Real-Life Decision Making -- Solution
You say sorry, but no thanks.
This is the real-life decision made by auctioneer Joe Tarpley. In fact, in the late '70s and early '80s, this situation was not uncommon. Tarpley says the depression in prices caused his company to refuse a lot of potential jobs.
"We've walked away from millions and millions of dollars of sales simply because we determined that there was no margin of profit for the seller. We have to make those calls and be very selective during tough times."
Tarpley points out, however, that his company did accept some scary jobs. "There were times when we'd say, 'Well, this is marginal, but I know these people. They've bought from us before. We need to try to help them if at all possible.' And maybe it did work. But sometimes it wouldn't."
Tarpley says this kind of situation still comes up regularly. Every potential contract must be assessed for its worth. When assessing these contracts, the auctioneer must also be aware that unsuccessful auctions are bad for business.
"A bad sale can leave a bad taste in people's mouths," says Tarpley. "It hurts you and your competitors, because people might see that and think, 'I'm not going to auction with anybody if auctions aren't working well these days.'"