_______________________________________________________________________________ rec.toys.lego Auction & Shipping FAQ Version 1.00 Copyright (c) 1995 Todd Lehman _______________________________________________________________________________ INTRODUCTION This is the FAQ (Frequently Asked Questions) on the subject of LEGO auctions on the Internet, specifically relating to the rec.toys.lego newsgroup. Location of the FAQ: http://www.winternet.com/~lehman/lego/rtlm-faq.html ftp://ftp.winternet.com/users/lehman/lego/rtlm-faq Send additions/changes/comments to: lehman@winternet.com This FAQ may eventually be split into a separate LEGO Auction FAQ and LEGO Shipping FAQ. We'll see how it goes. _______________________________________________________________________________ COPYRIGHT AND DISCLAIMER This FAQ is copyright 1995, Todd S. Lehman. The contents of this FAQ can be reproduced in whole and/or in part FOR FREE without anybody's written or express permission as long as this Copyright and Disclaimer section is included. Small portions can be posted to relevant Usenet newsgroups without this copyright section. There is no guarantee of accuracy and no liability assumed by the author/ maintainer. _______________________________________________________________________________ CONTENTS 1. AWARENESS 1.1 You mean I can get money for my old LEGO? 1.2 Which sets are auctionable? 1.3 How complete does a set have to be? 1.4 How do you determine demand? 1.5 How do you determine value? 1.6 Should I hold an auction? 1.7 How much work is an auction? 1.8 How much money can you make from an auction? 1.9 Do I have to pay capital gains taxes? 2. PREPARATION 2.1 This is my first auction -- where do I start? 2.2 What are the standard auction rules? 2.3 What the hell is an "auctionbot"? 2.4 What's the best time of year to hold an auction? 2.5 How should I price my opening bids? 2.6 Should my opening bids be at or below my break-even point? 2.7 Will a low (or no) opening bid get more bidders involved? 2.8 I found four Galaxy Explorers for $20 each -- should I sell them all at once? 3. PROMOTION 3.1 How can I attract lots of bidders? 3.2 How can I get people interested and bidding without bugging the crap out of everyone else on the newsgroup? 4. PRESENTATION 4.1 How should I make my splash? 4.2 How much detail should I go into when describing things? 4.3 Is it okay to give personal opinions about a set? 4.4 Is there a standard update format? 5. EXECUTION 5.1 Should I have a Once, Twice, Sold auction or end it on a specific date? 5.2 Should I send updates through e-mail? 5.3 Can I post updates to the newsgroup? 5.4 What can an auctionbot do for me? 5.5 How long should you let an auction run? 5.6 What timing should be used between Going Once, Going Twice, and Sold? 5.7 Is it "fair" for someone who hasn't been bidding on an item to up the bid three hours before the item is to be marked Sold? 5.8 How do you handle irate bidders who think other bidders are bidding in bad faith? 5.9 What if someone wants to withdraw a bid? 6. PAYMENT 6.1 How do I get the money once something is sold? 6.2 What do I do if someone doesn't pay? 6.3 Can people on the Internet be trusted? 6.4 How is international currency handled? 7. PACKING 7.1 You mean things can get damaged in the mail? 7.2 Should I use a cardboard box or an mailing envelope? 7.3 Choosing an envelope 7.4 Choosing a box 7.5 Padding the box 7.6 Sealing the box 7.7 How can I tell if I've done a good job? 8. SHIPPING 8.1 Is shipping expensive? 8.2 Who pays for shipping? 8.3 Which is better -- UPS or USPS? 8.4 What are the advantages of UPS? 8.5 What are the advantages of USPS? 8.6 Is there anything special I should look out for? 8.7 What if a package is lost or stolen? _______________________________________________________________________________ 1 AWARENESS 1.1 You mean I can get money for my old LEGO? Yes, absolutely -- anything that says LEGO on it. Many people have sold off their LEGO Space collections so they could focus their building talents in the LEGO Castle arena, and vice-versa. Many people have discovered vintage theme sets at obscure toy stores and have been kind enough to buy them and make them available to other people on the net. Many people have become addicted to bidding in LEGO auctions and some have even become addicted to holding LEGO auctions. There is a huge barely-tapped market for old LEGO sets. In the small world of rec.toys.lego alone, hundreds upon hundreds of dollars of LEGO sets are auctioned each month. Sell your old LEGO and you will be rewarded. But don't sell it to the first bloke who offers you $10 for it -- seek out the people who seek what you have, and both of you are winners. 1.2 Which sets are auctionable? All sets are auctionable. For every LEGO set ever made, there is someone who seeks it. Some sets are in demand more than others -- for example, Forestmen and original Blacktron sets -- but all sets are auctionable. Even sets in the current product line -- still on the shelves of every store in the world -- can be "auctionable." Some people have sold brand-new sets at less than the going retail price. If that sounds silly, consider the opportunities presented when a large department store goes out of business and has a 60%-75% off sale. 1.3 How complete does a set have to be? Anything goes. You can sell LEGO pieces, LEGO boxes, original LEGO building instructions, LEGO Idea Books, LEGO comic books, LEGO catalogs, anything. It's all been done. Just be sure to let people know how complete the set is and generally what condition it is in. You don't necessarily have to list -all- the missing pieces, or every scratch or blemish, but your efforts will be appreciated if you do so. If you're selling a LEGO set, you'll get the most for it if you have all the pieces, the original instructions, and the original box (in particular the front and back panels of the box), but you generally won't get much more for it if it's mint-in-box than if it's been opened and played with -- as long as it's still in good condition. Some people already have the pieces to a set and are only seeking the box or the instructions -- for example, they found the pieces at a garage sale, or their dog chewed up the instructions, or their dad threw out the box. Some auctions even consist purely of LEGO pieces, where the auctioneer buys dozens (sometimes hundreds) of brand-new LEGO sets and divides them up into specialized parts packs. This is a time-consuming but lucrative business. 