The previous two weeks once again saw truckloads of new equipment coming into the yard here at SJF.  It started with Dave Kieper and Sam Sterner taking down conveyor previously sold by us.  One advantage to buying used is the high chance of selling the equipment right back when changing the facility!  In and out in two days only, and there is now over 150′ of great shape used Ermanco Lineshaft conveyor in stock here in Winsted.

Wire baskets have been a hot commodity upstairs in the Sales room lately at SJF, so we could not pass up the opportunity to purchase over 900 barely used collapsible wire baskets from California late last week.  These should be arriving here in Minnesota any day now.

If ever given the opportunity to purchase some great shape, heavy duty beams, we never pass it up.

These Keystone style beams recently came in from the East coast.  We even hired a different crew out there to do the banding and loading work for this purchase, and couldn’t be any happier with the results.  All in all it was a great buy working with great people.

This pallet flow rail came through and had us drooling here at SJF.  It looks like the rail is new and never used.  We jumped on this immediately and had it sent straight here all the way from South Carolina.

This carousel is almost an exact match to that we purchased last week.  Located right here in the Twin Cities, we couldn’t say no.  This carousel is in absolutly pristine condition, and we look forward to receiving it in early March.

An Insider’s Guide to the parlor tricks auctions use to separate you & your money.

In my previous two articles on auction buying secrets, I have exposed the common ways that auction houses get the pigeons to part with their money and actually buy (some of) the junk they are selling. In part three, I’ll discuss some common practices that I have come to rely on that usually drastically increase my chances at paying less and getting more.

Tip #1: The Devil is in the Details

The Fine Print.

Every auction starts and ends with paperwork. 99% of all of the people at the auction never read the fine print at the bottom of the terms and conditions of bidding at registration time. These terms will lay out ALL of the costs that will be associated with bidding on and purchasing items at this particular auction. Extra expenses that most auctions include that will be tacked on over and above your winning bid prices can include but are not necessary limited to:

• Sales tax (This can be an additional 3 to 13%.)
• Buyers premium (Often 10% to 15% or more)
• Removal fees
• Loading fees
• Security Fees

Many of the details that will affect what you can afford to bid will be determined by what is in those terms and conditions. It’s vital that you think through these details before you even bid as they can greatly increase the cost of the equipment to much more than it’s worth.

Points to think about:

• Is the equipment being auctioned still standing/installed?
• If so, Who will be responsible for the removal?
• If it’s you, the buyer, what will it cost to get it removed?
• Is there a deadline for removal?
• If so – what are the penalties or consequences if it’s not removed within before the deadline?
• Will you lose ownership of the material?
• Will you be fined?
• Will it be removed for you at an exorbitant expense that you will be responsible for?
• Can you remove it yourself or must you use a pre-designated removal crew?
• If so – what will they charge?
• Do they have to be certified? Union?
• When, with whom, and how will you remove and/or load the equipment?
• What expenses will that entail?

Tip #2: Pre-Game Preparation

Let the auction begin!

Whether it’s an athlete’s performance or a politician giving a memorable speech, practice makes perfect. The practice and preparation that goes into any task beforehand will often dictate how successful the results will be.

Most amateurs show up on the day of the auction and quickly register, grab a hotdog and coke and then catch the auction already in progress. This is a formula for disaster.

Auction insiders preview all of the items up for bid long before the auction ever begins. All auctions have an item review/inspection period 1 or 2 days before the date of the auction. Be There! During this time there are often people available to answer questions about individual items. If you wait until the day of the auction, it’s often too late to get the answers to these questions.

Common questions that are fielded include:

• Are there and issues or concern about an item?
• Does it run?
• Is it complete?
• Was there any service work performed recently?
• Are their manuals?
• What are the model & serial numbers?
• Are their extra parts included or available for the manufacturer?
• Do all parts/accessories fit?
• Is the model obsolete and/or is the manufacturer out of business?

