Online Auction Provides Marketing Alternative
AngusAuctions.com provides nationwide discovery mechanism for cattle operations of all types, sizes.
KANSAS CITY, Mo. (Nov. 4, 2014) — “With auctions, you get more for your product than you thought you would, and that is really the only place where that happens,” said Brett Spader, director of operations for DVAuction, a technology and marketing company that specializes in livestock.
Spader also works with AngusAuctions.com in conjunction with the American Angus Association and Angus Productions Inc. (API) to offer ways for beef producers to buy and sell Angus cattle and genetics. He told participants during his marketing presentation Nov. 4 at the Angus Means Business National Convention & Trade Show in Kansas City, Mo., that Angus producers should consider digital applications to find value in the marketplace.
“There’s need for a nationwide discovery mechanism, and it is here,” he said. “Auctions allow buyers and sellers with no barriers to establish a price in record markets.”
While Spader acknowledged that business in the cattle industry is based on a handshake and personal relationship, he said staying connected today requires use of technology.
“Technology supplements business, but you need a reason to stay engaged. Technology is reliable and applicable. Acceptance has exploded the last three to four years,” he said.
AngusAuctions offers three ways to market cattle. The first is a live auction broadcast where online buyers may watch a production sale and bid from a remote location. An online bidoff is a timed auction, where bidders can place bids when they want during the allotted time. An online bidoff with live close combines the first two options. Viewers can bid on lots at their convenience, but the closing bids are done live via an auctioneer.
Spader says the approach benefits buyers in several ways:
- Rapidly search and shop.
- Purchase in a variety of settings, from online only to private treaty to production sale on the farm.
- Lower the cost of your travel to production sales.
- Increase use of your time.
- Ability to monitor markets prior to a purchase.
Seller benefits include reaching a larger audience, increased flexibility and speed of sale closing — 10-14 days rather than six months — and offering more information to buyers.
“AngusAuctions.com is a valuable and convenient marketplace. It is added sales service for existing API clients and increased traffic for API digital properties. It produces an education touch point for the Angus brand and commercial segment,” said Spader. “We have laid the groundwork to bring people to Angus genetics.”
Spader added that any producer may benefit from having their business amplified through the site, whether it is posting a banner ad or having an online sale.
“You distinguish your brand name nationwide and extend market reach,” he said. “Small producers will find it is cost-effective, and mid- to large-[scale] producers will find they can have multiple paydays with brand recognition. Buyers get targeted Angus offerings.”
Spader said DVAuctions averages about 500 viewers per sale and conducts 750 sales per year. More than 90 online bids per sale are recorded, and each viewer averages more than an hour online. They have sold one to more than 100 lots at a time.
“This is not the ‘be all, end all,’ but it is a means to an end,” he said. “Ninety percent of your job still is communicating with customers, and 10% is salesmanship.”
Spader spoke during the Angus Means Business Marketing Workshop Tuesday afternoon, Nov. 4. For more information about and from the Angus Means Business National Convention & Trade Show, visit www.angusconvention.com.
Editor's Note: This article was written by staff or for the Angus Journal®. It is available for reprint upon request to editor Shauna Hermel. Author Barb Baylor Anderson is a field editor for Angus Journal. Photos are available upon request.
ANGUS PRODUCTIONS INC. API is a for-profit subsidiary of the American Angus Association and serves as the organization's communications arm. Its mission is to increase demand for registered-Angus cattle by serving as an indispensable partner to the beef industry, providing leading-edge information and marketing strategies through a unique range of print and digital platforms. It offers Angus breeders and their customers the largest media center in the beef cattle business — Angus Media. The media firm houses print, television, radio and online platforms under one roof for a significant advantage in marketing and information-sharing capabilities.
ANGUS MEANS BUSINESS. The American Angus Association is the nation’s largest beef breed organization, serving nearly 25,000 members across the United States and Canada. It provides programs and services to farmers, ranchers and others who rely on the power of Angus to produce quality genetics for the beef industry and quality beef for consumers. For more information about Angus cattle and the American Angus Association’s programs and services, visit www.angus.org.