Online auction service helps municipalities reach more buyers
http://www.pottsmerc.com/articles/2010/09/01/business/srv0000009233348.txt
By Evan Brandt, ebrandt@pottsmerc.com
POTTSTOWN — It stands to reason that the more people a product can be marketed to, the better the price you're going to get — particularly when talking about bidding and auctions.
Former borough Councilman Greg Berry is taking that concept to the biggest market of all — the Internet. Berry is the founder and CEO of an area company named Municibid.com, an online government auction service that helps local governments selling surplus equipment reach the widest audience and get the best price.
"Taxpayer demand and tightened budgets require government agencies to look for new ways of increasing non-tax revenue," Berry said. For example, the Massachusetts cities of Boston and Salem recently used Municibid.com to sell vehicles instead of the usual method.
"Listing locally, the city of Salem would have made $100 to $200 each for the eight vehicles listed," said Tom Watkins, acting purchasing agent. Instead, a total of $5,967 was generated on Municibid.com for the city's general fund.
"It's a good way to get better pricing because we're reaching a much broader audience," said Watkins, noting that bids came from as far away as Pennsylvania.
Back in Pennsylvania, Pottstown Borough recently listed 10 surplus items with the company, including its streetsweeper, three Ford Crown Victorias and a Chevrolet Lumina, as well as two pickup trucks, a tractor mower and box truck.
"Municibid.com is an easy way to substantially earn more money for surplus at no cost to the agency," said Berry.
The company charges the government selling the surplus items no commission, listing fee or other charge.
"But that's not the only reason why government agencies should be using Municibid.com," said Berry. "Auction items will reach a much broader, national and global audience of competing bidders."
While the company's reach is as broad as the Internet, it can also be focused. Unlike other government auction websites, Municibid.com also lists items on all social networking sites on the Web to target bidders of specific items. The company uses social media including Facebook, Twitter, YouTube, and Linkedin.
A recent visit to the website included a sale listing for a former police vehicle from Oley, a fire truck from Springettsbury, a plow and spreader from Clarks Green Borough and an ambulance from Lower Salford.
Pottstown's items were also visible with a high bid of more than $1,000 for the 2005 Crown Victoria and almost as much for the 2003 Ford.
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