Retailers are optimists by nature.  You wouldn't believe it to talk to them but it's true.  They keep hoping that they will have a run on their slow-moving merchandise.  They are not willing to continue to drop their prices, because if they do, their cost of goods sold will go up, and their profits will go down.  Their Balance Sheet will take a hit, and when that happens their ability to borrow suffers.  

Having a Liquidation Sale or Auction at their location is out of the question, because their customers might get the wrong impression.  So, month after month they sit on their inventory hoping it will sell.  Their inventory turns slow down.  Since cash is tied up in slow moving merchandise, they borrow more money to keep the business running.  The balance sheet looks great because they have a large inventory asset, but eventually there is no cash to run the business.  Why do most businesses fail?  They run out of cash.

My Mobile Market Auctions Are Your Liquidation Solution

Liquidating inventory in your local market uses up your "ready-to-buy" market.  It makes no difference whether you hold the sale yourself or consign your inventory to a local auctioneer, the result is the same:  you burn through your customer base.  What's needed for effective liquidation is NEW customers, not your existing customers.  I find your new customers through my Mobile Market Auctions concept.  My concept is simply this:  I go where the new customers are.  I "piggy-back" my auctions onto events where large numbers of people will already be gathering:  Home Shows, Fairs, Resorts, Arts & Crafts Shows, etc.  The attendees at these shows have come to shop, and I give them something to buy where they can name their own price.  You move your inventory without losing a customer back home.  

It Worked For Me, It Can Work for You

I owned two retail stores for fifteen years.  I was in love with my inventory.  I figured that if I didn't have an item in stock, I couldn't sell it.  I wasn't just going to give my inventory away.  Then cash started to get tight, and I started to look for liquidation solutions.  I consigned a few items to the local auction house, and they sold quickly.  The next day I phoned a prospect to follow up on a product inquiry, only to be told that they had purchased a suitable item at the auction house the previous day.  My item.  The one I consigned to the auction house.  The one the customer didn't want to buy in my store because it "wasn't exactly what they were looking for".  I had shot myself in the foot by consigning to the local auction house.  I got rid of a slow moving item, but I lost my sale.  What was the solution?  I still needed to move my excess inventory, but I also needed to keep my customers and my profitable sales. That's when I realized I had to "take my show on the road".

Here's How Retailers Benefit From My Mobile Market Auctions:

• They increase Inventory Turns
  
• They increase Profits
  
• They increase Cash Flow
  
• They reduce the need for borrowing money
  
• Their interest expense drops
  
• They are open to buy new inventory

Consigning Your Inventory Is Easy

Whether your need is one-time or ongoing consigning your excess inventory, damaged freight, or estate property is easy.  Send me an email, or call me at 276-730-5197.  We'll discuss your situation CONFIDENTIALLY.  You tell me what you hope to accomplish, and we'll discuss some strategy basics.  Then, we'll get together and work out a plan.  When your items are sold, you'll get a check. It's as easy as that.

Don't you owe it to yourself…your business…your employees…to call today?  

Let's face it:  few items in an estate are worth much.  Ninety-five percent of an estate consists of consumer goods that can be purchased new anywhere and sell for pennies on the dollar at a thrift store. The remaining five percent of an estate is split between memorabilia and a few "special items". 

It's these "special items" that can get an executor (or an appraiser) in trouble.  Items like the Commemorative Coin Set that the TV said was "guaranteed to go up in value".  Or the antique desk that was purchased cheap at an auction but the auctioneer said "was worth thousands".  When the estate is liquidated, and the "special items" don't bring much money, the heirs feel cheated.  They want answers.  And they start making accusations in your direction.

The Inventory and Valuation Survey Report lists the estate property by group, notes items of potential high value, gives a value range for each group and a total value range for the estate.  References are given for value conclusions.  Comparable sales data, historical profiles, and provenance are not established, eliminating the high cost of research for a complete appraisal.  If no "potential high value" items are found, the report can stand as-is.  If high value items are found, further investigation can be done if requested.