1.4 How do I determine demand? You can get a sense for demand by posting a "Would anyone buy this?" type of message, but that won't tell you what people are willing to pay -- it will only tell at a minimum how many people are interested. If you happen to get three people who say, "I'll pay up to $75 for it," there's a good chance you'll get $85 or $90 or more for it in an auction. You can get a sense for what people are willing to pay by looking at the history of other auctions (assuming you watch the group regularly), but that won't tell you what people are willing to pay in your auction for your particular item -- it's only a rough guide. The only way to be sure about demand is to actually go through with the auction. 1.5 How do I determine value? Generally, the older the set, the higher its value. Theme sets with mini- figures are especially valuable. A set starts becoming valuable when it is no longer part of the current product line, simply because it is difficult to find in mainstream stores. LEGO Shop-At-Home Service carries most sets for an additional 12 months and some up to 36 months. A set becomes more valuable when it is no longer available through Shop-At-Home (S@H), now because it is nearly impossible to find in local stores. Smaller sets increase in value -much- more rapidly than larger sets. Here is an graph to give you an idea: | # # # | # # * * * * /|\ | # * * | | # * * + | | # * * + + . | | # * + + . . | | * + + . . | | # * + + . . | | * + + . | | # * + . | # + . P | * + R | . I | * + C | E | * + . | | | * + . | | * | | * + . . = Small set | | . + = Medium set | | + * = Large set | | + . # = Huge set | | + . | | . | . | . . | +------------------------------------------------------------- 0 2 4 6 8 10 12 14 16 18 20 --------------- AGE OF SET IN YEARS ----------------> There seems to be a glass ceiling for most sets around 10 years old -- these seem to go for around $80 to $100, regardless of their original price. There have even been $2 U.S. and European-only sets that have sold in this range. But basically, you auction a set if you think you can get more for it than you just paid for it, or if you have it lying around from childhood and it's just not that interesting anymore. The only way to be sure about value is to actually go through with the auction. 1.6 Should I hold an auction? An auction is a lot of work. It is rewarding, but sometimes there are better ways to get rid of something, for example if you are lucky you may be able to do a simple LEGO-LEGO trade with someone. But finding a good equal LEGO-LEGO trade is not always an easy thing -- most of the time you will end up doing an unbalanced LEGO-LEGO trade padded out with cash (either direction) and this is a great way to test the waters. Think carefully about what you're considering selling. If it's something you still play with or is nostalgic, you should probably hang on to it. Otherwise, what good is it to you? Put it up for adoption to the highest bidder and reinvest that money into something more to your liking. If the reason you're hanging on to it is for the neat pieces, look around at sets currently in stores -- maybe newer sets have those pieces too. Think opportunistically. Also think how wonderful it will make a collector feel to acquire a missing set. Watch out for other enterprising folks. If you price your opening bids too low and there is little demand, someone with better marketeering skills may snatch it up and sell it a month later at a better price -- a frustrating experience, but one to grow from. The selling price of an item is a function of its potential value and the promotional skills you use in selling it. The potential value of an item is a function of its condition, its completeness, and its demand at a given time of the year. 1.7 How much work is an auction? If it's a big auction, say, 500 or more items, then it is a *lot* of work -- you need to be tenacious to the bone. But if you want to do a small auction with 10 items, you'll probably only have to spend about 10 hours. Don't embark on a large auction until you have tried a small one first. Assuming you've already got your items (sets, catalogs, whatever) assembled and ready to go, figure about 5-20 minutes per item for a description in your announcement posting, another 30 minutes or more to prepare each posting, about 1-2 minutes per bid if you're doing it by hand, and around 20-30 minutes per bidder when it comes time to box everything up. Here is an extreme example: The largest ever LEGO auction -- "AucZILLA" -- consisted of 3,460 LEGO items up for bid -- a total of over 30,000 LEGO pieces and 650 mini-figures -- the result of breaking up 496 brand-new LEGO sets. The auction was launched on February 26, 1995, had 31 announcement postings, and was concluded on May 15, 1995, having processed over 20,000 bids from 105 bidders around the world and having sent out over 6,000 separate e-mail updates totalling 135 megabytes of Internet traffic. 85 bidders had winning totals and received packages between May and July, 1995. Preparation for the auction began in November, 1994. The auctioneer estimated over 600 hours of work went into the auction, including shopping, sorting, software design, on-line interaction, and packing. It is doubtful that any Internet auctioneer has ever overestimated the amount of work involved in his/her auction. Nevertheless, the same people get into it again and again in bigger ways each passing season. It is addicting. 