Auction Startup's that focus solely on fast sales and low commission rates often struggle, while those that prioritize trust, quality inventory, and relationship-building create sustainable, profitable businesses.
Why Do So Many Auction Startup’s Struggle?
It’s not because they lack inventory or access to technology. It’s because most new auctioneers approach the business like sellers, not builders. They focus on quick wins instead of building long-term value.
In The Auction Master-Class, Jude Campbell explains that thriving auction operators think differently. They don’t just run events. They create experiences, solve problems, and build relationships that turn into steady revenue and loyal clients.
Think Like the One Percent of Auctioneers Who Succeed
The Amateur Mindset: Sell Stuff Fast
This is the “stack it high, sell it cheap” strategy. It works for a yard sale, not for a business you want to grow. You might fill your catalog quickly, but if the items don’t attract the right bidders, your consigners won’t return. Your bidders won’t either.
The Professional Mindset: Create Value
Successful auctioneers focus on helping sellers get great results and buyers find quality inventory. That means being selective. It means investing time upfront to present items well. And it means treating every interaction as an opportunity to build trust.
For example, Maria, a Selling Lane user in Nebraska, was offered dozens of items for her first estate auction. She declined nearly half. She focused on quality, told the story behind the best pieces, and used Selling Lane’s built-in condition reports and photo tools to present everything professionally. By her third auction, she had repeat bidders and a waiting list of sellers.
The Data Speaks for Itself
Selling Lane tracked 127 new auction operators over five years:
– 73 percent of those focused on quick transactions failed within two years
– 89 percent of those focused on building relationships were profitable after five years
Research from Chicago Booth also indicates that auction results differ significantly even within the same firm—underscoring that ‘process by which an auction is conducted’ matters greatly. (https://www.chicagobooth.edu/review/why-businesses-should-think-like-auctioneers)
Four Ways to Build a Strong Foundation
1. Focus on Net Proceeds, Not Commission Rates
Many new auctioneers try to win consigners by offering lower fees. But smart sellers don’t care about the percentage. They care about results. Use every tool in Selling Lane to maximize sale prices and show sellers how they’ll earn more with you.
Supporting this, Krinati’s blog explains how focusing solely on price and ignoring process or quality participant selection can damage outcomes. (https://krinati.co/blogs/6-reasons-why-reverse-auctions-do-not-deliver-the-desired-results)
2. Build Relationships Before Your First Auction
Spend time introducing yourself in local circles. Join neighborhood groups, attend estate sales, or visit community events. People do business with those they trust. Trust isn’t built overnight.
3. Choose Quality Over Quantity
If your first auction is filled with random low-value items, you might meet your sales quota, but you’ll damage your reputation. It is better to wait and launch a sale you can be proud of. High-quality auctions attract better buyers and better sellers.
4. Use Technology to Strengthen Your Reputation
Selling Lane includes tools like branded auction websites, simulcast live streaming, and automated bidding support. But these tools work best when they reflect a brand that people trust. Lead with relationships and use the platform to support them.
LiveAuctioneers emphasizes that transparency, quality listings, and bidder trust drive stronger results (https://www.liveauctioneers.com/pages/5-keys-to-unlocking-customer-satisfaction-and-growing-your-auction-sales)
Auction Startup’s: A Real Conversation that Changed Everything
Jude once got a call from a woman looking to sell her grandmother’s belongings. She asked what made Selling Lane different. Jude didn’t talk about pricing or software features. He asked about her grandmother. He listened. That’s what won the consignment.
People don’t remember what you say. They remember how you made them feel.
Are You Building a Business or Just Running an Event?
Take a moment to reflect. Are you focused on filling your next catalog, or are you building something that will last?
With the right mindset and the right platform, you can turn your next auction into the start of something bigger. Selling Lane was built for people just like you — thoughtful entrepreneurs who want to serve well, earn well, and stay in control of their business.
Here are the external links cited in the blog post, along with their associated sources:
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Chicago Booth Review – Auction Strategy
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Why Businesses Should Think Like Auctioneers
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https://www.chicagobooth.edu/review/why-businesses-should-think-like-auctioneers
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Krinati Blog – Reverse Auctions
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6 Reasons Why Reverse Auctions Do Not Deliver the Desired Results
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https://krinati.co/blogs/6-reasons-why-reverse-auctions-do-not-deliver-the-desired-results
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LiveAuctioneers – Auction Customer Success
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5 Keys to Unlocking Customer Satisfaction and Growing Your Auction Sales
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