The auctioneer plays an important role in the storage auction process. He or she is responsible for orchestrating the auction, allowing participants to place maximum bids and designating the highest bidder as the winner. While it may seem like a simple enough process, there’s a lot of work involved in orchestrating storage auctions. As such, you might be wondering how much auctioneers are paid.
Before we start, it’s important to note that an auctioneer’s payment may vary between the different self-storage facilities. There’s really no single “universal” format used for their payments. However, many self-storage facilities use one of the following payment structures for their auctioneers.
Arguably, the single most common way in which auctioneers are paid is commission. The auctioneer may receive a flat 15-20% of the maximum bid price. Assuming the unit sells for $1,000, for instance, the auctioneer would receive $150-$200, paid for by the self-storage facility. This obviously encourages the auctioneer to raise the bids, as higher bids means more money in his or her pocket.
Another popular payment method for auctioneers is hourly pay. As the name suggests, this occurs when the self-storage facility pays the auctioneer a flat dollar amount for each hour he or she worked. Prices can range anywhere from $20 per hour to several hundred bucks per hour. Many auctioneers prefer this format because it offers greater stability in terms of income. Regardless of how much participants bid on the units, the auctioneer will earn the same amount. The downside, however, is that hourly pay doesn’t provide any incentive for higher bids, which may deter some facilities from using this format.
Of course, some auctioneers are paid a flat rate for their service. A self-storage facility may hire an auctioneer to conduct a day’s worth of auctions, paying him or her $750. The auctioneer will earn the $750 regardless of max bids or the length of which he or she worked. Flat rate payments aren’t used as frequently as hourly or commission, but some self-storage facilities still use them.
These are just a few of the most common ways in which auctioneers are paid. As a bidder, though, you really don’t need to worry about the auctioneer’s payment, as it has little-to-no effect on the actual auction process.