1.8 How much money can you make from an auction? There is no reason for there to be a limit, although there are only a finite number of people reading the rec.toys.lego newsgroup. If you're thinking of getting into speculation, make sure you understand the LEGO product line and basic tenets of investment. Don't buy something for $20 and put it in a closet for 10 years -- it'll only go up to $200 by then, and you'll have kept it out of the hands of a deserving enthusiast for 10 years. Instead buy things that are already worth more than their sticker price and sell them immediately so you can reinvest the money now -- buy something today for $20 that you can sell for $40 today. If you do that several times a year you'll have *much* more than $200 in 10 years. Comb all the department stores and toy stores in your area -- especially Toys R Us and K-Mart. Look for things 3 or more years old. The best LEGO auctions are those that are a labor of love, and the best auctioneers are those need the money to support their own LEGO habit. "Drive-by auctions" occur from time to time and just don't have the same flavor. Watch out for people you've never heard of selling large boxes of LEGO -- not because they're dishonest but because they seldom know what they're doing, and if you don't ask enough questions, you may get hurt. If you plan to hold a drive-by auction in rec.toys.lego, make your intentions clear -- don't say "I've got three grocery bags full of mostly Castle and Space pieces for sale, $200 o.b.o." and then sell it after only three replies -- wait at least a week, and let everyone have a fair chance to read your announcement and ask questions. 1.9 Do I have to pay capital gains taxes? You bet you do. _______________________________________________________________________________ 2. PREPARATION 2.1 This is my first auction -- where do I start? First, read this entire FAQ. Next, decide if you have something worth selling. Make an inquisitive post in rec.toys.lego if you're unsure. Start bringing cardboard mailing boxes home from work each night. Don't leave them in a messy pile or they could be a fire hazard. Bring home more than you think you'll use -- you never can tell ahead of time which boxes are the perfect sizes, and you want some flexibility. 2.2 What are the standard auction rules? There are no standard auction rules, but there are some popular rules. Here are a few...mix and match to suit your tastes: Type - "This is a Once, Twice, Sold auction." - "This is a fixed-length auction." Duration - "Auction ends when all items have been marked Sold." - "Auction ends on such-and-such a date at midnight." Currency - "All bids must be in US$." Minimum Bid Increments - "Bid in $1 increments." - "Minimum bid increments go by the following sliding scale: ..." Payment - "You may send a personal check, money order, cashier's check, or other non-cash form of payment. There will be a one week waiting period for personal checks to clear." Shipping - "Free shipping if you live in the U.S. Otherwise, you pay shipping." - "Free shipping if your total is $50 or greater." - "Fixed $3 shipping fee if you live in the U.S." - "Buyer pays shipping." 2.3 What the hell is an "auctionbot"? That's a great question. Here is a short lexicon of auction jargon: AUCTION (n) A forum for selling a set of objects each to the highest {bidder}. AUCTIONBOT (n) A software agent (typically running under UNIX) which accepts {bids}, usually via Internet e-mail, and sends out {updates}, usually via Internet e-mail. AUCTIONEER (n) One who conducts an {auction}; one who sells {items} and solicits {bids}. AucZILLA (n) 1. The largest LEGO {auction} ever. 2. The name of the software used in the AucZILLA {auction}. BID (n) An offer from a particular {bidder} with an intent to buy a given {item} for a given price. BID (v) To {submit} a {bid}. BIDDER (n) An active participant in an {auction}; one who submits {bids}. BIDDING WAR (n) A situation in which two or more {bidders} are engaged in a staggering competition for a particular {item} or set of {items}. BLOWOUT BID (n) A pricepoint on a given {item} at which, if a {bid} is {submitted}, the {item} is immediately marked {sold} to the {bidder} {submitting} the {blowout bid}. BUMP [a bidder] (vt) To oust another {bidder} from his position by {overturning} his {bid}. GOING ONCE (adj) 1. First solicitation by the {auctioneer} for a higher {bid}. 2. An {item} with an immature {bid}. GOING TWICE (adj) 1. Second solicitation by the {auctioneer} for a higher {bid}. 2. An {item} with a mature {bid}. 3. Last call for higher {bids} on a given {item}. HIGH BID (n) 1. The highest {bid} submitted for a given {item}. 2. A tentative association between an {item} and a {bidder}. HIGH BIDDER (n) The {bidder} with the {high bid} on a given {item}. ITEM (n) An object or set of objects for sale in an {auction} upon which {bids} are {submitted}. LOT (n) Same as {item}. MAILING LIST (n) A collection of {bidders}, organized by e-mail address, to which periodic {updates} are sent by the {auctioneer} or {auctionbot}. MINIMUM BID (n) Same as {opening bid}. MINIMUM BID INCREMENT (n) The minimum additional monetary amount required to register a newer, higher {bid}. In some {auctions} this is a fixed amount, in others it depends on the current {high bid}. MINIMUM RAISE (n) Same as {minimum bid increment}. OBSERVATION LIST (n) A {bidder}-specific list of {items} which appear in periodic or aperiodic {updates} sent by the {auctioneer} and which the {bidder} is presumably interested in obtaining. ONCE, TWICE, SOLD (n) A type of {auction} in which {bid} ages are attached to {items}. See {going once}, {going twice}, and {sold}. OPEN (adj) An {item} which has not yet received a {bid}. OPEN (vt) To {submit} an {opening bid} on an {item}. OPENING ANNOUNCEMENT (n) A general announcement of an {auction} to the newsgroup, giving rules and/or listing {items} for sale. OPENING BID (n) The minimum price at which a given {item} will sell; the minimum acceptable {bid}. OVERTURN [a bid] (vt) To raise a {bid}. See also {bump}. PENDING (adj) A {high bid} that is not yet {sold}; a bid that is {standing}, {going once}, or {going twice}. PSEUDONYM (n) A short nickname or unique handle used in place of a real name when a {bidder} wishes anonymity. QUICK SALE PRICE (n) Same as {blowout bid}. RAISE [a bid] (vt) Same as {overturn}. REC.TOYS.LEGO.MARKETPLACE (n) A USENET newsgroup which does not yet exist but which will inevitably be created to support and nurture the ever- growing bandwidth of LEGO auctions, trading posts, and other LEGO transactions now clogging rec.toys.lego and hindering wholesome and productive discussions centered around design and play. SOLD (adj) Within the context of an {auction}, a permanent association between an {item} and a {bidder}. SPLASH PAGE (n) The first screenful of information people see when they read the newsgroup and encounter your {opening announcement}. STANDING BID (n) A {bid} which has been neither challenged nor solicited for higher bids; the new {high bid}. SUBMIT [a bid] (vt) To cause a {bid} to be sent from a {bidder} to an {auctioneer} or {auctionbot}, usually via e-mail. TEASER (n) A sneak preview of an {auction} posted to the newsgroup before the real announcement. UP [a bid] (vt) Same as {overturn}. UPDATE (n) 1. An instantaneous snapshot of some or all of the {items} in an {auction}, listing for each {item} the {high bid} and the {high bidder}, usually in an easy-to-read tabular form. 2. An e-mail message or newsgroup posting containing the partial or entire status of the {auction}. WATCH LIST (n) Same as {observation list}. 