| Government auctions are a huge business - one that | | | | auctions to a position where they are an integral part |
| the larger population doesn't even know about. One | | | | of commerce of the country (more online sales than |
| might ask how this can be. After all, what does the | | | | any commercial venture). This is because of the |
| government have that it would want to sell off? | | | | efficiency and time, labor and resultant cost saving |
| Well, the government has a LOT to sell off. What's | | | | that the online auction method provides. |
| more, almost all of these items are sold at deep | | | | Government surplus auctions that take place 'online' |
| discounts! | | | | allow for a virtually unlimited number of potential |
| Hard to believe, is it? Let's briefly see how this is | | | | bidders who are given the opportunity to bid on the |
| possible, before discovering the plethora of assets | | | | items at their own convenience. Perhaps the greatest |
| one can purchase from the government. The | | | | advantage of online government surplus auction |
| government owns massive amounts of assets for its | | | | websites, is the ability of the bidder to bid again. This |
| own functioning. In addition to this, a large amount of | | | | is crucial to increasing competition and allowing for |
| goods and assets come under the possession of the | | | | equilibrium to be set in the market as regards the |
| government through various regulations and law. | | | | goods / asset that are under consideration. |
| Examples include confiscation, absence of a legal heir | | | | The biggest edge that online auctions have is the |
| of physical property and government possession. | | | | ability of bidders to 'auto-bid' to engage in automatic |
| In this article, the 'government' means all state and | | | | bidding. This method of bidding is different from |
| federal bodies at various levels: federal, state, district, | | | | regular bidding. In a regular bid, the bidder enters an |
| county, city, town and school district. As one can | | | | exact amount that s/he wants to bid, and then the |
| imagine, all of these institutions and governing bodies | | | | system is instructed to send only that amount as the |
| must own a gigantic amount of assets. These assets | | | | bid. In this method of bidding, once a bidder has been |
| become depreciated over time, or these institutions | | | | outbid by another, the initial bidder has to re-enter a |
| employ new systems in place which render the old | | | | bid of a higher amount if s/he is still interested in |
| ones expendable, or the government comes into | | | | acquiring the item available for purchase. In contrast, |
| ownership of a large amount of goods during | | | | an automatic bid (also called a proxy bid), is a system |
| purchase, and may subsequently deem the amounts | | | | whereby the bidder enters the maximum amount |
| purchased to be an excess. All of these reasons lend | | | | that they are willing to spend on the goods / items |
| to the government wanting to dispense and dispose | | | | under consideration. In automatic bidding, the system |
| of large amounts of assets (these are both physical | | | | will continue to bid for the bidder up to the maximum |
| as well as intellectual). | | | | bid point. The advantage of such a system is that |
| The government is able to net the largest amount of | | | | the bidder is not required to alter his or her bid every |
| internet sales in comparison to any other online | | | | time they are outbid. This saves a lot of time and |
| business. Such volumes come from the diversity of | | | | resources and is an efficient system. Automatic |
| merchandise / goods / assets that the government | | | | bidding is the most popular kind amongst various |
| auctions off. Almost everything one can possibly | | | | auction websites (including government surplus |
| imagine has been auctioned off by the government | | | | auction websites). |
| to interested buyers. The deep discounts are possible | | | | Another advantage of online auctions for |
| because the government merely wants to expend | | | | government surplus is that bidders have the |
| these goods, without the motive of making a profit | | | | opportunity to bid again and again - as many times as |
| on the sales. This means that buyers get prices that | | | | they please. In the sealed bid system, this was not |
| are actually below cost and sometimes below the fair | | | | possible. The result being that the auction could not |
| market value. However, usually these goods / assets | | | | be as competitive as it had the potential to be, and |
| are priced at fair market values keeping in view | | | | with low revenues from auctions of surplus goods |
| depreciation and useful lives of these goods / assets. | | | | for the government. Now that government surplus |
| Nevertheless, substantial bargains can be found | | | | auctions have become so competitive, the |
| through government auctions if one knows the | | | | government can earn higher revenues for the same |
| basics of taking part in one. | | | | kinds and quantities of auctions as before - an |
| Usually, government auction websites, give tutorials | | | | example of how the Internet has truly revolutionized |
| to those interested in how to go about taking part in | | | | the way we do business. This added revenue for the |
| an online government surplus auction. If required by | | | | government (even though, as explained earlier, the |
| the user, the same tutorials are also given over the | | | | government does not carry out these auctions for a |
| phone. | | | | profit motive), helps in bridging the expenses of the |
| Before the outreach of the Internet had reached | | | | government, and may even lead to useful tax |
| such a massive scale, government surplus auctions | | | | breaks. |
| were limited in terms of the audience they were able | | | | All that is needed to take part in this wonderfully |
| to reach and consequently, the amount of revenue | | | | productive, efficient and cost-saving method of |
| the government could generate out of their | | | | buying almost anything (literally!) is to register with |
| government surplus. This was because the sealed bid | | | | any auction website that deals with surplus |
| process (which was in place when Internet auctions | | | | government assets / goods' auctions. There are a |
| were not common or widely known of amongst the | | | | number of these, as mentioned previously, and each |
| target audience) was restrictive, not truly | | | | operates a large variety of items so each buyer (no |
| competitive and also costly. Technology and IT | | | | matter how diverse their needs) can find what they |
| infrastructures have really catapulted government | | | | are looking for - that too at a superb bargain. |