The Colorado Auctioneer 4th Quarter 2016

the Fourth Quarter • 2016

COLORADO AUCTIONEER

The Quarterly Newsletter of the Colorado Auctioneers Association

Educate. Communicate. Connect.

2017 CAA Convention

Our continued goal is to increase the CAA presence and membership. We will continue to move forward marketing the Colorado Auctioneers Association and the members businesses and services by our continued online presence campaign.

If you haven’t been to a recent CAA Convention, or have never even attended one, I encourage you to mark the dates of January 6 – 8, 2017 on your calendar.

You may even ask, “Why should I make the time commitment and spend the money to attend the convention?” IF…you have never been, OR…it has been several years since you last attended our annual convention, then it might be tough for me to paint a picture of what you are truly missing.

It is where you pick up information you can bring back to help you at your next auction. It is where you talk with vendors of the auction industry to find the latest tools of the trade. It is where you need to be if you want to continue to educate and improve yourself and your business. It is where you can compete against other auctioneers to improve your chant, public speaking and professional presence. It is where you make personal contacts with other auction professionals, old and new.

2017 CAA Convention – It’s Where YOU Need To Be!

The Auctioneer’s Prayer

He stares at his tractor with watery eyes, remembering the nights under GOD’s bright skies. Her fingers slide over the old kitchen stove, A catch in her throat that no one else knows. If just these two items could bring what they made, all the farm’s debts could quickly be paid.

The auctioneer sees all and shares in their pain; he’s seen it happen time and again. Some might assume that he doesn’t care, but before their auction, comes the Auctioneer’s Prayer.

“LORD, please guide me through this auction day, in all that I do and all that I say, help me cry stronger than ever I’ve done, for this is their auction, this is the one.”

Yes, another farm auction, held here today, people gather in their usual way. To poke through the boxes and trample the lawn, they’ll quickly forget when all’s sold and gone.

We get to know them, we share in their plight, the tables hold history, laid out in plain sight. We know the story of this man and his wife, what we auction here are the remnants of life.

If it be your will, LORD, through Christ your Son, help me cry stronger than ever I’ve done, for this is their auction, this is The One. ~ Anonymous

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C A L EN D AR O F E V E NTS

December 1, 2016 CAA Scholarship Deadline - Contact Doug Carpenter December 4 – 10, 2016 NAA Designation Academy, Las Vegas, NV December 7, 2016 NAA iSeries: Auction Marketing (www.auctioneers.org) January 6 – 8, 2017 2017 CAA Annual Convention, Crowne Plaza - DIA January 12 – 14, 2017 Wyoming Auctioneer’s Association Convention Jan 31 – Feb 2, 2017 Auction Marketing Management (AMM Class), IA February 20 & 21, 2017 Auction Marketing Summit, Atlanta, GA February 21 – 23, 2017 Auction Marketing Management (AMM Class), KY March 6 & 7, 2017 State Leadership Conference, MO March 19 – 23, 2017 Certified Auctioneers Institute ( CAI ), Bloomington, IN July 11 – 15, 2017 NAA Conference and Show, Columbus, OH

Crowne Plaza Hotel

HOTEL INFORMATION

(303) 371-9494 15500 East 40th Ave. Denver, CO 80239

Room Rate: $99.00 for Single / Double ~ Includes Breakfast for 2 ~ Indicate you are attending the CAA Convention – Code: CAA *If you have any trouble making a reservation, please contact Cissy (970) 985-8228

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From the President

By Butch Hagelstrom A holiday hello to all of our CAA members & families. The holiday season is here and I’m sure holiday plans are being made, yearend business winding down, and a look to the future for 2017.

As I have visited with our members, there has been a multitude of feelings and emotions regarding the direction of our country, and in particular, how our auction profession is affected. There has always been a rule in life that holds true, effort and hard work will always increase your chances of success versus sitting idle, worrying, and hoping for the best. Our members typically show that resilience and help to create their own success and we should all feel proud!

The CAA Foundation sponsored an educational event in October.

The event, instructed by Robert Mayo, educated attendees on navigating social media and Facebook. OJ Pratt offered his facility, Pacific Auctions, in Longmont. Those attending expressed that they felt it was a valuable session in furthering their business goals. We thank the Foundation for their organization and efforts in putting this together!

Our upcoming 2017 CAA Convention will be held this year at the Crown Plaza Hotel located off of Chambers and I-70. Some of you will remember that this is the facility we used previously. Please make sure you look for all the details in this publication and be sure to register early to ensure your reservations. You will see, listed in this issue, all of the wonderful speakers and sessions available for those attending. Friday night, after the Fun Auction, we will be having Karaoke Night again, so bring your voices and show your stuff! We want to encourage all to enter the different contests: State Bid Calling Championship, First Timers Bid Calling Contest, Marketing Contest and the Junior Bid Calling Contest. Don’t forget the Kid’s Auction that kicks off our evening sessions and last, but not least, our CAA Fun Auction. We are looking forward to a great time of fellowship and learning!

As this will be my last President’s letter to our membership, I would like to thank all those, both directors and members that have contributed to our association’s growth this year. We truly have folks that care about our profession, our associations (both CAA & NAA) and the resources they provide, and most importantly, about each other. Thank you for making my efforts so much more easy and rewarding!

And finally, I would also ask that you assist our organization in finding those in our industry who might also be interested in joining our association and taking part in our convention. As always, we, as a group, are able to provide and accomplish a great deal more for our profession!

Merry Christmas, Season’s Greetings, Happy New Year, and GOD Bless.

Butch Hagelstrom, 2016 CAA President

King Soopers Reward Program and YOU! King Soopers Reward Program - Pre-loaded King Sooper Gift Card (initially contact Walt Partridge) that is recognized at most Kroger affiliated stores throughout the US including, Kroger, Fred Meyer, Ralphs, Fry’s and Fry’s Marketplace, King Soopers, Dillons, smith’s Food & Drug, City Market, QFC, Food 4 Less, Owen’s Foodsco, Hilander, Pay-Less, Cala-Bell, Baker’s, Jayc, Fred Meyer Jewelers, Littman & Barclay Jewelers and Loaf & Jug. — Cards with a $0.00 Balance for 90 days will become inactive. A new card will need to be purchased from our organization.

The Colorado Auctioneers Foundation earns 5% each time we, as an organization, reaches a total of $5,000!

USA Today Advertising - 15% Discount and an adjusted display advertising rate for members. NAA members receive a 30% Discount.

Please contact Josh Padro (727) 431-0858 or joshpadro@mcarusselljohns.com

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Board of Directors

Is A CAA Directorship Position In Your Future?

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s we approach the upcoming year and annual meeting for our CAA organization, there are six (6) CAA Board of Director positions opening up for 2017.

This is a great opportunity to serve your organization and assist through ideas, efforts and encouragement for our membership!

A Director position requires that you have been a member of the CAA for at least two (2) years. The board meets in person a minimum of three (3) times per year and has conference calls throughout the year as needed. It is of great importance that your ability to attend these meetings be taken into consideration when running for the Board of Directors. This is important in being able to fulfill our responsibilities throughout the year to be an asset to the association and its members.

Serving our CAA organization is a rewarding experience and provides a great opportunity to give back to our profession! We would also encourage all our members, to consider being an active participant in our organization by assisting on various committees. If you want to help out, let your board members know that you have an interest in doing so.

Call for Volunteers!

Become Part Of The CAA Ambassador Program Great things are happening in the CAA and we would like you to become part of it!

Check into the Ambassador Program….

• Would you like to Volunteer and become more involved to help the CAA become stronger?

• Be a mentor to new members?

• Assist in membership renewals?

• Provide assistance with our Convention, Fun Auction, Kids Auction or any other scheduled CAA activities?

If you would like to help the CAA Board continue to make our association / activities strong….

Please contact: Lu Hays (lhaysathome@msn.com), our CAA Ambassador Chairman.

Thank you for your help in making CAA a continued success!

A Colorado Auction Company

H.L. (Butch) Hagelstrom, Jr. 140 Denver Ave., Ste. F Ft. Lupton, CO 80621 4

Office: 303-857-2399 Mobile: 303-827-5157 buckhornauctions@earthlink.net www.buckhornauctions.com

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NAA Spotlight

NAA Spotlight

By Hannes Combest

R

ecently, I had the opportunity to sit in on an NAA task force that is developing a new designation for Contract Auctioneers. This task force has opened my eyes to the auction industry in a ton of new ways.

The task force was chaired by Janine Huisman, CAI, AMM, BAS, GPPA, who hired contract auctioneers for her family’s business focused on equipment and classic cars and is a benefit auctioneer. Ten (10) committed NAA professionals sit on this task force – all of whom have been or work with contract auctioneers.

And all are singularly focused on ensuring that NAA’s newest designation will help contract auctioneers in the automobile sector, the livestock sector, real estate or benefit work (or with any other asset class) be successful.

