Unusually high minimum bids on units?

There are lots of auctions going on locally this week, two today, one tomorrow, and one friday.  I went to the first one this morning which was at a Uhaul location.  They had 2 units for auction, a 10x10, and a 5x5x4.  It was run by the employees of the location, which usually I like because there's usually smaller crowds and cheaper prices.  The crowd part was accurate. 6 bidders, 2 looky-loos (2 older ladies that were clearly influenced by the TV shows)  Anyway, as we're walking to the first unit (the 10x10) the woman running the auction announces that there is a minimum bid that they must get for this unit.  OK, never really heard them charging a minimum reserve bid before, but whatever.  She opens the door on the 10x10 and it's only about half full, neatly stacked cardboard boxes, some stuff on top that's open, looks like craft supplies, I see some fabric, and one side is piled with garbage bags that look like clothes/bedding.  Then she announces that the bidding must start at $700.   WHAT?! 
There were 2 other guys there besides myself that I consider auction regulars around here, and the three of us kind of looked at each other, then one guy asks 'where's the next unit?'  The 2 older ladies I mentioned earlier were like 'how do you know what's in there?'  needless to say, it was a 'no sale'  One kinda funny note, before she shut the door, the employee asked 'does anyone want to throw out any offer?'  I said 'yeah, 5 bucks' which she didn't seem to appreciate, and one of the 2 older ladies said to me 'but then you'd have to clean all that out of there?'  I just smiled and told her that's what I do.

So we go to the 5x5, again, minimum bid: $300.  The employee kept apologizing saying she was only doing what she was told to do, etc.  The 5x5 looked better, I could see a couple of computers, and I saw some newer Gi Joe toys which caught my interest.  One of the other regulars said he could offer $100, which I thought would have been fair for the room, but again it was turned down.  She did mention something about the bids being a percentage of what was owed, and what they wanted to recoup...but that just seems wrong, like get the stuff out at whatever cost and start renting it again to someone else.  At the end, they did tell us that they were looking into working with an auctioneer for future sales, so maybe they'll get it together later, but they didn't seem to know what they were doing at this one.
waste of time, hopefully the rest of the auctions this week will be better.

has anyone else run into this extreme minimum bid scenario? 

has anyone else run into this extreme minimum bid scenario?  

Yes, and as you found out, the people running the auction (usually the site managers who are doing it at the bidding of the property owner who is often an out of town owner) don't know what they are doing or what to recommend to the owner.

It will eventually straighten out. The first time I saw this the owner of the facility was there and he asked the site manager "How much are we owed on this one?"  What possible difference could it make to the auction buyers? And what did it matter if for some reason they were owed $500 and the goods looked like they might sell for $75. Get a clue property owner!

Just sounds flaky, which you will see that, and other things that are just as bad or worse done by the site managers. Key is to go with your gut, if it looks staged, or something aint right after two separate days of auctions there, then I just cross the facility off my list.

There are lots of auctions going on locally this week, two today, one tomorrow, and one friday.  I went to the first one this morning which was at a Uhaul location.  They had 2 units for auction, a 10x10, and a 5x5x4.  It was run by the employees of the location, which usually I like because there's usually smaller crowds and cheaper prices.  The crowd part was accurate. 6 bidders, 2 looky-loos (2 older ladies that were clearly influenced by the TV shows)  Anyway, as we're walking to the first unit (the 10x10) the woman running the auction announces that there is a minimum bid that they must get for this unit.  OK, never really heard them charging a minimum reserve bid before, but whatever.  She opens the door on the 10x10 and it's only about half full, neatly stacked cardboard boxes, some stuff on top that's open, looks like craft supplies, I see some fabric, and one side is piled with garbage bags that look like clothes/bedding.  Then she announces that the bidding must start at $700.   WHAT?! 
There were 2 other guys there besides myself that I consider auction regulars around here, and the three of us kind of looked at each other, then one guy asks 'where's the next unit?'  The 2 older ladies I mentioned earlier were like 'how do you know what's in there?'  needless to say, it was a 'no sale'  One kinda funny note, before she shut the door, the employee asked 'does anyone want to throw out any offer?'  I said 'yeah, 5 bucks' which she didn't seem to appreciate, and one of the 2 older ladies said to me 'but then you'd have to clean all that out of there?'  I just smiled and told her that's what I do.

So we go to the 5x5, again, minimum bid: $300.  The employee kept apologizing saying she was only doing what she was told to do, etc.  The 5x5 looked better, I could see a couple of computers, and I saw some newer Gi Joe toys which caught my interest.  One of the other regulars said he could offer $100, which I thought would have been fair for the room, but again it was turned down.  She did mention something about the bids being a percentage of what was owed, and what they wanted to recoup...but that just seems wrong, like get the stuff out at whatever cost and start renting it again to someone else.  At the end, they did tell us that they were looking into working with an auctioneer for future sales, so maybe they'll get it together later, but they didn't seem to know what they were doing at this one.
waste of time, hopefully the rest of the auctions this week will be better.

has anyone else run into this extreme minimum bid scenario? 

