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by
Dennis Prince
Though
it has been said that a clean desk signifies a sick mind,
there's no room for clutter in the records of top auctioneers.
Proper pricing, enticing titles, and an effective listing style
are crucial to success, but not any more so than an effective
system for tracking auction sales, bidder information, and other
important auction-related data. Here are the essentials that
will help you order your business and assist you in staying
ahead in the game.
Get
a New Plan, Stan
Everyone organizes records differently. You won't find a best
way to manage your auction data. However, when devising a
record-keeping strategy, consider these steps:
Make your method consistent so that it
can be used for both high- and low-volume auctioning.
-
Make it simple so that you won't
quickly abandon it. Remember, it's easier to build on a
simple system than it is to fumble around with a complex
one.
-
Keep it efficient. Don't keep
every bit of data. Go only with the information that you
directly will need in the next year.
Furthermore, you can find many tools
to help manage your auction records. You can choose paper
records, spreadsheet or database software, an onsite My Auction
page, or an auction-assisting third-party software package. But
whichever tool you choose, be sure you're comfortable with it.
And make sure that you can properly store such records, either
physical or electronic, and that you have a backup or recovery
method, just in case.
Now
Playing: The Records You'll Most Likely Need
OK, but what data should you keep? Here is a general overview of
the kind of information that will serve you well in your auction
endeavors:
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Your items, the price you
paid, the high bid price, and the selling cost.
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Your high bidder's name and other
contact information.
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The dates of your auctions and
other supporting transaction dates with the buyer.
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Any email correspondence.
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Method of payment you received.
-
Method of shipping you received,
and any tracking numbers.
Surely, you'll think of other useful
information for your records, but the aforementioned data will
suffice for income tax, customer/client base, and follow-up
purposes. Your litmus test should be that the information is
useful and conclusive for at least a year.
The
Need for Speed
Who has the time to dig through reams of printed notes,
receipts, and so on? Spending too much time looking for
something means lost opportunity, plain and simple. Keep your
auction records handy.
Establish a filing plan, be it hard
copy or electronic, and stick to it. Use clearly marked files to
store and retrieve information. Moreover, your ability to
respond quickly to buyers' questions about a transaction will
head off trouble and increase their confidence in you.
Someone's
Been Sleeping in My Bed
Just a quick note: Be sure you have exclusive access to your
auction records. Don't let someone else in the house unwittingly
reorganize or disrupt your organizational system. And, if you
work with a partner, make sure you both agree on how to organize
records. Also, you'll both need to discuss any changes.
The
Taxman Cometh
Don't forget, auction income is taxable. So, if you're not
convinced that you need to keep good sales records, the prospect
of a tax audit should be all the motivation you'll need. Be sure
to have a tax advisor recommend ways to maintain proper sales
information. Although you can choose not to claim your
auction income, remember as online auctions rake in billions per
year don't be surprised if someone comes knocking on your door.
In
Times of Trouble
Remember, too, good auction records can help unsort a snag in a
transaction. For example, a buyer might contact you weeks or
months after a deal closed. For whatever reason, the ability to
quickly present detailed records and accounts of the transaction
will be your best tool in proving that you held up your end of
the bargain.
Your
Customer Base
Any good businessperson will tell you that a strong customer
base can help ensure long-term success. Avoid using your
customers' contact information (address, email, phone number)
irresponsibly or inappropriately. Keep track of your buyers so
that you can recognize a good repeat customer or a potential
deadbeat. Keep track of anyone who expresses interest in your
items. The Internet is ideal for such tracking. Close tracking
can leave both you and your customers satisfied.
Back to Auction tips &
tactics
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