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FREQUENTLY ASKED QUESTIONS
Bankruptcy: When a company goes out of business due to bankruptcy the contents of that business is usually sold to pay its creditors. Merchandise can include new and used products, first quality, ends of season, and more.
Cancelled Orders: A company may decide to cancel its order from a factory or distributor. In order to sell this product the factory or distributor would slash its price on this merchandise. Usually first quality products.
Close Outs: These are mainly brand new items that are no longer being sold for the wholesale cost because a company has bought a product in higher quantities that the company can sell. These items may come from overstock or discontinued items.
Discontinued: Merchandise that will no longer be produced, usually due to a newer product that is being produced.
Ends of Season: This term usually applies to merchandise that is stocked on a seasonal basis. For example many clothing outlets are able to pass on excellent savings because they might stock clothing that was left over from last year's season. Usually first quality.
Factory Over-Runs: Extra merchandise produced in the manufacturing process. Usually first quality products.
Overstock: Excess first quality inventory that is discounted. Usually first quality products.
Refurbished: This product was returned which could have been due to the fact that the purchaser did not like the product and there was no defect with the product or the product may have been defective. The product is inspected and serviced as necessary and is guaranteed to perform to full manufacturers specifications. This type of product may come with a warranty.
Returns: These are items that were purchased and then returned to the company for refund, exchange or credit. This type of merchandise could have been because it was defective; wasn't the right product; didn't like the merchandise, etc.
Sample: These are initial products that are produced to present to buyers in order to gauge response to a particular product and aid in the selling process to buyers. Most companies produce samples for their products, if buyer interest is low these samples may be cancelled for production which results in a one-of-a-kind item.
Scratch & Dent: Products that have slight cosmetic blemishes which does not affect the operation of the product.
Seconds: Seconds are items with minor flaws that do not affect performance.
Salvage: Salvage goods are items that cannot be sold as new anymore. This can include a brand new product and the box got ripped. It can also include store returns where the item is broken but in most cases the item is in good condition and the item was returned for whatever reason.
AUCTION TERMS
Absolute Auction: Merchandise is sold to the highest qualified bidder with no limiting conditions or amount.
As Is: Merchandise is sold without warranties as to the condition and/or the fitness of the property for a particular use. The buyer is responsible for judging and examining the property for their own protection.
Buyers Premium: An advertised percentage of the high bid or flat fee added to the high bid to determine total contract price to be paid by the buyer.
Bid: An offer of a price that a prospective buyer will pay to purchase the item up for sale. Bids are usually in standardized increments, established by the auctioneer.
Bid Assistants/Bid Consultants/ Ringmen/Bid Spotters/Handlers: Individuals positioned throughout the auction to assist the auctioneer, spot bidders and assist prospective bidders with information to help them in their buying decision.
Bidder Number: This is the number issued when you register. It allows you to bid on items up for sale.
Deposit: Most auctions require a deposit in order to receive a bid number. If nothing is purchased the deposit is refunded in full.
Liquidation: This type of sale is usually held by a court appointed company, in order to quickly sell the assets of a company that is no able to operate. Merchandise usually consists of first quality products.
Lots: Merchandise that is grouped together to be sold together. This is the best way to buy for resale because the price per unit is usually less.
Opening Bid: When an item is up for sale the Auctioneer will set a price. This does not mean you must start bidding at this price. You may start bidding at any price.
Minimum Bid: The item for sale has a minimum dollar amount that must be bid to buy this item. This usually indicates a reserve on the item.
Reserve: This is a set dollar amount that the item for sale must be sold for. If this set dollar amount is not attained the item will not be sold. The item is usually set aside and brought up for bidding again at the end of the auction session.
Shills: A bidder that has no intention of buying anything. Their purpose is to drive the bidding as high as they can without having the final bid. They work with the auctioneers who receive a commission on the total dollar amount that is sold. This is illegal and is not a common practice.
Surcharge: Some auctions will charge a small percentage of the total amount if the buyer is using a credit card to purchase the item sold.
Terms & Conditions: The legal term that governs the conduct of an auction. This also includes the acceptable methods of payment, deposit, buyer's premium, possession, reserves, and any other limiting factors of an auction.
Tie Bids: This occurs when 2 or more bidders bid exactly the same amount at the same time. This situation is resolved by the auctioneer.
Viewing/Inspection/Preview: This is the specified time, date, and place that the items will be available for prospective buyers to view and evaluate the merchandise.
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