his money!). I’m certain that our relationship with Jon will be a great benefit to the CAA in the future. Dean Gunter has been busy pursuing new members. Butch Hagelstrom is working diligently on the 2016 CAA convention. The convention will be at the same location, The Westin in Westminster. Butch has booked an all-star lineup of speakers for the 2016 convention…you won’t want to miss it. The calendar is a challenge for us this year as our convention will begin on January 1. We looked at adjusting to the next weekend and other dates. I won’t go into all the details but it just would not work to change from the first weekend. We can all gather to celebrate the new year with our fun auction. The National Auctioneers Association is a great resource for our group. If you are not an NAA member, I would strongly encourage you to join and consider attending the national convention in Addison, Texas July 14th to 18th. You will be impressed with the fantastic seminars, vendors and socializing. Several CAA members, including our current state champion, Doug Carpenter, are enrolled in the International competition. I’m sure they would welcome a cheering section! My last, and most significant, item regarding the NAA convention. Colorado’s representation on the NAA board has been stronger than (continued on page 3) 2

BOARD OF DIRECTORS PRESIDENT: O.J. Pratt, CAI Pacific Auction Companies 1330 Main Street • Longmont, CO 80501 303-772-7676 • Cell: 303-598-8585 ojpratt@pacificauction.com 1st VICE PRESIDENT: Butch Hagelstrom Buckhorn Auction Services P. O. Box 306 • Fort Lupton, CO 80621 303-827-5157 • buckhornauctions@earthlink.net 2nd VICE PRESIDENT: Eric Arrington The Auction Team 1610 Hwy. 505 • Grand Junction, CO 81503 970-245-1185 • Cell: 970-623-9161 • eric@theauctionteam.com CHAIRMAN OF THE BOARD: John Schaffner Schaffner Auctions 36470 CR Z • Wray, CO 80758 970-332-5196 • Cell: 970-630-3402 • jschaffner51@yahoo.com TREASURER/ DIRECTOR: Walt Partridge, BAS Partridge Auctions • 6577 N. Windfield Ave. Parker, CO 80134 • 303-840-7573 Cell 303-881-2632 • waltsells@hotmail.com Sean Allen 9920 City View Dr. • Morrison, CO 80465 303-888-2722 • seanallen79@gmail.com Dean Gunter Rocky Mtn. Auctioneers 1480 Ainsworth St. • Colorado Springs, CO 80915 719-570-7800 • Cell: 719-650-8184 • deangunter21@gmail.com Sammy Hamblen - Sammy Hamblen Auctioneers 15926 W. CR 86 • Pierce, CO 80650 970-834-9528 • Cell: 970-215-0157 • sammyhamblen@yahoo.com Josh Larson 310 N. Wayne • Haxton, CO 80731 970-520-2946 • jmlauction@gmail.com Michael Nichols - Odle-Cumberlin Auctioneers 22300 CR 9 • Flagler, CO 80815 719-350-0126 • mnichols96@esrta.com Emily Wears, BAS, ATS 1826 Mehaffey Bridge Rd NE • Solon, IA 52333 435 Wapiti Trail • Cheyenne, WY 82007 319-331-1888 • emily@wearsauctioneering.com Cissy Tabor - Auction Country, LLC 951 21 Rd, Unit B • Fruita, CO 81521 970-985-8228 • cissysauction@gmail.com David P. Whitley, CAI, CES, BAS - Rocky Mtn. Estate Brokers, Inc. 24 Oak Ave. • Eaton, CO 80615 970-454-1010 • Cell: 970-539-1269 • david@whitleyauction.com Diana Raven • Association Administrator 8757 W. Cornell Ave., #9 • Lakewood, CO 80227 720-242-7971 • Cell: 303-618-1162 • diana_rave@comcast.net

CAA Day at the Capitol By Michael Nichols, Legislative Chairman

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n April 10th 2015 members of CAA met at our State Capitol building in recognition of National Auctioneers Day. A meeting was scheduled to visit with Congressman Jon Becker, where we were able to discuss with him how our association, the only association representing professional auctioneers in the State of Colorado, could stay at the forefront of anything auction related and be alerted to any changes in law or statutes that may affect our various auctions. Shortly after our meeting with Congressman Becker, we made our way down to the State House Floor and were seated together as an association that was reserved by Mr. Becker on our behalf. After opening exercises on the floor, members of the house were able to do introductions of special guests. Congressmen Becker spoke for a moment about the Proclamation of National Auctioneers Day signed by the Governor honoring April 18, 2015, as National Auctioneers Day, and also about the auction profession in general in which he is an avid buyer and supporter of with a weakness for buying golf carts at auction. Becker was fined $2.00 for humorously announcing and acknowledging fellow CAA board members OJ Pratt, John Schaffner and Butch Hagelstrom as his uncle, brother and cousin. The members of the CAA stood and were recognized by an enthusiastic applause by the Members Of The House and other guests. A great suggestion was made by one of our members that next year to possibly auction one item on the house floor to show our state leaders a small piece of our profession and to quickly educate those who are not familiar with what we do as auctioneers. The proceeds from this item will be donated to a charity that is yet to be determined. Congressman Becker is excited about the idea and hopefully, next year he can make it possible.