I have seen this over and over and I cant say I blame the owner! If people are going to get caught up in the tv shows and they have no clue what is going on except what they are spoon feed from tv then I say start the units at &)),people are going to pay the high prices so why waste time from started at 10 bucks when the tv fans are going to jump the bid to 10000 or more.

Its amazing.The shows are just killing the prices(they should have a disclaimer for entertainment purposes only).Have to wait till these people get burned and quit..

Its amazing.The shows are just killing the prices(they should have a disclaimer for entertainment purposes only).Have to wait till these people get burned and quit..

And by the time they all quit, a new season will bring in a new horde of people,

Not only have I seen seemingly unreasonable opening bids, but the other day, we had this ridiculous situation with a small "Mom & Pop" storage facility, where the facility owner was acting as his own auctioneer.  There was a crowd of about 50 (25 more than usual around here),  and 10 units for auction.     He opened a 10 X 10, did not announce a minimum bid or reserve amount,  started with a bid of $200 (which I thought he had gotten from someone), which was WAY too much.  Unit should not have gone for over $150.   The newbies bid against each other all the way until $450, which I thought was insane, but they were all excited and it was the first unit of the day.  The owner/auctioneer then announces "Okay, the min bid is $500 on this unit -- I'm not letting it go for under that amount"  -- and we're all like, what?    He then starts explaining that the law lets him recoup his fees and this particular tenant was past-due 4 months at $750... we tell him that's not OUR fault.

I almost began to tell him that if he wanted to quote the law, he should know that if he needs to set a minimum amount he needs to announce it BEFORE the bidding starts, and not wait to see how much he can get for it before he starts mandating higher prices, but I didn't.   I got it all on video, too.  Debating whether or not I should report him or just let him be.   

It's bad enough prices have gotten sky-high recently-- but now, in the words of Fred Sanford, we have "big dummies" to deal with!

Not only have I seen seemingly unreasonable opening bids, but the other day, we had this ridiculous situation with a small "Mom & Pop" storage facility, where the facility owner was acting as his own auctioneer.  There was a crowd of about 50 (25 more than usual around here),  and 10 units for auction.     He opened a 10 X 10, did not announce a minimum bid or reserve amount,  started with a bid of $200 (which I thought he had gotten from someone), which was WAY too much.  Unit should not have gone for over $150.   The newbies bid against each other all the way until $450, which I thought was insane, but they were all excited and it was the first unit of the day.  The owner/auctioneer then announces "Okay, the min bid is $500 on this unit -- I'm not letting it go for under that amount"  -- and we're all like, what?    He then starts explaining that the law lets him recoup his fees and this particular tenant was past-due 4 months at $750... we tell him that's not OUR fault.

I almost began to tell him that if he wanted to quote the law, he should know that if he needs to set a minimum amount he needs to announce it BEFORE the bidding starts, and not wait to see how much he can get for it before he starts mandating higher prices, but I didn't.   I got it all on video, too.  Debating whether or not I should report him or just let him be.   

It's bad enough prices have gotten sky-high recently-- but now, in the words of Fred Sanford, we have "big dummies" to deal with!

upload the video and share with all your fellow bidders in your area. That way they know to stay away from there. And Unless it says so in the ad they ran about minium bid, then there is no minium bid. That is it.

Ya - that sucks but it may become even more normal.  I know the 3 facility caravan I'm going to hit Monday has in the ad.  "We reserve the right to reject any and all bids and to withdraw any unit from this sale".  I can understand the withdraw a unit if owner pays up and stuff.  The "reject any and all bids" I'm a little questionable on.  However, I'll wait and see how it goes.  I'm seeing that line in more and more ads of companies.  This place is doing the auction themselves so will let you know tuesday or monday night how it goes.

Here is another blurb:
Metro Self Storage reserves the right to withdraw any or all units, partial or entire, from the sale at any time. All contents must be removed completely from the property within 48 hours or sooner.

It just gets harder and harder to make money.

Thanks... I will upload the videos--  and the story... they should be up tonight or tomorrow if you're interested.  http://storageheroes.blogspot.com

These forums help a lot too!  Maybe eventually they will start "reviews"  under each facility

Thanks... I will upload the videos--  and the story... they should be up tonight or tomorrow if you're interested.  http://storageheroes.blogspot.com

These forums help a lot too!  Maybe eventually they will start "reviews"  under each facility

There is way to many facilities to do a review on each and every single one.

I posted the blogs and the videos just a second ago.

http://storageheroes.blogspot.com/2011/08/worst-auction-ever.html