The multitude of advertising vehicles available these days has made it difficult for many advertisers to distribute their advertising budgets. From traditional newspaper advertising to interactive web-based advertising, the opportunities for advertisers are endless. A healthy combination of these and other advertising media is ultimately the best approach to a successful campaign. However, lately the nay-sayers of newspaper advertising have started to garner attention. Allow me to refresh your memory on the continued benefits of newspaper advertising.

Newspapers have been gracing the doorsteps of American homes since the early 1700s. That is over 300 years of budding romance between American consumers and their beloved newspapers. Lee Clow, the Chairman & Global Director of TBWA\Worldwide explains that the, “Newspaper is a special medium. It’s not urgent, not yesterday or tomorrow but today. Sitting with a newspaper and a cup of coffee in the morning will always be one of the most intimate media experiences there is.” The title of this article is “Newspaper Advertising…Benefits Revealed” so… when will the benefits be revealed? I am getting to that! The newspaper has built its reputation as a trusted source of information; this goes for not only its articles but for the advertisements it features as well. Each individual newspaper has guidelines and restrictions that must be met by each advertiser. This is not always the case with the truckload of advertisers that place ads on the web. Unfortunately, there are unscrupulous people and companies that are able to post ads on various websites without undergoing any sort of screening. Consumers can continue to feel secure knowing that advertisements that make it to print have been checked out and approved for their benefit.

Another advantage to newspaper advertising is the portable/permanent aspect of a newspaper. A newspaper is very easily toted from home to work, to lunch, back to work and back to home. This allows readers to pick up the paper when it is convenient for them. As far as the permanent feature of the newspaper… let us look at an example. Over a cup of coffee you are perusing the pages of your local paper. You come across an ad for a new product that strikes your fancy. You set the paper aside until later when you have some free time and can research the product. Later that week, you pick up the ad and make a phone call to the company advertising the product. The same product is advertised while you are surfing the web. You bookmark the site in order to return to the site later. However, later that week the ad is seemingly gone from the site. Is it on a rotation? Was the ad pulled? You may never know. This example may be a bit dramatic, however it illustrates the benefit of a tangible ad that someone can revisit and review.

Perhaps the best argument for making the case for newspaper advertising is the “opt-in” feature. The world is full of annoying advertisements (not to say they don’t work), TV commercials, pop-up internet ads, spam emails, etc. etc. etc. Newspaper advertisements continue to be an opt-in advertising method. People can decide whether or not they are going to read your newspaper ads. They know the ads are there, alongside the articles they read everyday, and they have the choice. And as it turns out many adults are making the choice to read those ads, because they find them useful. In a 2007 study done by Mediamark, 51% of the adults they interviewed said that they found newspaper advertising “somewhat/very useful.” This day and age, people do not want to be bothered. Case and point? DVRs are becoming increasingly popular and allowing people to completely skip over commercials. People are finding a way around commercials, anti-spam filters are finding ways to weed out spam emails, pop-up blockers are eliminating pop-up ads. The list goes on. However, newspaper ads have not become an annoyance, they continue to be a source of useful information for readers of the newspaper.

Advertisers have a difficult decision in distributing their advertising budgets. There is no “right answer” for how or where to spend your money. No advertising plan is going to be right for all advertisers. Each advertiser must test different ads in different mediums in order to find out what will produce results. Newspapers have long been a valued method of advertising to companies and individuals around the world. They offer benefits to advertisers that web based advertising cannot. Newspaper advertising is still working for advertisers that continue to recognize its value. When you are divvying your advertising budget this year; do your research, weigh your options, but don’t overlook the value that newspapers have always offered advertisers.

Estimating your assets value:

Typically, one of the first questions a business owner will ask me is, “how much will the assets bring at an auction”. After taking the time to review the assets, the auctioneer should give the client a conservative estimate of the sale based upon his experience and the current market trends. It is important that the company give realistic expectations so the seller can make informed decisions based on their best interest.

Compensation and Expenses:

Is the company you are considering working for you or against you? The agreement you decide may determine this.

A business owner should carefully consider how the auction company is compensated. The most common commission structures include: straight commission, outright purchase of assets, guaranteed base with a split above to both auctioneer and seller, guaranteed base with anything above going to auctioneer or a flat fee structure.

In a straight commission structure, the company is paid an agreed upon percentage of the total sale.