Here's The Format for the Inventory and Valuation Survey Report:

1.  State the circumstances of the report (who, where, when, why)

2.  General description of the estate

3.  Narrative description of property by group (furniture, vehicles, etc.)

4.  Probate Inventory form filled out & completed

5.  Identification of potential high-value items

6.  Summary of value range

7.  Credentials and limitations

8.  Photos if requested

A Complete Appraisal  Can Be Done For High-Value Items

In cases where a complete appraisal is warranted, I will inspect, photograph, and research the items(s) needing appraisal and provide a written report that conforms to the Uniform Standards of Professional Appraisal Practice. For appraisals outside my area of expertise,  I will partner with respected appraisal specialists to provide you with a reliable appraisal of your Virginia and North Carolina personal property.

There is much debate surrounding cruise ship art auctions and whether or not the art sold represents a good value for the art purchaser.  Some folks think that cruise ship art auctions are the spawn of the devil, and others are delighted with their experience.  Reading posts on the web about cruise ship art auctions is like reading posts on politics and religion: everyone has their own opinion.  Rather than join in the “fight”, I thought I’d share my unique perspective on these auctions.

In 2009, I completed a six month assignment aboard three ships as an art auctioneer.  I have worked as a licensed professional auctioneer and appraiser for years.  As an Auctioneer, I have crossed the U.S. from Florida to Alaska, and internationally to sixteen countries from Russia to Panama.  I have sold a variety of goods at auction: cars, real estate, jewelry, fine art, antiques, business assets, and estate property.  I am widely experienced in auction selling formats and I have "insider information" regarding cruise ship art auctions.  

Travelling the world selling art was fun, but for business reasons I have decided not to go back to sea.  At this point, I am a neutral third party with nothing to gain or lose by commenting on cruise ship art auctions.  I hope that my insights will prove useful to those planning to go on a cruise and attend an art auction. 

So, let me get right to the point: can you confidently and comfortably purchase art on a cruise ship?  Yes, you can.  Plus, if you understand the process of buying art at auction, you can acquire some nice pieces and have fun doing it.  My intent in this post is to give you an understanding of where folks get into trouble regarding their purchases, so that you can avoid making the same mistakes.  Here is what you have to understand about cruise ship art auctions:

1.  Arrive early.  Showing up the minute the auction starts puts you at a disadvantage.  The auction preview and the first ten minutes of the auction are important.  The preview gives you time to look closely at the art and ask questions of the auctioneer and the art associates.   You won't be able to ask questions during the auction.  If you are not satisfied with the answers you get or the attitude of the auctioneers, then don't buy anything.  If an individual who is trying to get your money is rude and pushy BEFORE they get your money, how do you think they will act AFTER they get your money?  If you are happy with what you learn at the preview, you can feel comfortable bidding at the auction.  The first ten minutes of the auction is when the terms and conditions of the auction sale will be explained.  Don't be late, and pay attention.  

Continue Reading: How To Bid At A Cruise Ship Art Auction

2.  Know what's included in your purchase.  Does it come with a frame?  Will it be shipped, or do you have to carry it off the ship?  Is there sales tax?  What about Customs charges?  When can you expect delivery?

3.  When in doubt, don't bid.  Remember, this is an auction.  You are under no compulsion to bid.  Artworks have a minimum price, but no maximum price.  Prices go up as the bidding progresses.  A bid is a legal commitment to buy.  If you overbid for an item, you have only yourself to blame.

4.  Understand the difference between hammer price and final price.  Hammer price is the highest bid; it is the last price offered before the auctioneer declares an item sold.  If you bid $300 for a work and the auctioneer said "sold", that would be the hammer price.  It is commonplace for auctioneers to add a surcharge called a "buyer’s premium" of 10 to 20 percent of the hammer price.  Buyer’s Premium was instituted by the major New York and London art auction houses a couple of decades ago and is now in almost general use at all types of auctions.  If the buyer’s premium was 15% and the hammer price was $300, the buyer’s premium would be $45.  If you will not carry your items off the ship with you, then a shipping charge will be added; sometimes, there may be handling fees or insurance charges.  If you  live in the state where the auction house has a facility, there may be sales tax as well.  Your formula for figuring final price in this instance is: hammer price + buyer’s premium + sales tax + shipping & handling + insurance = final price.  Bid accordingly.