Here’s what I learned – as much as I have been exposed to in the auction industry, each asset class and auction professional is very unique with unique needs for their business. We at NAA know this inherently, but I don’t know that we have acted on it as well as we could have.

Enter a new concept that the NAA Board of Directors has approved: called the Communities of Practice. It works very simply: We have identified five communities: Contract Auctioneers; Real Estate; Benefits; Personal and Commercial Property; and Marketing and Management.

All of these communities will have education targeted to them (including a specific summit each year ), each community has designation programs focused on them, and all will have content written and provided specifically for them.

It is NAA’s opportunity to help you get the information you most need for your business to be successful.

It is not a one size fits all approach. Having said that, you WILL have the opportunity to receive ANY content you want.

Let me give you an example.

Beginning Jan. 1, 2017, the NAA Knowledge Center will be completely free. For those of you who don’t know about the Knowledge Center, it is simply a collection of recorded conference sessions that range back several years. In the past, we have charged $20 or more for each of

these sessions. But, we want members to have access to everything they need. So, the Board approved a proposal to make those free to NAA members.

To further help you decide what you want, each title will be tagged with an icon that will let you know which of the five Communities of Practice the specific session addresses. Some may address more than one community; some may address all five of the communities; and some may be specific to one audience.

If this all sounds big, that’s because it is. The Communities of Practice will take a long time to be integrated into the fabric of NAA. But, we are starting.

We are grateful for our members at NAA and grateful to the state associations for helping us spread information to those of you who do not belong. We want all auction professionals to be successful – it is important to our industry.

On behalf of the NAA Board and staff, I would like to wish all of you happy holidays and best wishes for a very SUCCESSFUL 2017.

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Members

TWO COLORADO AUCTIONEERS INDUCTED INTO THE WORLD WIDE COLLEGE OF AUCTIONEERING

By Cissy Tabor, BAS, PRI

O

HALL OF FAME - HALL OF CHAMPIONS

n September 18, 2016, Colorado Auctioneers, Vaughn Long & Shawn Hagler, were inducted into the World Wide College of Auctioneering’s Hall of Fame - Hall of Champions during the September 2016 Term held at DIA Country Inn & Suites in Denver, Colorado. The induction of Vaughn and Shawn was an easy decision to make because of their dedication to the auction profession and their work ethic, coupled by their outstanding talent that has distinguished them in our profession.

At the induction, Paul stated that, “Colonel Vaughn Long is considered the Michael Jordan of his profession with his winning personality & dawn to dark work ethic.” It is evident to see when one looks at his career within the auction industry and the accolades that he has earned.

Vaughn is not only a 2000 World Wide College of Auctioneering graduate, but also a graduate of World Wide’s Become A Champion / Advanced Bid Calling along with earning the 2004 Troil Welton Champion Auctioneer title.

One of the most memorable is when Vaughn competed at the World Automobile Auctioneers Ringman Championship in which the largest field of competitors ever entered and thirtynine of the world’s best entered with their eyes on the ultimate prize of being “the best in the business.” At the end of a long and grueling contest, Colonel Long proudly hoisted the 2007 World Champion Automobile Ringman Trophy.

Vaughn is highly in demand as a top auctioneer while working four (4) auto auctions per week and has worked around the country in South Dakota, Minnesota, Kansas, Wisconsin, Illinois, Texas, California, Arizona and Nevada for leading auction companies in the world.

In his spare time, Vaughn is an excellent team roper and trains race horses at Arapahoe Park and other racetracks with a standing

of 1st place in the Winner’s Circle. Vaughn Long is a credit to himself, his family & his profession.

And for Shawn Hagler, as Paul states, “Shawn is a big man with a big voice, a big heart and a big will to succeed and has accomplished big things - he never quits.” He is a family man and makes his home in Ft. Lupton, Colorado, with wife, Mandy and 8 year old son, Reece.

No stranger to the Championship stage, Hagler competed in the PRCA for 15 years, placing at some of the biggest rodeos in the country and qualifying for numerous Mountain States Circuit Finals Rodeos and was a Defensive Tackle on the backto-back 1997 & 1998 National Champion Football teams for the University of Northern Colorado. Now, Dad coaches Reece’s football team and they have won back-to-back Little League Football Super Bowls in 2015 & 2016 with a 20-0 record. “Shawn Hagler is a credit to himself, his family & his profession.”

Colonel Hagler is the 2003 Troil Welton Champion Auctioneer, a 2005 World Wide College of Auctioneering graduate of Advanced Bid Calling / Become A Champion and the 2008 Colorado State Bid Calling Champion Auctioneer, known within our association as the “Chuck Cumberlin Go Your Best Award.”

Shawn traveled from Colorado all the way across the country to Lock Haven, Pennsylvania to compete with “the best” on his way to winning his world title, 2009 World Champion Automobile Ringman.

He learned his trade working from the ground up as a Ringman and subsequently earned the title as “The Best in the Business.”

He has gone on to now be known as one of the best auctioneers in the country. Colonel Hagler is the Head Auctioneer for ADESA Insurance Auto Auctions selling auctions in Denver, Salt Lake City, Albuquerque, El Paso & other places around the country and conducts approximately 25 fundraising auctions per year.

Simply put by Paul C Behr, “He is as good as they get.”

Editor’s Note: Vaughn and Shawn contacted me personally after this “surprise article” had been shared with them during the proofing stage and wanted to express their gratitude. So, please keep reading…

“Both Vaughn and I insist that we give the credit for our success to Paul. We both spent 3-4 years, together, working the ring for Paul at the Denver Auto Auction and I clearly remember when I won my World Championship that Paul was the first person I wanted to thank in my acceptance speech.

I have been blessed to work with some amazing auctioneers whom have all taught me so much, including Harley Troyer, Steve Holt, Josh White, Sammy Hamblen and Gary Corbett for (continued on next page)

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“G EXPERT NEGOTIATING

ive a man a fish and you feed him for a day.

Teach him to fish and you feed him for a lifetime.” In negotiations try them both. Learn about each fish (situation) and how to fish (strategy for handling any situation).

Teach him to fish How do you handle really tough, contentious, challenging and confrontational situations. Apply the ‘how to fish’ technique that was mentioned above by anticipating and preparing. Be constantly aware of tough situations that might confront you. Make a written note of them.

Knowing that they might reoccur, think, research and ask others what could be done, or, more importantly what could you say (words that work) to effectively handle this situation. Prepare to be more effective the next time that tough situation arises, and it will.

Let me give you one fish (example) A Negotiating Opponent Wants You To Cut Your Price Everyone encounters this tough situation (fish) sooner or later. What do you say? What do you do? You can eat this fish with a two-step response.

First, give a pained look or grimace. It’s the ‘flinch’ and it clearly communicates (non verbally) that a price concession won’t be in the offing.

Second, verbally share a phrase you’ve researched and rehearsed. One that clearly, firmly and tactfully communicates your position. It’s that verbal judo we talked about last week.

It could be something like, “I can appreciate that you’d want me to reduce my price. I hope you can also appreciate that there is no way I can accommodate that request.” or “What can you do for me that would warrant a price concession on my part?” or “I could see a possibility of modifying my price but I’ll need _____ from you. Would that work?”

If you want strength as a negotiator in tough situations simply anticipate and prepare. Perfect your “words that work” and enjoy the verbal judo and Keep Negotiating!

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By John Hamilton

TWO COLORADO AUCTIONEERS INDUCTED (continued)

Fundraising. But Paul took me under his wing, and for that, ‘I can never repay him for all that he taught me and has done for me.’ ” ~ Shawn Hagler “In addition to Paul, I have been blessed to work with talented auctioneers who have taught me and helped me throughout my career, including Randy Lamb, Terry Elson, Scott Goodhue, Harley Troyer, Josh White, Jeff Richards, Brian Marshall and Ken Holdsworth. ‘I owe everything to Paul. He’s mentored me, took me under his wings and I can’t express enough, how very fortunate I am.’ ” ~ Vaughn Long

FOR SALE

If you have any auction equipment or trailers to sell, let us know. Send us pictures and details so that we can keep our association support going strong throughout the year.

Deadline Dates: Feb. 5th, May 5th, Aug. 5, & Nov. 5th

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Members

Chaplain’s Message

I

was honored when asked to write an inspirational column for the CAA Newsletter. The purpose of this column is to help us take a few moments to give some credit to our creator who blesses us more than we often deserve. The column is also intended to be a place where CAA members can asked others to join them in praying for particular prayer needs.

With that in mind, I encourage each one of you to e-mail your prayer requests to me at jschaffner51@yahoo.com when you have a special need. Your prayer requests can be either printed in this column or e-mailed to fellow CAA members or both. If you are interested in being on an e-mail list to receive those prayer requests as they come in please send an email to the address above and I will set up an email group for that purpose. I will also say that if you have a prayer request that needs immediate attention feel free to call me at 970-630-3402.

