Bill Rackley likes to think of the auction business as a way to connect with others. He can rest easy knowing auctioneers, like himself, at Dakil Auctioneers, Inc. play a role in uniting buyers and sellers.
In a way, auctions keep the spokes on the wheel moving. As one venture closes, a new one arises.
“It makes me feel good to see someone who is going to sell their stuff and get a fair dollar, but also a person who is going to start a new chapter,” said Rackley, a longtime auctioneer, appraiser, and consultant with Dakil. “It’s like connecting the dots to keep things going forward in life.”
It’s a constant cycle. When someone retires or goes out of business, it allows a new or existing business owner to benefit. The repurposing and reusing of items is one way auctioneers like Dakil can help your business, regardless of if you’re interested in buying or selling. We’ll explain auction benefits, how you can save or make money, and the different types of auctions you’ll need to know.
Auctions have something for everyone. We recently sold an estate with diamond rings and mink coats and have featured professional artwork in another auction. Contrast that with a large oil and gas sale in October, and our inventory is widespread.
This is attractive for both buyers and sellers when trying to reach an audience.
We have a longstanding history of helping clients sell their equipment and goods while connecting buyers with the inventory they need. Lately, real estate is one of the more popular types of auctions as homeowners want to downsize or retire and move closer to family. Often, commercial real estate is crucial for business owners either looking to buy land or offload property. That said, we work with all types of industries from restaurants to machine shops.
The process is straightforward once you decide to move forward with an auction. We’ll set a date and advertise the auction and your items for sale on our website. We’ll also promote the event using online tactics like email blasts to more than 100,000 potential buyers and print strategies like direct mail flyers sent to a proprietary listing of known auction buyers. We also advertise upcoming auctions in newspapers and trade journals. These methods allow us to reach the world with your merchandise.
All that’s left to do is show up and purchase items or watch your inventory sell.
“Whether you’re going in or out, we can help you,” Rackley said.
From his experience, Rackley estimates equipment depreciates at least 1% a month. That means that brand-new equipment you bought for your business depreciates the second you buy it.
For this reason alone, auctions become attractive to buyers and sellers. For buyers, it allows you to start your own business for a fraction of the cost or add to your existing inventory without maxing out credit cards. Not only will you save money, but you can build your business faster and expedite its growth.
For sellers, you are able to recoup a portion of your initial investment by offloading items or equipment. Even if you have niche items or one of two pieces of equipment to sell, consignment auctions, which we’ll explain in detail below, are an ideal route to go.
“You can get good deals at an auction. It’s reasonable stuff that can be put into your application or business,” Rackley said.
There’s a misconception that auction items are old or damaged goods. Rackley prefers the term “tried-and-proven products.” In many instances, items sold at our auctions are either brand new or like new.
The monetary differences between new items from a dealer and items from an auction are noticeable. Rackley gave an example of a machine shop owner who may be in the market for a computer numerical control (CNC) machine. Buy one of these new, and it could run you several hundred thousand dollars. You may save close to 50% off that at an auction. Similarly, a restaurant owner looking for an ice machine would pay $5,000 to $7,000 for a new machine. You could feasibly snag one at an auction for $3,500.
“You’re saving thousands of dollars. It adds up quick,” he said.
Once a quarter, we hold a heavy equipment auction that is one of our biggest events of the year. It also serves as a massive consignment offering for buyers and sellers across the state, region, and world.
One of the most common types of auctions, consignments feature items from multiple sellers in one location. This is a way for businesses to sell a handful of items without hosting their own auction This attracts a variety of buyers thanks to a wide-ranging inventory. For sellers, called consignors, the risks are minimum since you only incur a fee if we sell your item.
“We sold our heavy equipment in October that allowed people from all over the nation to bring their equipment here. Then there’s buyers from all over the nation,” Rackley said.
We typically have hundreds of sellers bring items to our in-house, 20-acre yard. For this auction, items for sale included golf carts, motor scooters, motorcycles, cars, trailers, trucks, storage trailers, RVs, four-wheelers, oil field equipment, and more. The clientele at auctions ranges from ranchers and farmers to oil and gas companies interested in selling or updating their equipment. Earlier this year, we sold vehicles to OG&E and the city of Oklahoma City.
“We sell stuff for any contractors that want to bring two or three pieces in and update their equipment or a person interested in buying equipment,” Rackley said.
If you’re a business owner and you’re closing or moving, a liquidation auction is for you. Instead of selling individual pieces with other dealers at a consignment auction, liquidation allows you to sell your entire inventory at once.
Liquidation auctions are a turnkey operation at Dakil, meaning we come in and tag, identify, and prepare each item for the auction and sell it either on site or in our state-of-the-art facility in Oklahoma City. For buyers, it allows up-and-coming businesses or established companies looking to grow to buy large quantities at a reduced price.
“That’s great for people growing who want to retire or are looking to update,” Rackley said. “Plus, when you invest in new or used equipment, it’s one of the greatest write-offs the government gives you.”
Restaurants frequently hold or purchase equipment from liquidation auctions. Over the years, we’ve seen many local restaurants get their start by buying equipment from liquidation auctions. Recently, we auctioned off a restaurant in Enid so a new tenant could remodel and open another business.
Next time you drive through Oklahoma City, take a look at your surroundings. There’s a chance you’ll see a piece of land or a business sold by Dakil that impacted the community.
Yes, the business aspect is enjoyable. But it’s rewarding to see the trickle down effect it can have on a community.
Rackley knows this firsthand thanks to his decades in the industry. One of his fondest memories is the development of Salem Restaurant Equipment, which started as an ice cream truck about 25 years ago. We sold freezers for the owners and invited him back for future auctions. He ended up buying and selling restaurant equipment to open his own business.
Two decades ago, B&B Auto Parts purchased a greenhouse, nursery facility, and land from from one of our auctions. The property later turned into a storage center and a shopping center on Northeast 23rd Street. We have also sold property that ended up as the future sites of hospitals and health care facilities.
In the food industry, Chelinos Mexican Restaurant bought its first equipment at a Dakil auction. The local chain built a strong enough foundation to open several locations across the metro. Throughout the years, we have also done business with other popular restaurants like Jimmy’s Egg and Swadley’s World Famous Bar-B-Q.
“Different companies come in and invest and go forward. We have sold stuff for different companies and they have gone on to grow massively,” Rackley said. “Then they come back and buy stuff. It’s a cycle.”
Are you interested in buying or selling equipment or inventory at an auction? Check out our list of upcoming auctions to learn more about specific dates and what we have to offer. Get in touch with us today using this contact form or call us directly at (405) 751-6179.
