Going Once, Going Twice…

I need $30, $30, somebody give me $30…now $35, $35…somebody give me $35. Do I hear $40? Auction chant. Ever wondered how a person becomes an auctioneer or how the event of an auction came to be? Well, wonder no more. I happened to overhear the din of an auctioneer’s bid-calling from the other room and it got me thinking about what goes into planning an auction.

To be an auctioneer, my guess is you’d have to have a little natural talent for talking fast, similar to a comedian having the natural ability to be funny. Some people just have it, some don’t. I actually discovered there’s training available for auctioneers and there’s a lot more involved than just bid-calling and tongue-twisters.

Auctions in varying forms, date back as far as 500 BC when in ancient Greece, women were auctioned off as wives. In the Pilgrim days, auctions were used to trade goods with the Native Americans and as a way to quickly convert assets like livestock, tools, tobacco, and even slaves into cash. During the Civil War, spoils of war were frequently auctioned off, however, only a Colonel was allowed to call the auction. This is why some of you may have heard an auctioneer referred to as a Colonel at some events.¹

As I researched what it takes to become an auctioneer, I discovered that they are also partially event planners, marketers, salesmen, and businessmen. According to the Continental Auctioneers School, auctioneers receive training in contract review and negotiation, ethics, and auction design. They also learn how to sell different fields during an auction such as real estate, fundraising, and online. I was not surprised but it did make me giggle to read about training to be an auctioneer using tongue twisters and number drills as part of the curriculum.²

When it comes to planning an event, I found that there are four different types of auctions. The most common event, like the ones you see on TV, are called the English or ascending-bid auctions. The auctioneer starts at a minimum price and raises the price higher until the bidders stop outbidding each other. The second type of auction is the Dutch or descending-bid auction. At this event, the auctioneer starts at a high price and incrementally decreases the price until someone yells out “mine.” At that point, this bidder is the new owner of the item du ‘jour.

A third type of auction is a first-price, sealed-bid event. Here, each bidder submits their top dollar in a sealed envelope. The auctioneer opens them and the one with the highest price wins the item. The last type, and the one that makes no sense to me is the second-price, sealed-bid, or Vickrey auction. It operates just like the third type where bidders submit their single bid in a sealed envelope and the highest bidder wins the item, but in this auction, they pay the price submitted by the second-highest bidder. I have no idea why you’d plan an event of this nature, but there you have it.³

These days auctions are widely used in many industries and are a very efficient and entertaining way to buy and sell just about anything. Like most events, they can be as elaborate or as simple as you want them to be. I am certain that the planning process, venue, and clientele would be very different when auctioning wine, art, or antiques verses an auction for livestock, hand tools, or farming equipment. Remember to establish the goals and objectives of the event and if you’ve never planned an auction event before, I’d highly recommend hiring a certified auctioneer and seeking the direction of someone with experience.

Have you ever planned an auction or are you an auctioneer? I’d love to hear from you! Leave us a tidbit below or send me an email. I’d be interested in chatting with you.

Please comment, like, and share this blog with your friends and foes.

Check out Tracy’s book Cultivating a Healthy Volunteer Team available now!

1.Virginia Auctioneers Association. Auction History. 2024. https://www.vaa.org/consumers/auction-history
2.Continental Auctioneers School. Certified Auctioneer Training. 2022. https://auctioneerschool.com/certified-auctioneer/courses/
3.Liberty Fund Network. Econlib. Auctions. Leslie R. Fine. 2024. https://www.econlib.org/library/Enc/Auctions.html#:~:text=He%20established%20four%20major%20(one,%2Dbid%20(Vickrey)%20auction.