Now, for the inspirational side of this column; from time to time I will be using some poetry to remind us of how good GOD is to us. As this newsletter will be coming out shortly before Christmas I will use an old classic cowboy poem written many years ago by S. Omar Barker. Some of you old timers, like I am, may remember Tennessee Ernie Ford reciting this poem many years ago on his Christmas Album.

I look forward to seeing you all at the convention, John Schaffner

By John Schaffner

A Cowboy’s Christmas Prayer I ain’t much good at prayin’, and You may not know me, Lord -For I ain’t much seen in churches, where they preach Thy Holy Word.

But you may have observed me out here on the lonely plains, A-lookin’ after cattle, feelin’ thankful when it rains.

Admirin’ Thy great handiwork. the miracle of the grass, Aware of Thy kind Spirit, in the way it comes to pass That hired men on horseback and the livestock that we tend Can look up at the stars at night, and know we’ve got a Friend.

So here’s ol’ Christmas comin’ on, remindin’ us again Of Him whose coming brought good will into the hearts of men.

A cowboy ain’t a preacher, Lord, but if You’ll hear my prayer, I’ll ask as good as we have got for all men everywhere.

Don’t let no hearts be bitter, Lord.

Don’t let no child be cold.

Make easy the beds for them that’s sick and them that’s weak and old.

Let kindness bless the trail we ride, no matter what we’re after, And sorter keep us on Your side, in tears as well as laughter.

I’ve seen ol’ cows a-starvin’ and it ain’t no happy sight; Please don’t leave no one hungry, Lord, on Thy Good Christmas Night -No man, no child, no woman, and no critter on four feet

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I’ll do my doggone best to help you find ‘em chuck to eat.

I’m just a sinful cowpoke, Lord -ain’t got no business prayin’ But still I hope you’ll ketch a word or two, of what I’m sayin’: We speak of Merry Christmas, Lord-I reckon You’ll agree -There ain’t no Merry Christmas for nobody that ain’t free!

So one thing more I ask You, Lord: just help us what You can To save some seeds of freedom for the future Sons of Man S. Omar Barker; reprinted with permission from Cowboy Miner Production PRAYER REQUESTS • Military, Police Officers & Civil Personnel: Keep Safe • Jim Odle: Full Health Recovery • Cissy Tabor: Protect Parents Health PRAISE REPORTS

• Dani Whitley: Provided 96 boxes for:

Keep Safe Operation Christmas Child

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Hall of Fame

Insights & Advice from Jim Civis

By Cissy Tabor, BAS, PRI

J

im Civis and his wife, Betty, can be found at our Annual CAA Conventions and Summer Picnics. Their presence, commitment, support and friendship are a demonstration of what it is to be part of a family, an “auction family.”

Jim & Betty just expanded their own auction family this last year when they partnered up with the 2016 Troil Welton Champion, Cody Johnson, and his wife, Jamie.

45 years ago, Jim graduated from Riesch Auction College, which as we all know is now known as World Wide College Of Auctioneering. Jim also believes in the importance of education / training and graduated from the 2nd Class of the Certified Auctioneers Institute ( CAI ) in 1981. In less than 2 years after auction school, Dean Mulberry and Eldon Broughton introduced him to the CAA. He was so kind to share with me some insight, advice and wisdom from his professional career that many others may share and many others should inquire about to help them learn and expound upon their knowledge.

Biggest Challenges: Today it is dealing with banks & mortgage companies on real estate deals.

Prospecting for new clients has always paid off the best, and then, “You give the Very Best Service you can.” This will create good public relations.

Best Words Of Advice You Would Share: “When I was young in the business, I asked an old auctioneer ‘What is the first thing I should do when talking to someone about handling and auction?’ He said, get a date set for the auction, then get a signature signed on your auction contract or proposal. Keep you contract simple and to the point.”

Jims’ Favorite Memory has been the Sterling Schuman Estate Auction in 1979 or 1980. It was a 3 day auction featuring the farmland around Arapahoe, Colorado, sixty-eight (68) 1958 Chevy Cars, 40+ LA Case tractors, 3000+ new tractor and implement tires, 20+ school buses, all the farm equipment, tools, etc. The Denver Post, The Rocky Mountain News and Denver TV Stations were there to report on the auction and it’s vast variety of items.

So, what is Jim’s Words of Wisdom?

“There are no small auctions. To the seller their auction is one of the biggest events of their life. They deserve to have it conducted with the same dignity and integrity as the very largest auctions.”

And where does he see the auction industry going?

“I have always sold all types of auctions, but today I see auctioneers specializing in a certain field. I also see more auctions conducted using the internet and other on-line venues. This is a good move because it brings a much larger buyer base to the auction.”

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So, what is the best part of being a member of the Colorado Auctioneers Association?

Being part of a group of people who are like-minded and believe in professionalism of the business. Also, if I need help, I have many qualified people to call on and many of them have come to Lamar to help on several occasions.

With the help of Chuck Cumberlin, Jim began his first appointment on the CAA Board of Directors and served on The Board for 21 years. Through his investment back into our organization, I believe his following statement that, “CAA is a very worthwhile organization and I would recommend it to every auctioneer and their staff ” is a testimony, in of itself, of the rewards, investment, challenges, learning, networking and friendships that can be realized.

And, if you want to know the story of how he decided to become an auctioneer….Go ahead, find Jim and just ask him!

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Education

S

Are You a Statistic Waiting to Happen?

tatistics tell us that a violent crime happens every 26 seconds. That 1 in 3 women will experience domestic violence, 1 in 5 women are survivors of sexual assault and that a child is abducted every 40 seconds. In fact, 1 in every 167 Denver residents will be a victim of violent crime. Even Colorado residents don’t fare much better. Every 1 in 324 people will be a victim of violent crime.

The founders of Damsel and Defense want to change these statistics by offering women an opportunity to take charge of their own personal safety.

First, we EQUIP women with products that can protect them! Most women have never held a stun gun or pepper spray and can’t tell you where to find one to see, hold and purchase. We are changing that!

Next, we EMPOWER them to protect themselves! We hear from customer’s time and again that having an item in their hand while walking to their car in a dark parking lot makes them feel safer. It is not a false sense of security, it is knowing that they are better off carrying a deterrent than they would be empty-handed.

Finally, we EDUCATE women by encouraging them to back up their purchases with self-defense training.

Our relationships with our customers and our fight to lower the national statistics of assaults against women do not end at the time purchase.

Self-protection does not have to be complicated, but it does have to be intentional.

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CAA Foundation

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CAA Foundation

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Media Relations BOARD OF DIRECTORS PRESIDENT: Butch Hagelstrom Buckhorn Auction Services P.O. Box 306 • Fort Lupton, CO 80621 303-827-5157 • buckhornauctions@earthlink.net 1st VICE PRESIDENT: Eric Arrington The Auction Team 2478 Industrial Blvd • Grand Junction, CO 81505 970-245-1185 • Cell: 970-623-9161 • eric@theauctionteam.com 2nd VICE PRESIDENT: CHAIRMAN OF THE BOARD: OJ Pratt, CAI Pacific Auction Companies / Auction Boulevard 1330 Main St. • Longmont, CO 80501 303-772-7676 • Cell: 303-598-8585 • ojpratt@pacificauction.com TREASURER: Rob Hart, CAI, ATS Hall & Hall Auctions 100 S. Cherry Ave., Suite 6D• Eaton, CO 80615 970-716-2120 • Cell: 918-510-3866 • rhart@hallandhall.com Bryce Elemond (2016-2017) Affordable Auctioneering, LLC 25800 E. Byers Pl. • Aurora, CO 80018 720-229-5832 • affordableauctioneering@gmail.com Casey Giddings (2016-2017) Rocky Mountain Estate Brokers, Inc. 24 Oak Ave. • Eaton, CO 80615 970-454-1010 • Cell: 970-222-1625 • casey@whitleyauction.com Josh Larson (2015-2016) 310 N. Wayne • Haxton, CO 80731 970-520-2946 • jmlauction@gmail.com Michael Nichols (2016-2017) Odle-Cumberlin Auctioneers 22300 CR 9 • Flagler, CO 80815 719-765-4756 • Cell: 719-350-0126 • mnichols96@esrta.com John Schaffner (2016-2017) Schaffner Auctions 36470 CR 9 • Wray, CO 80758 719-765-4756 • Cell: 719-350-0126 • mnichols96@esrta.com Cissy Tabor (2015-2016) Cissy’s Auction Services 846 Cactus Ct. • Rifle, CO 82650 970-985-8228 • cissysauction@gmail.com Emily Wears (2015-2016) Wears Auctioneering, Inc. 1826 Mehaffey Bridge Rd NE • Solon, IA 52333 319-331-1888 • emily@wearsauctioneering.com David P. Whitley (2015-2016) Rocky Mountain 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_raven@comcast.net

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Government

New Overtime Rule that May Affect Your Business

W

hen the Fair Labor Standards Act was first enacted in 1938 it established standards for minimum wage, overtime pay, record keeping, and youth employment. Over the years there have been many changes to the standards, the last in 2004. The most recent changes are set to take effect Dec. 1, 2016.

