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How to create an auction atmosphere

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IF YOU have been involved as a bidder in an auction, you will be familiar with the hot-house atmosphere sending prices skyrocketing, bringing glee to the sellers and leaving bidders shaking their heads.

It is virtually impossible to identify all the emotions and cross-currents at play which lead normally sane people to overpay in an auction atmosphere. But the key element, I think, is the differing mindset of customers who buy privately and those who buy in public.

When a prospect buys privately - at retail, so to speak - he is looking for a bargain.

When a prospect buys in public - at auction - he is looking to win.

(I know of one art dealer who is such a savvy bidder at auctions that museums and collectors often hire him to act as their buyer. He does it not so much for the fee but because it lets him bid to win with other people's money. Conversely, he will turn away business if he thinks the buyer is not committed to outbidding everyone. He would rather lose the fee than look like a loser.) Keeping that in mind, it follows that it is to a salesman's advantage, whenever possible, to create an auction atmosphere.

There are two kinds of auction situations - when the potential buyers know they are in an auction and when they do not.

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