Storage Auctions
Online Storage Auctions => Online Storage Auctions => Topic started by: MovieMan on March 10, 2011, 11:29:40 PM
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Take a look at this link. I saw this ad here on the forums.
Looks like it is in its infancy, but will be interesting to see what develops.
storageauctiondepot (dot) com/index.php?option=com_bids&task=listauctions&liststyle=list_detail&Itemid=2
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I paid my 5 bucks a few days ago and still can't log onto that site,and there contact page will not load correctly so cannot email them???
sell
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I posted some comments on this before on another thread here. To a newbie or uneducated buyer this may look good but not to me. Looks to me like a way for someone to make quick money (read the owners/operators of storage auction depot). Heres what I see as problems for me as a buyer for this site and concept.
1. The $5.00 registration fee. For what? It does nothing but give 5 bucks to the owner, and you get what? the priviledge to bid online?
2. The minimum bid increment is $25.00......now I know some auctioneers set a minimum bid increment usually $5.00 not 25. Ask yourself why $25, look at my last comment (5) below and figure out why the higher bid increment requirement.
3. You don't get to see other than a picture whats inside the unit. At least in the traditional way you get some time to get up close and personal (from the door) to see what you are bidding on. In this case a picture is not worth a thousand bucks....err words...LOL. Yes I do see in the FAQ where the seller may arrange a viewing of the locker.
4. What's to prevent the seller from removing items after it is sold on line? You aren't there and don't get to lock it up on the spot when bought. Yes, I do see in the FAQ where storage depot "holds" the buyers money for 72 hours before the seller gets paid. Also a nice way for storage depot to 'float' someone elses money for a short period.
5. Lastly, storage depot charges a 13% commission on the sale!!!! Again, for what? Only to make money for themselves which is fine as it is a business venture but for me the buyer why would I pay 13% more than I have to? Yes you can say its paying for a service and you don't have the travel costs of going to a live auction unless you go to the 'viewing' but at least at a live auction I can see what I am getting into better.
Not for me, not for me......
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Yeah, it is an interesting concept. I have seen another website that has been doing the same thing for a while now. This company isn't the first. The website I saw had high quality images from 6 angles and sophisticated software that allowed you to zoom in really close. We are considering doing something very similar with Houston Storage Auctions (http://auctionstx.com/houston-storage-auctions/) . The problem is you have to find clients, take photos of every unit, upload the info, monitor the auction and then deliver the client their money. There will be all sorts of legal issues and for what $25-75 per unit. Don't get me wrong, I think its a great idea. If every storage auction was posted online, just think about how much gas you would save. Also, in the Houston area we have days where up to 8 different storage facility chains are having auctions. You could only go on one run so you are missing a lot of units. If they were all posted online you could essentially view every unit for sale, it would be better for everyone.
Does anyone know if you have to have an auctioneers license to sell a storage unit online like these websites?
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Edit:
I took out all my original post as it did not relate to this concept at all. I must have thought I was putting the message in another thread. Sorry, just cleaning it up.
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Hey everyone,
Just to answer some of the concerns.
The 5 dollar fee is required by Storage Auction Depot to verify the bidders who are bidding are willing to pay. We are constantly asked by storage facilities how are they guaranteed to get paid. We want to make sure the individuals who sign up are actual storage bidders. Any storage bidders is willing to pay 5 dollars to have access to some amazing units.
We changed the minimum bid increment to now 5 dollars like one user suggested.
As seen in the auction rules, what you see in the pictures is what you get. The hold on the money for 72 hours is to protect the buyer from fraud, otherwise there is no way to protect the bidder from fraud. The money is not being floated, just held.
The commission fee is not paid by the bidder. We take the commission fee out of the final sale price before we give the seller their money, just like normal auctions.
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This concept will never hit the big masses, and thank god for that.
It is the most stupid way i can think of to hold a storage auction.
