Merits of Bond Swapping

A very effective tool to get the best out of your investment portfolio, bond swapping has definite advantages, though cautious investors may lead you to believe otherwise. Let us examine the merits in detail...

Bonds have been a preferred investment for the more conservative lot. Being a fixed-income investment, most investors prefer to buy bonds and leave them untouched until maturity. The trading of bonds is certainly not as actively volatile as stock trading, but market conditions permitting, it can actually yield decent returns. It's time to start reviewing your long-term investments and begin to reap profits out of them.

Bond swapping takes place in two steps. First, you must sell a bond, and second, you must utilize the funds obtained from the sale to purchase a bond or bonds with different features. The idea behind it is to gain from interest changes or lower your tax, and boost your investment portfolio.

Advantages of Bond Swapping

Volatile markets force investors to reassess their investment policies. Very soon, wise investors begin to explore options which not only help them make profits, but also keep the losses restricted to a bare minimum. Bond swapping is one such strategy, and here are its benefits.

Reduce Taxes
Among the several benefits of bond swapping, the foremost one makes you save on taxes. When you own a bond that is currently trading below the purchase rate, it makes sense to sell it. The loss incurred by this transaction will help you write-off payable taxes on gains from other investments. The proceeds from the sale can be used to purchase other bonds. Let's say you have tax-free municipal bonds in your state of residence, and then decide to move to another state. A bond swap will seem logical in such a scenario, as you'd be saving on the out-of-state taxes that you'd have to otherwise pay if you decide to keep the bonds. The funds received can be reinvested in bonds in your new state. There are times when the tax laws are altered which affect your investments, and you must not waste the opportunity to reap gains or minimize losses from it. Make sure to discuss this with your investment advisor.

Increase Returns
The basic purpose of investing money is to gain returns, and bonds are no exception. There are several strategies of bond swapping that will help you make the most out of your investments, and increasing the term is one of them. Long-term bonds yield better returns, so swapping your short-term ones for these makes sense. Keep in mind that extending the maturity will make your investment susceptible to interest rate fluctuations. Similarly, bonds that have a low credit rating yield better. Although this could be risky, some investors do downgrade in order to make a quick buck.

Increase Call Protection
Investors are given the right to 'call in' or redeem their bonds before they mature. The period between the date of purchase and the redemption date is referred to as call protection. Selling a bond with a short call-in date to buy one with a longer call-in date will result in better call protection for the investor. The investor can thus be shielded from the risk of reinvesting in sluggish market conditions.

Resist Market Fluctuations
Anticipating interest rate changes will always keep you a step ahead of market fluctuations. If you sense an increase in the rate of interest, lowering the maturity will help. Short term maturities will protect your portfolio from any future declines. On the other hand, if the markets indicate a dip, investing in bonds with longer maturity periods will lock in the higher interest rates before the plunge takes place.

Improve Quality of Investments
The credit rating of a bond determines its quality. As mentioned before, long-term bonds rank high on the credit ratings list, and are certified safe investments. But, to keep up with the changing markets, investments must also be altered accordingly. Market rates should dictate investment decisions, so as to yield maximum profits. Of course, it goes without saying that any transactions involving low rated bonds must be conducted with caution.

Investments, as a rule, must be studied thoroughly before you actually put your money in. While bond swapping may seem as a decent solution to end your investment woes, as a crafty investor you must always consult your investment advisor before implementing any ideas.

Common Photography Mistakes to Avoid

Lack of knowledge about photography tips, tricks and pitfalls can lead you into clicking fail pictures! Find out about the common photography mistakes that you should avoid in this article, and make your photography foolproof!

Photography is an art. It is also a science - but it is more of an art. Even someone who doesn't understand the technique of photography, or the science behind how a picture actually gets captured on a camera, can still learn to click a good picture. However, for someone who is new to photography, the common pitfalls may prevent you from overcoming the initial roadblocks. This is exactly what I am going to throw light on here - common photography mistakes and how to avoid them.