The changes will primarily affect salaried workers who fall under the white-collar exemption. Currently, if a salaried employee makes $455 per week or more they are most likely exempt from overtime pay. Effective Dec. 1, 2016, this threshold will double to $913 per week or $47,476 per year.

This means that 35 percent of full-time salaried workers will be automatically entitled to overtime pay, based solely on their salary. This change will affect an estimated 72,582 workers in Colorado.

As an employer, this change leaves you with few options. If it is not feasible to increase salaried employee’s wages to the new minimum, you will be forced to either pay overtime wages or limit employee hours. The final rule does allow up to 10 percent of the salary threshold for employees to be met by non-discretionary bonuses, incentive pay, or commissions, provided these payments are made on at least a quarterly basis.

The salary threshold will automatically update every 3 years, with the next increase set to take effect Jan. 1, 2020. Each update will raise the threshold to the 40th percentile of full-time salaried workers in the lowest wage Census region, estimated to be $51,165 in 2020. The Department of Labor will post new salary levels 150 days in advance of their effective date, beginning August 1, 2019.

For more information on the Overtime Final Rule contact your business accountant or go to www.dol.gov/overtime.

Let Us Know When Your Company Is Doing Something Great!

We want to showcase our members through the Colorado Auctioneers Association Facebook page. Please send us a message with photos when you’re reprensenting the CAA in your community to Adele Nichols (lanichols12@gmail.com)

or

Cissy Tabor (cissysauction@gmail.com)

Are You Posting Your Auctions To The CAA Website?

The CAA Social Media Liaison is promoting auctions that are listed on our association website to the Colorado Auctioneers Association Facebook Page

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www.coauctioneers.org FOURTH QUARTER • 2016 thecoloradoauctioneer

Education

Certified Auctioneers Institute Where Learning IS Key

By Cissy Tabor, BAS, PRI AI is a lot different that what your memories of auction school may be. My memories of going to auction school included a metal building or hotel conference rooms where I have joined well over 50 people who had the desire and the dream to be an auctioneer and “talk fast.” Over the course of 10 days at auction school, we are surrounded by 20 or so instructors who so kindly share a “tidbit” of their knowledge in a 1 or 2 hour class session and then it’s time to learn from the next instructor.

At CAI, you stay in the hallow halls of Indiana University amongst college students during their college sessions in which Indiana University’s motto on their website states, “Make your dream a reality at IU.” And for anyone attending CAI, I believe that motto carries on through to the auction industry. At CAI, you are given the opportunity to become involved with, meet, network and be engaged with likeminded industry professionals that are committed to the auction industry and have taken the next step investing in themselves and somewhere along the way of their 3 years, will build friendships and professional relationships that can last a lifetime.

If you have considered going, but may be a little resistant, or if you think you have been in the industry too long to go, “Let Me Challenge You To Invest In Yourself and Your Continuing Education and JUST DO IT!” John Nicholls states, “When I was a young Auctioneer, I was driven by work and all I wanted to do was work all the time. I stupidly thought the only people considering taking a week out of their lives to network and take courses were people who didn’t have the opportunity to work. Last year, after winning the NAA Vice President spot, he decided to lead by example.

“I always preach that you can learn something from anyone at any age, so I decided to get out there and practice what I preach,” he says. As a result, he’s had one of the most fulfilling experiences of his career. “I’ve learned that if you shut your mouth long enough and listen, you’re gonna pick up some nuggets of wisdom from others out there in the industry, regardless of whether they’re rookies or veterans,” he says. “You might even learn what NOT to do!”

40 years has come and gone of providing continued education through the Certified Auctioneers Institute program at Indiana University. If you don’t believe you can afford to go, let me encourage you to apply for the Larry McCool Scholarship (can be found on the NAA website) that is due by December 31st. If you have any interest in attending CAI, do not wait any longer. It will be an experience that will change your career.

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AUCTION CO. MHBAR BAR MH

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Mike Heitmann

Mike Heitmann Mike Heitmann

Office • (719) 683-7235 Office • (719) 683-7235 • (719) 683-7235 Cell • Office (406) 450-2051 • (406) 450-2051 Cell Cell • (406) 450-2051 mhbar@earthlink.net mhbar@earthlink.net mhbar@earthlink.net

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2017 Convention

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2017 Convention

First Time Convention Attendees Breakfast, Scavenger Hunt and Troil Welton Awarded First Timers Bid Calling Championship The Colorado Auctioneers Association would like to extend an invitation to all auctioneers to attend our annual convention on January 6 – 8, 2017. This year’s convention has some extra sessions and time setaside just for our First Time Auctioneers.

On the morning of Friday, January 5th there will be a Welcome Breakfast for our First Time CAA Auctioneers. If you are a new auctioneer, please try to attend this breakfast in your honor. We are always very happy to introduce members, especially new members, to our Association. Please contact Mike Nichols to let him know if you will be attending the First Timer’s Convention Attendees Welcome Breakfast (mnichols96@esrta.com). Open registration and fellowship will start shortly after the breakfast.

The First Timers will also be given a Scavenger Hunt, which entails meeting and visiting with many veteran auctioneers. The First Timers who choose to complete the scavenger hunt, have a chance to win a free year of membership in the CAA, by means of a drawing, which will take place Sunday morning at our annual meeting.

The CAA Board of Directors would like to encourage the veteran auctioneers to mentor these newcomers and perhaps even give them a chance to help you at an auction.

During the coarse of the CAA Convention, among other educational sessions, there will be bid calling sessions, Chant Of Champions, that everybody is encouraged to attend. These sessions are a great opportunity for first time auctioneers to attend and take advantage of to improve their own bid calling skills with IAC Champion Shannon Sewell Mays, World Champion John Korrey and multi-state Champion, David Whitaker (creator of Virtual Auction software).

Friday evening the new auctioneers will be able to compete in the annual first timers contest. All of the contestants must have had their auction school or training within the last 12 months. The auctioneers will be competing for the coveted Troil Welton Memorial Award; that is awarded to the “best of the best of the first timer auctioneers.

Immediately following the first timers contest will be the Fun Auction. I want to encourage all of the new auctioneers to take advantage of the opportunities that are available to them at the 2017 CAA Convention. I look forward to speaking with each of you.

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2017 CAA Convention Schedule THURSDAY, JANUARY 5, 2017 6:00 - 8:00p

REGISTRATION - Ballroom Foyer

FRIDAY, JANUARY 6, 2017 6:00 - 8:00p

REGISTRATION - Ballroom Foyer

8:00 - 9:30a FIRST TIMERS’ BREAKFAST W/CAA BOARD MEMBERS & CAA VETERANS

Meet and Greet of First Time Attendees and 1st year CAA members to meet CAA Board Members lead by

Mike Nichols and Josh Larson along with veteran CAA members. Great opportunity to network, talk about mentorship, ask questions and kick-off your convention experience.

8:00 - 9:30a WHERE’S THE COVERAGE

Presenter: Larry Harb

The purpose of this seminar is to educate the Auctioneer Industry personnel on the concept of Risk

Management and the need to understand “where is the coverage” for different risks and exposures that an auctioneer will encounter. During this seminar, participants will learn what risks and exposures an Auction Company has and how different business models change these exposures.

In addition, participants will learn which policy will cover the exposure. Participants will also learn to examine their individual business models and the additional risks and exposures associated with adding new auction services.

Who can benefit from this seminar? All auctioneer and real estate personnel can benefit from this seminar. It will help maximize profitability and minimize risk in today’s auction business.

8:00 - 10:00a

FELLOWSHIP, REGISTRATION AND BREAK W/VENDORS - Ballroom Foyer & Steamboat Ballroom

10 - 11:30a STRATEGIES FOR SUCCESS – UNDERSTANDING, UTILIZING AND PROFITING FROM THE LAW

Presenter: Tom Saturley

This 90 min. session introduces participants to a general understanding of the legal process; Practices

to avoid; How the law can be a vehicle to obtain business; Practical actions that can make us more professional.

11:30a - 1:00p LUNCH (On Your Own) - Did you order the CAA lunch special

1 - 2:30p INTERACTIVE DISCUSSION FOR FACEBOOK BUSINESS PAGES

Presenter: Adele Nichols

Interactive discussion about managing and marketing your Business Facebook page and a basic

overview of the CAA Public Facebook page, led by Adele Nichols Please visit this link to complete a VERY SHORT, anonymous, three question survey so I can better lead this discussion. Please type into your browser: goo.gl/SHWaBf The discussion of the CAA Public Facebook page; Help me help you, it’s a no brainer.