5.  Understand what an appraisal is (and isn't).  Typically, Certificates of Appraisal are offered with the artwork you buy a cruise ship.  There is a charge for this service.  Sometimes, a bidder gets carried away in the moment and bids more than they had planned.  This happens so often at all types of auctions that there is a name for it:  auction fever.  These folks get home, get their bills from the cruise, and get a bad case of buyer’s remorse.  When the art arrives, they take it down to their local gallery or auction house to get an "appraisal".  The buyer wants to find out if they got a good deal or not.  Nine times out of ten, the buyer will be told that the appraisal that came with the artwork is too high.  Why is this?  Two reasons.  

Final Reading:  Cruise Ship Art Prices

First, it's important to realize that all items -including art work- have more than one value.  An artwork can hang in a gallery and be priced at $1,000.  Then the gallery goes bankrupt and has a liquidation sale.  The $1,000 artwork sells for $150.  Retail value, liquidation value.  There is also insurance value, gift tax value, auction value, fair market value, and cash value.  The highest appraised value for anything is insurance value.  Cruise ship art appraisals are based on insurance value, and this is stated clearly in the terms and conditions at the beginning of the auction.  If an item is being insured, you have to have enough coverage.  The lowest is liquidation value, sometimes called auction value.  If you took your artwork to an auctioneer for his opinion, which value do you think he will give?  Auction value, of course.  And the owner at the retail art gallery?  Retail value.  Same item; six different values.  

Secondly, appraisal is a research job.  An appraiser must support his conclusions with evidence, not just opinions. The appraisals offered with cruise ship art are backed by data from hundreds of weekly auctions and gallery sales. Appraisals just backed up by an individual's opinion are thrown out of tax court every day, regardless of the credentials of the evaluator.  Have you ever seen Antiques Roadshow?  When stating a value, the Roadshow experts always say something like "I believe this item could bring $XXX at auction": auction value.  A thorough appraisal can take days.  Don't expect that an off-the-cuff opinion by your local gallery owner or auctioneer qualifies as an appraisal.  

Cruise ship art auctions are fun, and the art purchased on a cruise can give you pleasure every day that it hangs on your wall.  Don't let naysayers keep you away from what could be a wonderful experience on your cruise.

Read the Previous Posts:

Cruise Ship Art Auctions
How to Bid At A Cruise Ship Art Auction

Let's start with an overview of an Executors' responsibilities. As executor, your first duty is to initiate probate, which is the formal process of proving the Will and confirming your appointment as executor. The Clerk of your county Probate Court can provide you with the forms that are appropriate for your county. My experience with probate court clerks is that they are very helpful and responsive to your requests. Many of the forms you will need can be downloaded over the internet at your state or county website.

The details and deadlines in settling an estate will vary from state to state. In general, there are 16 items that will be on your to-do list.

They are:

1. Locate the will 

2. Apply to appear before the Probate Court 

3. Notify the beneficiaries named in the Will 

4. Determine the debts of the deceased 

5. Arrange for publication of "Notice to Creditors" and mail a notice to each known creditor 

6. Send notices of the persons death to post office, utilities, banks, and credit card companies 

7. Collect any money owed to the deceased 

8. Inventory the assets, assign values, and have appraisals done if necessary 

9. Check with the deceased's employer for unpaid salary, insurance, and other employee benefits. 

10. File for Social Security, civil service or veterans benefits 

11. File for life insurance and other benefits 

12. File federal and state tax returns 

13. Pay valid claims against the estate 

14. Distribute assets and obtain receipts from beneficiaries 

15. File papers to finalize the estate 

16. Obtain a lawyer or accountant, if necessary.

Do you need a lawyer or accountant? Technically, no. There is no law in place that says you must have an attorney, or that estate taxes must be done by an accountant. But, remember this: taxes and probate can be complicated issues. Mistakes will delay the closure of the estate and the distribution of inheritances. A good lawyer and/or accountant is an asset. Legal and accounting fees are paid by the estate. My advice is to shop around for an experienced probate attorney. Fees vary widely, so be sure to find out what the estate will be charged for legal services before making a commitment.