2.4 What's the best time of year to hold an auction? There is no best time of year, but there are slow periods -- generally when school is out: early January, June through August. This was more a problem in 1994 before the net experienced its explosive growth. A bad time to end an auction is December or May, because a third of your bidders will be losing their e-mail accounts. 2.5 How should I price my opening bids? Agressively. Base them on your experience from watching other auctions or on gut feeling. If it doesn't sell at the price point you want, you can always drop the price (although this is not recommended since you may get a reputation for doing this) or hang onto it for a few more months, hoping to try again later. If you just want to have fun and watch the fur fly, price your opening bids low -- items will climb up to a natural point in one or two weeks. The only danger in a low opening bid is if there is only one bidder. Ask yourself, If only one person is interested in this, will I be happy selling it at this price? If you have no idea how to choose an opening bid, contact an expert in the area or consult a comprehensive set listing for hints. 2.6 Should my opening bids be at or below my break-even point? It depends on what you're selling, how well you've described what you're selling, how many people will be competing for what you're selling, and how badly you need to recover your investment. It also depends on your goals. - If you're in this for the business, put your opening bids at or above your break-even point, especially during slow months (see 2.4). From a business perspective, you don't want to buy something for $40 and risk having to sell it for $30. - If you're in this to watch the fur fly, use a low opening bid and enjoy the show. Consider yourself warned: a bidding war on something with a low opening bid can take up to several weeks to resolve itself. - If you're in this to find the most deserving person, get out -- don't hold an auction at all but instead trade or sell at a reasonable price to a net.friend or someone who you'd like to make friends with. 2.7 Will a low (or no) opening bid get more bidders involved? Yes. However, a low or no opening bid can leave you in an unpleasant situation if you don't get the kind of bids you were hoping for. 2.8 I found 4 Galaxy Explorers for $20 each -- should I sell them all at once? Absolutely. If you've got a gem like that, people who don't even need one will scratch and claw for it just for its trade or resell value. Note that you'll get a tad more money if you sell off one every three months, but if you do that, you're investing your money poorly -- why keep $50 tied up in something for six months that you don't intend to keep? Keep your inventory low unless you are waiting for that perfect trade to come along. _______________________________________________________________________________ 3. PROMOTION 3.1 How can I attract lots of bidders? One way is to post a teaser a couple weeks prior to your announcement to generate enthusiasm and help people plan their buying sprees. A teaser should never be vague, for example, "I've got a ton of old Space sets to auction off; more info in a couple weeks," because you'll end up wasting your time answering three dozen personal e-mails and then posting a list of sets anyway. A teaser should be brief and should list specifically what items you'll be selling -- sort of like a movie preview. Another way is to offer free shipping. This is an expensive offer, but it works because it frees people from worrying about paying $2-$3 for shipping on a $4 item. Another way is to build a loyal following of bidders -- hold several auctions and do an outstanding job. People will come back if they know you offer good service. Sadly, perhaps the most effective way to attract lots of bidders is to bombard the newsgroup with repeated and frequent updates. News servers typically drop news articles after a week, so if you post only once it's likely that half your potential audience never even knows about your auction. A typical auction has between 10 and 30 participants. Most of these are bidders, some of these are just people who want to watch. In larger auctions, the number of bidders can get as high as 50 or 100. 3.2 How can I get people interested and bidding without bugging the crap out of everyone else on the newsgroup? Unfortunately there is no rec.toys.lego.marketplace, so all your posts must go to rec.toys.lego. If you post updates daily, you risk annoying people. If you post updates weekly, you probably won't annoy anyone. A happy medium is to send updates via e-mail several times daily (whenever something relevant to a bidder changes) and to post updates to the newsgroup weekly. _______________________________________________________________________________ 4. PRESENTATION 4.1 How should I make my splash? Be brief, but be enthusiastic and positive. Ooze excitement without sounding grandstand. Herald your auction and list its unique characteristics. Anything special, for example a pack of 20 Forestmen or a Galaxy Explorer, should be listed on the first screenful. Come out swinging, but don't be giddy or presumptuous. Put the rules down at the bottom -- people won't read them until they've decided that you have something worth buying. No sense making everyone wade through the procedural rigamarole. As near to the top as possible, list a summary of everything to bid on. Don't go into detail here -- as in the teaser, you just want to give an overview. Be hierarchical if you have more than 50 items for sale. If you are conducting a multi-phase auction with many announcement postings, try to give a sense for where you're going over the coming days or weeks as you put up more and more items for sale. (Hopefully you have planned your phases.) 