Glossary and Terms

Auction Industry and InnovA Terms 

 
A list of terms and phrases used in the industry and throughout the InnovA application. 

Account: This is a representation of a business or individual who may be a consignor, bidder, or both. 

Allocated: When an item is created and then added to an Auction event. 

Appraisal: The act or process of estimating value. 

As is: This means selling assets without any warranty as to their condition and merchantability for a particular use. “(Often used “as-is – where is”. 

Attendee(s): The bidders who are registering for a auction event. They will receive a bidder number. 

Auction catalog: This is the list of the items being sold at the auction. Usually, the lot number matches the order of the items listed in the auction catalog.  

Auction clerk / front desk: Handles invoices, checks in buyers, takes payments, and gives out titles. 

Auction commission: This is the fee charged to the seller by the auction company for their services. This is usually a percentage of the sale price. This commission can be based on flat or tier commissions.  

Auction Fever: The rush of competitive excitement that seizes some bidders during the bidding process. 

Asking Bid: The amount the bid caller / auctioneer is asking for. This is based off the bid increment and will be one increment higher than the current bid. 

Bid increment tiers: The configured bid amounts based on the value of the items. The bid increment is based on the starting price. This can be adjusted by auctioneers / bid callers if they decide to in live / simulcast auctions. 

Bid Spotter / Ring man / ground man: Auction worker who assists the auctioneer by providing prospective bidders with information about the lots, and spots bidders. Commonly referred to as a ring man, bid spotter, or ground man.  

Bookkeeper: Invoices, cuts check to consigners, running numbers. 

Buyback: When a house bidder or consigner purchases an item during auction in order to protect their assets and profits. 

Buyback Fee tiers: The tiers for fees to be charged to consignors who purchase their own items during an auction.  

Buyer Premium Tier: The fee prices based on the hammer price of the auction item won. 

Categories: The different types of classifications items can have. (Vehicles over 11,000lbs, Trailers under 4,000lbs) 

Chant: The rhythmic combination of numbers and separating filler words called by the bid caller on a lot. The chant is comprised of two numbers - the amount that has been bid for the lot, and the next higher increment that the bid caller is seeking in the bidding.   

Chart of accounts: A chart of accounts is a financial organizational tool that provides a complete listing, by category, of every account in the general ledger of a company. 

Choice Auction: The highest bidder on the choice auction will get to choose from multiple items or can choose to take all of the items for the hammer price.

Clerking the sale / clerk auction: Recording who won, and what was the hammer. 

Condition Report: This is a report based on observations to share the visible state and details of an item. 

Consigner: The seller of an item that will be auctioned.  

Consignment Auction: An auction comprised of goods offered for sale by multiple sellers. 

Current Bid: This is the amount that has been offered by an onsite, online or phone bidder. 

Disclaimer / Disclosure: The best insulator against liability an auctioneer can have. Auctioneers should disclose whatever information they possess that sellers and bidders need to make informed and intelligent financial decisions regarding the auction. 

Group Auction: A group of items, such as a truck and a trailer, being auctioned together. 

Hammer / Hammer price: The amount the item sold for.  

House bidder: A member of the Auction House who is provided a bidder number which can be used to protect assets by winning bids on items that do not meet the minimum expected price. A unique bidder number  can be provided for each auction so other attendees do not know who the House bidder is. 

Inspector: A trusted expert in their field which reports on the item. 

Inspection template: This is a list of points to be inspected that depends on which type of item is being added. For example, vehicles and trailers require a VIN etc. and this would be added when the inspection is happening. 

Inventory:  

Item/ Auction: A vehicle, or any object or objects, in bulk on a pallet for example, that will be auctioned. 

Journal Entries: Journal entries are the last resort for entering transactions. They let you move money between accounts and force your books to balance in specific ways. 

Lien: A legal right to possess another’s property until a debt is repaid or an obligation is met.  

Lienholder: The Lienholder would be the bank or financier.  

Note: Buyer goes into front office, auction clerk, goes to numbers (accountant), lien is paid and after all cuts are done the cosigner will then get paid.  

Market Value: This means the price an asset would fetch in the marketplace or could be sold at. 

No sale / no bid: An item that did not receive any bids. This can be reallocated to the next auction event. 

On-site bidder / Floor bidder: A bidder that is attending an event in-person, and not via an online auction service. 

Operations Manager: In general, the role of an operations manager is to manage all activities involved in producing the goods and/or services of a business. 

Owner retained / return to Consignor: If an item doesn’t sell and the consigner takes it back. This can happen if the item doesn’t sell for the desired amount and a consignor will pay the run fee.  

Reserve / Auction with reserve: A predetermined, minimum threshold price a seller will accept to sell certain property at auction. It is a safeguard against a sacrifice of the seller's assets. 

Stock Number: The option to use the stock number to identify items.  

Package: A package can contain one or many items to be auctioned. An auction package is a collection of open auction inventory specified by targeting criteria set by you or other buyer accounts. 

Package Type:  

Open: Open packages allow for more flexibility. You can continue to edit and manage an Open package. 

Schedule A: The Schedule A package type that is more structured and rigid when it comes to the verification process. 

Package Sale Format:  

Auction Only: The item can’t be purchased through retail and must be bid on during an Auction event. 

Cascade: Listing items to be available for retails purchase. If they are not purchased retail before the auction even the items will be rolled into the auction event.  

Retail Only: Items sold online and are not listed on in an Auction event. 

Presenter board: The means of presenting available auction items.  

Proceeds Due: The amount of funds due to a consigner. 

Product Family: The group of Categories which can be configured as needed. 

Receiving / Loading: The action of picking up, receiving and taking a purchase item. 

Region: Regions are the different areas that can be managed separately. They could be run by different individuals for example. 

Release ticket: The release ticket, also known as a gate pass, is used to receive items in the lot / yard. 

Run fee: Fee for operating the auction, paying staff and experts etc. 

Run order: The order which the items are auctioned in the event. The Run order can be “locked” and “unlocked”. 

Sale Type: 

Consignment: This sale type occurs through a standard auction where items will be displayed, auctioned and a commission is collected by the Auction House. 

Guarantee: The guarantee provides certainty that the item will “sell” and therefore commission will be received.  

Purchase: The purchase sale is a direct sale or “straight sale” where no auction and bidding is needed. 

Salesman: Someone to tracks down consigners / items to fill the auction. 

Settlement Statement: The report that shows proceeds due, commission and balance. 

Title: Proves ownership through documentation through the state. Certificate of origin. Switches from certificate to a title. Negotiable document. 

Valuations: An estimation of something’s worth, especially one carried out by a professional appraiser. 

Value service: This could be actions such as washing, doing repairs, cleaning, or fixing different aspects of the item being sold. 

Work order: Tasks that can be tracked and must be completed to sell and release an item.