Get all of the tag data. This includes make, model, size etc. Once you gather the information on the items you are looking for, you should do a search on sites like Google and eBay. This can give you some idea of what similar items cost from both distributors and on the open market.

Tip #3: Don’t Bring a Knife to a Gun Fight

Not Equal.

As I have stressed in parts 1 and 2 of this series, auctions are designed to provide the auctioneer the advantage. Knowing this, it is important to do whatever you can to level the playing field when and where ever you can. For you to go it alone against the auctioneer and his crew is like bringing a knife to a gun fight. The odds are not in your favor.

One of the advantages the auctioneer has is the assortment of partners/assistants he has working for him. These associates ensure he gets the most value out of each item up for bid. Depending on the size of the auction, he may have anywhere from 2 to as many as 10 assistants dispersed within the crowd – all working on his behalf. These individuals seek to encourage and capture bids and bidders (both you and your competition) from the crowd. When he finds someone who bids he shouts out to the auctioneer that he has found someone who is willing to bid against you for that particular item.

Considering that the auctioneer and his staff are all trying to encourage others to bid against you to make more money on an item, what can you do to even the odds?

1: Don’t come alone! Bring a friend or 2 that can assist you.

They can provide encouragement, remind you of your limits and help you retain your focus. They can also encourage you to say no when the auctioneer is encouraging you to say yes. They can help you keep track of who is bidding as well as the current bid and asking prices.

2: Good things come to those who wait.

In my experience, the largest crowds are always at the beginning of the auction. As the auction progresses the crowd dwindles. As items are sold the people that came specifically for those items no longer have any need to stay engaged in the remainder of the auction.

3: Auctions are a war of attrition.

Waiting is also an advantage for larger lots of like items. If you have 10 people who want the same item, they will have a tendency to bid more for the 1st item that crosses the block than the 10th one. If there are multiple like items in an auction you can usually save as much as 50% if you have the courage to let the crowd beat each other up over the first few items with the hopes that once some of them are sold, those winners will no longer be bidding for the rest. The result will be less competition when bidding on the later items.

Tip #4: The Only Stupid Question is the One That Goes Un-Asked.

Wait - what was the bid again?

During an auction, the action can and will get fast and furious. The auctioneer and his crew will be seeking bids, finding and encouraging you and your competitors to bid quickly and aggressively. It’s times like these that you need to stay focused on your bid, the current winning bid, and the current ask. Knowing these three pieces of information will be the key to deciding what you need to do next.

I can’t tell you how many times I have seen a person who had the current high and winning bid accidentally raise it. In essence, he outbid himself. This happens because the bidder gets caught up in the emotion of an auction and loses track of the winning bid and who has it.

This is a prime example where bringing a friend with you can be an invaluable asset. Friends can assist you with keeping track of who has the winning bid and what it is. They can remind you and calculate (on the fly) the 15% buyer’s premium. They might also remember that removal MUST be done within 24 hours or they may simply remind you that you’re already over your max price for the item and you really need to walk away.

But even when you have friends with you there are times where the action is confusing. If this happens, slow it down. You can literally stop the action by verbally addressing the auctioneer or his assistant and asking him “Wait – What’s the current bid?” or “Who has the winning bid? Is it me or someone else?” or “What is the next ask?”

Most people think there is some rule against doing this but in reality, there isn’t. There is nothing wrong with asking for clarification on where you stand and the current status of the auction. Doing so can save you from making a huge mistake and ensure that you won’t ever be one of the people I see bidding against themselves.

Conclusion:

Auctions are exciting and fun and can also be very profitable. I wish everyone the best of luck, unless of course, you’re bidding against me. I encourage everyone to take this information and get out there and try it yourself. Follow these 4 tips and you’ll be on your way to buying at actions like an insider. Like all magic tricks, once you know the secret, the magic is gone. The tricks and tactics that wow the novice into making mistakes will provide you with opportunities.