4.2 How much detail should I go into when describing things? As much as you can tolerate -- the more, the better. If you've arranged your splash page or header well, people should have no trouble navigating quickly to a two-paragraph description of the coolest castle that was ever made. Provide the following data for each set: - Set number and name (example: 497 Galaxy Explorer) - Number of pieces (from the box, a set listing, or a guesstimate) - Year of introduction - Defining characteristics (colors, shape, size) - Condition (major scratches, tears, location of price tag, etc.) - Completeness (missing pieces, instructions, box, etc.) Provide the following data for each catalog: - Year - Catalog code (example: 119717-US) - Number of pages and size - Major themes - Condition (scratches, tears, folds, etc.) Provide the following data for each idea book: - Name and number - Year - Number of pages and size - Major themes - Condition (scratches, tears, folds, etc.) 4.3 Is it okay to give personal opinions about a set? It's fine as long as you don't prance around decorating everything with sugar and rose petals. People can smell bullshit a mile away -- talk about what -you- admire about the set, don't just say it's "cool" or "widely acknowledged as one of the best (your favorite theme here) sets ever." People know what they've heard about it, and they'll be turned off if you try to snow them. State in friendly but non-sugary terms what attracted you to the set when you first bought it, or your first impressions, or why it's still one of your favorites even though you're selling it. Don't tell people what -they- would love about it, because you don't know. And try not to use testimonials, unless you can point people to a web or ftp site containing an archived set review. Stick to objective descriptions if you have a fondness for flavoring words. Save the flavoring words for sugaring up your opening announcement or your splash page. 4.4 Is there a standard update format? There are more update formats than there are variations of rules. What always works best is a columnar format. At all costs avoid embedded tab characters because you have no guarantee how things are displayed, and above that, avoid going over 80 columns. Here are three time-proven sample formats. Feel free to emulate these without any fear of retribution... Imitation is the sincerest form of flattery, and standardization is better for the group. ---( SAMPLE 1 )--- Todd Lehman uses a format like this: AA1 Blacktron I General (male) > $3.75 Chaz L AC3 Ice Planet Pilot (female) $8.00 " Aaron K AC3 Ice Planet Pilot (female) > $8.50 Aaron K AD1 Unitron Subcommander (unisex) > $1.20 Chaz L AD1 Unitron Subcommander (unisex) $1.20 (open) AD1 Unitron Subcommander (unisex) $1.20 (open) BD1 Red Crusader (unisex) $1.60 $ Chaz L BD1 Red Crusader (unisex) $1.60 $ Chaz L BP3 Dragon Master [blue] (male) > $1.00 Stan A BP3 Dragon Master [blue] (male) > $1.00 Chaz L BS2 Forestmen Archer (unisex) $7.00 ' Mark G BS2 Forestmen Archer (unisex) $7.50 Chris M ~T~ ~~~~~~~~~~~~~~~~T~~~~~~~~~~~~~~~~~~~~~~~~ T ~~T~~ T ~~~T~~~~ | | | | | | Item Item Description Change High | Bidder Code Marker Bid State What are all those crazy symbols? The ' " $ markers mean Going Once, Going Twice, and Sold, respectively, and the > marker draws your attention to items which have had new bids since your last update. Open No bid yet Standing New bid less than 48 hours (2 days) old ' Going Once Bid at least 48 hours (2 days) old " Going Twice Bid at least 96 hours (4 days) old $ Sold Bid at least 144 hours (6 days) old ---( SAMPLE 2 )--- Erik Wilson uses a format like this: sk1080 n Iceplanet Jetsled (#1711) S chazl@foo.bar.e $ 3.00 sk2440 n Blacktron I Invader (6894) S Aaron K. $ 85.00 sk2570 n Particle Ionizer (6923) . Aaron K. $ 57.00 sk2670 n Spectral Starguider (6933) - ---- $ 25.00 sq0210 2.50 Ice Planet Snowshoes (10) 1 MarkG $ .50 sq0211 2.50 Ice Planet Snowshoes (10) 1 MarkG $ .50 sq0310 n Ice Planet Saws (10) S Aaron K. $ 0.50 sq0660 n Spryrius mailboxes (3) S Aaron K. $ 0.75 sw0161 n 10 gry 2 wheel units * MarkG $ 1.50 sw0162 n 10 gry 2 wheel units 1 MarkG $ 1.75 sw1010 n Small Space Wheels (12) S chazl@foo.bar.e $ 0.50 sx1010 n Raised Baseplate (Ice Planet) S chazl@foo.bar.e $ 5.00 ~~T~~~ ~~T~~ ~~~~~~~~~~~~~T~~~~~~~~~~~~~~~ T ~~~~~~T~~~~~~~~ ~~~~T~~~~ | | | | | | Item QuickSale Lot Description State Bidder High Bid Code Price Here the 1 2 S markers mean Going Once, Going Twice, and Sold, respectively, and the * marker draws your attention to items which have had new bids. - Open No bid yet * New bid New bid Standing Bid less than 48 hours (2 days) old 1 Going Once Bid at least 48 hours (2 days) old 2 Going Twice Bid at least 72 hours (3 days) old S Sold Bid at least 96 hours (4 days) old ---( SAMPLE 3 )--- Jeff Crites uses a format like this: _______________________________________________________________________ | | | | | | | | | Date | |Item| Yrs. | Set Name: |ST| P | Bids |Bidder|Status | of | | #: |Avail.| | | C | | | | Bid: | |====|======|======================|==|===|=======|======|=======|======| |6049| 87-89|Viking Voyager |CS| 94| 65 | AK |-SOLD--| 6/29 | |6066| 87-93|Camouflaged Outpost |FM|211| 185 | AK |Going 1| 7/20 | |6039| 88-92|Twin Armed Launcher |CS| 73| 40 | MG |Going 2| 7/5 | |6054| 88-93|Forestmen's Hideout |FM|198| 151 | CL |-SOLD--| 6/26 | |6085| 88-92|Black Monarch's Castle|CS|665| 155 | MG |-SOLD--| 6/12 | |6060| 89-92|Knight's Challange |CS|160| 175 | CL |Going 2| 7/6 | |6071| 90-94|Forestmen's Crossing |FM|203| 160 | MG |-SOLD--| 6/20 | |----+------+----------------------+--+---+-------+------+-------+------| Here Going 1, Going 2, Going 3(?), and Sold are spelled out. _______________________________________________________________________________ 5. EXECUTION 5.1 Should I have a Once, Twice, Sold auction or end it on a specific date? Unless you are really pressed for time, hold a Once, Twice, Sold auction. Ending an auction on a specific date only creates problems and angry bidders, and you often end up extending the auction a day or two anyway. 