Turners turning to computer auctions

By PETER GRIFFIN

Auction company Turners is to become a clearing house for the IT industry as it begins bi-weekly auctions of computer hardware.

Turners is best known for its large car auctions, but also sells off everything from mobile phones and boats to office furniture and lounge suites through its commercial and industrial division.

Now the company has started a technology division, taking on former Geac Software client manager Jon Brewerton, who will approach IT companies and major corporates here and overseas to procure hardware for auction.

Brewerton said it was hard for companies to get market price for hardware because there was no effective marketplace for surplus or used computers.

"If we get in hardware that we know three or four people are looking for - say a high-end Hewlett Packard server - then we can start matching vendors to purchasers."

Turners is targeting local IT vendors and corporates looking to offload outdated or under-used hardware and software. Desktop PCs, laptops and servers, through to peripherals like scanners and printers, will all go under the hammer at the bi-weekly technology auctions in Auckland.

The auctions may eventually extend to other parts of the country.

Auction commissions range from 16 to 20 per cent. People selling individual items of hardware are likely to pay the higher rate.

Brewer said valuations for hardware with a reserve price attached come with a fee - around $15 for an individual PC.

Buyers and sellers would be updated through the auction's website, said Brewerton, adding that the site would undergo significant upgrades to allow valuations online.

"If you have a Pentium 3 750MHz, we'll be able to tell you what its auction value is. We'll build up an accurate database of valuations as we go," he said.

While Turners would look overseas to procure hardware to auction, Brewerton said he planned to avoid stepping on the toes of local hardware vendors who might one day end up in competition with Turners.

"We're not looking at parallel importing, I think we'll be working closely with the local vendors here," he said.

In March, computer retailer Gamma Computers drew the wrath of Hewlett-Packard when it began selling parallel-imported HP Pavillion PCs that had entered the country minus their hard drives, processors and memory. Gamma was sourcing internal components separately and undercutting other retailers on price.

HP eventually settled out of court with Gamma, which quickly fell into line, agreeing to sell HP Machines sourced only through official channels.

Brewerton said two hardware auctions had already taken place at Turners, with 250 lots sold at the first one and 232 at the second. He expected the number of lots and interest among bidders to increase rapidly.

Turners technology auctions