Our members remained seated on the floor for approximately another 15 minutes and then exited the house chambers. I would like to thank Congressman Jon Becker for meeting, speaking with and introducing the CAA on the Floor of the House. He has stated that he looks forward to seeing us next year. There were 14 members in attendance at the 2015 Day at the Capitol event; CAA Chairman of the Board John Schaffner, President OJ Pratt, 1st V.P. Butch Hagelstrom, Treasurer Walt Partridge and Board members David Whitley, Dean Gunter, Josh Larson, Cissy Tabor, Emily Wears and Mike Nichols, including other CAA members Dianna Raven, Jennifer Clifford, Bryce Elemond and Aristotle Karas. I understand that with everyone’s busy schedule and travel it is difficult to attend some events, but I would like to thank all those that were able to attend and look forward to seeing an even bigger turn out in membership representation at 2016 Day at the Capitol. There was a Board of Directors meeting held shortly after our visit on the floor where ideas and plans were made for upcoming events for the remainder of the year and our 2016 convention.

From the President (continued from page 2)

any other state’s for several years. Longtime CAA member Paul Behr is the immediate past President. CAA members Scott Shuman and David Whitley are both current NAA directors. CAA member Rich Schur is running for a director’s position at this year’s convention. Our board has voted both to make a campaign contribution and provide a statement of endorsement for Rich. If you are an NAA member, Rich needs your vote! Not just your vote, but please consider actively campaigning for Rich with your friends in the NAA. Let’s work together to add Rich Schur to Colorado’s strong presence in the NAA. As always, I invite you to get involved in the CAA. Ask a friend to join. Attend the picnic in August. If you hire other auctioneers, request that they be CAA members. Our organization will be come stronger with every new member. The board welcomes any comments or suggestions as we work to continually improve the Colorado Auctioneers Association. O.J Pratt, CAI 2015 CAA President

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NAA

NAA Spotlight By Hannes Combest

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rarely try to “sell” NAA through the articles that I supply for the state newsletters. I know many of you are not NAA members but I also know that you read your state newsletter to get tips and techniques for how to make your business better. You probably aren’t really interested in why you should join or participate in another organization. But this issue is different. This issue I want to draw your attention to an event that will provide you lots of tips and techniques on making your business better. That’s the whole purpose of an event we hold annually – the International Auctioneers Conference and Show. This year, the event will be held in Addison, Texas – otherwise known as North Dallas. We begin on July 14 and run through July 18. Please put this on your calendar now! One of the biggest challenges we have is making sure that you can afford to go to conference. So I want to give you some tips on how to make this an affordable event. Buddy up with people and drive. Gas is still well below $3/ gallon – if you live within 500 miles, that means it would cost you less than $150 round trip – and if there are more than one of you, the cost goes down substantially! Don’t live close enough to drive? Check airline prices often. I always get an alert from Southwest on low prices every Tuesday. I’ve already made my flight reservations from Dallas and it costs less than $200. And I recently checked Uber prices from the airport to the Intercontinental – surprisingly inexpensive.

Check into one of the hotels near the Convention site – both of the Holiday Inns are less expensive than the Convention site and offer free Wi-Fi and free parking and even complimentary breakfasts. If you purchase a conference with meals package, your dinners are included. Which means all you have to pay for is lunch – and there are lots of fast food options around the Convention site. I realize that it is not an inexpensive endeavor for you. But I also know that you will have access to lots of education, the best vendor base in the country and hundreds of auction professionals eager to share their business with you. I believe the return on your investment will be great. And besides it is fun. Bring your boots and cowboy hats and your bling and plan to meet up with friends and enjoy some great Texas barbeque and Western music from the Grammy Award winning band, Asleep at the Wheel at the Opening Party. And bring your tablets, laptops and smartphones and get one-on-one training on the various features of these devises through our Technology Bar. There’s a lot more, but the best thing of all is that you will be investing in yourself – in your business. You will have at least one thing (and I bet much more) that you will take away from this event that will improve your business. And really that’s what it is all about, right? Improving your business. I hope to see you in Addison in July but if you can’t make it this year (I hope it is because you have an upcoming auction!), then put the dates down for next year – July 19 to 23, 2016 and plan to join us in Grand Rapids, MI. I am confident you will be glad you did!

