Use Online Marketing To Reduce Costs
As the auctioneer you can introduce a whole raft of cost saving measures to your auction business by operating online. The economies of scale from online trading can be realised as follows:
- Reaching a global audience allows you to derive more value from your marketing operations.
- Lower transaction costs can lead to higher sales margins. Your operational costs such as auction room costs are vastly reduced by operating sales online sales.
- Save on storage space because buyers can pick up goods directly from sellers. Once deals have been made, transfer of sold goods can be made between the buyer and seller.
- Liquidate excess products – reduce warehousing costs and release capital employed in stock by liquidating these items online.
- It’s a lot quicker to set up your sales pitch on an internet auction. With the careful, targeted use of online marketing you can quickly generate interest in the items you have for sale.
- Offline marketing materials can be expensive to produce and distribute. Once they’re printed, they can’t be changed. Their reach is also limited by their distribution. By publishing marketing materials online, they can be changed according to whom is being addressed. This means many micro-campaigns can be set up – targeting specific sectors within your market.
- You have the potential to reduce the cost of collecting sales revenue by automating the collection process. As sales close you can automatically send out electronic requests for payments. Whilst purchasers can ignore these requests, you can link payment to the release of those items.