Forum Archive Index - November 2001

["Wedde, John" <John.Wedde@weltec.ac.nz>]

Sorry I didn't catch this thread earlier.
As someone who owned a very successful auction business for over a decade,
let me make two comments.
1. Their gross profit on sales, essentially the commission rate, is very
low, usually under 20%. From that comes all the overheads, rent, wages,
advertising, etc. Not much left at the end of the day,  2 or 3 % perhaps.
You need to be very astute at cash flow management.   
2. On the other hand you don't pay for your product until after you've sold
it!!! This is of course the upside. 
Cheers
John

-----Original Message-----
From: nick [mailto:helmett@xtra.co.nz]
Sent: Saturday, 10 November 2001 21:49
To: sharechat@sharechat.co.nz
Subject: Re: [sharechat] gpg



        Turners auctions very popular in chch,
although have to admit car i bought there
was a real lemon, so bad i put it back in
the next weeks auction, got lucky and actually
made a profit lol.
     There cant be many people in chch who havnt
been to a turners auction at some point.
        The turnover is prob just the value of all
the cars that go through the auctions. The profit
should be pretty steady  all the need is a big
shed and an auctioneer
 
 nick

6m earnings (EBIT) on 315m turnover makes for a mighty precarious profit
margin, are these figures right, if so it may be a good indicator as to why
they're trying to unload.
 
Hold GPG


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