Additional Reading: Estate Executor's To-Do List Part 1

I just got off the phone with Nancy. She is feeling a bit overwhelmed. Her mother has just died, and Nancy has been appointed executor of her mothers' estate. Nancy has a full time job and a family of her own. Her mom lives in a different state. Nancy doesn't see how she will have time to be an executor, but her sense of loyalty to her mother and responsibility to her family compels her to step up to the plate and get the job done.

Nancy is in for some tough times. While still dealing with the emotional loss of her mother, she will have to empty her mothers house of forty-five years of accumulated memories. Everything in the house will have to be inventoried and values assigned. Her mothers doll collection and her fathers coin collection will have to be appraised. The inventory and appraisals will have to be submitted to the Probate Court. Property will have to be distributed to the heirs according to the Will.

Then, the entire contents of the house, the furniture, appliances, bedding, pots & pans, clothing, car, even the lawn tools will have to be sold so that the house can be readied for sale. When both the titled and non-titled property are liquidated, the debts and taxes will have to be paid to settle the estate.

My purpose here is to help executors like Nancy understand the big picture of what must be done to settle an estate. Keep in mind that I am not a lawyer or an accountant, and I am not offering legal or accounting advice. The information I am offering is based on my experience as an Estate Property Specialist. If you have questions or concerns, my recommendation is to seek legal advice. A good Estate Attorney is an asset.

Further Reading:  Estate Executor's To-Do List Part 2

O.K., so you’re the new Fundraising Chairperson.

Hitting the goal is your assignment.  The budget has been set.  It’s up to you to lead the way.  Everyone is looking to you for leadership and fresh ideas.  What next?

Imagine your first fundraising committee meeting: 

Someone mentions telemarketing for cash contributions.  There’s no support at all for that idea.  Bake sale? The very mention of having a bake sale brings a groan from the committee.  In fact, the mention of selling anything:  candy, pizza, subs, coupon books, or what-have-you has people heading for the door.  They have all “been there” before:  the kids go selling door-to-door or sell in front of the grocery store while the parents buy from each other at work.  At the end of the day, it’s too much work for too little money.

So, what’s fun, easy, doesn’t require selling door-to-door, and can raise a lot of money? 

The most profitable grass roots fundraiser is an Auction.  Why?  Because your committee members will find asking for donations of merchandise to be easier than trying to sell something.  Plus, an evening of fun will draw a good crowd, and folks will bid higher when they know their money is going for a good cause:  your cause.  Think about it:

Everyone likes a night out

Everyone likes a good meal

Everyone likes to be entertained

Auctions are fun and exciting

Your crowd will come back next year and you can do it again

And if that’s not enough, consider that:

You make money from the Live auction

You make money from the Silent Auction

You make money from the raffle

You make money from the dinner and/or ticket sales

You make money from the bar (if you have one)

Most of your goods and services are donated, so you have little or no product cost.

You get money from and develop relationships with new people in your community instead of just members of your organization

Gala events attract media attention that helps your promotion

You end up a “hero”: 

You hit your fundraising goal and everyone has a good time in the process.

Want more info?  Email me or click to see Wayne in action at an ART AUCTION!

How do you know if you are dealing with a reputable estate sale company?

