Navigating the world of auctions can be intimidating, especially when purchasing brewery equipment. Understanding common auction terms is essential to make informed decisions and secure the best deals. This guide breaks down the key terms every brewery equipment buyer should know.

Reserve Price

The reserve price is the minimum amount a seller is willing to accept for an item. If bids do not meet or exceed this amount, the item will not be sold. Knowing whether an auction has a reserve price can help you decide on your bidding strategy.

Starting Bid

The starting bid is the minimum bid that begins the auction. It’s often set below the reserve price to encourage bidding but can give you an idea of the equipment's potential value.

Buyer's Premium

The buyer’s premium is an additional fee, usually a percentage of the final bid, charged by the auction house. For example, if the buyer’s premium is 10% and you win a $10,000 fermenter, you’ll owe an additional $1,000. Always factor this into your budget.

"As-Is, Where-Is"

This term means the equipment is sold in its current condition, with no guarantees or warranties. Buyers are responsible for inspecting the items before bidding and arranging transportation. Understanding this term is crucial, as you’ll bear any repair or shipping costs.

Lot

A lot refers to an individual item or a group of items being sold together. For brewery equipment, lots may include single pieces (like a fermenter) or complete sets (such as a brewing system). Carefully review lot descriptions to know what you’re bidding on.

Inspection Period

The inspection period is the time allowed for buyers to examine items before the auction. Use this opportunity to assess the equipment’s condition, as most auction purchases are final. If the auction is online, request additional photos or videos.

Absentee Bid

An absentee bid allows you to place a bid without being present at the auction. You submit your maximum bid in advance, and the auctioneer will bid on your behalf up to that amount. This is especially useful for busy buyers or online auctions.

Hammer Price

The hammer price is the final bid accepted by the auctioneer when the auction ends. It does not include additional costs like the buyer’s premium or taxes, which are added to your total.

Proxy Bid

In a proxy bid, the auction system automatically increases your bid incrementally to outbid others, up to your set maximum. This feature is common in online auctions and helps you stay competitive without constant monitoring.

Closing Time

In timed online auctions, the closing time is the deadline for placing bids. Some auctions use “soft close” systems, where the closing time is extended if bids are placed near the deadline, preventing last-second bids from dominating.

Auctioneer’s Discretion

The auctioneer may adjust bids, combine lots, or even withdraw items at their discretion. Familiarize yourself with the auction house’s rules to avoid surprises.

By understanding these brewery equipment auctions in Ohio terms, you can navigate brewery equipment auctions with confidence, ensuring a smooth and successful buying experience.