Top Reasons Why Cabinet Auctions Are Expensive and Risky

If someone were to search for “cabinet auctions near me” they would find a dozen results. It’s become a quick, easy way to buy cabinets that people feel is cost effective. Instead of designing a kitchen and making a list, people are able to buy a set of cabinets. But the cabinet auctions are neither cost effective nor easy. In fact, it can cost you more to buy cabinets from an auction than an approved dealer.

What is an auction?

An auction is a process of buying and selling goods where the seller offers items for sale and potential buyers place competitive bids. The highest offer wins the bid

How does an auction work?

In an auction, buyers compete by submitting bids with each bid higher than the previous one. Often, an auctioneer oversees the process, calling out the bids and declaring the winning bid. Auctions are widely used for art, real estate, collectibles, cars, and other unique or high-value items.

Why is buying cabinets at auction not saving money?

People want the most for their money, but cabinet sets from an auction are far from cost effective. In fact, buyers will pay more than the hammer price for their cabinets. Here are 4 things we want you to think about:

They’re stuck with pieces they don’t need.

The cabinet sets were not expertly designed or curated to function and fit properly. These were intended to sell quickly without thought to installation, durability, or product quality.

Most cabinet brands like GHI Custom Cabinetry and Forevermark Cabinets sell directly to dealers. In turn, dealers buy cabinets in bulk for their warehouse or dropship from location. Consumers consult dealers to design their space and buy the pieces for a contractor to install.

Their package includes the cabinets and pieces they need to make it fit properly. That’s right; cabinets are not like furniture.

They’ll need extra pieces to make it fit.

There’s more to buying cabinets than making a list and finding a retailer to make them functional and fit properly. Dealers and contractors work together to determine which pieces are needed to do that. Improperly installed cabinets adds extra wear and tear. More importantly, it can damage the cabinets.

Auction houses are not trained in cabinet design and installation. More importantly, cabinet manufacturers do not offer design services. Many auction houses clearly state that buyers will need extra pieces because the cabinet sets are only arranged to look like a layout.

Their schedules take priority over the buyers’.

This is not a dealer that will take their time with a buyer and answer questions. The buying process at an auction house follows a set schedule with strict timelines. An auction house must empty their inventory before their next event to efficiently turn a profit. Breaking that schedule can incur fees.

Cabinet sets are sold as is, where is.

The manufacturer will not cover any damages, product defects, or hardware failures that could occur. Furthermore, the auction house will not provide refunds or assist buyers in acquiring replacement parts.

Why should people avoid buying cabinets from auctions?

Auctions are commonly used for assets that are difficult to price. Yet, it’s become a trend to sell regular items, such as cabinets, at auction to turn a quick profit. This method of sale poses an issue for unsuspecting buyers, as cabinets are not like furniture.

When someone purchases a cabinet set at auction, they receive a list of cabinets that may not fit their space. In fact, most people will dedicate extra time to making auction cabinets fit their home.

There’re more reasons that cabinets at auction are not the deal most believe, though. Here are 8 ways that cabinet auctions are expensive and risky:

Shipping is not provided.

The auction circuit is unique in that sellers are not expected to ship purchased items. In fact, most auction houses will clearly state that shipping is not provided by them. The buyer handles locating a suitable shipping company and securing their services.

Sometimes, an auction house will refer a provider or quoting system. That may work for small items, such as art or jewelry, but large, delicate items like cabinets are another matter entirely. Buyers tend to find that out once they attempt to retrieve their cabinet set.

For those that are unfamiliar with cabinets, there are two ways to ship cabinets: Ready-to-Assemble or Assembled. A ready-to-assemble cabinet (better known as an RTA cabinet) is still unassembled in its package. An assembled cabinet has been fully assembled and repackaged for shipping. When shipping a cabinet set, it’s sent via freight shipping to its destination.

I would explain why and how this happens, but we have a page dedicated to LTL frieght shipping.

There are set pickup dates and times.

Unlike a warehouse or retail location, there are set pickup dates and times that buyers can retrieve their items from auction. This is no issue for items sent through regular mail; most popular shipping services offer scheduled pickup. However, freight shipping is a little trickier.

Now, most freight shippers will allow you to schedule a time and date for pickup. That may come with an extra fee, though, especially if it falls outside of their standard service or involves special arrangements.

Freight shipping is not cheap, either; a good shipping rate would be between $500 to $600, barring any special fees. This price does not include packaging cabinets and getting them ready to ship on pallets. Some companies will charge extra to retrieve packages from locations that are difficult to navigate.

There are no refunds.

Once an item is bid on and won, the buyer has no choice but to accept the purchase of the item. Most auction houses have this clearly stated on their website or displayed somewhere at the event.