5.2 Should I send updates through e-mail? This is the preferred method. No sense flogging the newsgroup daily or several times a day with updates everytime something changes. Plus, you can send personalized updates tailored to a bidder's specific interests. 5.3 Can I post updates to the newsgroup? It's not generally encouraged, but it seems to be generally accepted. If you can limit the postings to once a week and carry out all the rest of your business in e-mail, that's the best thing. If you pay through the nose for e-mail service or cannot easily send a message to an addressee list, your only choice is to flog the newsgroup daily. Be prepared for flames. 5.4 What can an auctionbot do for me? An auctionbot relieves you of almost all of the day-to-day drudgery -- it parses incoming e-mail and strips out bids, handles updates, gives dollar totals, notifies people when their items have been overturned, creates Web pages with current standings, all sorts of neat things. AND, if it has had the kinks worked out, it doesn't make mistakes, so you can rest easy at night. Unfortunately none are currently available for prime-time use. This is likely to be a hot topic in the next few months. 5.5 How long should you let an auction run? Run it until it's bleary-eyed and sore. Some of the most amazing things happen near the end of the auction. People shift their money around between auctions and even within your auction. One auction once ran for 80 days, and you can bet there were some pretty nice things going on. Note: As soon as a bidder asks you "Hey when is this thing over?" chances are he's done bidding and wants to send you a check. Always let someone send you a check if all their stuff is sold but other people are still bidding. Spread out packing and shipping rather than lumping it all into one weekend. 5.6 What timing should be used between Going Once, Going Twice, and Sold? It doesn't really matter, as long as at least 4 to 6 days elapse between the time of a high bid and the time it is marked Sold. This gives people enough time to respond even over a 3-day weekend. 48 hours between stages is a good rule of thumb. 5.7 Is it "fair" for someone who hasn't been bidding on an item to up the bid three hours before the item is to be marked Sold? Of course it's fair. If it's within the rules of the auction to do so, then it's fair. This is not to say that it's nice. If you have a sophisticated auctionbot, you might be able to design in higher minimum bid increments for items marked Going Twice and for other stages. 5.8 How do you handle irate bidders who think other bidders are bidding in bad faith? Design a system for inter-bidder e-mail into your auctionbot. Let them argue it out. Listening to idle speculation isn't worth your time, and you can't prove anyone is acting in bad faith anyway. Auctions are a dog-eat-dog world sometimes, that's just how it is. 5.9 What if someone wants to withdraw a bid? Let them. Don't make a big deal of it. Contact any previous bidders on the item and see if they would like their previous bid reinstated (don't assume that they would). This of course implies that you should keep an archive of your entire auction at every point -- a good habit anyway. _______________________________________________________________________________ 6. PAYMENT 6.1 How do I get the money once something is sold? Give your bidders their final totals, including any shipping charges, as soon as you can. Ask for a personal check, a postal money order, cashier's check, international money order, or other form of payment. It is acceptable (in fact customary) to wait until you receive the money before shipping the package. If you want to wait for personal checks to clear, let your bidders know you are doing this, at least in your opening announcement. Unless you are on a very tight time deadline, let the bidder decide which form of payment to send. Don't force people to send a money order just so you can rest easy -- money orders, postal money orders, and cashier's checks cost extra -- typically between a $1 and $4. When a check arrives, it is polite to send the bidder a quick e-mail note so they don't have to worry. (Remember, they don't know that you really trust them until you receive their payment.) It will normally take 1 to 2 weeks to get money from everyone, sometimes more because people go on vacations or just plain need to be reminded a couple times. Don't panic if money doesn't roll in the first week after you send out totals -- and above all, don't run your bankbook so that you rely on the money coming in at a particular time. Ironically, you will usually receive money first from people with the largest totals and last from people with the smallest totals. This is probably because those who are the most willing to spend the largest sums of money are those who are the most eager to receive your goods. Obviously, before you receive a cent you must send out your snail mail address. Send it to yourself first, or keep a permanent copy in electronic form so you don't have to re-enter it again and again. You don't want a typo to cause a check to be sent to the wrong address. 6.2 What do I do if someone doesn't pay? Unless you are paying shipping costs, it is sometimes difficult to collect from bidders with totals of $5 or less. In these tough cases you may want to work out a mutual agreement to drop the bids. If someone drops off the face of the net (it is rare, but it has happened), there's not a lot you can do. Make an honest attempt to contact the bidder by e-mail or by phone, and inform them that you will not be able to send them the items they bid on until you receive the money. If a month passes and nothing has worked, give it a wash and try again in the next auction, or see if another bidder is interested. Usually if someone hasn't paid, they will let you know and offer an apology. Don't ever threaten someone, especially if they insist that the check is in the mail. Mail sometimes gets lost (usually to the wrong address), or sometimes people forget to use a stamp and it takes an extra week to straighten things out. Don't post defamations to the newgroup. 