The interactive discussion will cover the basics of Facebook Business pages including: Likes and Fans; Engagement; Posts - from the basics to scheduling and boosting; Insights and How to Interpret Them. Where else will the discussion take us? It’s up to you!

1 - 2:30p BIG DATA - IT’S A BIG DEAL

Presenter: Matt Corso

You’ve heard people talk about data and that collecting it is important, but are you collecting everything you

need from every source you can? Once you have the data, what are you doing with it? During this 90-minute program, we will dive into the world of big data and how it can change our businesses and industry.

1 - 2:30p CHANT OF CHAMPIONS

Presenter: David Whitaker & John Korrey

Round Tables of bid calling practice with Champion Title Winners.

2:30 - 3:00p BREAK w/ VENDORS - Steamboat Ballroom

Please take a moment and visit with our vendors who have invested in our association and see what they have to offer you with their services and products. www.coauctioneers.org 16

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2017 CAA Convention Schedule 3:00 - 4:45p HOW TO USE KEYWORD RESEARCH WITH CONTENT MARKETING STRATEGIES

Presenter: Myers Jackson

Everything found on the internet starts with a search and then results are revealed in order of credibility

and authority. Using keyword research before you start a marketing campaign is the most important step will undertake prior to launching your campaign. Keywords can be used in written content, logos, photos, videos and everything else you do when marketing. Are you optimized…? If not, this class is a is a Must!

3:00 - 4:45p EMERGING LEGAL ISSUES, BEST PRACTICES AND RISK MANAGEMENT FOR PROFESSIONAL AUCTIONEERS

Presenter: George Michak

Will address emerging legal issues affecting the industry, together with best practices and risk

management for professional auctioneers. The discussion will also focus on contract language and bidder terms as important tools to (i) educate sellers, bidders, buyers, regulators, and courts, (ii) manage seller and bidder expectations, and (iii) avoid or reduce the risk of liability.

3:00 - 4:30p IMPORTANCE OF COMMUNICATION RELATIONSHIP OF THE AUCTIONEER & THE RINGMAN

Presenter: John Korrey

Will show the importance of communication between the Auctioneer and the Ringman to provide a

successful auction for the seller and bidders alike.

3:00 - 4:30p

FIRST GENERATION AUCTIONEERS: PAVING YOUR WAY TO A NEW CAREER

Presenter: Shannon Mays

While many auctioneers are “born” into the business there are also many men and women “blazing a

new trail” and diving head first into the auction business. Where do you start? Which direction will your path take you? Live, Online, Auctioneer, Ringman? Forging a new path in today’s auction world can bring up many questions. In this presentation, Shannon will cover different avenues in the auction business and how to “pave your way” to a new career.

3:00 - 4:30p EMPOWERMENT SAFETY TRAINING FOR THE YOUNGER GENERATION

Presenter: Karen Rowe

Kids & Teenagers are more at risk than ever before in the world we live in. Lowering that risk doesn’t

have to be complicated, it just needs to be intentional. The #1 Deterrent against crime is being prepared and being aware. In this interactive class session, participants will have fun learning the basics to help them become more aware of their surroundings and what to do to be more prepared.

4:35 - 4:50p

BREAK w/ VENDORS - Vail Ballroom

Please take a moment and visit with our vendors who have invested in our association and see what they have to offer you with their services and products.

5:00 - 6:00p

DINNER - Steamboat Ballroom

6:30 - 7:00p

KID’S AUCTION - Silverton Ballroom

7:00 - 7:30p

FIRST TIMERS’ AUCTION CONTEST - 2017 TROIL WELTON CHAMPION - Silverton Ballroom

7:00 - 7:30p

FUN AUCTION - Silverton Ballroom

10:15 - 12:00a KARAOKE - Silverton Ballroom

SATURDAY, JANUARY 7, 2016 7:45 - 8:30a

COFFEE & FELLOWSHIP - Vail Ballroom

8:30 - 8:45a

OPENING COMMENTS - Steamboat Ballroom

0:00 - 11:30a STRATEGIES FOR SUCCESS – WHY ETHICS MATTER 1

Presenter: Tom Saturley

This 90 min. session is specifically designed to assist participants in the development of their professional

brand with an emphasis on ethical conduct; A detailed review of the newly revised National Auctioneers Association Code of Ethics; Why ethics matter professionally and financially; Examples of how professional www.coauctioneers.org FOURTH QUARTER • 2016

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etiquette sets us apart.

2017 CAA Convention Schedule 0:15 - 10:30a BREAK w/ VENDORS - Vail Ballroom 1

Please take a moment and visit with our vendors who have invested in our association and see what they

have to offer you with their services and products.

0:30 - 12:00p RINGMEN vs BIDSPOTTERS – WHY HIRE A PROFESSIONAL RINGMAN 1

Presenter: Shannon Mays

In this presentation, Shannon discusses the difference between Professional Ringmen and Bidspotters.

Mays has been an instructor for the Professional Ringmen’s Institute (PRI) along with the institutes founder, Brian Rigby. In this presentation, she will define the role of the professional ringman and the responsibilities that go along with the designation. Also included will be interactive role playing involving session attendees showing the different styles of “working the ring” including benefit, real estate and personal property.

0:30 - 12:00p “DISSECTING” …YOUR (Real Estate) ERRORS and OMMISSIONS POLICY. 1 WHAT YOU NEED TO KNOW!

Presenter: Larry Harb

The purpose of this seminar is to educate the Auctioneer Industry personnel on the concept of what makes

a good Errors and Omissions policy. During this seminar, participants will learn what an Errors and Omissions policy is designed to cover and how to read the coverage form. They should also learn what are the difference between an Errors and Omissions policy and a Professional Liability policy? In addition, what coverage points are most important and how to best structure your insurance program to best protect the agent, broker and the firm. Participants will also learn why the State mandated Real Estate E&O policy may not be adequate to cover the real risks and exposures facing a licensed Real Estate Agent and / or Broker.

12:15 - 1:15p

LUNCH - Silverton Ballroom

1:15 - 2:45p MAN ON THE RUN

Presenter: Matt Corso

We are a culture on the move. Now, not only do your auctions need to be mobile friendly, you need to learn

to incorporate mobile technology into your entire business. This program will talk about ways to not only make sure your website and bidding platforms are mobile friendly, but also what other mobile technologies are out there for you to incorporate into your business. We will also take a look at some Google analytics so you can see the impact that mobile technology is having on your business.

1:15 - 2:45p CHANT OF CHAMPIONS

Presenter: David Whitaker & Shannon Mays

Round Tables of bid calling practice with Champion Title Winners.

1:15 - 2:45p EMPOWERMENT SAFETY TRAINING

Presenter: Karen Rowe

We are more at risk than ever before in the world we live in. Lowering that risk doesn’t have to be

complicated, it just needs to be intentional. The #1 Deterrent against crime is being prepared and being aware. In this interactive class session, participants will have fun learning the basics to help them become more aware of their surroundings and what to do to be more prepared.

2:45 - 3:00p BREAK w/ VENDORS - Vail Ballroom

Please take a moment and visit with our vendors who have invested in our association and see what they

have to offer you with their services and products.

2:45 - 4:45p HOW TO USE KEYWORD RESEARCH WITH CONTENT MARKETING STRATEGIES – PART 2

Presenter: Myers Jackson

Everything found on the internet starts with a search and then results are revealed in order of credibility

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and authority. Using keyword research before you start a marketing campaign is the most important step you will undertake prior to launching your campaign. Keywords can be used in written content, logos, photos, videos and everything else you do when marketing. Are you optimized…? If not, this class is a Must!

www.coauctioneers.org FOURTH QUARTER • 2016 thecoloradoauctioneer

2017 CAA Convention Schedule 2:45 - 4:45p SELLER CONTRACTS AND BIDDER TERMS AND CONDITIONS

Presenter: George Michak

This session will focus on Seller Contracts and Bidder Terms and Conditions. The time of one page

contracts (or handshakes) along with five or six terms and conditions on the back of a bid card have long passed. Technology and other developments in the industry demand that auctioneers use state of the art contracts to (i) educate sellers, bidders, buyers, regulators, and courts, (ii) manage seller and bidder expectations, and (iii) avoid or reduce the risk of liability. The discussion will include specific contract provisions and provide sample language and examples. Also addressed will be how contracts can help auctioneers satisfy their ethical obligations. The discussion will consider the use of reasonably advantageous terms in the seller’s contract and in the bidder terms and conditions to benefit the auctioneer and protect the sale. Also considered will be risk of misapplying Section 2-328 of the Uniform Commercial Code in a way that prejudices the auctioneer.

