Though people had been aware of online auctions dating back at least five years, the auctioning of many of Rita Crundwell’s horses online in 2012 catapulted the idea into public awareness for paint, quarter, and appaloosa horse buyers and sellers. At that point, the online auction format was chosen out of “necessity,” says Mike Jennings of Professional Horse Services, LLC (PHS). Since then, Mike and his wife Stephanie have been adding more and more online auctions to their schedule and don’t plan on looking back.
A Natural Progression
Going into 2011, Jennings says there was an obvious decrease in the number of attendees of live auctions, probably due to rising gas prices. That, coupled with the willingness of buyers to shop online for everything else and the fact people were already buying online at live auctions and through websites, is what he believes has led to the popularity of online auctions and decreases in the stigma against buying horses in such auctions.
A few live auctions do remain on the schedule. Professional Horse Services handles the All-American Quarter Horse Congress Super Sale and has been approached about putting together proposals for several other organizations interested in hosting live auctions. However, Jennings sees more benefits for everyone involved in the online auction model.
Benefits of Online Auctions
Online auctions work in the favor of all involved. Buyers and sellers are able to connect from all parts of the country, even internationally, without having to first ship horses to the auction location. Sellers receive real-time analysis of their horse’s true market value and are often able to sell their horses in considerably less time than with online classifieds. Sales are more transparent: sellers pay a commission on the selling price, while buyers pay a five-percent buyer’s premium rather than the fees associated with hiring a sales agent. And, though buyers aren’t caught up in the electric atmosphere of a live auction, Jennings says many buyers still respond to the excitement of the auction by bidding a bit more for horses than they had planned.
Sales can also occur outside the bounds of the auction itself, something that was more difficult at live auctions. If a horse doesn’t sell at the auction, because, for example, bidding didn’t reach the seller’s reserve, PHS will serve as an intermediary to arrange a sale if approached by a buyer. Bidders are also allowed to submit offers before the auction simply by clicking the “Make an Offer” button on the horse’s listing.
Buyers are still able to communicate with sellers just as they would were the sale occurring privately. Through contact information posted with each listing in the auction catalog, buyers can ask for additional photos, videos, and information, or arrange for a pre-purchase exam or to see the horse in person.
The Experience of a Sales Professional Meets 21st Century Technology
Jennings puts his years of experience in horse sales into developing auctions at PHS that streamline the process for both buyers and sellers. His experience spans decades, starting in the 1970s at his father’s breeding farm. In addition to managing auctions, first by Professional Auction Services and now PHS, he’s been an auctioneer since 1971. He also knows good horseflesh, having served as an AQHA judge in addition to both he and Stephanie being avid competitors in multiple disciplines.
What comes out of this experience is a thorough understanding of concerns buyers have about horse sales and knowledge of what helps horses sell. All of this information has been used to create an auction experience that results in very few disputes and over 600 horses sold since the online auctions began. In fact, Jennings says that only three horses have been returned to the seller for serious misrepresentation.
When completing the entry form to consign a horse to the auction, the seller answers a number of questions buyers would normally ask when seeing a horse in person and provides images and videos of the horse. Photos and videos provided may be of conformation, training, competition, offspring, or any other scenario that demonstrates the horse’s quality. Sellers also must provide the horse’s papers and see to it that all transfers are in order before the auction. If buyers need more information, they can request it directly from the sellers. Buyers are also approved by PHS before receiving the bidder’s number allowing them to participate in the auction.
If You Want to Participate
For both buyers and sellers, the entire process for participating in an online auction hosted by PHS can be completed online. Sellers register their horses via an entry form on the website that includes the questions mentioned above and allows photos and videos to be attached. Sellers do need to submit all paperwork, if applicable, by mail.
Buyers can find a list of all upcoming auctions on the website, as well as auction catalogs. If they would like to bid, they simply create an account and request a bidder’s number for each auction. The system allows bidders to set up maximum or proxy bids if concerned they’ll be away from their computers when the auction is underway.
Another concern bidders may have is they’ll lose out to another bidder due to a slow Internet connection. To give everyone an opportunity, the website uses a “soft close,” where bidding is extended by three minutes if a bid is received within the last three minutes of the auction.
The process also allows buyers to concentrate on one horse at a time. Bidding remains open for three days, and ends in three-minute intervals.
Helping the Horse Industry
Online auctions allow PHS to operate as “more of a marketing company,” which works well for the Jennings, as they want to be able to help buyers and sellers come together to find their dream horses. Online auctions are certainly revitalizing the way we look at the horse-selling process.
About the Author: Amy Cocke of Columbia, South Carolina has been writing since a young age, and started riding soon after. Following years of trail riding and hunt seat lessons, she discovered breed showing in college. Now, she combines both passions as a professional writer.