How Do We Perceive Pictures

Before we begin, let me ask you - have you ever noticed how you look at a picture? Usually when you look at a picture, you first look at a particular point in the picture; then your gaze moves around the point (clockwise or anti-clockwise), so that you take in the entire picture. With some pictures (usually landscape pictures) you look at the entire picture at once, as you would at an actual landscape. With some pictures you tend to focus on a point and then 'zoom-out', just like a camera would (close-shots of flowers, insects). Finally, sometimes you look only at the main subject and your gaze kind of tends to cut out the rest (as in head-to-toe shots of people). You would have to be told there is a painting hanging on the wall behind the person; you wouldn't notice it on your own. And what when we cannot follow any of these patterns? We 'feel' like it is a bad picture.

This is exactly what constitutes a bad picture. Our brain is tuned into perceiving things in a certain way, and when something falls out of the boundaries of this perception preset, we cannot comprehend it, we do not understand it, and we call it bad. When you grab onto this fact, you will have already understood half of your mistakes on your own! These tips are common to traditional as well as digital photography.

Common Photography Mistakes

#1 - Composition
The composition of a good photograph lies in the content of the picture as well as the proportion of three main constituents of a picture - the foreground, the subject and the background. It is important that the subject occupy a bigger portion of the picture than the rest of the things. The foreground should be minimal. The background should be either plain, or it can be put out of focus; so that the focus of the viewer is drawn to the subject. There is no mathematical value to 'how much' portion of the picture should the subject occupy - but say about 85% of the picture is good enough. While clicking pictures where you also want to highlight the background, try experimenting with the position of the subject in the picture - the subject need not always be in the center.

#2 - Level Of Camera
The level of the camera should be at the level of the subject and NOT at your eye level! While clicking a puppy, go down on your knees; while clicking a flower, go closer to the flower, while clicking a tall person stand on a platform! Unless creatively intentional, changing the angle between the subject and the camera is going to make the picture look really weird. A short person may look towering if clicked from a slightly lower level than the face of the person. This would also make a slim person look a lot healthier. Sometimes however, the effect produced by playing around with the angle at which a picture is clicked can add to the aesthetic value. But unless it does, it is simply going to mess with a good picture. Avoid.

#3 - Using Flash
Always prefer to click pictures in natural light. The best time to click a picture outdoors in the morning is say about 2 to 3 hours after sunrise, and in the evening is about 2 hours before sunset. Why? The daylight at these times of the day is uniform. It is not directional, focal, too harsh or direct. Rest assured, your pictures will turn out lovely. As for night photography, make sure you turn on more number of lights in the room (at least for the duration when you will be clicking pictures) so that the place is adequately and uniformly lit. If that is not possible, you can play around with the exposure time for better results. But avoid using the flash. The simple reason is - flash throws light on only that part of the picture that the flash is pointed at, so that the already dark background appears darker, and fair people appear whiter, like they've just seen a ghost!

#4 - When To Go Black-n-White
The tips and tricks of black and white photography are far different from those of color photography. But one general rule that applies is - landscapes look unflattering in black and white mode, while portraits and macro focus pictures look equally awesome. Just because you like black and white photography does not mean any and every picture clicked in black and white mode is going to look good. Same goes for sepia mode photography. Architecture pictures look beautiful in sepia, but portraits not so pretty. Earlier photography was black and white by default. But black and white photography has now transformed into an aesthetic technique rather than being a mere limitation. It will take more experimenting than color photography to understand how it works. Give time.

Common Photography Misconceptions

#1 - A Good Picture Needs An Expensive Camera
FALSE! Even an ordinary 3.1 megapixel camera can be used to click a good picture. You need not necessarily have a digital SLR camera for that! Get rid of this concept as soon as you can. Yes a good camera will give you good picture quality, but just because the market now offers a 12 megapixel camera does not mean your 3.1 megapixel camera has lost its capacity to click good pictures!

