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Restaurant Auctions – What You Should Know

If you are looking to save money on select restaurant equipment, auctions might be a possible solution. Auctions are typically live format or online, and at times you might find that special piece of restaurant equipment at a bargain price.

Online auctions can be risky at times as you are buying blind, however, if the auctioneering company is reputable then it can be worth the risk. Online auctions are usually not absolute auctions (an auction with no reserve) meaning that you may bid $100 for an item, yet the seller may want $500. In this scenario, the item would not be released as SOLD. Whereas a live auction can be a reserve auction, or an absolute auction (everything goes even if the bid is only $1).

Auctions work for buyers and sellers alike because everyone wins. The seller wins because they are able to sell their business assets or property on a timely basis. Moreover, entertain only real offers that are designed to close and save potentially thousands of dollars in carrying costs, marketing and management costs. Buyers win because the savings they have realized with finding restaurant equipment that they have been looking for.  

What Criteria Identifies a Good Auction Candidate for a Business Asset Auction?

Auctions are typically the best alternative marketing method to liquidate business assets in a timely manner.  Advertising lead times can be in as little as a few days to two weeks.  An auction company would reach a large diverse group via social media, email blasts, targeted lists, phone call campaign, as well as, website with pictures and descriptions of items for sale.  Terms of payment and picking up items are outlined as the bidders need to understand the “as is, where is” concept.  There is an inspection period preview time and bidders should take advantage of this to conduct their diligence. At auctions, sellers get paid in a timely fashion, usually within 2-3 business days.  Items are usually picked up from the bidders within 24 – 48 hours. 

Advantages for Buying at Auctions:

  • Buyers can name their price
  • Buyers know that the seller has taken a serious approach to liquidating their equipment
  • Buyers are treated fairly and on the same terms as others competing for the same property
  • Buyers know that they are only competing against other buyers and that the seller is not bidding for their own benefit
  • Auctions eliminate long negotiation periods
  • Auctions are immediate and therefore immediate needs can be met

Types of Bidding:

  • Traditional Bidding – In a traditional auction, the auctioneer begins by asking for an opening bid and then the audience continues to escalate bids until the highest bidder is determined.
  • High Bidder's Choice - In this style of bidding, similar items are grouped on a display next to the auctioneer. Bidders then bid for the right to select the items of their choice from the display. The highest bidder's choice is then removed and a subsequent round of bidding begins. This style of bidding is most commonly used on the sale of multiple items that are similar or the same.

At Paradise Auctions, we are leaders in the State of Connecticut and only conduct absolute auctions whether it be our online Auction or Live Auction. We choose to do most of our Auctions Live and onsite from the seller’s location for many reasons:

  • It is entertaining
  • It allows you to touch and feel and even test the items you are going to bid on
  • You typically will have 24-48hrs to remove the items from the auction
  • Our staff is available to help and answer questions
  • You can network with other people in the restaurant industry
  • If you do not win certain items at the auction, we can most likely find it for you or get you a great price new from our 35,000 square foot showroom

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