3:00 - 4:30p CHANT OF CHAMPIONS

Presenter: David Whitaker

Round Tables of bid calling practice with Champion Title Winner 4:00 - 5:00p

HALL OF FAME COMMITTEE MEETING - Crested Butte Meeting Room

4:45 - 5:00p BREAK w/ VENDORS - Vail Ballroom

Please take a moment and visit with our vendors who have invested in our association and see what they

have to offer you with their services and products.

5:00 - 6:00p

DINNER & AWARDS CEREMONY - Steamboat Ballroom

6:30 - 7:00p

2017 CAA STATE BID CALLING CHAMPIONSHIP PRELIMINARY ROUND - Silverton Ballroom

2017 JUNIOR BID CALLING CHAPIONSHIP - Silverton Ballroom

TBD

TBD 2017 CAA STATE BID CALLING CHAMPIONSHIP INTERVIEW & FINALS ROUND - Silverton Ballroom

SUNDAY, JANUARY 8, 2016 8:00 - 9:00a

WORSHIP SERVICE - Telluride Ballroom

9:15 - 11:30a

ANNUAL BUSINESS MEETING & ELECTION OF OFFICERS - Steamboat Ballroom

BOARD OF DIRECTORS MEETING - TBD

12:00p

BRING YOUR STAFF TO CONVENTION ON FRIDAY! YOUR CONVENTION ON FRIDAY! Auction BRING staff members are STAFF welcomeTO to attend ALL Friday education sessions for FREE with Convention-registered CAA member.

Auction staff members are awelcome to attend ALL Friday education sessions for FREE with a CAA member.and thought provoking for Multiple sessions to shareConvention-registered that is surely to be informative On Friday, staff; January 1st, at 3:00 pm…..Rob Hart,w/ of Adele Hall & Hall Real Estate, willw/ speak on Corso, Auction auction Facebook Business Pages Nichols, Big Data Matt Operations that is surely to be informative andStrategies thought provoking forJackson, the auction staff services Keyword Research w/ Content Marketing w/ Myers Empowerment your company provides.

Safety Training w/ Karen Rowe and more!

Invite them to stay for the 2nd Annual Kids Auction that is surely to entertain, First Timer’s ** Meals are not included and would be an additional cost.

Championship and the Fun Auction!

It’s sure to be an informative day for business, education and fun!

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Champion

Who Will Be The 2017 Colorado State Champion?

By Cissy Tabor, BAS, PRI

T

he CAA Convention is right around the corner and that means there will be a new champion named on Saturday, January 7, 2017. Starting at 6:30 pm, contestants will have already drawn their number, lined up and will battle it out to be the next Colorado State Champion!

Contestants are judged on Presentation/ Poise/ Overall Command, Chant/Voice and Effective Auctioneering. The top five place winners will be selected for the final round in which a Reserve Champion and a State Champion will be selected.

But, “Why would you want to compete in that?” A number of IAC Champions have expressed to us that there are a multiple number of reasons to enter the contest other than to be “the winner.” From the day any of us started auction school, we were told about networking, and this event is no different. One of my best relationships in this industry is from my fellow Troil Welton competitor and winner, Dean Gunter.

Competition is good for a healthy auction career, in and of itself, when you compete to hone your skills to be a better professional in the auction industry. Even though you may be competing against other individuals, don’t look at it as if you are beating everyone else in the contest; just strive to be better than you were yesterday. As you get better and develop your skills of the auction chant, professional appearance and answering the questions, you will be a victor before you know it, even if you didn’t win the title. One of my most victorious moments is when one of my prior judges came up to me and stated, “You have improved so much in the last year. Be proud of what you have accomplished.”

Marketing yourself is another natural aspect that occurs just by entering any contest. You have elevated yourself to the next level and have taken the initiative to better yourself personally

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and professionally. Now, as you prepare to sell your items, prepare to market yourself. There’s no better time than the present. You’re standing on the stage, all eyes are on you, there’s no better time to let those individuals know “who you are and how good you are.”

But, don’t stop at the competition, go to your next auction interview, your next networking meeting and display the confidence of the winner that you are! It takes a winner to make the first step onto the stage. It takes a winner to look at their scorecard and ask questions, learn from it. And it takes a winner to do it again each time.

An auctioneer’s contest is like no other because as much as we may think we are competing against one another, truthfully, we are competing against ourselves to “Be The BEST We Can Be.” This is the one industry I know that continues to support & encourage one another. So, you will have the opportunity to do what you do best, with your friends, your comrades, all the while feeling the electricity to be Colorado’s next champion auctioneer.

What could be more fun than that?

So, get your entry form in, get to practicing and get that competitive edge.

The entry form and rules can be found in the back of this newsletter.

Remember, the competition is open to the public, so invite your family and friends to watch all the action!

And I look forward to competing with you making each of us “The Best We Can Be!”

www.coauctioneers.org FOURTH QUARTER • 2016 thecoloradoauctioneer

Livestock

Future for Livestock Auctioneers Remains Bright

By Rae Price, WLJ Editor

W

hile the basics of livestock auction markets and the role of the auctioneer has remained relatively constant through the years, there have been some changes. In recent years auctions have adopted new technology and many are offering video and internet sales.

Western Livestock Journal (WLJ) talked to 1971 World Champion Livestock Auctioneer Ronnie Woodward, who was providing instruction at World Wide College of Auctioneering training, and asked him about the biggest changes he has seen over the years.

“When I started in 1950-51 they didn’t have ring scales or video; everything was done by hand. Cattle were weighed after they were sold…Eventually sale barns installed ring scales and are now able to display the weight of the cattle as they enter the sale ring, which Woodward said has helped buyers make more informed bidding decisions.

WWCA Instructor and 2002 World Champion Livestock Auctioneer John Korrey said technology, especially the evolution of internet and video auctions, has also changed the nature of livestock auctions and in some ways the role of the auctioneer….Now with video and internet sales, cattle can be offered to a broader market and buyers can bid on and buy cattle while at home.

Talking about what the technology changes mean for the auctioneer, Korrey said, “As far as the auctioneer, I think it made them work a little harder to try and satisfy the buyers in the seats as well as the internet without showing favoritism and to treat everybody equal. People drive a long way to get to that livestock market to be buyers and you also have people in their office bidding, so you have to give everybody a fair shot at the cattle.”

All of that makes it a little harder to keep track of bids, but a good auctioneer and his or her team can keep track of the bids and keep the sale moving.

“The key to auctioneering is communication, communicating with the buyer and basically the seller, getting the most money, doing it as clear as possible and create urgency to bid,” Korrey said.

He explained that with online auctions the urgency to bid often comes in the last few seconds of the auction closing. With live sales, he said, “The auctioneer has to create that every time he gets up to sell, create that urgency to sell because you have lot of cattle to move and people don’t want to have games played, so let’s get to the market.”

All of the people WLJ spoke with emphasized the importance of keeping up with the industry and knowing current market trends and values. As Korrey noted, “You might not know exactly what they will bring, but you have to familiarize yourself with what you are selling.”

Having knowledge of market trends and prices helps the auctioneer to start bidding at a level that will help get the most money for the seller.

The behind-the-scenes work also involves building relationships and trust with buyers and sellers. Behr stressed the importance of integrity, calling it a key ingredient for a successful auctioneer.

Lindsay Graber, Director of Marketing and Communications for the Livestock Marketing Association (LMA)…noted that, while some livestock auction markets have closed in recent years, the idea that vast numbers are going out of business is a misconception. She said that some have closed due to changes in ownership, management and in some cases due to competition but there is still a need for local markets, and an interest in the profession.

LMA annually sponsors the World Livestock Auctioneer Championship, which is going into its 54th year. Graber said participation in the event has continued to grow and includes auctioneers at all stages of their career, including rookies.

“There isn’t a shortage of livestock auctioneers,” Graber said, “but we have seen them diversify the types of products they sell.”

The auction business is no different than other aspects of agriculture with the average age of those engaged in the profession rising every year. LMA is trying to help the next generation succeed with the development of a leadership academy for its members.

Looking to the future, Korrey said he believes there is still opportunity. “We’re here teaching and it can be intimidating.

Yes, there are fewer opportunities in the livestock marketing industry, however there is still a niche. If you are a good enough auctioneer and can show that you can handle it, there is still opportunity and jobs out there.”

Dewees told WLJ he believes that attending live auctions still has a place, saying, “It has an appeal—the essence of showing up and being there. I have a feeling that is going to continue.”

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Benefit Industry

The Dreaded Certificate Of Authenticity

By Kenny Lindsay, CAI, BAS, PRI

P

icture yourself sitting at a stop light in rush hour traffic when you see a little old lady walking with her cane crossing the intersection as the neon orange sign across the street is flashing “DON’T WALK...DON’T WALK...