Please join us for the 2015 Colorado Auctioneers Association Summer Picnic & Championship Horseshoes Contest! When: Tuesday, August 4, 2015 11:00 a.m. until “we’re done”! Where: Adams County Fairgrounds

9755 Henderson Road, Brighton, CO 80601

CAA provides all the eats & drinks! CAA Board members do all the work! You just come and bring your family for the food and fun! • Hamburgers, hot dogs, beans, potato salad, coleslaw, chips, & cookies • The Annual CAA Horseshoes Competition • Fishing (bring your own fishing gear; age 16 and over need a license!) • Playground for the kids • Lots of area to walk, run or ride bikes! • Covered pavilion • Nearby restrooms RSVP by Friday, July 24, 2015 please! Help us make sure we have enough “vittles” by contacting: Cissy Tabor at 970-985-8228 or cissysauction@gmail.com

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DIRECTIONS The Adams County Regional Park is located one mile west of U.S. 85 on 124th Avenue (124th turns into Henderson Road when it crosses the South Platte River.)

From Denver: Take I-25 North to I-76. Take I-76 to U.S. 85 and take U.S. 85 North to 124th. Turn west on 124th and go one mile to the entrance of the park. From Ft. Collins: Take I-25 South to Highway 7, take Highway 7 East to U.S. 85 in Brighton. Take U.S. 85 South to 124th. Turn West on 124th and go one mile to the entrance of the park. As you enter the Park, we’ll have a sign to direct you!

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2014 Speakers

The Folly of the Artificial Bidding Wind By Aaron Traffas, CAI, ATS, CES

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ou’ve just signed the contract for a large estate auction. The lead was given to you by your cousin in a neighboring town, who had a neighbor – your new seller – who was interviewing different auctioneers for the job. Your cousin, a long-time evangelist for your services, found out and basically sold the seller on your services before you got there. All you had to do was walk in and sign the deal. On the way to your car, your cousin sees that you’ve got your briefcase and a smile and comes over to congratulate you on booking the auction. He’s dismayed when he learns that he’ll be on vacation on the day that you’ve booked the event. “That’s too bad. I really wanted to bid on the collector car that I’ve been eyeing over the fence for the last few years. What do you say you let me place an absentee bid right here and right now on it?” What do you do? Do you say, “Sure! What’s the highest you’ll bid?” Do you say, “I’m sorry, but you can’t bid yet. I won’t let you tell me how much you’ll bid until a week before the auction.” There is a disturbing practice in the auction industry that I absolutely can’t wrap my head around. There are auctioneers who, when it comes to Internet auctions, choose the second of the two options in our scenario above. They won’t accept bids on items that are legally booked into an auction. I’m going to leave that period there to let this concept soak in. Historically, before the Internet, we might have a few absentee bids turned in by phone, on paper or in person by someone during an inspection, but we were pretty much limited to the bids we could find during a live auction. Before the Internet, I don’t know that I ever heard of someone turning down a paper bid because it wasn’t close enough to the auction. With the advent of Internet bidding, however, I’ve started to see auctioneers who will wait until a bidding catalog is complete before turning on bidding for any of the items. I’ve even seen auctioneers who will have a complete catalog advertised on the website for days or even weeks, waiting to turn on the bidding until a week or a few days before the auction. Because it builds excitement. No, it doesn’t. More on that fallacy later. As auctioneers, we have a fiduciary obligation to our sellers. Once we’ve signed the contract, it’s our job to take bids. That’s what we do. Our attitude should be one of desperation for any bid we can find – we should be looking in every nook and cranny, behind every door and under every rock, hoping to find a bid that we can gobble up in hopes to add to the running total that is the current bid for each and every item in our auctions. We shouldn’t care how or when a bid comes in, we should only be thankful that it came before we said sold. With that attitude in mind, once we book an auction that has Internet bidding in any form, it should be a race to get the items listed on our website. Popular financial talk show 6