1. You can't feel safe that what you are bidding on is what you get. Things have most likely been picked out. All you are buying is the garbage no one wanted. It might even be a allready auction sold unit that a newbie only took what he wanted. Or it is a unit put together by the manager to get ridd of crap.
2. Storage facillities need the space to sell fast, they can't wait 2-5 days for an auction to end and then another 2-3 days for the clean out.
3. Storage auction bidders/buyers who are serious about their business can't sit around and wait for this, they need it in their store ASAP.
4. Why pay more for units then what you have to? this is one way to pay more for a unit, and you sure can burn your self faster here then in the real world.
5. Do i trust this auction form, no. Internet have time after time proven that scam is sitting lose, i am not saying this is a scam, but on the internet i would not play with my money like this. You can not put your own lock on it. Who can say for sure that no one is picking stuff out of the unit after the auction is over.
This is a tragic way to have an storage auction. A brain dead idea.
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This will big hitting the big masses just to let anyone who doughts the process. We were at the World Expo last week and I can only say we will be working with some big names in the business, without doing any name dropping. Look for Storage Auction Depot to take off in the near future. There is way too much liability for the storage facilities with all these bidders now showing up at their facilities for the auctions. Good Luck out there!
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This will big hitting the big masses just to let anyone who doughts the process. We were at the World Expo last week and I can only say we will be working with some big names in the business, without doing any name dropping. Look for Storage Auction Depot to take off in the near future. There is way too much liability for the storage facilities with all these bidders now showing up at their facilities for the auctions. Good Luck out there!
LOL yeah right.
I have talked with several state managers for most of the chains, they laugh of the concept.
Their problem is turning it around fast enough, your concept will delay everything for them. Meaning, they will lose money.
Yeah you might be a blast and some will try it, but then it will die out just as fast as it came.
If there is anyone who needs good luck, it isyou guys.
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You have spoke with the MANAGERS of the the facilities, who have nothing to do with how the auctions are handled. The turn around process for the facilities is actually quicker because most facilities only hold auctions twice a year. With our concept the facilities can post their auctions throughout the year without having to wait. Just because some of the bidders, like yourself may not like the concept, it will be the norm in the future.
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You have spoke with the MANAGERS of the the facilities, who have nothing to do with how the auctions are handled. The turn around process for the facilities is actually quicker because most facilities only hold auctions twice a year. With our concept the facilities can post their auctions throughout the year without having to wait. Just because some of the bidders, like yourself may not like the concept, it will be the norm in the future.
Wrong, i have spoken to the State managers for several big chain. Right title is district manager. They run all the facillities here in Tennessee. They work directly under the main headquarters, so this is far from some lokal live on site manager.
You said most facillities holds auctions twice a year. Newsflash for you, most facillities holds auctions once a month.
Most facillities have high demands on units, some chains here in TN can't rent out fast enough. Thats why they give you 24 hours to clean it out.
Some facillities here in TN have waiting lists for new tennants.
So with your concept, it would be funny to see how you could help the facillities to rent out faster when it takes a week to conduct a auction thru you guys. Where normal auctions takes 48 hours.
The biggest problem would be with the buyers, no serious buyers will use this form, so that would mean less bidders, and less income from the auctions for the facillities.
This concept is like most things that are new, comes as a flash and dies just as fast. I am sure you will hook up a few storage facillities, but in the long run it will fade out, when they see all the hazzle and negative things this brings with it.
One other thing is; do you have an auctioneer license? according to many states, the company who conduct auctions and then for storage facillities must present a valid auctioneer license.
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Don't get discouraged...When people doubt me, it just makes me work that much harder. You can't teach an old dog new tricks. Some people are just set in their ways. If you can land one of the top 10 storage facility chains and get a contract, you will be a wealthy man. But, you have a long road ahead of you. As far as the argument goes that the storage unit could be tampered with after the auction....any unit could be tampered with before an auction so that argument really makes no sense. The storage manager is the only person with a key to the unit before and after the auction. If something isn't present that was in the photo, you can dispute it with the storage manager.
