By: Craig A. Fleming, CAI, ATS, CES
Strategy is just a fancy word for direction, it begs the question: What direction are you looking to take your auction business? Outlined below you will find 3 types of strategies you can look into, Growth, Services and Pricing. For some people you will want to use all three types to keep ahead of your competition. For others you may only need to focus on growth. No matter what strategy or direction you choose make sure you are ready to work extremely hard in the implementation of each one.
A growth strategy entails introducing or expanding services that will increase revenues in your auction business. Sometimes your auction business may be forced to increase its services to keep up with competitors. Otherwise, customers may start using the services of a competitive auction company.
An auction company may also adopt a growth strategy by finding a new market for its services.
For example: Growth Strategies
Design and develop a Benefits Auction business. Create an on-line auction platform to increase the reach of each auction.
Services Differentiation Strategy
Auction companies will often use a differentiation strategy to set their services apart from other local auction firms.
For example: Differentiation Strategy
Design and develop an all-inclusive service for helping customers sell their assets, including pick up, clean up, storage, transportation, repair, and quick payment.
A pricing strategy involves creating a unique structure that will give you a competitive advantage over your competition. This could be in the form of a sliding scale for consignments to an item charge for each piece sold.
For example: Pricing Strategy Design and develop a unique consignment-pricing model to increase the total revenue from each auction.
Your business plan should all flow together creating alignment within the plan in order to move your business into the future.
The strategy section of your business plan should focus on the future, you need to think long and hard about each strategy to make sure you choose the right direction you want to go. If you get this wrong it will cost you lots of time, money, energy and effort long term.