If you have questions or comments, please leave a comment below. Remember – the only stupid question is the one that goes un-asked. I’ll be happy to address and questions or comments that are posted. Happy Hunting!

~Stafford Sterner

SJF Pallet Rack Storage Building #3

Over 50 Loads of Racking Arrived at SJF in January

The last week saw large quantities of rack come in through SJF.  One look down our receiving isle will show the evidence, we are full of pallet racking.  Recent purchases came from several auctions and sources spanning the entire  U.S.

Recently received in from Illinois-Large quantities of T Bolt:

• 450 36”x24′ Uprights
• 250 48”x25′ Uprights
• 3700 108”x4” Step Beams
• 3300 108”x5” Step Beams

SJF.com - T-Bolt Pallet Rack Beams

SJF.com - T-Bolt Pallet Rack Uprights

Recently at another Auction in  Minnesota – Heavy Duty Teardrop Pallet Rack:

• 450 144”x6” Step Beams
• 100 42”x15′ Uprights
• 40′ of 42” Belt on Roller Conveyor, like brand new

SJF.com - Tear Drop Pallet Rack Uprights

SJF.com - Keystone Pallet Racking

Recently received from Massachusetts – Keystone/Republic and Teardrop Rack

Republic:

• 400 96”x4” Step Beams
• 500 144”x4” Step Beams
• 30 42”x16′ Uprights

Teardrop

• 140 96”x4” Step Beams
• 40 144”x4” Step Beams
• 50 42”x9′ Uprights

Recently received from Illinois: White Vertical Carousels

• 180” Overall Height
• 112”x60” Bin Dimension
• 12 Bin Unit
• 800lb Bin Capacity

SJF.com - White Vertical Carousel

Recently received from Missouri: Large quantities Structural Ridge-U-Rak Pallet Racking

• 240 36”x18′  Ridg-u-rak Structural Uprights
• 2,200 96”x4,500# Capacity Structural Beam
• 4,500 Bolt in Pallet Supports

SJF.com - Ridg-u-rak Structural Beams

SJF.com - Ridg-u-rak Structural Uprights

An Insider’s guide to the parlor tricks auctions use to separate you &  your money.

In part 1, I reviewed the 4 very simple auction facts that most insiders don’t want you to know.

They are:

1. Auctions are designed to sell stuff. All. The. Stuff. Good, bad and even really bad stuff.
2. Auctions are designed to sell items for more, not less, than it’s really worth.
3. Auctions are designed to confuse you into making bad decisions and mistakes.
4. Auctions are designed to get as much of your money as fast as possible with no possibility that you can ever get it back. (This is all done completely transparently and 100% legally.)

Take My Money!

In part 2, I’ll expose these top 4 auction secrets that net more and more pigeons every day. Here’s the good news. After you read this article, you’ll trade in your pigeon wings to some other sucker standing next to you who didn’t read it.

Let’s start with the basics…

(1) Auctions are designed to sell stuff. All the stuff. The good, bad and even really bad, stuff.

The main purpose of any action is to sell all the stuff. This includes all the good stuff, but what we’re concerned with here is all the bad stuff (I’m talking about the broken, manufacturer is out of business stuff). The next priority is to get the most money possible for the stuff on sale. The more bidders bidding the better the chances that the seller will obtain higher bids.

All auctions are comprised of good and bad stuff. The good stuff is purposely dispersed evenly among all the bad stuff (filler) to keep as many people engaged for as long as possible. Unfortunately for you, they don’t have tags or any sign saying what’s good and what’s bad. Mixing the good and bad stuff together assures a steady stream of bidders from the beginning to the very end of the auction.

Inherently, as the auction progresses and there are fewer items left to be sold, people start to wander off or have spent their budgets on items auctioned earlier. In general, you’ll find that fewer people stay to bid on items near the end of the auction. It is for this reason that I have found that the best buys can usually be had in the final 1/2 of an auction. There are less people bidding than at the start of the auction so there will be less competition for the goodies that remain.