#2 - Only A Professional Can Click Good Pictures
WRONG! I have seen pictures of amateur photographers that would put professionals to shame! No doubt having formal knowledge about photography helps you click good pictures, but not everyone wants to be a professional photographer, right? Some just want to be able to click good pictures at birthday parties and get-togethers; and you definitely do not need a professional for such occasions (although if you are getting married, hire the best one you can!).

#3 - Photography Is Not DIY
NEGATIVE! My brother is a self-taught photographer. He learned photography all on his own; and maybe he wasn't as good as an amateur as he is now as a professional, but he was still mighty good. He is now a fashion photographer, and has also worked as still photographer for a couple of movies. And all this started in our backyard with a basic camera. You can totally Do-It-Yourself - photography can be DIY too. Impossible is nothing.

#4 - There's Always Photoshop
BAD! Yes there's always Photoshop to correct a bad picture. But why click a bad picture to begin with? Using Photoshop creatively is different from using it to hide your inadequacies. Learn and develop on your skills before you master Photoshop. Like all things that makes stuff easy, Photoshop is heavily addictive! It's like learning how to use a computer because you hate writing. Avoid.

Like I said in the first paragraph - photography is an art. So do not learn it entirely by the book. My take on any kind of art - writing, sketching, music - is that you should first experiment with it. Explore it. Form a picture of it on your own through your experiences before you consult someone. For art learned like this is in its purest form. The minute somebody tells you a technique, or an approach to learn an art, you limit yourself to it. I am a writer, but I learned how to write on my own. If I had followed what my school-teacher had told me, each piece of my writing would have been all the same - technically correct, but aesthetically redundant. So first get the hang of what constitutes a good picture. And then go into the science of it. Approach any art like this, and you are sure to be revered as an artist one day! All the best!

Consider This Before Starting Your Own Business

Starting a company from the ground up is an all-encompassing endeavor that starts out intimidating and gets more complicated from there. Everyone wants their own business, but few of us can really hack it - give it some serious thought.

Let’s face it - working for someone else can really suck. Who among us hasn’t fantasized about having our own business? No overbearing boss, a team full of stellar talent, and customers beating down the door. You call the shots and you reap the reward - makes it much easier to get out of bed at 6:00 AM on a Monday morning.

The thing is, your fantasy sort of begins in the middle - it doesn’t include the extremely difficult start-up phase. It doesn’t include up to a year of little-to-no income, working 16-hour days, or appeasing difficult clients because you just can’t afford to let one go.

Starting your own business can be rewarding, and if the stars align, profitable - but it is not something to be undertaken lightly or on the spur of the moment.

Do A Self-Check

A business owner absolutely must be a self-starter, a decision-maker and the sacrificial lamb. Are you all of these things? Be honest. Are you willing to double the hours you work? Are you willing to make the tough calls and deal with the consequences when there’s no good answer? Are you okay with paying your creditors and employees first when it means you may not take home a paycheck that month?

Do you have enough savings to not only start the business, but also to pay your bills for up to a year (at least six months)? Will your spouse resent the extra burden of maintaining the home, family and income while you toil away at launching your business? These are vital questions - poor planning causes businesses - and marriages - to fail before any kind of stability is achieved.

Know Your Talents

Most people start a business based on something they happen to be good at - but make sure you’re really, really good. Good enough, in fact, that people will pay you to what you do. Your mom may love your cupcakes, but how will they go over with total strangers who are paying $4.00 each for them? Whatever it is you do, make sure you do it perfectly.

Your talent doesn’t have to be tangible, either. There is an entire class of entrepreneurs whose talent is starting businesses. Some specialize in a general field, but others take all comers - these people are very good at spotting trends and people with the talent to bring them to market. Once the business is solvent, they sell it for a nice profit and move on to the next project.

Look for the Money

Once you decide what you’re good at, figure out a way to make money from it. Building toothpick houses may be fun, and you may be the best toothpick carpenter around - but the demand for toothpick cabins is low. Perhaps you could apply your skills to general model making and market yourself to architects and designers, who pay top dollar for 3D representations of their designs.

