National Auctioneers Association
State of the Auction Industry Amid COVID-19
April 1, 2020
On March. 25, 2020, we released the first State of the Auction Industry Amid COVID-19 report, showing data on effects of the COVID-19 pandemic, including the unprecedented number of event cancellations. In this report, we’ve included even more statistics on respondents. In this survey, we had 8% more respondents who were not NAA members, but still in the auction industry. 81% of respondents reported they are following CDC guidelines. Respondents work with a variety of assets, the top four being estate/personal property, antiques/collectibles, business liquidation, and residential real estate. More than 75% of respondents have been in the auction industry more than 10 years. In this report, we’ve also included in which markets auctioneers are conducting business. Rural, small town, small city and mid-sized city all scored fairly evenly, with large city not far behind, showing respondents are active in all markets. An impressive 73% of respondents earn income from multiple sources, including real estate, contracting, personal/commercial assets, marketing and management, and benefits. By far the primary source of income for respondents was personal and commercial assets, followed by real estate. For their second source of income, 52% indicated real estate and personal and commercial assets. In this second week of our survey series, we saw significant shifts in buyer behavior and company financial response. In addition, auctioneers are more easily identifying and adapting to vulnerabilities and opportunities.
Contact Hannes Combest, FASAE, CAE, Chief Executive Officer hcombest@auctioneers.org Media Inquiries Erin Shipps, Director of Marketing & Communications eshipps@auctioneers.org
Please contact us if you did not participate in this survey and wish to be a part of future surveys.
Methodology The National Auctioneers Association sent a 26question survey built in Survey Monkey via email to 7,343 member and non-member contacts. The association received 243 responses. Raw data was collected and tabulated using Survey Monkey.
Compliance
Yes
No
Mostly
Are you following CDC guidelines?
nt iq ue s an d
A
C
ol le ut ct o/ ib M le ot Fu s o nd rc ra yc i si le ng s /C ha Re ri t B cr an y ea kr up ti o tc na Bu y l Ve sin Es es hi ta cl sL te es iq /P u er id so at He Fa na io rm av n l Pr /R y o Eq an pe ui rty pm ch/ Liv e In nt es du /C to st ck on ria s l /M tru ct an Re io uf G st n a au ov c r er tu n m ant ri n g Eq en ui tS pm ur pl en In us t te /S ll e ei ct zu ua re s lP ro Fin C pe om e rty A m rt/ er Je ci w Re al el Re sid ry a en lE ti a sta lR te ea La lE nd st at Re e al Es ta te
A
NAA Member Yes
Respondent Statistics 8% more nonNAA members than March 25 survey No
14%
86%
Which assets do you market?
180
150
120
90
60
30
0
1-5
Years
How long have you been in the auction industry?
6-10
11-20
21-30
30+
0
20
40
60
# of respondents
80
What type of market(s) are you typically operating in?
Rural
Small Town
Small City
Mid-sized City
Large City
0
35
70
# of respondents
105
140
Marketing & Management
Benefits
Real Estate Personal & Commercial Assets
Marketing & Management
What is your primary source of income?
Contract
Benefits
Real Estate Personal & Commercial Assets
What is your secondary source of income? *27% of respondents chose N/A or skipped
Contract
What percentage of your sellers or clients are canceling their summer auctions or events? Cancellations Decision to Postpone
120
# of respondents
100 80
Client
60 40 Both
Auctioneer
20 0 0%
<10%
10-49%
As of March 25, all auctions
50-79%
80-99%
100%
As of April 1, summer auctions
Previously, auction cancellations were largely dependent upon asset type. Most cancellations were noted for spring. In this report, we tracked cancellation of summer auctions. So far, the 100% cancellation has not translated to summer, but other percentages are consistent or growing.
What are your sellers or clients asking regarding COVID-19 and the impact to their auction or event?
Should I reschedule and when? When will you sell my assets/hold live events/galas, how long will the holdout be? Will the government allow us to have the auction? What liabilities exist? Will this affect turnout, participation? Will this affect buying, prices and values? How are other sales going? Are you still accepting consignments? How safe is it, what steps are being taken to ensure safety? How do we move to virtual/online? Will online only auctions do as well as live?
What are you doing to give sellers confidence to move forward with an auction?
Positive reinforcement – we will get through this; people will be ready to get out again Providing guidance –scheduling, processes, sanitary measures Giving reasonable timeframes/realistic alternatives/flexibility in rescheduling Keeping in contact, following up, informing Discussing pros/cons of postponing vs. canceling Showing recent auction results/sales data Counseling on benefits/success of virtual live/online only auctions Assuring we have tools/knowledge to conduct online auctions Providing more options for previews and pickups to reduce group gatherings, sanitary cleanliness, delivery service options Using SignUp Genius for scheduling previews and pick ups Encouraging back up plans
Buyers & Donors 175
As of March 25 As of April 1
150
# of respondents
125 100
The past week has seen a major shift in buyer behavior as auctioneers shift their capabilities and messaging.
75
Respondents are reporting a very large drop in buyers who are operating the same as usual, or expressing worry and/or fear, and an increase in buyers adapting and understanding.
50 25
However, this shift does not come without some amount of buyer frustration as they, too, learn to adapt.