Living the Dream 2014 Speakers

host Dave Ramsey uses the expression gazelle intense to describe the necessary urgency of getting out of debt. I submit that we should be gazelle intense about getting the items in our auctions up on the web so that we can begin taking bids as soon as humanly possible. Could there be a benefit to waiting on a catalog to cook before turning it on? Does it build excitement? No. It actively depresses bidding activity. Have you ever been excited to wait for something that you wanted? I buy a lot of things on the Internet, but I’m frugal about it. I’m an avid subscriber of Amazon Prime, and I frequent eBay and have a slew of browser plugins like PriceBlink that let me know for sure that I’m paying the lowest price for an item. The only thing that trumps price is time. I don’t like to spend a lot of time hunting for something. If I can perform an action and be done with the task of buying something, at least done enough to move on with my day, I’m going to opt for the fastest experience before necessarily the lowest price. What this means is that I want to do something right now, even if it means I’m not going to make the purchase right now. If I find a widget that I want on your auction site, and I can’t bid on it yet because the magic bidding window hasn’t arrived yet, am I going to be excited to come back? Nope. I’m going to go back to Google and click on the next link down. Only in the rare case that you’re selling something that is very hard to find will I create a reminder of some kind or remember to come back. And when I have to take that extra step and wait, I’m not going to be happy about it. My opinion of your company is not going to be favorable because you’ve hijacked my time, which is often more important than the lower price that I’ll get to pay because you didn’t take bids from everyone else who saw unavailable bidding and didn’t come back. Not allowing Internet bids until a certain date is like booking an auction but walking around with your fingers in your ears until a week before the event. Creating an artificial bidding window violates the trust of our sellers, depresses bidding activity and is deleterious to a passionate buying community that we should all be trying to build for our companies and the auction profession.

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Members

Richard Schur Running for Another Term By Rich Schur, CAI, BAS, CMEA, MPPA To my CAA friends: After much discussion with family, friends, and our company team, I have decided to run for another term as a Director of the National Auctioneers Association (NAA). My first 3-year term ended last July. I have not given up nor do I wish to stop serving. With your encouragement, I feel confident that another term on the Board is in my future. I am very grateful for the support and endorsement from the current CAA Board.

Convention News

We’re Half Way There 2016 Convention Sneak Peak

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he 2016 CAA Annual Convention is going to be here before we know it and we’ll all be asking ourselves, “Where did the time go?” By the we finally will get to see warmer and drier weather, we will be seeing the leaves change color and the foresight of snow to come in which we all gather for a weekend of friendship, education, mentoring, camaraderie, friendly competition, jokes / laughter and a whole lot of people in one place that “talk fast” for a living! Or so we would like to think so… The CAA Board received a large number of compliments on last year’s venue at the Westin Hotel in Westminster that we have unanimously agreed to host the convention at the same place this next year.

With David Whitley and Scott Shuman on the Board now, and if I’m elected in July, Colorado will be very well represented on the national level. If you’re a member of the NAA, you can vote in person in Texas at the Conference and Show in July, or, you can easily cast your absentee ballot by mail. Unlike last year, where you had to request a ballot in writing, this year you can simply download your ballot from the NAA’s website (www. Auctioneers.org), and clicking on the member’s area. Your ballot must be returned no later than July 1, and you must include your member number and name on the envelope (instructions are on the NAA website).

Here’s a little insight as to what is on the agenda for the convention:

YOUR ABSENTEE VOTE MATTERS. Please, cast your vote. I am truly grateful for your support, and I’m looking forward to serving the industry again in the NAA. I’m also looking forward to seeing all of you at the summer picnic!! Thanks again!

Coming in the Next Issue: • 2016 CAA Convention Program • Member Spotlight(s) – A series highlighting members from our association • NAA Spotlight – A new series providing article(s) / information / education from the National Auctioneers Association

Featured Speakers:

Joseph Mast ( you know, “The Geico Clerk”)

Mike Brandly Projected Seminars:

Bid Calling

Ringman with Paul C. Behr, Scott Goodhue and Sean Allen

Non-Auctioneer / Auction Professionals with Rob Hart

Real Estate Auction Round-Table Panel led by Scott Shuman

We will be providing simultaneous sessions in 2016 Auction Events:

2nd Annual Kids Auction, Fun Auction, Junior CAA Champion

and 2016 Colorado State Championship

NEW Items:

Entertainment – Karaoke Friday Night After the Fun Auction

Welcome Breakfast for 1st Time CAA Auction Members to

facilitate a mentoring relationship with CAA members.

Hall Of Fame:

Hall of Fame Award Banquet on Sunday, following the Board of

Directors meeting. Registration:

Early Registration capability

And Don’t Forget To Apply / Send In Your Scholarship Application! Applications are accepted throughout the year. Look for the complete 2016 CAA Convention Program in the 3rd Quarter Newsletter!

Contract for Hire

• Coin Auctions – Benefits / Hazards of conducting online coin auctions • Is an NAA Designation right for you? – The benefits you can reap with an advanced auction education

Cissy Tabor Auctioneer / Professional Ringman / Clerk

• Getting Started? – Where to begin...