Moving On…

(2) Auctions are designed to sell items for more, not less, than it’s really worth.

While many items may look alright on the auction floor, many are not. Items in actions are sold “as-is, where is.” In other words, you are buying the item where it stands as  it stands.

Let me restate this because it is one of the most important things to realize about auctions. You are buying an item in the condition it’s presented. Nothing extra is implied here. Don’t assume it runs, is complete, or even contains all the parts and components. If complex items are not clearly specified as working or with some assurance all of the pieces are there – beware.   If an item is not accessible to be fully inspected by you or a professional on your behalf before purchase, Walk Away! Let the pigeons feed on the  junk.  You’re after the jewels.

The key thing to remember is that items that are often broken, burned out, damaged, incomplete, don’t fit your intended purpose or have mismatched component parts are usually displayed to look tip top.  Auction terms of sales are pretty boiler plate in that they offer little to no wiggle room. You need to know the rules if you want to play the game. Failure to read or understand the fine print can and will cost you dearly. Do your home work. Read and understand the terms of the auction before not after you start bidding. Let me say it again. There are no returns and there are no exceptions to those rules should you change your mind once you buy an item.

Let’s talk about human nature…

(3) Auctions are designed to confuse you into making bad decisions and mistakes.

Auctions are designed to confuse and deceive you into making bad decisions. Let me be clear here. This process isn’t illegal or dishonest, It’s all part of the game of which the auctioneer is a master at playing. They do this by taking you out of your comfort zone. The auctioneer’s job is to do everything they can to pressure you into making decisions faster than you would normally feel comfortable making. Tactics they use to accomplish this include: talking faster and louder than normal, forcing a sense of urgency, and hyping the appeal of an item up for bid.

Using an auctioneer’s roll call (a series of fast chatter of words much of which is not even understandable), is a trick as old as time to get you to part with your cash. The auctioneer is standing up front rolling off syllables at lightning speed and if you’re bidding, he keeps pointing at you. All the while, the price creeps steadily higher. Who wouldn’t feel a little pressure with potentially hundreds of other people watching?

These tricks induce a sense of urgency in order to get you react impulsively rather than logically. Most of the time, when people rush into impulsive decision making they make mistakes, lose their concentration and agree to pay prices they normally might not in a normal environment.

Summing it up…

(4) Auctions are designed to get as much of your money as fast as possible with no possibility you will ever get it back.

Think about it. The auctioneer is screaming through a megaphone speaking 90% gibberish while the people you are bidding against are trying to stay disguised so as not be recognized by the other bidders. Meanwhile, you and these secret bidders are engaged in what amounts to a public contest of wills – none of you are quite sure who is winning, but you all keep bidding higher because everybody is watching and the auctioneer keeps looking at you and…holy **** did he just say “Going Once, Going Twice…” he’s going to sell it and you’re going to lose it! Going, going…oh hell…one more bid…

“SOLD To Bidder Number #YOU#!”  .. Oh my goodness.. what did I just do?

Don't be a Pigeon

Just look at that process. This is deception and exaggeration all rolled into one for the sole purpose of getting you to pay more than you would normally pay and for an item you might not even buy in a more reasonable circumstance. Once that auctioneer says sold and points to you, the sale is final with no refunds or returns as stated in the terms and conditions you agreed to.  You know, the terms that say you are responsible for the dismantling and removal costs, the 6% sales tax and additional 15% buyer’s premium on top of what you just bid.  You know, that flyer that had all that small print that you didn’t really read.  Flyer.. like in “pigeon!”  Just say’in 

So do you still think auctions are for amateurs?

In part 3, I’ll reveal some insider secrets that will give you the tools you need to compete with and beat other guys and put auctioneers at a disadvantage at their own game.