Unfortunately, asking for references doesn't always work; no one gives a bad reference. The Better Business Bureau lists ratings for some, but not all, companies. With an auction company, most states have an occupational licensing board which can give you the status of an auctioneers license and tell you if they have any complaints on file. Checking up on a tag sale company is a lot harder, because there is no agency keeping track of complaints. One website that is helpful is http://www.ripoffreport.com. When at the site search the name of the company you wish to investigate; also type in the owners name to see what that brings up.

Hire a company with a solid internet presence

These days, it is imperative for a company to have an online network. A company that is well-connected in the online world is likely to be a company that is well-networked in the local area. It's unlikely that a company with a poor or no website will be able to use the internet to generate sales for your event.

Doing a Google search of the company's name or web address is the best way to to see how well connected they are. Go to Googles search bar (not the address bar at the top of the page, but the search bar in the center of the page) and type in the companys web address starting with www. How many search results are returned that pertain directly to the company you are investigating?.

If the company is a national franchise, disregard the results for the general franchise and only count the results where the local company is mentioned. Ranking well with the search engines doesn't necessarily mean the company will be the best one for your needs, but it is a good indicator of the professionalism of the company. Typically, companies that have lots of returned results do so because other organizations want to associate with experts in their field, so they link to the experts website. A large number of linking companies is like a "vote" for the company being linked to. A company that displays lots of Google results is usually one that is recognized as being expert in their field.

So, what's the best way to liquidate an estate?

The best type of sale for estate liquidation is to hire a licensed fiduciary to sell the estate property in one day, to the bare walls, any time of year. To achieve this would require an event that is part tag sale and part auction, run by an auctioneer. Since Tag Sale operators are generally not licensed auctioneers and auctioneers usually hate to do tag sales, that's a tough solution to implement. There are auctioneers that combine these services, however. Finding such a company will give an executor the flexibility of having a sale any time of year, the ability to sell down to the bare walls with nothing left over, and the assurance of dealing with a state licensed and bonded fiduciary.

Additional Reading:

Estate Tag Sales
Estate Auctions On-Site
Auction Gallery Consignments

Here are the "pros and cons" of selling your estate personal property via an estate tag sale:

Pros for Tag Sale On-Site

Tag sales have several advantages over an on-site auction. For those that are not familiar with tag sales, the sale is held on the premises and in the house. Companies that specialize in tag sales are less common than auction companies. At a tag sale, everything in the house is priced, much like at a yard sale. Shoppers will browse through the house, and choose the items they wish to buy. When buyers arrive at the house, they take a number, and are admitted into the house when their number is called. Tag sales usually start on Friday evening and end Sunday evening, so there is no need to provide food or bathroom facilities. Tag sales can be held rain or shine and in any season.

Cons for Tag Sale On-Site

The biggest disadvantage in hiring a tag sale company is that tag sale companies are not held to the same legal standards to which auction companies are held. Auctioneers and Realtors are bound by law to the estate by a fiduciary bond. A fiduciary relationship binds the agent by law to act at all times in the best interest of the estate. Fiduciaries are licensed by the state, must pass tests, be bonded, must hold all funds in an escrow account until distributed, and has to settle the account with the estate within a specific time frame.

Fiduciaries must also keep accurate records and follow certain protocols. Failure of a fiduciary to follow procedures can result in fines or loss of license. Tag sale companies are not held to the same legal standards, although they certainly have a moral obligation to the estate. Tag sale companies can handle the details of the sale and the distribution of the money any way they see fit.

Another problem with tag sales is that typically there is merchandise left over after the sale. Often, there is a LOT of merchandise left over. When a lot of items are left over, the executor then has a clean-out problem, because the house must be left "broom-clean" before a realtor will list the house for sale. Unlike an auction, where prices go up with each bid, tag sale shoppers want to negotiate a lower price for everything, which is not only time consuming but costs the estate money.

Tips for Tag Sale On-Site

When working with a tag sale company, read the contract thoroughly, make sure settlement deadlines are included. the operator should have a solid pricing plan, adequate staff, and a solid track record.

Additional Reading:

Estate Auctions On-Site
Auction Gallery Consignments