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Douglas Tam, AuctionMatic USA founder and president
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You're moving to a new apartment in a few weeks and that enormous box filled with 10-inch-tall model army figures -- leftovers from a phase your boyfriend went through in college -- is not coming with you. Even he acknowledges that they aren't something he still needs to hold onto as his 35th birthday approaches. But he swears that they're worth something…
Whether they're collectibles you no longer collect, never-worn Christmas presents from someone who doesn't share your taste, or computer equipment from two generations ago, we all have things in our closet that we'd rather be rid of but don't want to throw away. But who has the time to deal with them? Enter AuctionMatic USA, a Lower Manhattan small business that harnesses the power of eBay for you.
Founded in 2000, AuctionMatic will collect, catalog, photograph, price, list, sell, and ship unwanted or excess items on behalf of businesses, nonprofit organizations, and individuals -- taking a percentage of the selling price as their fee -- saving time, eliminating hassles, and recouping money for items that are otherwise gathering dust and taking up space.
"We find that it's a pretty good deal for everyone involved," says Douglas Tam, AuctionMatic founder and president.
With a staff of eight -- four to make office and home visits to assess and collect items for auction and four to list the items on eBay -- the small downtown firm is run from offices located above J&R Camera Store (Park Row across from City Hall), maintaining a Brooklyn warehouse where it stores merchandise until it's sold. In exchange for doing all of the legwork, the firm collects between 25 and 35 percent of the proceeds from a sale, keeping nothing in the event that items aren't purchased.
But that's seldom the case, Tam explains. "Less than 1 percent of items don't sell," he says. That's because he and his team are very selective in what they take on -- carefully researching similar items online to assess value and demand and determine whether the process is worthwhile for the object at hand. Individual items must be of a value greater than $50 to be considered, and the average sale price of items sold usually ends up being around $80, he explains. But some bring in significantly more -- such as the half-size replica of the famed Dukes of Hazard car the General Lee that sold last year for $1,500.
AuctionMatic's reputation adds value to the item as well. Based on a feedback system, eBay lets buyers and sellers rate one another at the conclusion of each transaction -- critiquing everything from how accurately the eBay listing described the actual merchandise to the promptness of delivery. The more positive ratings a seller racks up, the more confidence future buyers have in making purchases. With thousands of previous transactions, AuctionMatic has selling power that it can take individuals seller years to attain. This trust factor often means that the firm can command a higher price for items it lists, further benefiting its clients.
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| AuctionMatic USA, a Lower Manhattan small business that harnesses the power of eBay |
At its inception, AuctionMatic catered primarily to individuals who had unwanted items galore but were short on time or eBay expertise. Over time, though, the firm has steadily added businesses and nonprofit organizations to its client list. For businesses, it provides an opportunity to sell unwanted telephones, computer equipment, and other office supplies rather than dumping them -- bringing an added environmental benefit.
For nonprofits -- and interested businesses as well -- AuctionMatic's services can also provide a unique fundraising opportunity. (Nonprofits qualify for the lower 25 percent fee.) Take, for example, an after-school program the firm recently helped. AuctionMatic customized a flier for the organization to distribute to students and their parents, inviting donations of items for auction. Merchandise assembled, the firm set about selling. The after-school program got a receipt for each item sold, which it passed on to individual donors who could then claim tax write-offs for their charitable contributions. "It really is good for everyone all around," Tam says.
Increasingly, businesses -- most notably law firms -- are inviting their employees to participate in group auctions. "They have their individual partners gather up their inventory -- computers, PDAs, golf clubs, stuff from home -- and put them all together." Tam explains. AuctionMatic then sells the items individually, providing an itemized statement each month until everything is sold. What the businesses do with the money is up to them -- some contribute it to worthy charities, others pass the proceeds along to the employees according to individual donations.
As great as the services seem to be for everyone involved, there are a few limitations. For one, they don't do furniture. "It's just too hard to ship," Tam says. Secondly, they won't help you sell what isn't yours. Without above-mentioned boyfriend's permission -- which involves his signing a contract stating that he is the lawful owner and authorizes the sale -- that box of model army figures isn't going anywhere. "We have definitely had a few wives try to sell of their husbands' golf clubs without their knowledge," Tam says with a chuckle.
AuctionMatic USA
1 Beekman Street, Suite 509
(646) 852 2136
AuctionMatic@aol.com
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