(970) 985-8228 cissysauction@gmail.com

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WAAC

Colorado Wins BIG at the WAAC By JD Gunter

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t was fitting that the Colorado Team victory at the World Auto Auctioneer’s Championship happened in Las Vegas. In the city of lights and entertainment, the sheer electricity Scott Goodhue and Sean Allen brought to the competition was palpable. When they had control of the lane, everyone else at the auction paused to take notice of these two World Class Competitors. Onlookers ceased to be critics and became fans as we were all entertained by two of the great auction champions of our generation. It was no surprise to anyone in attendance that Scott Goodhue and Sean Allen won the team competition at the 2015 World Automobile Auctioneer’s Championship (WAAC). The WAAC started in 1989 and has become a highprofile and potentially career changing event, drawing the very best from all over the world in the automobile industry. Scott has won and placed in multiple competitions, including winning as auctioneer in Colorado State in 1999 and at the 2006 WAAC, but winning again this year shows that he is still at the “top of his game.” Sean Allen, 2013 Colorado State Champion Auctioneer, earned the title of World Champion, winning as ringman in both the team competition and the individual category. There were many great ringman at the competition, but seeing Sean perform in an auction is an altogether different experience. He draws the attention of everyone in the building, exuding an energy that charges the whole event with excitement and emotion. As champion auctioneer Scott Goodhue says, “Sean is one of the best I’ve been around and it was great to see him win.” From the very beginning, it was clear that these two gentlemen had spent considerable time and effort honing their craft. They brought a measured confidence to the lane that only comes from being a seasoned competitor with hundreds of hours of practice. We all know how hard it is to perfect a chant, to control the floor as a ringman and to stay focused on the task at hand. But to do all of this and make it entertaining and fun is what separates championship auctioneers from the herd. This level of excellence doesn’t happen accidentally, but Scott and Sean have competed in the World Championship many times, but this is also what they do week in and week out, “You don’t go to a contest and do something other than what you do at work every day.” Scott said, “Professionalism is huge. We tried to be ourselves, be professional, and get it done.” When asked what he did to prepare and earn his championship, Sean stated, “It’s commitment that makes the difference. We aren’t doing anything different today than we 10

what happens if they come and lose,” says Mr. Behr, “I tell them they aren’t going to lose. If they come, even if they don’t compete, they are going to network, fellowship, grow and learn from the best in the industry. If you come to the competition, you aren’t going to lose…you are going to win in some way or another.” A big part of that learning experience is learning from past champions, as well as building the future of the industry. This is certainly Scott Goodhue’s goal, “I like helping people that are in our industry who ask for help. When I got into our industry, people helped me and I believe it’s a big circle. We are all auctioneers in the same industry and that creates a camaraderie that is clear at an event like this. It’s obviously great to be told you’re a champion by your peers, but that doesn’t make me great, it makes me like the guys who helped me. To me, helping young people in this business is going to help the future of our business. Winning puts your name in front of your peers and creates more opportunity to teach and help people.”

do every day and that’s going to work to make car deals and make customers happy. To prepare for that, you’ve just got to do it. When it comes to winning the championship, what made the difference this year was having Scott Goodhue with me. For Scott and I, it was all business. We were there to work. We wanted to get there and get it done.”

or 3rd, it wasn’t all about winning…it’s an amazing group of men and women. You can’t find a gathering of people like this in any other industry. I absolutely learned something every time.” After winning in two (2) different categories, what is in the future for Sean Allen? “My goal is to be the Triple Crown World Champion as ringman, team and auctioneer. I think that’s within reason. It doesn’t matter how long it takes.” If this year is any indication, it won’t take long. *Special thank you to Myers Jackson for photos!

Sean Allen’s sentiments are similar, “The lessons and experience each year can’t be duplicated in any other way. It’s a special experience. You can’t do it by practicing by yourself or even working an auction…it’s not the same. It’s a special atmosphere and environment. Regardless of finishing 2nd

Colorado’s own, Paul C. Behr, President of the WAAC, responded to Scott and Sean’s well-earned victory stating, “Scott is an excellent auctioneer and great guy. I thought Scott and Sean worked seamlessly as an auctioneer / ringman team and the judges agreed. I have great respect for Sean Allen and the work he has done. He is a First Class Guy, personally, and a World Class Champion in the ring. Sean has competed five or six times, taking 2nd or 3rd place, but has kept coming back, doing his best, going home and working harder and this year…he took home 1st place.” For those considering competing in future competitions, the message of this year’s competition is that talent is necessary, but it is persistence, hard work and patience that pay off in the end. However, the joy of the Championship goes well beyond taking home a trophy. “People ask me