Musicians are a dime a dozen, but very few make a living wage by playing music, so many give lessons. The market for great moms likely only extends to your kids - try opening a daycare to spread your skills around.

Look for a way to present your talent that will make people think they cannot live without it.

Do Your Homework

You’ve identified your talent and your product, now you must make sure it’s feasible where you are. Say you want to open a Mexican restaurant, but a quick Internet search shows that there are already a dozen Mexican restaurants in town - you’re almost sunk right out of the gate, because competing with already-established businesses that are so similar can easily kill a struggling start-up.

Do another Internet search - are there any good steakhouses? Seafood restaurants? What about bakeries? By shifting your focus slightly to one side, you’ve drastically reduced your competition and increased your chance of success.

As an entrepreneur, your homework also includes learning the business law in your state, county and city. Find out what licenses and permits you need, what zoning laws apply to you, what inspections and certifications are required, and the time frame for getting all these things together.

Once all this is finished, congratulations - you’ve taken your very first step in learning how to open a business. Now go find a building, design stationery and a website, write employee handbooks and job descriptions, create your business plan, find financing, hash out an advertising budget... and get to work.

Toothbrush Bracelet Making Instructions

Has it ever occurred to you that a toothbrush can be transformed into a pretty piece of jewelry? If not, then this article on how to make a toothbrush bracelet, is sure to take you by surprise. And if you think frugal fashion is cool, you're sure to love it too!

In today's times, when the environment is under threat due to the tons of plastic waste that is released into it every day, even a small "green" step from each one of us can help. And what better place to begin than our own home? But what can we do to contribute to the protection of the environment, you may ask. Well, the simplest and one of the most effective ways to go about it is recycling. If each one of us begins to recycle even a small percentage of the waste generated in our homes, especially non-degradable waste such as plastic that can cause harm to the environment, imagine how much safer and greener our planet's gonna be! And what better way to recycle than creating something pretty out of scratch that makes you look good! Making funky and stylish jewelry out of common discarded household items, is fast catching up as a trend, and when it comes to homemade jewelry ideas, people are getting more innovative by the day. In this article, we shall have a look at how a toothbrush can be transformed into an interesting piece of jewelry. Sounds great? Well, then read on...

How to Make a Toothbrush Bracelet

It is a fact that we change our toothbrush once every few months, but what we normally do is throw away the used toothbrushes. But what if I tell you that with a bit of creativity, you can transform it into a funky bracelet in no time? Will you be surprised? Probably yes, and curious too! So, here I bring to you the procedure of making a trendy bracelet using a toothbrush, in a series of simple steps. But wait, first let's have a look at what all things you need to get going.

Materials Required
A colorful toothbrush
Pliers
Cooking gloves
Saucepan
Food tongs
Big glass bowl
Now that you know what all things you need, let's begin with the steps.

Step 1: Removing the Bristles

The first step in making your toothbrush bracelet is removing the bristles. To do this, hold the toothbrush and using the pliers, pull out the bristles. Try to pull out as many bristles as possible. However, do it gently so that you don't end up with a broken toothbrush! If you find that some bristles just won't come off, relax! We can handle these during a later stage of the process.

Step 2: Softening the Toothbrush

Once you have removed the bristles from the toothbrush (again I say that it doesn't matter if a few remain!), the next step is to make it soft enough for you to bend it. How to go about it, you may ask. Well, it's simple. Take the saucepan and pour water in it. Now switch on the cooking stove in your kitchen and place the saucepan on the stove. Once the water starts to boil, place the toothbrush inside the boiling water in the pan and wait for at least 10-15 minutes for the brush to soften.

Step 3: Bending the Toothbrush

After a few minutes, remove the toothbrush using food tongs, but be careful not to touch the hot toothbrush with your hands. At this stage, you can pull out the remaining bristles, if any. Now, put on your pair of cooking gloves and try to bend the brush into a circular loop to give it the shape of a bracelet. If you find that the brush is still stiff, place it again in the pot of boiling water for a few more minutes, before you make a bracelet out of it.