D
ns
Re gu la ti o
l
ec l in
ed
D
ue
to
Sa m e
a
to Ea rl y
sU su a
Te ll
d rie
Fr us tra te d
W or
To o
da pt in g/ U
nd er st an d
in g
0
A
How are most of your buyers or donors behaving in your market?
How has your live auction attendance been affected? 200 As of March 25 As of April 1
# of respondents
150
100
50
0 Lower
All Canceled
Mostly Canceled
Transitioned to Online
Normal
Increased
N/A
Live auction attendance continues to be affected with a large number of auctions still being canceled. The amount of auctioneers transitioning to online remains consistent. Normal live auction attendance saw a significant drop.
Challenges with Preview/Load out Scheduling Canceled/Postponed
How has your online bidding participation been affected?
Decreased Results
Decreased Traffic
Increased Results
Increased Traffic
Just Started Online
No Significant Effect
N/A Compared with last week, more online auctions are seeing effects on their bidding participation. More respondents are reporting challenges with preview/load out scheduling and canceled/postponed auctions. And, while auctioneers are still seeing decreased results and traffic, even more are seeing increased results and traffic.
0
30
60
90
120
150
# of respondents As of March 25
As of April 1
As of March 25
As of April 1
In Person Radio
How are you communicating to your community regarding auction or event cancellations?
Signs Newspaper Direct Mail Website/App Phone Text Social Media Email 0
30
60
90
120 150 180
# of respondents
What vulnerabilities are you currently seeing in your market? Vulnerabilities
As of March 25
As of April 1
# of respondents
180 150 120 90 60 30
on e N
e
Bu sin es
ll e rI
s/ In
ns e
co m
cu ri t y
l
Lo ss
of
Se
N
on -e
ss e
nt ia
un ds ss et sa re
m y on o Ec n
Bu ye rF A
ar o Fe
fF a
ce -
to -
Fa ce
fU nk no w
In te ra ct io ns
e O nl in to
M ov in g ar o Fe
C
an ce
ll a tio ns /P os
tp on em en ts
0
Auctioneers are more clearly identifying vulnerabilities in their market. This week, respondents saw an increase in every variable of vulnerabilities, apart from those who reported none. The biggest jumps came from cancellations and postponements, fear of an unknown economy, and loss of business/income, which is a very real reality for auctioneers.
What new opportunities are you seeing as a result of COVID-19? Opportunities
As of March 25
As of April 1
160 120 100 80 60 40 20
ot hi ng N
ng es
A
ss et
C
ha
pp ra i sa ls
s C
ew N
on su lti ng /A
Bu ye r
et s As s Fu tu re
M or e
pm en t el o ev
Bi z
D
In ve st m en ts M ar ke tin g/
N
ew
Se
lle r
s/ Ex pa nd
N
in g
ew
Te c
M ar ke t
h
0 O nl in e
# of respondents
140
Auctioneers are adapting and seeing new opportunities more this week than last week. Business efforts have shifted and increased in nearly every opportunity presented.
How are you or the company you work for responding financially for the business? 200 As of March 25 As of April 1
120 80 40
e
A
dv er ti
si n g
M or
su al sa sU
tu ni tie s
fo rO
W a
tc hi ng
Bu sin es
in g Ho ld
pp or
Pa tte rn
ou rs H nd ff a
St a
Ex pe ns es Re du ci ng
M in im i zi ng
/H al tin g
In ve st in g
on se rv
in g
0
C
# of respondents
160
While 53% of respondents last week were conserving, there have been large shifts this week in those who have had to make more drastic decisions such as halting expenses and reducing staff. However, there was also a jump in those looking for the opportunities.
We've Gone Virtual
Are real estate closings currently being affected as a result of COVID-19? Last week we reported that most respondents in the real estate field were not seeing noteworthy effects on closings. However, this week the data shows an increase in those companies going virtual, and those who have definitely been affected. Other industries such as banks and government offices continue to slow closings.
Unknown
Nothing Yet
Slowed by Other Industries
Expect Changes
Definitely Affected
N/A
As of March 25 As of April 1
0
25
50
75
100 125
# of respondents
Minor Changes Status Quo As of March 25
Unknown
How are you seeing banks respond to the COVID-19 crisis?
Hesitant to Lend Major Changes Status Quo Minor Changes
Hesitant to Lend Major Changes
As of April 1
Unknown
From last week, the number of banks reported by respondents to be operating “status quo” was cut in half. Other metrics remained consistent, apart from “minor changes,” which respondents are saying more than doubled this week.
What are your non-profit clients doing because of event cancellations? Non-Profit Clients 140 As of March 25
120
As of April 1
# of respondents
100 80 60 40 20 0 Still Evaluating
Exploring Options
Rescheduling
Canceling
Online Auctions
Other Fundraising Efforts
Unknown
N/A
Some good news for fundraising auctioneers is that many more clients are open to exploring options and alternatives this week as opposed to last week. While cancellations and postponements are still high, it will be interesting to see how this shift continues.
Exploring Options
What other fundraising methods are you and/or your nonprofit clients currently utilizing?
None/Waiting
Direct Donation Campaigns
Telethon
Online/Virtual
N/A
0
40
80
120
# of respondents 80% of respondents who work in fundraising reported utilizing online/virtual events for their clients. Many are still on hold and waiting.
As of March 25
As of April 1
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