Instead of refunds, some companies will allow buyers to re-auction their purchases. The buyer must pay for the item and then enter it into the next auction. When the item sells at auction, the final check will be the purchase price minus a 20% fee.

There are no returns.

All purchases are final.

When a buyer enters an auction, they are agreeing to the terms and conditions of bidding. This includes the commitment to buy the item once their bid is accepted. Some auction houses take a step further and includes a no charge back clause in their terms.

Some buyers will retract their bids in an effort to return the item. Most auction houses prohibit this or strongly discourage it. Every auction house has strict rules about bid retractions, and buyers should be aware of them before bidding.

Whether it was paid for or recently won, auction houses are not retail locations that will accept product back. Most auction houses have this clearly stated on their website or at the event. The buyer needs to know this before bidding.

There are no set prices.

Oftentimes, building materials sell by the unit price multiplied by the quantity. For example, if the unit price of an item is $3 with a quantity total of 10, then the final price will be $30. However, this pricing can be by piece, square footage, linear foot and other systems of measurement. The method of pricing is up to the auction house. It is up to the buyer to understand how the pricing is set up.

Some auction houses that conduct online events will have this clearly stated somewhere on their website. However, it’s not always clear by the auction listing.

Buyers follow bid increments.

Hollywood depicts auctions as exciting events with buyers eagerly bidding on desirable items. The auctioneer is rarely understandable, and the bids follow a standard format. However, an actual auction is slightly different from the media hype.

Buyers follow bid increments, which means that bids go by specific increases. This bid increment is set by either the seller or the auction house. It can be anywhere from a few cents to several hundred dollars. Buyers are expected to know this prior to participating in an auction.

Unlike E Bay that allows you to set your own bid, an auction house expects you to follow a format. For instance, if the bid increment is $100, then a buyer must place a bid $100 more than the top bid. For most online auctions, the bid increments are typically stated somewhere in the listing.

There’re hidden fees.

Many people mistakenly think that auction houses operate like fancy retail stores, but this is far from the truth. In fact, there are various fees beyond just sales tax associated with purchasing items at auction. Buyers are usually expected to be aware of these fees before attending the event.

One of the primary ways an auction house makes money is through a “buyer’s premium.” This percentage-based fee can range from 10% to over 25%, and the auction house sets the rate. A tiered system also determines the buyer’s premium based on the hammer price.

In tiered systems, a lower hammer price often results in a higher buyer’s premium, sometimes around 20% or more. On the other hand, higher-priced items tend to have a buyer’s premium of 10% to 12%.

For cabinet auctions, the buyer’s premium typically hovers around 20%. This fee is separate from the hammer price. For example, if a cabinet set sells for $3,000 at bidding, the total cost, including the buyer’s premium, would be around $3,600. Although this practice is standard, some buyers are unaware of it until staff explain it at the payment desk.

After verified payment, the auction house will hold an item for up to a month. Buyers are responsible for arranging shipping or pickup, and auction houses often charge a handling fee for assistance. If a buyer goes over the holding time, some auction houses charge them a fee.

Fees can vary by auction house, especially for cabinet sets, which may incur assembly or disassembly charges. Auction houses dealing with large items often charge a pallet fee, which varies by the number of pallets. Additionally, some houses only accept cash, wire transfers, or certified checks, and credit card payments may come with an extra fee on top of the buyer’s premium.

There’s no product guarantee.

These cabinets are not guaranteed for quality or authenticity, and the manufacturer’s warranty does not transfer to the buyer. Typically, these are low value items that don’t require a stringent verification process. In fact, most auction houses sell cabinet sets as-is, where-is.

Most auction houses will have a release of liability, which means any damage to the item is not their responsibility. In fact, most of them will not offer exchanges or process damage claims whatsoever. They expect buyers to know, understand, and accept this as part of the auction process.

A stringent verification process happens for items that are high value. These items include, yet aren’t limited to, automobiles, real estate, precious jewelry and artwork. In fact, some auction houses clearly state somewhere on their website that cabinet sets appearing in the auction maybe slightly different than what a buyer receives.

Cabinet Auctions vs Approved Dealers

Most credible cabinet brands have a defined process for accepting new dealers. The company must operate for a certain period and demonstrate professional excellence. If the company is approved, it must meet and maintain certain standards.These standards change from brand to brand, and some have stricter requirements than others.

Not all applicants will become dealers. Only a certain number of dealers can exist in any single geographic location. All new applicants are denied when an area has reached their cap. This protects existing dealers and maintains service quality.

When buying from an approved dealer, people can safely expect a high quality, authentic product with a valid warranty. The manufacturer guarantees that the product will meet or exceed safety and quality standards. Cabinets bought from a non-approved source lacks that critical feature.