Paul Seltman was a bit nervous about attending his first auction at the former La Villa Mexican Restaurant in Highlands Ranch on Monday.
After placing a bulk bid of $40,000 for “everything that wasn’t nailed down,” he put individual bids on items his future restaurant couldn’t do without.
The owner of the soon-to-open Sunnyside Cafe shouldn’t have worried. His bulk bid garnered him barely used booths, refrigerators, racks, utensils and more.
Estimates for new equipment had topped $200,000.
Seltman is one of many bargain-hunters hitting auctions to stock restaurants, offices and even homes at a fraction of the cost of new items. The slowing economy has led businesses of all types to liquidate, providing loads of cheap goods for bargain-hunters.
But auctioneers say the auctions are actually less lucrative because buyers are keeping a tighter hold on their purse strings.
“People are more hesitant in potentially buying things than they would be when people feel more confident in the economy,” said Christine Dickensheet, vice president of Dickensheet & Associates, a Denver-based auction firm.
She said calls to hold auctions have increased across the board, whereas it used to be that a particular category such as restaurants, machinery or retail would dominate at any particular time.
The auction industry grew 5.3 percent nationwide in 2007 to $270.7 billion, fueled in part by consumers’ mindset, said Chris Longly, spokesman for the National Auctioneers Association.
“Consumers want things now, right now, and they want to pay you what they want for it right now. And auctions give you that option,” Longly said.
The time-sensitive nature of live bidding and almost-immediate gratification means businesses save hassle and time when trying to get rid of things, something Tom Berger is banking on.
Berger, the director of construction for the Lowry Redevelopment Authority, said that’s why the organization turned to Roller Auctioneers to liquidate tools and equipment used to redevelop the former Air Force base.
Now that the project is nearly done and no longer needs its forklifts and tractors, Berger said he would be happy if the September auction brings in $150,000 for equipment estimated to be worth $200,000 to $250,000.
The loss in value is something many auctioneers and businesses have to bear, said Shannon Schur, president and chief executive of Colorado Springs- based Schur Success Auction Services.
“We’re busy, but we’re working twice as hard for our money,” Schur said.
Alex McCarthy: 303-954-1381 or amccarthy@denverpost.com