Truth be told, storage auctions are gravitating toward this format.
1. When you have 100 people at at auction, and 20 units, it can take over 4 hours to finish.
2. With this many people, parking is extremely limited and customers can't access their units.
3. Storage facilities will realize higher returns.
4. Bidders have more time to research the items visible in the unit.
5. Bidders won't have to drive all over town wasting gas.
6. Bidders can bid on more units. If there are 2 or more auctions taking place at the same time, you can view every unit.
7. With good imaging software, you may be able to see things that the human eye could not detect.
Problems:
1. You are exposing yourself to some major liability. All it takes is one pissed off tenant who lost his stuff to take you and the storage facility to court. I hope you are incorporated.
2. No zoom feature on you website...there is another company who is doing what your doing but on a local level. They take the pictures themselves and they use high tech camera equipment. Their imaging software is so sophisticated, you could read the ingredients on a can of beans in the back of the unit. Since the storage facilities will be posting their own photos you really can't tell what is in the unit. Consider focusing on your local area and include quality images, with good lighting & several angles. Use a quality imaging program with a zoom feature.
3. This this business is in it's infancy and will require a lot of marketing.
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He is actually correct. Over half of the storage facilities in the Houston metro area only have an auction a few times a year. They don't need to because certain areas have higher default rates than others. Because of the upfront costs to have an auction, most smaller facilities wait until they have several units built up before they have a sale.
Now, most of your major storage facility chains do have them every month.
Believe it or not, about 15% of the storage facilities in the Houston metro area don't have auctions at all.
A few months ago a Houston storage facility had a record auction by a company who hadn't had a auction in over 5 years. There were 58 units. It was featured on the local news. Here is the link. As soon as the video comes up, look to your far right...that's me. khou (dot) com/news/local/Dozens-of-storage-units-auctioned-to-highest-bidder-111475599.html
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He is actually correct. Over half of the storage facilities in the Houston metro area only have an auction a few times a year. They don't need to because certain areas have higher default rates than others. Because of the upfront costs to have an auction, most smaller facilities wait until they have several units built up before they have a sale.
Now, most of you major storage facility chains do have them every month.
Believe it or not, about 15% of the storage facilities in the Houston metro area don't have auctions at all.
A few months ago a Houston storage facility had a record auction by a company who hadn't had a auction in over 5 years. There were 68 units.It was feature on the local news. Here is the link. As soon as the video comes up, look to your far right...that's me. http://www.khou.com/news/local/Dozens-of-storage-units-auctioned-to-highest-bidder-111475599.html
We have a handfull of places here that have auction once or twice a year.
Most places have them once a month. 15%) is nothing when you look at the volume of facillities.
Like i said in my other thred, does he have a auctioneer license, if he don't he is ****ed. And he is then committing a fedral crime.
Thisnk i am gonna take a phonecall to his homestate and see if he has one. And if he does business across state lines that is something else, because then he needs multiple licenses.
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That just depends...
Originally, I thought the same thing. But the storage facilities that don't use auctioneers don't have to have a license.
He is merely posting the auction for the facility. The grey area is whether he can accept payment.
If the funds went directly to the facility, I see no legal issue. Since he does accept the payment, he is acting as an auction site and may be subject to the same rules as an auctioneer. Plus he is open to the same type of lawsuit if the unit was sold without proper paperwork. More research needs to be done.
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I have to agree. I personally havn't and won't get involved with these types of auctions. I don't trust them I also don't think it makes sense for buyers or for storage facilities.
Also, some facilities in my area have several auctions per month not always a lot of units but several auctions throughout the month. I don't know of any facilites near me that only have one or two per year
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tclane,
You know exactly what you are talking about. All I have to tell you is make sure you do your hw if you want to start something like this.
