Gregsons’ online bid pays off

The great Charles Darwin once said: “It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is most adaptable to change.” While the statement was used to describe biological evolution, it also holds true for businesses hoping to remain competitive and relevant in an ever changing world.

In order for a business to survive and thrive, it needs to constantly re-evaluate its strategies and practices to suit changing consumer needs, and that is exactly what Western Australian auctioneer, Gregsons, has done.

Gregsons specialises in a wide range of auctions, from heavy equipment to farm machinery; and from trucks to furniture.

The company, which celebrated its 90th year in business this year, has stepped away from its traditional live auction model and currently operates entirely online for customer convenience and rapid sales.

Since its establishment in 1929, the company has been WA’s premier auction house until a restructure in 1993 split the principal family owners into two camps.

Jonathan Gregson formed one company of which he is managing director and moved away from the company’s Perth CBD buildings. He set up shop in the outer Welshpool area in a 6000sqm warehouse and later had his son, Jack, join the business in 2012.

With Jonathan’s technical knowledge and Jack’s digital skills came a unique proposition - to step away from the traditional live auction format and go online.

Going digital

Despite the move online, the Welshpool facility is constantly busy, Jonathan said.

“Going online doesn’t eradicate all the material handling of the old days,” he said. He added staff were kept busy controlling the online auctions and stock disposals.

“People still come into the warehouse to look around.

“For this reason, we’re open six days a week. People come in to inspect goods or to pick up their purchases.

“We respect that some people still like to see what’s coming up for auction. It gives them a better judgement when they decide to bid and how much they will outlay.”

Gregsons made the decision to move online after demand for live auctions dwindled and the constant travel to remote locations to conduct live auctions took its toll.

“It was a big job for our team,” Jonathan said.

“They had to get there a day before the auction to inspect the goods and check the crowd. They had to hold the auction and then organise the disposal of the goods – all from the auction site.”

“People now are time poor. Our customers aren’t prepared to stop work and head to a live auction.

“They’ll bid on something they want at a price they want to pay while they’re still working.”

Jonathan said people are still bidding at 10pm while they’re doing other things.

More items for sale

Not only has the bidding structure completely turned on its head, the variety of goods up for auction has expanded too, Gregsons added.

“There’s a better variety of equipment now,” said general manager, Jack Gregson.

“There is changing demand for items including things we couldn’t get before. There are more equipment around so there’s more interest and we sell more lots.

“In the past seven years, we have gone from holding 100 auctions a year to now holding about 400. That’s a move from between 10,000 and 20,000 lots a year, to now up to about 50,000 lots.”

The lots come mainly from corporate sellers, especially financiers, insurance and liquidators.

“It’s a business that relies on having the expertise and contacts,” Jonathan said.

“The people who do business with us are not obliged to use us. There’s no guarantee and it’s all driven by reputation.

“We have involvement in government tenders in WA and, with our affiliates, around the country.”

The business focus changes with movements in the economy and the changing demands of consumers, Jonathan said.

He said the move to purely online auctions also brought about another change in the business plan - the sale of new imported products.

Gregsons now deals in smaller workshop and private equipment - including a push into electric bicycles and heavy duty work benches.

“We know what’s popular and what’s not,” Jack said, “because we have always been involved in the sale of goods and we know the costs and how much people are prepared to pay.”

“We attended the recent Dowerin Field Days and we know many farmers and country businesses through our valuation work.”