6.3 Can people on the Internet be trusted? Yes, at least in rec.toys.lego, dishonesty is rarely if ever a problem. As an auctioneer, however, you're the only one who has to be "trusted" -- your bidders will not expect you to send them their LEGO items until you have received their money. If you run a good, smooth, fair auction, people will come back, and word of your fairness and honesty will spread. If you run a sleazy, dark, filthy auction, people will steer clear of you next time, and you will not build a loyal following. 6.4 How is international currency handled? It depends. Some countries apply a surcharge on an international money order (for example Norway and the Netherlands). Other countries like Canada have a very relaxed arrangement with the U.S. and you shouldn't have any trouble. A bidder in Germany once paid for items in a U.S. auction with a check drawn on a New York bank. It worked very well but his bank in Germany took two weeks to prepare the check. You can usually wire money -- a bank-to-bank electronic funds transfer -- for a reasonable fee. [This section could grow as more data is collected. Send horror stories to the FAQ maintainer.] _______________________________________________________________________________ 7. PACKING 7.1 You mean things can get damaged in the mail? Count on it -- take measures to avoid it. Learn from the mistakes of others. Pack your LEGO shipment as you would pack a crystal vase or fine china. 7.2 Should I use a cardboard box or an mailing envelope? In general, for best results use a cardboard box. Boxes are cheaper -- free if you ask around at the right places -- and can't be folded or crammed into a mailbox. Use padded mailing envelopes for floppy paper items or things of little value: - Instructions - Catalogs - Idea books - Photocopies Use cardboard mailing boxes for rigid items or things of high value: - Empty set boxes - Entire sets - Pieces - Baseplates - Instructions - Catalogs - Idea books Here's a rule of thumb for envelopes: You've got something nicely packed in an envelope and ready to send off. Now suppose you drove your car across the envelope. Upon opening the envelope, would the items be unscathed? If so, go ahead with the envelope, otherwise use a box. Here's another test: bend your envelope slightly -- imagine rolling it into a cylinder. Would the spine of the booklet inside crack? If not, go ahead with the envelope, otherwise use a box. Some have had success sending mini-figures in bubble-padded mailing envelopes. Cassette tape mailing boxes (around $0.50 at the U.S. Post Office) also work well for mini-figures and small LEGO parts. 7.3 Choosing an envelope Use the smallest envelope that holds the item securely. Don't fold the item just to fit it in a smaller envelope and save twenty cents. Use either padded envelopes or manilla envelopes with a piece of firm, flat cardboard backing so the items won't bend easily as they journey from mailbag to mailbag. 7.4 Choosing a box Use the smallest box that holds all the items securely, but that leaves enough space for padding. Don't use a box that just barely fits all the items unless you are sure the box is strong enough; the goal of packing is not to be clever or frugal but to do the job right -- to get the items there unharmed. Don't use shipping insurance as a crutch. 7.5 Padding the box Good padding avoids problems in shipping. Most cardboard boxes need 1 to 2 inches of padding: - Styro peanuts - Padding foam - Crumpled newspaper - Bubble plastic You can usually get all the styro peanuts and bubble plastic you want free from your workplace -- just ask someone in Receiving. If your box is exceptionally sturdy, you won't need as much padding. If your box is old, tired, and seeing its last days, use a bit extra -- especially near the top corners, where other boxes are likely to smoosh it. 7.6 Sealing the box UPS (United Parcel Service) recommends including a copy of both the sender's address and the recipient's address on a 3x5 card inside the package in case of emergency. Ask your bidders to supply an extra card with their address. Before sealing the box, shake it. If it doesn't make noise, shake it vigorously. If it's reasonably quiet, you're ready to seal the box. LEGO sets in a mailing box should sound like a muffled cereal box being shaken. If you hear a rattling, you'd better figure out what you did wrong. Remember, the goal of the padding step is to avoid problems. The goal of this step is to find any problems you may have missed. Use a good, strong tape. Test it on your arm -- if it pulls the hair off, you've got a good tape. If you can pull it away from the cardboard on the box and re-stick it, you've got problem tape. Start with the bottom of the box. Make sure the flaps line up well and nothing is loose from the last time the box was used. Re-tape the bottom edges and the centerline if necessary. On the top of the box, apply mailing stickers, 3x5 cards, or write directly on the box in clear, legible letters. Make sure your digits are unambiguous, espeically between 1's and 7's, 6's and 0's, 4's and 9's, 9's and 7's. Don't get fancy. Someone once made a beautiful calligraphic 9 that looked like a 7; the $400 package he sent was delivered to the wrong house two blocks away. Cover both your address and the recipient's address with clear packing tape. Press it down firmly -- run your fingernail or a pen across it, especially around the edges of the seal. Finally, seal the top of the box. Try peeling off the tape -- make sure it doesn't come loose easily. If the box is small, you might want to go all the way around the box with the tape. 7.7 How can I tell if I've done a good job? Drop the box from shoulder-height onto the floor. Throw it a few feet. Kick it. If you don't feel comfortable doing this, then it's probably not packed well. If the tape moves or comes loose anywhere, you should consider buying better tape. Ask yourself, How are packages typically handled? Gently? How many times do they change hands? Will your box be at the bottom of a pile or at the top? Can someone put a pair of speakers on top of your box? Can your box roll 50 feet down a sorting treadmill and slam into another box? Is your box of precious cargo any more special to a mail handler than other box of equal shape and size? What if when the package is delivered, it is left in a window well outside someone's house? _______________________________________________________________________________ 8. SHIPPING 8.1 Is shipping expensive? It's not as expensive as you might think. For small and light parcels, the U.S. Post Office is your best bet. For large and heavy parcels, the United Parcel Service (UPS) is your best bet. Inside the U.S., you can send things for as little as $0.50. On average figure around $3.00. Sending between countries is where it gets expensive. 