]]> http://www.sjf.com/blog/2012/01/auction-buying-demystified-part2/feed/ 0 http://www.sjf.com/blog/2012/01/auction-buying-demystified/ http://www.sjf.com/blog/2012/01/auction-buying-demystified/#comments Thu, 19 Jan 2012 21:53:44 +0000 staff http://www.sjf.com/blog/?p=1286 Auction Buying Demystified ( part 1 )

An Insiders guide to buying the jewels while avoiding the junk at  auctions.

Everyone likes a deal right? There’s always that chance that you’ll get something for nothing. You too can pay pennies on the dollar for prime merchandise. No other place gives the little guy the buying power of the professional than an auction…right?

Not unless you believe in fairy tales! 

I’ve been buying used material handling equipment at auctions for over 30 years. Over that period of time I have purchased literally hundreds of thousands of dollars of equipment. The art is to find, bid for and buy the hidden jewels amongst a wide variety of worthless junk. I am about to share some of my best personal insights and advice on how to avoid ending up with the junk and avoid the parlor tricks designed to get you to overpay for the good stuff.

First let’s lay down some groundwork

Myth #1 – Auctions are a fair open market where buyers of all kinds have a fair and equal opportunity to bid on and buy equipment.

Myth #2 – The highest bidders always acquire equipment at prices lower than its normal fair market value.

Truth: Auctions are neither “fair” nor designed to provide the average guy on the street an equal playing field to compete against professionals. And yes, contrary to what anyone tells you, they are designed that way.

It’s true! Auctions are specifically designed to get you ‘the bidder,’ to bid and pay more money than you should, and to do it as quickly and effortlessly as possible.

The auction premise is based on human greed. The rouse that’s concealed from every new guy hoping get something for nothing is that they are out to turn your loss into their personal gain.

The story goes something like this.

An Amateur’s Game Plan

You’ve heard all the stories and decide today that you’re going to your 1st auction. You arrive at the auction and get a bid number. You peruse the equipment and think to yourself, “There’s really a lot of good looking stuff here.” The auction starts and you bid. You start bidding as low as possible till you hit your pre-determined bid limit – perhaps you come in under – maybe you splurge and go over (but just a little). In the end, you win an auction and pay your money. You go home with your loot and brag to all your friends & family about the great deal you got and how much money you’re ahead. You start planning on how you’re going to spend your money that you’ll make off of selling your purchase – or perhaps on how you’ll use the new items in your daily lift. Everyone thinks you’re incredible, a real genius. You fashion yourself a savvy buyer and smarter than the average bear.

Does this sound familiar?

There is an old saying in poker.

“If after 30 minutes of playing you can’t spot the pigeon at the table– you’re it!”

The fact is – that if buying everything at auction were really such a good deal – everybody would buy everything that way. What you didn’t realize was that even though you did indeed get a lot of stuff for your money you didn’t verify that you got it at a fair price. The reality is that you have as much of a chance (perhaps even a greater chance) of overpaying for your merchandise as you do of getting it cheap or even at a fair price.

Like I said starting out, I’m a professional buyer. I buy and sell equipment all day every day. I know going into an auction what to pay for each item I bid on and I don’t buy anything that won’t return a profit.

Here are the Facts

1. Auctions are designed to sell stuff. All. The. Stuff. Good, bad and even really bad stuff.
2. Auctions are designed to sell items for more, not less, than it’s really worth.
3. Auctions are designed to confuse you into making bad decisions and mistakes.
4. Auctions are designed to get as much of your money as fast as possible with no possibility that you can ever get it back – completely transparently and 100% legally.

In part 2, I will expose these top 4 auction insider secrets to give you a roadmap on how to use them to your advantage.

]]> http://www.sjf.com/blog/2012/01/auction-buying-demystified/feed/ 0 http://www.sjf.com/blog/2012/01/polls-feature-added/ http://www.sjf.com/blog/2012/01/polls-feature-added/#comments Thu, 19 Jan 2012 16:56:25 +0000 admin http://www.sjf.com/blog/?p=1283 Just a quick announcement – We have implemented a poll feature on this blog on the left-hand side of the page (below the category list).  Please take a moment to answer the current question and as always, keep checking back at sjf.com/blog for new questions.