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MILLIONS

Hall of Fame

Of Visitors

Old West Auction 50th Anniversary By Cissy Tabor

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ob Penfield, of Penfield Auctions, just recently held his 50th Anniversary of his Cowboy to Homesteader Era Annual “Old West” Auction during a 2-day event in Bowman, North Dakota, February 2015, in which he was joined by, none other than Colorado’s Hall of Fame & NAA Hall of Fame auctioneer, Miss Cookie Lockhart along with her daughter and CAA member, Jo Lockhart and CAA First Timer member, Reno Babcock. Mr. Penfield is the oldest, active Past President of the NAA and NAA Hall of Fame in addition to being an author of 4 published books. As Cookie stated, “Thanks Bob for keeping the Old West alive!”

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By Cissy Tabor our CAA Board of Directors meeting was conducted at the State of Colorado Capitol as arranged by Mike Nicholls after being represented on the floor…… The meeting was Called-To-Order and then proceeded with the Treasurer’s Report that continue to reflect a positive financial outlook for our organization followed by reports from the standing committees and the goals that have been set forth from the 2015 planning meeting that was held in February with Hannes.

they were able to obtain and take away from the conference in addition to how it can be applied to our state association along with what our association is doing well. Discussions & Goal Setting was the focus to continue to grow membership, strengthen our association in addition to the planning of the 2016 CAA Convention that has been unanimously voted upon staying at the Westin Hotel in Westminster, Colorado for the 1st weekend of January 2016.

The Board received a report from the attendees of the 2015 State Leadership Conference in regard to the knowledge

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From the Editor By Cissy Tabor

Wow! I can’t believe it is already the middle of June, literally as I write this, and we’re halfway through this year! Josh wrote of Lightbulb Moments in our last newsletter and as I am about to send all of the information off for design layout and publication, I too, am reflecting on so many things in looking back as I try to be “the best voice” for the CAA publication that goes out to so many wonderful / professional individuals in which I am thankful to be a part of this family and call so many of you as friends… If you were to ask me if I would have thought that I would be providing this service to you a year ago, my answer would have been a definitive, “No.” And yet, my heart desired to say, “YES.” Ever since the 1st day that I walked into the CAA Convention, I wanted to “be a part of this organization” and to be able to make a positive contribution of myself with the hope that my “footprint” could make an impact. Before I can make an impact, I need to express that many of you that are reading this letter have made an impact on me; whether it be encouragement, leadership, mentoring, friendship, guidance or analysis of myself within this wonderful profession and grateful that you continued to encourage me in regard to my career and to continue to run for the BOD and NOT to give up! To you, I say, “Thank you!” Many times, I remind myself of the lesson that I have learned through Joel Osteen, in which he simply reminds us that the reason for the windshield of our vehicles is so much larger than the rearview mirror…is so that we can look ahead to our future and see what lies ahead of us is large & possible for anything to happen and our past (the rearview mirror) is so much smaller and we should focus on what is before us and not behind us. This message can simply help us to understand that what lies behind us reflects what it has taken to get us to where we are now, who we are and the opportunities in before us.

comprised of many talented individuals that have strived to be financially stabile as an organization, but also for each of us to be a stronger entity, collectively. The board meetings reflect the diversity of directors and officers representing a good portion of our membership and the different aspects of our CAA association. I am impressed with this group of individuals and the topics that are addressed to continue the forward thinking / growth that is desired along with the examining our current position. As an example, in relation to our newsletter, I looked at our associated cost(s) for this publication, along with the product that we receive each quarter and have found that not only does our local companies we use, Sundance Printing and Agfinity, provide us with a cost effective product, but also, the customer service that they are providing to us is personal and I would consider extraordinary than if we outsourced this. I am grateful to Miss Sarah for her assistance in listening to me and supporting me in the vision that I had in renovating the newsletter this year. In addition, our association has made the decision to expound upon our readers and will be distributing our quarterly newsletters to other entities such as the counties and bankruptcy courts in our state so they will be more informed / aware of our presence as a business; individually and collectively. I am honored to continue my growth in the auction industry and enjoy learning from each of you. I feel honored to have this opportunity and contrary what some may believe…I get enthusiastic if a suggestion, query or quest comes in for upcoming seminars, learning opportunities and circumstances we can address. ~ Cissy Tabor

cissysauction@gmail.com

So, what are my reflections of what is in our past and what lies ahead of us? The CAA has a foundation www.coauctioneers.org www.coauctioneers.org SECOND QUARTER • 2015 SECOND QUARTER • 2015 16 thecoloradoauctioneer thecoloradoauctioneer


some sellers and there are frequently powerful forces working behind the scenes that may pull a seller away from an auction.