Step 4: Cooling the Bracelet

Once you have bent your bracelet into shape, your next task is cooling it. For this, pour some ice-cold water into the glass bowl and throw in a few ice cubes as well. Place your bracelet in the bowl and allow it to cool till it hardens. Your toothbrush bracelet is ready!

The following tips will make your task of making a toothbrush bracelet easier.
Choose a toothbrush that when bent, can fit on your wrist. If you have a thin wrist, for example, go for a smaller toothbrush.
When heating to soften the toothbrush, make sure that the base of the pan is wide enough to accommodate the length of the toothbrush.
Remember NEVER to touch the toothbrush when it is in the pot of boiling water, because it would be extremely hot.
So, the next time you feel the urge to flaunt something unique on your wrists, grab a toothbrush or two in lovely colors and create a style statement of your own. You can even use your creativity to embellish your bracelet with ribbons, beads, etc. Have fun!

Instructions to Make a Bottle Cap Necklace

Never found that perfect pendant? Do you want to sport a personalized pendant, which is also very eco-friendly? Are you creative and like trying new things? If you answered yes to all the above questions, then you have landed on the right page, cherie! Let's find out how to make bottle cap necklaces.

Everybody to your right and left is obsessed with going green and you wonder how you can do your bit? Well, how about starting small? Save the bottle caps, and use them to make and sport cool, pretty, beautiful and funky necklaces. We'll see how to make bottle cap necklaces in a detailed step by step process. Let's get right down to some fun work.

Things You Will Need
Bottle caps, as many as you think you will need, depending the type of necklace you are planning to make.
Jumpers
Acrylic paints
Glue/ Adhesive
Resin/ Diamond glaze
Pliers and a hole punch
Glitter/ Collage sheets for bottle caps/ Personal pictures to paste inside the cap/ Charms, etc.
Chain/ Thread for the necklace
Rubber sheet
Candle/ Heating gun
Gloves, Newspapers
Hammer (to flatten the teeth of the caps)
Instructions for Making the Necklace

Removing the Glue Seal
There is a chance that the caps you buy have glue seal on them, so before you attempt to start decorating these caps, make sure to remove this glue seal. This can be done by using the candle or the heating gun. With the help of pliers, hold the cap on the candle flame for a few seconds till the glue seal comes loose, and then pull it off. Now the caps are ready to be used.

Decorating the Caps
This is the best part. You can just let your creativity flow and decorate the caps as you wish. I'll just give you a few ideas to get you started, and you can take it from there.
You can fill up the cap till the edge with clay, cover the surface with glitter, and press your charm into the clay before it hardens.
On a piece of paper cut into a circle to fit inside the cap, you can write your name, a quote, or whatever else you please, in your favorite font and stick the paper inside the cap with the glue or adhesive. You can either print out the stuff, or write it yourself if you enjoy calligraphy. Also, if you want to, you can add designs around the quote/ name, to make it look pretty.
If you want to personalize the necklace without words, pictures are the perfect way to do so. Take small printouts of your favorite photos - with your friends, family, alone, or your partner/spouse. Follow the same procedure as above and you have your own personalized necklace.
Use the acrylic paints, and make pretty designs on either side of the cap. Let the paint dry properly. You can paint whatever you wish - people, symbols, cartoons, flowers, animals, motifs...
Simply paint the caps in a bright color and leave them to dry. Stringing the caps of alternate colors together will give you a really simple and pretty necklace.
Punching Holes, Adding Jumpers, Flattening the Teeth of the Caps
This is the easy part. Just place a rubber sheet over the teeth of the cap, and beat gently with the hammer till the teeth have flattened out. Don't put too much pressure or you'll end up flattening the entire cap. Once you have put in your picture, quote, design, etc., hold it the right side up, and punch a hole at the top of the cap to put in the jumper. This is if you are planning to hang a single cap in your necklace. If you are planning to string the caps together, then punch a hole on either side for stringing them horizontally, and at the top and bottom for stringing them vertically - and then put in the jumpers. The jumpers should be carefully rounded and squeezed closed properly with the help of the pliers, so that the thread, or chain of the necklace doesn't slip out.