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That just depends...
Originally, I thought the same thing. But the storage facilities that don't use auctioneers don't have to have a license.
He is merely posting the auction for the facility. The grey area is whether he can accept payment.
If the funds went directly to the facility, I see no legal issue. Since he does accept the payment, he is acting as an auction site and may be subject to the same rules as an auctioneer. Plus he is open to the same type of lawsuit if the unit was sold without proper paperwork. More research needs to be done.
As long as they auction off stuff with a registerd lien on it, the state law is pretty clear.
If he conducts business for them and take commission from the bidders, he must have an auctioneer license. What the storage facillities many times have is that they have their own auctioneer license, then the store managers are apprentices under them. And thats the law, to become an auctioneer, you have to do a 80 hour course and a 2 year as an apprentice. This is how they get away with it.
Running an auction site like Ebay is something totally different as that is an auction between two parties for used stuff sold by a company or a private person. No liens on any of the products. Storage units has been published with a lien on it, therefor he state demand it to be sold by certified people/companies.
As an auctioneer you also have to have insurence of a minimum 200.000.00 dollars. There is also a bunch of other rules that he has to forfill, if he does not, he is running an illegal business.
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We have a handfull of places here that have auction once or twice a year.
Most places have them once a month. 15%) is nothing when you look at the volume of facillities.
Like i said in my other thred, does he have a auctioneer license, if he don't he is ****ed. And he is then committing a fedral crime.
Thisnk i am gonna take a phonecall to his homestate and see if he has one. And if he does business across state lines that is something else, because then he needs multiple licenses.
I want to ask you a question. And I ask this in all seriousness. Why are you so angry? Not just in this thread but others as well.
If you are against something, rather than let it roll off your back, you take it as a personal slight. Why do you really care? If the guy fails, he fails. But you want to start meddling with his business for no gain...just to be a prick. Well, that's pathetic. I really can't stand people who piss in others Cheerios. Perhaps it's jealously.
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tclane,
You know exactly what you are talking about. All I have to tell you is make sure you do your hw if you want to start something like this.
I want to bid on a unit on your website located in NY.
Since it says i have to present a recipt to prove that i have paid an invoice from Storeage auction depot.
This means the full biddingprice + 13% fee, before i can empty the unit. But before i register and make a bid, i want to see a auctioneer license, i also want to see an business license for your company. So i can make sure i am buying from a certified and registerd company. I also need proof that all your services are coverd by a secured trust thru a FTC approved bank in NY state, as according to auctioneer law and rules.
If this is not provided, i will assume you don't have it.
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I want to ask you a question. And I ask this in all seriousness. Why are you so angry? Not just in this thread but others as well.
If you are against something, rather than let it roll off your back, you take it as a personal slight. Why do you really care? If the guy fails, he fails. But you want to start meddling with his business for no gain...just to be a prick. Well, that's pathetic. I really can't stand people who piss in others Cheerios. Perhaps it's jealously.
Not angry at all. I just want to make sure it is legal and done right.
It is also my oppinion that this is a stupid way of doing auction. I have every right to make that statement.
If you can respect that, well then thats your problem.
I am not jealous at all, why should i be? i run several very successful companies in Europe + a real estate business here in the USA.
I am more happy buying the storage lockers then selling them.
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Mr. Anderson,
We would be more than happy to discuss our business to you. Please send us an e-mail via our web site. Theres no reason to be negative about our business and I would be more than happy to show you anything you want. One question? You talk bad about our business, but you want to use our services?
Thanks
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Not angry at all. I just want to make sure it is legal and done right.
Why? Are you an official for the Consumer Protection Agency?
It is also my oppinion that this is a stupid way of doing auction. I have every right to make that statement.
Of course you have that right. But why not let it go at that? Say it's stupid and move on. Why are YOU the investigator of all that is legitimate? Why not let others lose their money. Hence, more for you.
