Auction Board Control Best Practices January 9, 2017

The following is an instructive guide on how to approach a sale when using the Auction Board Control. Each Copart Yard is unique in the vehicles it sells, and the types of buyers it attracts. This means that no single approach should be applied across all yards. However, there are certain areas that promoters should focus on. It will be up to the promoter to pay attention to and learn these trends to determine if they apply to a given yard. Bidding Activity

Number of Engaged Buyers

o The chance of a buyer placing a bid during bonus time for a given lot is higher when

there are multiple buyers placing bids during the live sale. Most yards found the

opposite to be true, the chances of receiving a bid during bonus time decreases when

there are only a handful of buyers, or no buyers, placing bids during the live sale.

Timing of Bid Placements

o Promoters have noticed that more experienced buyers, who have a set maximum limit

in mind, will place bids toward the beginning of the countdown timer. These buyers were

found to be not as likely to place a bid during bonus time. Buyers who placed bids at the

very end of the countdown timer were found to be more indecisive, and impulsive

buyers. These buyers were more likely to take advantage of bonus time.

Issue:

Auction Board Control Best Practices January 9, 2017

How the bidding activity comes to an end

o If bidding activity gradually slows down with multiple buyers involved, then you know

those buyers are still watching the lot up until the end of the countdown timer. This

suggests the vehicle is a good candidate for bonus time.

Buyer Preferences

High-demand vehicles

o It is important to understand what types of vehicles attract more buyers. The demand of

a vehicle could be high or low depending on the Yard and/or buyer’s geographic

location. For example, a rear-wheel drive Ford Mustang may be in high-demand in a

warmer climate where owners can drive it all year. That same Mustang could have a

lower demand in a cold climate where owners can’t drive it during the winter. If a

promoter can identify these trends they can add high-demand vehicles to their watchlist

prior to the start of the sale, enabling the system to notify them when the vehicle is next

on the block.

Based on actual results. Yard names have been removed for display purposes.

Domestic vs. International Buyers

o Some yards have found they have more success with one group of buyers when

compared to others. International buyers could be a group to target as certain countries

may have a slower network bandwidth. In addition to their potential bandwidth obstacle,

if an international buyer typically places their bids toward the end of the countdown

timer, the system may not receive their bid in time. Bonus time would help this buyer as

their late bid would be accepted during bonus time. The opposite could be true for other

yards.

Auction Board Control Best Practices January 9, 2017

International buyers may be more apprehensive to place a bid during bonus time as a

result of not being able to properly assess the vehicle from where they are. Combined

with increased shipping costs, international buyers face a higher risk when compared to

local buyers.

Yard A

Yard B

Based on actual results. Yard names have been removed for display purposes.

Auction Board Control Best Practices January 9, 2017

Becoming familiar with repeat buyers

o After managing several auctions, you may notice the same buyer number routinely

appear. Some promoters have taken it a step further to learn their bidding tendencies.

For example, if there is a buyer that always sets a proxy bid, and rarely places a live

bid, that buyer may not be the buyer to target during an auction.

Chat – Focus on getting their attention, not starting a conversation.

Capturing the attention of all buyers viewing the sale

o If you notice a rare or expensive car coming up in Lane B, try using the “Public” tab to

notify all buyers watching the sale to turn their attention to Lane B.

Capturing the attention of buyers that have already bid on a lot

o Some promoters have begun to mimic the actions of a live ringman by taking a more

direct approach to the chat feature. Promoters have found more success with

encouraging statements such as, “California (referencing the buyer), do you really want

to let this one go?” A promoter can either send a message directly to an individual buyer

by selecting their buyer number, or addressing all buyers that have placed a bid on that

lot by selecting the “Bidders” tab.

Auction Board Control Best Practices January 9, 2017

Usage

Apply bonus time when it is needed, and don’t let opportunities pass you by.

o Each yard is unique in the type and number of buyers it attracts. This means one yard

may have a higher buyer to vehicle ratio when compared to other yards. Since the

success of bonus time is heavily dependent upon having several engaged buyers, some

yards may be at a disadvantage.

For yards that have a higher ratio of engaged buyers to vehicles, take advantage

of your situation and apply bonus time whenever you notice one or more of your

indicators for success. It is recommended that you do not apply bonus time to

more than 50% of your lots as applying it too often may lead to buyers adjusting

their bidding strategy, negatively impacting your auctions in the long-run.

For yards with a lower ratio of engaged buyers to vehicles, pay careful attention

to your lots as to not let opportunities pass you by. These yards may need to

experiment more often, to see if there are any uncommon indicators that will help

you increase your usage, and success rate of bonus time. You should apply

bonus time to no less than 20% of your lots.