8.2 Who pays for shipping? Build the cost of shipping into your auction. Make it reasonable -- charge, say, a fixed $3 per bidder -- but be flexible if someone buys something that cost them $3 and only costs $1 to ship. In overseas arrangements, sometimes it works best if you can exchange LEGO for LEGO and each pay shipping on your end. After all, most non-U.S. sets are in available in Europe, and most U.S.-only sets are not. See what you can work out. Declare your shipping fee intentions clearly in your opening announcement. Some examples: "Free shipping if you live in the U.S. Otherwise, you pay shipping." "Fixed $3 shipping fee if you live in the U.S." "Buyer pays shipping." When it comes time to settle up, there should be no surprises. 8.3 Should I use UPS or USPS? Use both. Become familiar and comfortable with the policies and price schedules of each, and decide which service to use on a package-by-package basis. If you live in the U.S., here are some general guidelines to get you started: - USPS if it's going to another country. - UPS regardless of weight if the value is $75 or more. - UPS regardless of value if the weight is more than 3 pounds. - USPS Third Class if the weight is between 12 oz. and 32 oz. - USPS First Class if the weight is less than 12 oz. Both are equally reliable, although this is difficult to know for sure. 8.4 What are the advantages of UPS? [This discussion assumes you are visiting a real UPS branch office. If you go to a third-party UPS client such as Mailboxes Etc, all bets are off.] UPS has good rates for large, heavy packages. Using UPS Ground service, you can expect to spend between $3 and $5, in extreme cases $6, to send an average LEGO package inside the U.S. The rates vary depending on the location -- UPS divides the U.S. into several zones. Shipping time is 3 to 5 business days -- very reasonable. UPS has good rates for insurance. The first $100.00 is free; it's $0.35 per $100.00 thereafter. UPS barcodes and tracks all packages. You can call a toll-free 1-800 number to check the status. When someone signs for the package, UPS keeps a computerized image of the signature and can supply this to you if you need it for a claim. There are at least two versions of tracking service: GroundTrac(TM) is an add-on service available to you for around $2 to $3. With this service your package is tracked excessively -- it is scanned at three checkpoints: (1) when it leaves the originating town, (2) when it arrives at the destination town, and (3) when it is delivered to the recipient. This is perfect for parcels above the $500 mark which you might be really paranoid about. DeliveryTrac(TM) is not an add-on service; it is included in UPS Ground default service. Your package is scanned once -- when it is delivered to the recipient. This is perfect for your normal parcel in the $50 to $500 range. UPS asks you to fill out a form for your packages listing the destination address, contents, and a declaration of value. You get a yellow carbon copy of this, which becomes your receipt, along with an imprint of the weight and shipping fee for each package. Your DeliveryTrac or GroundTrac code is affixed to this receipt. Provide this code to your bidder so both of you can check the package with the 1-800 number. 8.5 What are the advantages of USPS? The USPS has good rates for small, light packages. You can expect to spend from $0.50 to $4.00 to mail a typical LEGO package inside the U.S. The rates vary depending on the location and the speed of service required. Up to and including 11 ounces, Third Class serivce is the same rate as First Class service. As a rule of thumb figure $0.30 per ounce for small packages. Parcels sent First Class generally arrive in 2 to 3 days. Parcels sent Third Class generally arrive in 5 to 7 days. Shipping parcels overseas (out of the U.S.) via USPS is expensive. The rates of course depend on the destination, but you can generally figure airmail to Europe is roughly 4 to 8 times as expensive as normal First Class mail inside the U.S. Airmail delivery times are typically one week. Mail to Canada is neither prohibitively expensive nor slow. Always ask your options at the counter. Surface mail to overseas countries is much less expensive, but can take 8 to 12 weeks, for example to or from Australia. USPS offers insurance, but you pay extra. 8.6 Is there anything special I should look out for? Some countries charge a import tax, so you may not want to insure your packages, or you may want to give a very low declaration of value. For example the Netherlands charges the recipient 25% of the cost of the package when it is claimed. When sending something to another country, always find out your options, and ask at the counter if there is anything you should be aware of. Some countries are even considered an insurance risk, and you can't insure a package sent there even if you want to. [This section could grow as more data is collected. Send horror stories to the FAQ maintainer.] 8.7 What if a package is lost or stolen? Both UPS and the USPS are extremely reliable. If a package does not arrive at its destination, it was probably either delivered to the wrong address by mistake (usually an addressing error) or delivered to the correct address and stolen -- in either case the recipient should ask around in his/her apartment building, neighborhood, post office, or UPS branch office. If you have insured the package, check with the carrier and begin the claims process. Keep in close contact with the recipient so neither of you panic and start mistrusting each other. _______________________________________________________________________________ Todd Lehman lehman@winternet.com