If you can respect that, well then thats your problem.
Huh?
I am not jealous at all, why should i be? i run several very successful companies in Europe + a real estate business here in the USA.
Most very successful people have little time to bother with what underling companies are trying to do. Do you think people like Bill Gates, Michael Dell or heck, Oprah Winfrey worried about every start-up across the US? Nah, they were too busy minding their business.
I am more happy buying the storage lockers then selling them.
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I want to ask you a question. And I ask this in all seriousness. Why are you so angry? Not just in this thread but others as well.
If you are against something, rather than let it roll off your back, you take it as a personal slight. Why do you really care? If the guy fails, he fails. But you want to start meddling with his business for no gain...just to be a prick. Well, that's pathetic. I really can't stand people who piss in others Cheerios. Perhaps it's jealously.
Right on man....Fight the power!
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Well i am not on Bill Gates level. But as a memeber of this forum, i can and will speak my mind. When they put out claims i find wrong or maybe even a little on the edge, yes i make it my case to find out if it is like they claim and say.
The storage auction business has it's problems, the last thing we need are more problems. Since we don't know what they offer and if it follows the rules, well then i want to make sure for my own part that they are. Since they list TN state on their website i want to know if they have the license they need for TN. As a consumer i have the right to know, and i want to know.
Here is another scenario, if he has all the licenses in order, he has to by law make it public, that meaning he must put his license number on his website, something his is not doing. That tells me he is not able to hold legal auctions in TN. And then it will affect me as a possible bidder. I personally have nothing against them. But i want things to be by the law, when they offer auctions in my state.
If you was gonna go to a doctor or dentist that was bragging online about a new method of treatment, wouldent you make sure he had the license to do these treatments? Woulden't you check things out before you contacted them and made an appointment??? Thought so.
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Well i am not on Bill Gates level. But as a memeber of this forum, i can and will speak my mind. When they put out claims i find wrong or maybe even a little on the edge, yes i make it my case to find out if it is like they claim and say.
The storage auction business has it's problems, the last thing we need are more problems. Since we don't know what they offer and if it follows the rules, well then i want to make sure for my own part that they are. Since they list TN state on their website i want to know if they have the license they need for TN. As a consumer i have the right to know, and i want to know.
Here is another scenario, if he has all the licenses in order, he has to by law make it public, that meaning he must put his license number on his website, something his is not doing. That tells me he is not able to hold legal auctions in TN. And then it will affect me as a possible bidder. I personally have nothing against them. But i want things to be by the law, when they offer auctions in my state.
If you was gonna go to a doctor or dentist that was bragging online about a new method of treatment, wouldent you make sure he had the license to do these treatments? Woulden't you check things out before you contacted them and made an appointment??? Thought so.
This could be a simple fact of you misinterpreting my question. You have no intention of being their customer, so again, why do you care? Whatever happened to caveat emptor?
For example, there are a gazillion car repair facilities near me. Do I bother investigating them to ensure they all are ASE certified? Uh no, because I'm never going to use some of them. However...if I WAS going to use one, I would check credentials. To check on the rest would just be silly and a huge waste of time.
You already stated that you will NEVER use this type of auction. So be it. I won't either. But, I'm not going to waste my time checking every credential. I leave that to investigative reporters and state officials.
Perhaps you're being smug with your "Thought so" comment. Please don't assume that you know what anyone else would do in a situation. It sounds demeaning.
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You said that "the storage auction business has it's problems and the last thing we need is more problems". Perhaps his website will be part of the solution. In the early 1900's people mocked the Wright brothers and their "flying machines". Look where we are at now, our entire world is accessible in hours. At one point in time, people said that cars would never catch on because they were to expensive for the average worker. If all people thought like you we would still be riding horses. There is nothing wrong with trying something new and I applaud your creativity.
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Since the last posts on this thread in late March, has anyone ACTUALLY used this service?
If so, what's the verdict?