In an outright purchase agreement, the auctioneer simply becomes your end buyer. The company purchases your assets and relocates them. While this can be an option in some unique situations, keep in mind that they will want to purchase your assets at a very reduced price to make a profit at a later date.

In a minimum base guarantee, the auction company guarantees the seller that the auction will generate a minimum amount of sales. Anything above that amount either goes to the auction company or split with the seller. While a seller might feel more comfortable doing an auction knowing that he is guaranteed a minimum amount for his sale, keep in mind that it is the best interest of the auction company to secure a minimum base price as low as possible in order reduce their financial liability to the seller and secure higher compensation for the sale.

In a flat fee structure, the auctioneer agrees to show up for the sale and call the auction. There is no incentive for the auctioneer to get the best prices for your assets. The auction company is compensated regardless of the outcome of your sale.

What is the best option for business owners? In my experience, an agreed upon straight commission structure. This puts the responsibility on the auction company to offer the best outcome for everyone involved. There is an incentive for the auction company to work hard for both parties, set up and run a professional sale, get the highest bid and sell every item on the inventory. Successful auctions translate to a higher bottom line for both the seller and the auction company.

Auction Expenses:

In most auction agreements the expenses to conduct an auction are passed to the seller. If the auction company pays for the expenses, it is simply absorbed in higher commission rates.

All expenses should be agreed upon in advance in a written contract. Typical expenses will include the costs of advertising, labor, legal fees, travel, equipment rentals, security, postage and printing. A reputable auction company will be able to estimate all expenses based upon their experience in previous auctions. An agreement should be actual costs charged as expenses, not an estimated amount.

Advertising is typically the highest cost in conducting an auction. The auction company needs to set up an advertising campaign that will promote the sale to its best advantage and not overspend to simply advertise the auction company.

Once the auction is complete, the auction company should provide a complete breakdown of all expenses to the seller, including copies of receipts within the auction summary report.

Buyer’s Premium:

What is a buyer’s premium? If you attend auctions regularly, you are very familiar with this term. The auction company charges a fee to the buyer when they buy an item at auction.

The buyer’s premium has been around since the 1980′s and is standard auction practice. It was first used by auction houses to help offset costs of running brick and mortar permanent auction facilities. Since then, it has spread to all aspects of the auction industry. It is prominent in online auctions and allows auction companies to cover added expenses incurred from online sales.

It is the responsibility of the auction company to provide clear disclosure of the buyer’s premium to both the buyers and the sellers. Those not familiar with auctions are often taken back by the buyer’s premium. They looked upon it as an under handed way for the auction company to make more money. Reputable auction companies will provide full disclosure within the auction contract, advertisement and bidder registration.

Typically, an auction company will charge online buyers a higher buyer’s premium percentage than those attending an auction in person. Extra fees are incurred with online bidding and are charged accordingly to online buyers. This provides the seller a level playing field for both online buyers and those attending the auction in person. Without the buyer’s premium, there is no way to do this.

Pre-Sales:

We’ve all been there. We’re looking forward to attending an auction only to find that some items were sold prior to the auction date.

As an auctioneer with over thirty-six years of experience, I can honestly state that pre-sales will hurt an auction. When a company decides to liquidate their assets, it is easy to sell off high-end pieces of equipment through online sources, equipment vendors or to other businesses. The seller receives instant cash and avoids paying a commission to an auction company.

Auctioneer’s find themselves appearing to acting in a self-serving capacity when potential clients say they are planning to sell off parts of their inventory prior to an auction. It’s hard not to consider the auctioneer’s commission when they warn you not to pre-sell anything. Yes, the auctioneer wants to earn a commission on those sales but it is more important that the auctioneer protect the sale from potential negative backlash that comes from pre-selling. The buying public knows when an auction has been “cherry picked” prior to the sale and it reflects in their bidding. It becomes a sale of “leftovers” and that impacts prices.

A buyer who purchases prior to the auction usually does not attend the sale. They already bought equipment at a good price with no competition. If they do attend the auction, they tend to let others know of their great pre-sale purchases which again, impacts prices and the overall excitement of the sale.

It is important to understand that auctions work best with a complete inventory. You want competition on your higher end equipment. The easy to sell items make it possible to gain respectable prices for hard to sell items.

When a business owner decides to liquidate their equipment assets, there is only one opportunity to do it right. Hiring a reputable auction company will assist you with a professional, orderly and timely liquidation.