One of the least known facts about live auctions is the ability of auctioneers’ to “read the room” and determine who the main bidders are while gauging bidders’ triggers that will help them to secure the items they want at a price they are prepared to pay.

Whether a room is full of bidders who are serious investors or first timers, it is the responsibility of the auctioneer to get the best market related price for each item in order to fulfil their mandate to the seller.

Techniques for reading an audience

A good auctioneer needs to be entertaining enough to hold the attention of the crowd as well as disseminate required information about the items they are selling to enable them to highlight key selling points to help bidders make their decisions more effectively.

Engaging the services of a professional auctioneer is critical to getting the best prices for the assets that are being disposed of. The purpose of an auction is to get the best market related prices for assets for disposal and to do so in an ethical and transparent manner.

Auctioneers have long relied on the energy of the crowd to gauge interest levels and identify potential buyers. Reading an audience goes beyond simple observation – it’s an art form that requires paying attention to subtle signals. These includes eye contact and gestures which they are trained to pick up on, such as fleeting eye contact, hand movements or even posture changes, as these can signal interest from potential bidders who may be hesitant to start or raise their bids.

The atmosphere of the room plays a huge role. A well-seasoned auctioneer knows how to adjust their tone, pace and energy based on the audience’s mood. If the crowd seems disengaged, they may introduce humour or increase the speed of the auction to rekindle excitement.

Seasoned auctioneers develop a keen eye for serious bidders, distinguishing them from those who might be there just for the spectacle. Serious bidders often maintain a level of focus throughout the auction and make calculated bids at key moments.

Responsible bidding

A well-trained auctioneer will get the best out of an audience with finesse. Once an auctioneer identifies key players in the room, their goal is to create an atmosphere that encourages bidding while keeping it responsible. They create momentum and by focusing on competitive bidders, they drive the required urgency.

Bidders are encouraged to act quickly and decisively to avoid losing out, especially in cases of high-demand items.

Often there is a lot at stake. Emotions can run high and while excitement is key to an auction’s success, responsible bidding is equally important. That is why we register auctioneers who believe know that transparency is crucial and even use techniques to ensure bidders do not overextend themselves. In the height of bidding they outline clear terms and conditions including the payment structure, potential risks and other costs associated with the purchase.

It is increasingly popular for our auctions to encourage potential bidders on valuable items to have one-on-one consultations with auctioneers before the event. This allows auctioneers to gauge a bidder’s financial capabilities and interests, ensuring they don’t get caught up in the excitement without understanding the full implications.

In conclusion

The rise of online auctions have diminished the ability of auctioneers to read audiences. As a result they have adopted new strategies to engage virtual audiences effectively. This shift requires different tactics than those used in a physical auction setting. Instead online auctioneers use digital marketing strategies to attract bidders before the event.

Techniques such as email newsletters, targeted advertising and social media engagement plays a critical role in building an audience.

Many auctioneers have created virtual bidding rooms to mimic the excitement of a live auction. By using live video feeds, real-time bidding updates and interactive platforms, they keep bidders engaged throughout the event. Access to data also allows them to leverage analytics to understand bidder behaviour better. This includes tracking which items attract the most interest and monitoring bidder habits, such as how frequently they bid, which allows auctioneers to fine-tune their strategies.

Sonja Styger | National secretary | South African Institute of Auctioneers (SAIA) | mail me |

Related FAQs: Auctioneering strategies and insights

Q: What should I know about the auction process before participating?

A: Understanding the auction process is crucial for both buyers and sellers. Familiarise yourself with the types of auctions, such as English and Dutch auctions, as well as the auction rules that govern bidding and selling. Knowing the reserve price and the bidding increments will help you strategise effectively.

Q: How can I develop effective bidding strategies for an auction?

A: Developing effective bidding strategies involves researching the auction items, understanding the auction market and knowing your budget. Consider using competitive bidding tactics, and be mindful of the timing of your bids during the auction to secure the best price.

Q: What are some best practices for sellers in the auction industry?

A: Sellers should focus on marketing and promotion strategies to attract bidders. This includes high-quality content marketing to showcase auction items, setting a realistic reserve price and understanding market trends to optimise auction outcomes.

Q: How does negotiation play a role in the auction process?

A: Negotiation can be an integral part of the auction process, especially in private or sealed-bid auctions. Sellers may negotiate terms with bidders before the auction starts, which can lead to better results during the bidding process.

Q: What types of auctions are available and how do they differ?

A: There are various types of auctions, including English, Dutch and Vickrey auctions. Each type has different rules and bidding strategies. For instance, an English auction encourages competitive bidding, while a sealed-bid auction requires bidders to submit secret bids.

Q: How can I ensure a successful auction day?

A: To ensure a successful auction day, prepare by promoting the auction items well in advance, ensuring that all auction items are well presented and being clear about the auction rules. Also, have a solid auction strategy in place to engage bidders effectively.

Q: What factors influence the auction market?

A: The auction market can be influenced by various factors, including current market trends, the desirability of the auction items and economic conditions. Keeping an eye on these factors can help both buyers and sellers make informed decisions.

Q: What should I do post-auction to maximise my outcomes?

A: After the auction, review the auction outcomes and analyse the bidding process. For sellers, follow up with buyers and ensure smooth transactions. For bidders, consider the results to refine your bidding strategies for future auctions.

Q: How can art auction houses leverage marketing and promotion strategies?

A: Art auction houses can leverage marketing and promotion strategies by utilising online sales platforms, social media and targeted advertising to attract potential bidders. Highlighting unique auction items and providing expert insights can also enhance engagement.

Q: What insights can help me navigate the auction world more effectively?

A: Gaining expert insights into the auction industry, including understanding bidding strategies and auction formats, can help you navigate the auction world more effectively. Networking with experienced auctioneers and participating in workshops can also provide valuable knowledge.