Century auctions in Alberta going out of business

[Tom Kitta]

Century auctions in Alberta going out of business - well almost - they are closing down their auction site near Calgary and probably one in Edmonton as well. They will have one more sale in March to dispose of auction site items.

They still plan to offer limited auction services by doing auctions on site.

I am a bit shocked by this - auction sites are not enough in Alberta - how can you go out of business? When disposing of my assets I have hard time finding auction that will take my stuff - I get a lot "we are full".

 

[DavidR8]

Given the margins they make I'm a bit surprised by this too. Mind you maybe sale prices have softened?

 

[combustable herbage]

Kitta Auction House has a nice ring to it!
I am surprised too kinda funny having a auction place sell off its stuff at auction. Surprised they would't just sell the business.
Suppose it could be health or family related too.

 

[Tom Kitta]

Kitta Auction House has a nice ring to it!
I am surprised too kinda funny having a auction place sell off its stuff at auction. Surprised they would't just sell the business.
Suppose it could be health or family related too.

I asked workers "why" - they seemed to be doing fine as far as I was able to tell - workers "no comment" - so I do not think this is family or health.

The sales commission is 12% for buyer and it used to be following for seller:
14% for any lot realizing more than $2500 and
25% for any lot realizing $2500 or less but with a minimum $250 fee per sale

The $250 is crazy as it succeeded in preventing me selling "lesser" amounts of goods - I.e. I only was going to sell with them if I was quite sure I had over $1000 in stuff. This is not the case with other auction houses. The 25% is quite standard but not special - you can get 20%.

They also have their own web site - so no hibid commission.

Some smaller hibid sellers also went out of business - so maybe we are missing something.

 

[Ironman]

Olson Auction in Rimbey is 4% buyer fee and 3% if I'm correct, for the seller. They are doing well.

 

[Tom Kitta]

Olson Auction in Rimbey is 4% buyer fee and 3% if I'm correct, for the seller. They are doing well.

For what I can see they mostly (or only) sell large ticket items. In Calgary when selling / buying a car combined buyer and seller fees frequently do not exceed GST. Some places have flat seller fee (or buyer) per vehicle in 250 - 750 range.

One auction I use complains that they do not take "junk" - i.e. low value items. Another one seems to always have problems sending me a check for "junk" I sold with them - I have to like come there 3 times and tell them I sue them - but they take low value items.

I think century auctions simply had too many expenses- I would not be shocked if they rented the place. They also have almost a dozen people listed as managers - that is more than large auctions in Calgary area. That is my guess. It is sad they are going. I was a regular customer.