Auction Frequently Asked Questions
- What is an auction?
Auctions can take various forms. One of the auction services offered at TML Business is our asset liquidation service. This allows persons or businesses with surplus or slow-moving items to offer them for sale. Interested parties are then able to submit bids usually on an as is basis, with the items being sold to the highest bidder.
Another type of auction is the reverse auction. This is where a potential buyer is allowed to create an auction. The seller is the one who then submits bids so that the winner is the bidder who makes the lowest offer or offers the best deal. This format is particularly useful for businesses and individuals seeking to award service and or purchasing contracts and would like to ensure they are getting value for money. This type of auction can provide huge cost savings.
- What are the benefits of selling by auction?
Sellers may choose to sell by way of an auction because by having bidders compete with each other to offer their best price, it is likely they would be able to sell their items above the current market value. In the case of reverse auctions, the major benefit is obtained from the savings that are achieved. Businesses can realize significant savings by exposing their purchasing operations to auction. That would allow other competitors to compete for their business.
- What kind of items are suitable for auction?
Most businesses and homeowners accumulate a lot of surplus items over time that can be converted to significant cash flow when sold. These items can range from: vehicles, equipment, computers, cellphones, commercial and industrial supplies, furniture, appliances, and much more. TML Business will provide the platform to locate and arrange for buyers so that asset liquidation or sale becomes easy and profitable.
The same applies to our reverse auction service. When you open your purchasing or buying operations to our platform, you will be able to take advantage of deals you never thought possible. The service is useful in cases such as construction contracts, purchasing office and commercial supplies, and so on.
- How can I find out about auctions?
If you register as a subscriber at TML Business, you will receive alerts about ongoing and upcoming auctions. Also, upcoming auctions will be published on this website and on our social media pages such as Facebook or Meta and Twitter.
- What does the “reserve” price in an auction mean?
In a normal auction, the reserve price is the minimum price the seller is willing to sell his products for. Unless that price is met or exceeded in the bidding process, the seller may not accept the results of the auction. In the case of a reserve auction, it is the target price bidders must offer or exceed in order to win the auction. The purpose of setting the reserve price in both instances is to ensure that expectations are met.
- What happens if the winner of an auction fails to claim items purchased in an auction?
When an auction ends, the winning bidder is allowed a certain amount of time to make payment and claim the items purchased. If he fails to do so, the seller can offer the items to the next highest bidder, extend the auction, start over, or seek legal recourse. All parties in an auction must recognize that by participating in an auction, they are entering into a contract. If either party fails to honour their obligations, it would be up to the offended party to decide on the remedy they wish to pursue. TML provides the forum for the auction to take place, but we are not an active participant in auctions. We can attempt to resolve disputes among parties through discussion and suasion. Depending on the details of the case, we can decide to ban either or both parties from participation in future auctions. This decision is left to the site’s admin after reviewing the facts of each case.
- How is TML paid for hosting auctions?
TML receives compensation by charging fees and commissions on auctions. These are agreed to beforehand with the party requesting an auction. In the case of normal auctions, a commission would be charged on the winning amount; on reverse auctions, in most instances, an upfront fee will be charged to sellers seeking to submit bids. Fees and commissions will vary from one auction to another.
- What is a sealed bid auction?
This means that bidders would not be allowed to see the bid submitted by other bidders.