We now return you to your regularly scheduled material handling postings…

With conveyor spread across the warehouse, it made packaging the material almost a scavenger hunt.  Totes full of unknown parts were lining the top levels of the rack, and many contained valuable parts to piecing together conveyor systems.  We ended up sending two trucks back to Minnesota, both loaded to the brim with conveyor, drives, nose overs, feeder beds, and other parts usable with most conveyors.

The end result had us bringing home over 30 drives, hundreds of linear feet of various kinds of conveyor, a few curves, and boxes upon boxes of usable parts.  We now have pieces to help us run full lines of lineshaft, belt-on-roller, live roller, and skate-wheel conveyor.

The following week resulted in resident carousel whiz/Lead Technician Dave Kieper and Sam Sterner traveling to Arden Hills, MN to disassemble and ship back 3 office carousels.  These included 1 Kardex Lektriever Series 80, an 18 bin unit, and 2 White model N2160s, both 16 bin units.

All three of these units were in beautiful shape, and all ran like new.  Day 1 concluded with all bins being send down the road to Winsted.  Day 2 ended with the side skins down and shipped, along with carousels prepped for sides to come down.  Day 3 brought in the man power, as the sides of these units had to be carried by hand though the doors and up a flight of stairs to be hand loaded onto our truck.

These 3 carousels are ready to go, all in perfect working condition, including controls.  Call SJF today for the full specs.

The initial steps for installing our new carousel software, SurePik Automation, were taken late last Friday night.  Engineer Matt Johnson, Dave Kieper, Sam, Josh, and Frank Sterner were all on site in St. Paul Friday evening to wire controls for final install this coming weekend.  They all left at midnight with the system ready to be fully wired within the next five days.  The control panel goes in at the end of the week and the full system will be implemented then.

Watch this video on YouTube.

The Worthington, MN shipment occurred on Wednesday, December 14.  Friday, December 16 and the following Monday were spent in Plymouth, MN installing pallet rack for a new Polaris Industries showroom.  The rack was set to allow display of ATVs and accessories for sale.

The week of 12/19 also had the arrival of several trucks from a recent purchase in Jeffersonville, Indiana.  These trucks came loaded with rack now available in stock in Winsted, MN.  A brief list includes-

48”x20′ Speedrack Uprights - 204 ea

108”x4” Speedrack Beams - 621 ea

96”x4” Speedrack Beams - 528 ea

48”x 20′  Teardrop Uprights – 40 ea

48”x52” Wire Deck - 653 ea

48”x46” Wire Deck – 747 ea

Many other items including many sizes Speed Rack uprights and beams, Teardrop Rack Uprights and beams, Sturdi-built, Palmer Shile, Ridge U Rack uprights and beams, and many other sizes of wire decking.  Call an SJF sales representative for more details!

The recent weeks also included the testing for SJF’s new carousel software, SurePik. The first run through should be up and running soon for our first customer here in the Twin Cities metro!  This is an exciting new venture in carousel controls, and can drastically improve efficiency in your carousel system.  The best part, it works with any and every carousel. Contact us today with more information on this new product!

Four days before Christmas, Sam Sterner headed to Rogers, MN to band up another recent purchase of Sturdibuilt pallet rack.  This included 144”x6” and 144”x3.5” Sturdi-Built beams, 48”x10′ Sturdi-Built uprights, and 144”x5” Teardrop beams.  These were brought right down the road to our stock in Winsted, MN.  These are very nice, heavy duty beams available now!

The month of January looks to be just as busy for us here at SJF.  Already in the works is truckloads of conveyor leaving Phoenix, AZ; three carousels we purchased in the Twin Cities; a large warehouse full of structural racking in Ohio; the implementation of our new SurePik software in MN; and many more projects around the country, so stay tuned!