A Scary Thought

By Steve Proffitt t has happened to you. Every auctioneer has been victimized. It is a scary thought that you might be hit again.

I

“I know the auction starts in 30 minutes, but my family wants me to remove the tall-case clock from the sale.” “Remove” – one of the most fearful words an auctioneer can hear. The thought of an auction lot being withdrawn from an auction by a seller blazes fear into the hearts of auctioneers and especially if it is an important one that has been advertised and is expected to attract keen interest from bidders.

UNHAPPY BIDDERS When a seller removes a significant piece from an auction, bidders are going to be unhappy. They want the chance to buy it. The more desirable the lot is the sharper the thorn of bidder displeasure will be. Some bidders travel long distances to bid for certain items they want. While they can accept being outbid by a competitor, these bidders often react angrily when denied the opportunity to bid at all because the seller withdrew the piece from the auction. When bidders get upset, auctioneers get upset. There are two reasons for this. First, agitated bidders will direct their anger at “the face” of the auction – the auctioneer. The fact that it was the seller, and not the auctioneer, who removed the lot(s) will not immunize the auctioneer from being targeted. Second, removal is a pocketbook issue for auctioneers. What cannot be sold will generate no selling commission and that hits auctioneers where it hurts most…in their wallets!

CONTRACT TERMS Some auctioneers try to counter the threat of removal by inserting terms in their contracts with sellers that preclude withdrawal. This tactic has almost no value beyond bluff. This is because auctioneers don’t give sellers orders – they take orders from sellers. Auctioneers are agents who work under the direction and control of sellers. The property in question belongs to the seller and whether to sell it is the seller’s decision. Trying to force your “boss” to do what he or she does not want to do is not only unwise, it can trigger a lot of animosity and even retaliatory claims against the auctioneer.

COMMISSION DEMANDS Likewise, an auctioneer’s demand that a seller pay the auctioneer a commission on a removed lot is usually hollow. Auction contracts do not often include a term to address

such a situation and trying to do so could be very challenging since some formula would have to be devised to value a removed item in order to calculate a commission owed for it. An auctioneer couldn’t leave an item’s value to speculation and carry the day in a court of law. Additionally, auctioneers must recognize that any commission gained from threatening or bullying a seller would be far offset by the hard feelings that would inevitably result.

EIGHT STEPS Auctioneers have a legitimate interest in trying to maintain the integrity of their auctions by keeping advertised pieces in these events. There are many waffling sellers and grabby relatives who would pick a sale to pieces before it is ever held, given free rein to do so. Considering this, what can auctioneers do about the removal issue? Here are eight steps that can eliminate or reduce this threat. First, an auctioneer cannot just sign anyone to an auction contract and expect a successful sale. Many prospective sellers are unsuited for auction due to issues with their personalities, assets, circumstances or expectations. Auctioneers should carefully screen each prospect to weed out those who would be more trouble than worth. Second, when a seller removes an auction lot from an auction, it is indicative of indecision and uncertainty about the auction process. Auctioneers should carefully educate their sellers on all aspects of auctions. Auction marketing is a unique form of selling that is foreign to many people. It is an auctioneer’s duty to explain what he / she does, how this is done, how the process benefits the seller and what the seller can reasonably expect from the auction. Third, some auctioneers push sellers too hard towards auction. Salesmanship is important, but it is more important to determine that a prospect genuinely wants to sell at auction. This is particularly true for a seller who is new to auctions, as well as those dealing with difficult circumstances (i.e…death in family, financial stress, business failure, health problems, need to downsize, divorce, etc.). An auction is not suitable for every seller, every asset and every circumstance. Fourth, some auctioneers fail to explain the importance of the marketing plan to their sellers. Such a seller then lacks an understanding of why it is important to the success of the auction that no advertised piece be withdrawn. Fifth, auctioneers make a mistake when they do not identify sellers who have items with unique emotional value or family attachment. The idea of selling at auction is stress-filled for