DON’T WALK.” The little old lady is more focused on the cracks in the weather beaten pavement than her surroundings. An unbearable anxiety consumes your body when you spot a cargo truck traveling at excessive speeds, anticipating the red the light to turn green.

You quickly calculate that within a few seconds, this lady is going to be right in the dead path of the truck, which has no knowledge of the woman’s presence. Frantically you blow the horn and scream to the lady but she doesn’t hear you. Despite your quick reaction - your warnings went unheard and the impending doom is inevitable.

Certainly not to the extent of the above situation, but it’s that sickening and helpless feeling I get every time I see the word “Certificate of Authenticity.” Years ago, there was some legitimacy to the term but today, it’s an over used and abused tool which is the snare to steal precious dollars from consumers pocketbooks.

The “Certificate of Authenticity” are great if you have a ‘collectors’ plate from the Bradford Exchange, a ‘limited edition’ (another overused sales term) Barbie doll or a celebrity endorsed weed whacker from an info-commercial. However, in terms of autographs, it’s just a blindfold to the customer, which more often than not, masks the truth behind the item.

Authenticity letters are simple and provide no real benefit to the buyer.

Forgeries and the “Certificate of Authenticity” (AKA: COA’s) DO go hand-in-hand. It appears the public is totally blinded by this fact. The public and shamefully, the dealers have this mentality embedded into their head that if it has a “Certificate of Authenticity” is must be ‘authentic.’ I couldn’t think of a better misconception.

Over the past several years, I have closely followed reports on FBI autograph raids, private lawsuits from collector vs. dealer and several isolated incidents pertaining to autograph forgeries.

I found that an astonishing 98% of all dealers; either accused, prosecuted or convicted for selling fraudulent autographed memorabilia provided a “Certificate of Authenticity” with the bogus merchandise. As far as I am concerned, this article should stop right here as this paragraph just delivered an accurate and powerful message to you. Nevertheless, I’ll go on.

Is the “Certificate of Authenticity” worthless? Absolutely not!

Thousands of criminals are making a fortune off these. I couldn’t think of a more prosperous investment, where a one-cent piece of paper, with generic photocopy script has the capability of generating thousands of dollars. There is such a thing 28

as a ‘smart’ criminal.

Certificates of Au t h e n t i c i t y come in all different sizes, shapes and colors. Most look cheap where the vendor fills in the blank with the name of the celebrity / athlete and then signs his supposed real name to so-called attest to the authenticity of the purchased artifact.

Others portray a highly professional and elaborate appearance.

Some have fancy holograms, fictitious registration codes, phony company names and addresses.

Ladies and Gentlemen! Your attention please. Welcome to Business Marketing and Sales 101.

Our customers have proved that the “Certificates of Authenticity” is the ultimate sales tool. Did you catch that? That’s right, it’s an effective sales tool, which proves as no benefit to the consumer.

Can you blame the novice autograph dealer or the 14 year-old kid with zero authentication skills for distributing authenticity letters to the public? Absolutely not! They are simply delivering what the customers demand. Many dealers are actually pressured to provide the useless certificates because many customers absolutely refuse to buy unless the item has the “Certificate of Authenticity.” Frankly, the only thing these useless documents provide to the customer is a false sense of security.

Not every autographed item of memorabilia is fake, just because it is accompanied with a Certificate of Authenticity.

However, the question you need to ask yourself is. “What merit does the signer of the Certificate carry?” “Is the signer of the certificate a nationally recognized authority on autograph authentication?” Probably not. So this leads to my next question, if you answered “No” to either of these questions, then what purpose does the certificate hold?

Take for instance that you purchased an autographed item and somehow find out that the item is a forgery? What legal recourse do you have in a case where a vendor sells you a forged item with a “Certificate of Authenticity?” Let me first start out by saying that the legal consequences for those selling forged memorabilia is less dramatic than a slap on the wrist.

Certificates of Authenticity are often dismissed in a court of law for the fact that there is no solid evidence that the bogus autograph actually was accompanied with that particular certificate. As insane as this sounds, this is the harsh reality. (continued on next page)

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Benefit Industry Basically, your legal recourse is zero unless the seller is proven guilty of selling over $1,000 in bogus goods and the FBI gets directly involved. Unless you get involved in a class action suit, which is about as unlikely as it gets, you might as well hang up your efforts. It will be an uphill battle and the most you’re going to receive is your purchase price. Authenticity letter or not.

If it were up to me, Certificates of Authenticity would be illegal and those that represent such documents with autographed merchandise would be automatically guilty of a felony unless they possess a degree in handwriting forensics. Currently, there is no legislation opposed to such certificates and until there is, the fraud will continue.

The lesson to be learned is you need to break free from the “Certificates of Authenticity” myth and always remember that, “Forgeries are supposed to look like the real thing.” Look up when you walk and listen for the warning calls.

TIPS TO LIVE BY • Forget ‘Certificates of Authenticity’ • NEVER look for ‘bargains’ on autographs, (i.e. Sylvester Stallone autographed 8x10 photograph for $18.00 DO NOT EXIST!) • Limit your dealer base to a maximum of 4 • Keep detailed records of the origin of your purchase • NEVER “rush” your collection. Carefully choose your purchases • Educate yourself on the “Autopen” (Automatic Signing Machine). These are Public Enemy #1 within the autograph industry.

• Subscribe to autograph collecting magazines and gain valuable knowledge • Deal with convention promoters and obtain signatures ‘in person’ where possible • Look both ways before crossing the road.

Remember that…

FORGERIES ARE SUPPOSED TO LOOK LIKE THE REAL THING!!!

The Colorado Auctioneers Association is accepting nominations for Officers and Directors for the 2017 – 2018 term: To be considered “to” be on the Nominating Committee, a nominee must be (1) An active member of the CAA in good standing (2) Ability to attend all meetings as required If you are interested in serving, please contact one of your current board members.

(See Board of Directors listing / contact on Page 3)

Elections will take place during the membership business meeting at the 2017 Annual Convention, Jan 6 – 7, 2017, in Denver, CO.

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2016 New Members

David Reisman – Peyton, CO Colorado Auctions & Appraisers, LLC Stephen Klein – Fountain, CO Klein Auctions LLC Brittany Browning – Lakewood, CO Family Estate Auctions Dan Ankarlo – Westminster, CO Ankarlo Auction Associates Brady Stagner – La Jara, CO A and B Auction Services, LLC Brett Barker – Hotchkiss, CO / Scottsdale, AZ Pearl Loveland Newman - Aurora, CO

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David Elrod – Steamboat Springs, CO Cervisaphile, LLC Brice Hanlon – Strasburg, CO John Herrity – Windsor CO Hayden Outdoors Curtis Jones – Stratton, CO Sarah Lowery - Centennial, CO Debbie Scheer - Denver, CO Auction Divas Gary Schirmacher - Erie, CO Rebecca Sheley - Mesa, CO

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CAA Heritage & History preservation If you happen to have membership directories, pictures, conference material, auction publications, promotion material, press releases or any other print material and photos that you no longer would like.

Please bring your materials & contributions to the 2017 CAA Convention where we will have material for viewing at the CAA Table Display.

Good Design is

Good Business Specializing in print graphics and logo & identity branding.

Design services provided for The Colorado Auctioneer 2016 NAA Marketing Awards (2) 1st Place and (1) 2nd Place for Company E-Newsletter.

10 years of experience in design!

Sarah Krautschun 970.590.3235 sarah.krautschun@gmail.com

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Employment

Auctioneer Non-Compete Clauses

By Mike Brandly, Auctioneer, CAI, AARE oy Smith, Auctioneer has asked Aaron Davis to help him with his every-Friday produce auction in South Carolina.

Roy is the regular auctioneer for this three (3) hour event, but during the spring and fall, his farming operation requires he find a replacement for some Friday auctions.

Aaron graduated from auction school four years ago, and has agreed to be the auctioneer when Roy is unavailable, and work the ring otherwise. Roy has included in their agreement a noncompete clause.

This non-compete provision basically says that Aaron cannot serve as the primary auctioneer for this produce auction absent Roy, and also that Aaron cannot start a produce auction of his own, nor work any other produce auction within 500 miles upon termination or resignation from Roy’s produce auction for a period of 18 months.

Today, we discuss two issues regarding Roy’s noncompete clause: 1. Basic non-compete clauses in regard to employment contrasted with independent contractor status.

2. What about Aaron interfering Roy’s relationship with the produce auction? We look at “tortious interference.”

In regard to basic non-compete clauses, the most material issue in our analysis is whether or not Aaron’s agreement with Roy is an independent contractor agreement or an employee agreement.

Here’s the highlights of this distinction: • If Aaron has been hired (contracted) as an independent contractor, it’s quite likely any non-compete provision is unenforceable.

