Greg Peterson, the founder of Machinery Pete, has been tracking used machinery prices for more than 30 years. As such, he’s witnessed numerous different smart strategies (and perhaps flounders) at machinery auctions.
1. The Walk Away
One strategy Peterson often sees is the walk away. “A bidder will finally shake their head, physically turn and walk away,” he explains. “On average they probably go 12' to 15' away while the auctioneer continues their chant. About 75% of the time, the person who physically walks away bids again. And usually, it’s twice more.”
Peterson says when you’re bidding on an item and a walk away does come back in with a bid, go on the offense and reply with a bid immediately.
2. Come In High And Hard
When auctioneers start the bidding, and then drop it down to pull in interest, it opens a window for determined bidders to take the reign.
“Let’s say an auctioneer has an item and asks for $50,000 without any takers, and then to let everyone play they take the bidding down to $10,000,” Peterson explains. “Then if a buyer comes in high and hard, let’s say at $40,000, it’s not uncommon for them to walk away the winner. I haven’t seen it done much, but when it’s done, it sucks the oxygen out of the room.”
3. Hop In Late
This tactic wasn’t seen as much when the market was down, Peterson says, but it is re-emerging with the hottest items.
“It’s how most of us are wired, actually, because we aren’t about jumping in high and hard. We wait and see if we can still get it under the price we go in with,” Peterson says. “But when we get a lot of competitive bidding, the percentage of times a bidder will hop in late is rising.”
The new bidder gives the sale a second momentum. “Smart auctioneers will call out there’s a new bidder because it tells the audience when someone is jumping in late it’s still a bargain,” he says.
4. The Jump Bid
“If a new buyer comes in, and you were the last bidder, return fire and bid quickly — think about upping it,” Peterson says. “You’re telling the late bidder, ‘Welcome to the party, but you aren’t getting it.’ Any time I see a jump bid, there’s body language to it.”
To hear more insights and tips on machinery-buying opportunities from Greg Peterson, visit AgWeb.com/Peterson-tips