Sixth, auctioneers ask for trouble when they do not directly address the removal issue with their sellers. This should be done when the auctioneer first meets with a prospect to discuss an auction, and again when the auction contract is signed. Some auctioneers do not raise the issue for feat that might encourage the very result that they want to avoid. However, is far better to broach the issue and reach a clear understanding with a seller in advance of advertising an auction, as opposed to being unexpectedly hit with removal just before the bidding starts. Seventh, auctioneers also err when they fail to stay in close contact with their sellers during the auction cycle. This spans the time from execution of the auction contract through final settlement of the sales made. Failure to communicate regularly with a seller can create silence that is a fertile ground from which anxiety and doubt can spring and flourish. These vines can flower into the decision to remove items from an auction for fear their perceived value will not be realized during bidding. Eighth, notwithstanding the difficulty of valuing a removed item to allow for a commission calculation to be made, as noted above, there is a different approach that an auctioneer can take. This course will be most effective if limited as described. One alternative would apply to lots on which the seller had established “reserve” amounts. The auction contract could provide that the seller would pay the auctioneer a commission calculated on the respective reserve amount for each lot removed. The other option would involve designating one or several “star” lots for commission protection. These would be lots that have high appeal to bidders and represent substantial, anticipated commissions for the auctioneer – particularly if they weighed heavily in the auctioneer’s decision to undertake the auction. The auction contract could identify these lots and assign an amount for “liquidated damages” for the removal of each such lot from the auction. Below is a sample contract provision for this. [note: Seek the advice of your attorney before using this strategy or contract term.] POSTPONEMENT, CANCELLATION OR WITHDRAWAL. SELLER WILL NOT POSTPONE OR CANCEL THE AUCTION OR WITHDRAW ANY OF THE PROPERTY, SHOULD SELLER BREACH THIS AGREEMENT BY POSTPONING OR CANCELING THE AUCTION OR WITHDRAWING ANY OF THE PROPERTY, FOR ANY REASON NOT CAUSED

BY AUCTIONEER, SELLER WILL IMMEDIATELY PAY AUCTIONEER A REASONABLE SUM TO ADVERTISE NOTICE OF THE POSTPONEMENT, CANCELLATION OR WITHDRAWAL. SELLER FURTHER AGREES THAT ANY POSTPONEMENT OR CANCELLATION OF THE AUCTION OR WITHDRAWAL OF ANY OF THE PROPERTY, WOULD ADVERSELY AFFECT AUCTIONEER’S BUSINESS AND CAUSE AUCTIONEER TO SUFFER DAMAGES THAT WOULD BE IMPRACTICABLE OR IMPOSSIBLE TO ASCERTAIN. AFTER DUE CONSIDERATION OF ALL RELEVANT FACTORS, THE PARTIES AGREE THAT, IN SUCH INSTANCE, FAIR AND REASONABLE COMPENSATION FOR AUCTIONEER WOULD BE FOR SELLER TO IMMEDIATELY PAY AUCTIONEER LIQUIDATED DAMAGES, AS SET OUT IN THE SCHEDULE OF SUBJECT LOTS BELOW. THESE LIQUIDATED DAMAGES ARE AN INTEGRAL PAT OF THE PARTIES’ DEALINGS AND THIS AGREEMENT AND CONSTITUTE REASONABLE DAMAGES FOR AUCTIONEER AND ARE NOT A PENALTY AGAINST SELLER. [A schedule listing the subject lots and corresponding amount of liquidated damages for each one should immediately follow.]

CONCLUSION Auctioneers should occupy the role of trusted professionals with sellers. Sellers are influenced by uncertainty and fear, as well as by the advice (wanted or not) which they receive from spouses, children, relatives, friends, co-workers, neighbors, physicians and other professionals know this and handle their clients accordingly. Auctioneers should do the same. A seller will recognize an auctioneer as a professional when the auctioneer shows sincere interest in the seller, exercises sound judgment and maintains the close contact that the seller’s confidence requires. Where this relationship exists, the threat of lot removal will be vastly reduced.

Steve Proffitt is general counsel of J.P. King Auction Company, Inc (www.jpking.com) in Gadsen, AL. He is also an auctioneer and instructor at Mendenhall School of Auctioneering in High Point, NC. This information does not represent legal advice or the formation of an attorney-client relationship and readers should seek the advice of their own attorneys on all legal issues. Mr. Proffitt may be contacted by email at sproffitt@jpking.com. John Stephen Proffitt III Copyright April 15, 2014

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FIRST CLASS U.S. POSTAGE PAID Permit No. 56 Parker, Colorado

Colorado Auctioneers Association, Inc. 1685 S. Colorado Blvd., Unit S-160 Denver, CO 80222 • 303-729-1195 www.coauctioneers.org

CALENDAR July 14-18, 2015

NAA Conference & Show Addison TX

August 4,2015

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10

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The Colorado Auctioneer 2nd Quarter 2015  

Colorado Auctioneers Association Newsletter 2nd Quarter 2015 #ColoradoAuctioneers #AuctionsWork By Cissy Tabor

The Colorado Auctioneer 2nd Quarter 2015  

Colorado Auctioneers Association Newsletter 2nd Quarter 2015 #ColoradoAuctioneers #AuctionsWork By Cissy Tabor

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