• If Aaron has been hired as an employee, then this noncompete clause may or may not be enforceable and will depend on the specifics of such agreement.

The essence of an independent contractor status (outside of the special treatment of real estate licensees) is that the person is independent of the so-called hiring party and works to benefit themselves while fulfilling the requests of the other party.

On the contrary, the essence of employment is the employee is part of (and acts for the benefit of) the employer — in other words loyal to the employer. The employee is employed under certain conditions set out by the employer, as agreed to by the employee.

As such, an independent contractor inherently competes if he desires; he’s independent of restrictions about not competing.

Employees on the other hand might be held to a non-compete clause, but it’s likely difficult to enforce by the employer.

The major issues in enforcing a non-compete clause in an employment agreement include if some sort of compensation

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was granted in exchange for the clause, and if the clause itself is reasonable.

Compensation might be in the form of actual money and/or benefits (higher salary, stock options, car, club membership) and would be contrasted with other like employees to see if similar benefits were afforded those employees with the right to compete.

Reasonableness addresses several issues, including evaluating the restriction itself. For example, is the restriction overly broad geographically (all across the United States?) Does it harm the local economy or local consumers? Is it for an extended period of time (years?)

Our other issue is with the lack of a non-compete clause or the unenforceable of such, an employer or contractor might suggest tortious interference which is a claim for damages against someone who has wrongfully interfered with the claimant’s contractual or business relationship.

For example, did Aaron approach the produce auction owner and suggest or imply that he would be a better auctioneer than Roy? Or, did Aaron take any action to jeopardize Roy’s job performance (even the perception thereof) thus making his own appear better?

A valid claim of tortious interference would typically follow the flow of: • A valid contractual agreement between the claimant and a third party • The defendant having knowledge of this arrangement • The defendant improperly, willfully and intentionally interferes with the contract • The claimant suffers damage Tortious interference is a difficult claim to prove, and in addition to the above must contain clear motive on the part of the defendant. Lacking motive, such claims are almost always dismissed.

If you are an auctioneer and you wish to keep your staff from competing — the first steps are to employ them and compensate them for a [reasonable] non-compete stipulation; otherwise (and despite those aforementioned efforts,) a claim desiring compensatory damages for competing against you will be very difficult to substantiate.

Mike Brandly, Auctioneer, CAI, AARE has been an auctioneer and certified appraiser for over 30 years. His company’s auctions are located at: Mike Brandly, Auctioneer, RES Auction Services and Goodwill Columbus Car Auction. He serves as Distinguished Faculty at Hondros College of Business, Executive Director of The Ohio Auction School and Faculty at the Certified Auctioneers Institute held at Indiana University.

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Employment

Employment: Contractor vs. Employee

By James Myers he auction industry can be particularly vulnerable to a problem that can lead not only to bankruptcy, but also jail time.

It occurs when an independent contractor is found by state and federal agencies to be misclassified and actually fits under the description of an employee. The issue is only magnified by the fact that the guidelines what defines an independent contractor can differ per investigator.

NAA member Rich Schur, CAI, BAS, MPPA, said it’s a topic he discussing during a three-hour CAI session.

“Of the many regulatory things Auctioneers can get caught up in,” Schur said, “this is one of the most disastrous.”

The Department of Labor, just one of four organizations that can come after parties that may run afoul of the classification, said in 2015 that it recovered $246 million in back wages.

That number is in stark contrast to the previous year’s $79 million recovered, which could mean the Department is cracking down on the issue.

The Bureau of Statistics estimates that roughly 10 percent of the workforce (14.4 million people) is classified as independent contractors. However, the Department of Labor has an estimate of its own – roughly 3.4 million of them are misclassified and should actually be considered employees.

Value of “contractor” The value of classifying someone as an independent contractor is that the employer is not paying taxes on those wages. Instead, the company that hires the independent contractor only has to pay the fee, wage or commission.

There is no responsibility for paying overtime, vacation, payroll taxes, FICA, Social Security – that’s the responsibility of the independent contractor.

Another perk for the independent contractor is that the person can deduct mileage, expenses, etc. – anything that falls under the cost of doing business. That makes it an enticing proposition.

Enthusiasm should be quickly tempered, though, when considering the fact that if you wrongly bring someone in as an independent contractor, there are four government agencies that are going to potentially take notice, perform audits, and levy fines and penalties that can devastate your business.

“If they find that the misclassification was intentional,” Schur said, “that may qualify as a criminal offense and result in a prison term, plus tens, if not hundreds, of thousands of dollars in penalties and fines.”

The Internal Revenue Service is one agency that will get involved and hand down its monetary punishment. The Department of Labor can also step in, and the independent

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contractor who actually qualified as an employee is now owed back wages and overtime. Also, the state’s Department of Revenue can come in and collect back taxes. The state’s Department of Labor can also get involved and hand down its own fines and penalties.

“An independent contractor who is misclassified and should be an employee creates a huge liability to both the company and the contractor,” Schur said. “Huge liability.”

It’s a problem in the auction industry, Schur said, because so many contract bid callers work as independent contractors. Some will consider themselves independent contractors because they work for multiple auction houses. They may be legitimate contractors, but working for more than one company is just one of many indicators that they’re not an employee.

One of the most important aspects of this issue involves control. The company that hires contractors cannot control them like they would an employee. Schur said Auctioneers can demonstrate they may qualify as an independent contractor if they establish themselves as an LLC or other business entity – there has to be some business structure there, not just an individual.

Having insurance is recommended, and you must demonstrate that you are providing a skilled service to multiple clients.

You should have the control to accept or reject assignments as you see fit. There should also be a contract between the contractor and the employer that specifically spells out that you are a contractor and not controlled by the company.

A true independent contractor will bring their own tools to the job, set their own schedule, and will bill the client instead of submitting a time sheet. Schur points to the IRS’s independent contractors 20-factor test to determine if you qualify as a contractor or an employee. However, he cautions that this is not a fool-proof method of making that determination.

“It’s guiding principles and nothing more,” Schur warns.

“You’re always at the mercy of the investigator.” (continued on next page)

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Employment In the 20-factor guidelines, the IRS says that if a worker performs services in the order or sequence set by the person for whom the services are performed, that shows the worker is not free to follow his or her own pattern of work, which indicates they are employees rather than contractors. However, investment in facilities, such as tools used on the job, would indicate that the worker classified as an independent contractor.

IRS Topic 762: Independent Contractor vs. Employee The IRS weighs in on the issue with “Topic 762 – Independent Contractor vs. Employee,” saying that, “you should consider all evidence of the degree of control and independence in this relationship. The facts that provide this evidence fall into three categories – Behavioral Control, Financial Control, and the Relationship of the Parties.”

• Behavioral: Does the company control or at least have the right to control what the job is and how the worker does their job?

• Financial: Are expenses reimbursed? Are tools provided or does the contractor bring in their own? Are the business aspects of the job controlled by the payer?

• Relationship to parties: Has a contract been written describing the relationship? How permanent is the relationship?

Does the business offer employee-type benefits?

For 30-plus years, Schur’s company hired an independent contractor to sell cars at an impound auction. The contractor came in with his own truck, microphone, experience, etc. The seller set the auction time, so Schur’s company was, in theory, in the clear on that account, too. However, he’s in no hurry to bring in outside help as a contractor if there is even the slightest doubt.

“Don’t gamble if you’re an employer,” Schur advises. “If you’re in doubt, make them an employee. It’s a heck of a lot cheaper than going out of business. When in doubt, contact your attorney or tax professional.” *Ed. note – Prior to working in the auction industry, Schur earned his senior professional in human resources (SPHR) designation, and ran an HR consulting company. This article first appeared in the October 2016 of Auctioneer magazine - the official publication of the National Auctioneers Association.

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Chant of Champions

Chant of Champions

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AA is proud to have a panel of State, World and International Champion Auctioneers to provide multiple bid calling sessions throughout the 2017 CAA Convention. If you are wanting to work on your chant, breathing technique, cadence or filler words….Check out the schedule times to attend these informal round tables of bid calling to help you out!

DAVID WHITAKER, of Whitaker Marketing Group 2011 Iowa State Champion, 2012 Missouri State Champion & International Livestock Rookie Champion, 2014 Nebraska State Champion, 2015 Reserve US Bid Calling Champion & 2016 Canadian Western Agribition Champion JOHN KORREY, of Korrey Auctions - 1992 Colorado State Champion, 1998 International Livestock Champion, 2002 World Champion Livestock & Greater Midwest Livestock Champion

SHANNON SEWELL MAYS, of Shannon & Associates Benefit Auctions & Fundraising - 1995 IAC Champion & Advanced Bid Calling Instructor for World Wide College of Auctioneering

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Looks what’s coming to the 2017 CAA Convention!

Hurry and Get Yours!

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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

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