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In the News "B2B asset auctioneer DoveBid flying high" By Scot Petersen When DoveBid Inc. took its well-established capital asset auction services online earlier this year, many thought buyers would balk at bidding for industrial equipment worth thousands of dollars over the Web. But in six months, DoveBid's expectations have been exceeded -- and then some. The Foster City, Calif., company will release some statistics next week that show both buyers and sellers are reaping the benefits of auctions that are both in person and Webcast, or held exclusively online. For example, online bidders are winning more auctions than on-site bidders, and sellers are getting higher bids from online bidders, in some cases a 30 percent premium over the next closest on-site bidder, said DoveBid President and Chief Operating Officer Jeffrey Crowe. "Many of the on-site bidders are dealers who are looking for a low price on an item and then 'flip' it to another buyer," Crowe said. "Now we are reaching the end user, who will pay a higher price, but ultimately get a lower price than they would have paid from a dealer." It's a classic win-win situation, except for those dealers. But even they are happy because the universe of buyers has increased. Crowe said Webcast auction participation has increased more than 50 percent over standard on-site auctions this year. Winning over the dealers Jeffrey Simon, president of Jesco Enterprises Inc., of Linden, N.J., is one dealer who realizes that, while online DoveBid auctioning has taken some business away from him, the presence of online auctions benefits everyone involved. "I'm the dealer; I get hurt," said Simon, a liquidator and distributor of computer equipment. "With (DoveBid) online they're getting the end user, the final user, rather than the dealer, and top dollar. (Online bidders) are more of an educated buyer, a person online can do more research than a dealer on-site." On the other hand, said Simon -- who buys and sells through DoveBid -- he gains more potential customers and the convenience and cost-efficiency of not having to travel across country to attend an auction. "There are plenty of auctions out there, so it doesn't really hurt that much," he said. "But it's also a great way for me to buy. I don't have to spend a week and $5,000 to go to California to an auction. Anywhere I am I can just hop online and buy." DoveBid has aggressive plans to consolidate the fragmented business-to-business auction space and wants to expand vertically beyond its core manufacturing base. This week it acquired liquidator Champion Computer Products, of Atlanta. In May, DoveBid acquired eight capital asset firms. Crowe said DoveBid plans to expand geographically as well, and to that end acquired Fairfield Industries B.V., of Naarden, Netherlands, last month. "The great myth about capital assets is, 'build it and they will come,'" Crowe said. "But we have to go out and reach buyers with direct marketing, mail or e-mail some advertising, and then learn their preferences so we can go to them when we have something they might want." |