Merchandising by private sale or through online auction is a highly discussed topic in PrestaShop e-business. While a lot of people think that auctions are the most effective approach to get the highest possible final sale price for your stuff acquired at the auction event, other people think private sale is the best option.
Therefore which procedure for sale should you select? To aid in making an intelligent choice, “FMEModules” has mentioned a summary including the advantages and disadvantages of private sales and auction when anyone have to sale his goods.
In the start, we will give you brief insight of private Sales and “Auctions” exactly why are these techniques used and finally we will discuss the pros and cons of both.
What are Private Sales?
According to “Financial Times” definition of Private Sales Shop, “The sale of something in an arrangement directly between the seller and the buyer, rather than openly.”
PrestaShop helps to create a private sales shop through PrestaShop private Sale Module
We are not going into deep of Privates sales as our main focus today is discussing the pros and cons, so here listed below are pros and cons of these sales.
- Less Competition
While auction involves tough competition between different individuals and companies that creates an overwhelming situation for the people. Due to this reason, purchasers got more time in private sales to get or reject.
- Less Urgency
As auctions have fixed dates for bidding and finalizing the deal, private sales have flexible dates. Customers can purchase the products with ease and convenience.
- More sales
Private sales are usually offered at discount prices. Therefore, more customers take interest in them.
Private Sale’s deals are done through negotiations; therefore sales policies remain hidden from the public eye and competitors.
- Customer Loyalty
Customers feel loyalty when they are offered private sales. Therefore such sale offers are more helpful for future planning and business.
- Specific Events
Private Sales are usually offered at particular events for a limited time in the year. So, less people can take advantage from them. There is no such limitation for auction.
- Lengthy Sales Period
Private Sales have no sales limit or sense of urgency. Therefore, private sales take more time to be done successfully as compared to auction.
- Less prices
Merchants are expected to get lesser prices as compared to when they auction those products.
Best Tips for Private Sales
Here are some best tips listed for private sales.
- More Marketing
Private sales need an effective promotion and marketing campaign to popularize the offer in public. Use social media and other marketing channels to get this job done intelligently.
- Pricing Plan
As private sales involves price bargaining, therefore set slightly higher prices than the actual price of products. So that, you not have to bear a loss at the end.
What are Auctions?
According to “Investopedia” definition of Auction “A system where potential buyers place competitive bids on assets and services. The asset or service in question will sell to the party that places the highest bid.”
Here are top pros and cons of selling products though Auctions
- Urgent Sales
If you want to sell your products urgently, then auction is the best way to do that. You can do the auction procedure within a limited time.
- Higher Prices
Being a seller, you are expected to get maximum prices of your products as a big competition is involved in this process. Therefore, you can sell your products at higher prices.
- No Bargaining
As no price bargaining is involved that makes the auction process simpler. Hassle free selling is possible through auctions.
- Fixed terms
Auctioners can set fixed terms with their advertisement. Therefore, only related persons send bids. The people who disagree with terms can’t take part in the auction process.
- Less Promotion Cost
Auctions needs less marketing and promotion offers. So cost of selling will automatically reduce.
- More overhead Cost
Auction involves more overhead cost as you need expert resources to organize an auction which increase the final cost of auction.
- Static Price
Auctions are public so the interested customers will offer prices to a certain limit as they know the market rates very well.
- Less prices
Sometimes less prices are offered by the bidders; therefore you have a future plan for such condition.
Best Tips for Auctions
Here are the top tips for selling through auctions.
- Best Plan
Auctions are centered at best market plans, so do a proper survey of market and then offer auctions.
- Best Resources
Make use of best resources i.e. expert auctioneers that can run this process smoothly.
Hopefully, this article exhibiting the comparison of both selling types will help you to take a good decision for selling your products. For more tips and suggestion, keep visiting our website.