Applying the Resin/ Diamond Glaze
The resin/ glaze will be required for applying a coat over the paper, so that it stays and doesn't get ruined. Apply a light coat of the resin/ glaze, and make sure that the application doesn't look lumpy. You will have to read the instructions carefully for this step. If you mix the wrong quantities while preparing the resin/ glaze, the coating will not be clear, and it may block or ruin your picture/ words. After preparing the mixture, pour it into the cap till the cap is almost full. Since the thickness of the cap is not much, the layer won't be thick either. Make sure it doesn't overflow, else your cap will stick in that same place and will be difficult to get off. Use sticks to mix the resin/ glaze, and work on a spread out newspaper, in case of spills. Wear gloves to protect your hands.

Drying out the Resin/ Glaze
The resin/ glaze will take a good amount of time to dry out. This is the most frustrating part, but if you want to dry out the caps properly, best leave them in the sun for a day. Seems like a lot of time, I know, but try to muster all your patience. If you touch it to check if it has dried, then there is a good chance that you will get your fingerprints all over the resin/ glaze. Which in turn means you will have to start over, because the process of scraping off the resin is not going to be successful. You will end up ripping away the paper/ photo/ glitter and clay as well. So, let it dry out and harden for a day.

Stringing the Chain/ Thread
This is where you can be really innovative and depending on the look you want, you can string the chain(s)/ thread(s) accordingly. Here are a few things you can try:
Fold the caps in half to make semicircles, make sure the open ends are closed properly, and string the chain/ thread through them. Make a few strings in the same way, and then tie up the ends of the strings together so that you have a many layered necklace, like a halter necklace!
Arrange three caps in a triangle, and weave the chains through them in such a way that the triangle stays in place. Weave two or more chains between each of the caps loosely so that the perfect curve of the chain is seen.
String a couple of caps vertically, and then split up the thread, stringing the individual strands as well, so that you have a 'Y' shaped necklace.
Similarly, you can also make two simple 'U' shapes and tie the ends together so that you have a two string cap necklace.
Try macrame knots for single layered thread necklaces, as they look really pretty!
Try out various arrangements and experiment with the caps to get unique and funky necklaces. You can even make bottle cap necklaces with magnets. The whole process remains the same, the only difference being that once you string the thread/ chain through the magnet, you just have to fix the bottle cap over it and it'll stay. No need to punch holes in the cap. And if you are stumped wondering how to make these necklaces for kids, worry not. Pretty flowers, their names, their favorite cartoon characters, etc., will surely make them a hit with kids. Ask them what kind of design they want and involve them too, so that all of you can have fun and pool in your creative ideas.

Next time you get bored, just give this a try, and you will end up utilizing your time efficiently and adding to your jewelry collection. Now that you know how to make bottle cap necklaces, have fun, and be as creative as you can! You'll love the looks you get when you sport it!

Choosing the Right Software for Your Business

Business management software is a must, but just how much do you really need?

Whether you’re starting a new business or expanding an existing one, the software you use can make things much easier - or much more complicated. There are about a zillion different programs of varying function and capability, ranging in price from a few hundred dollars to a few hundred thousand dollars - but that doesn’t mean you should necessarily go for the most expensive one you can afford.

Cost is always a factor in business management (though it may not be the leading factor), so the goal is to find software that does everything you need it to do without paying for bells and whistles or functions that don’t apply to your business.

Before you even start looking at individual programs, carefully evaluate your needs - then simply find the program that fits them (don’t ever alter your needs to suit the software).

Business Type

If all you need is general accounting, your business type doesn’t matter much when it comes to software. Heck, you could take care of that yourself with a well-designed spreadsheet on your existing software. More specialized programs, however, are designed with certain businesses in mind.

Restaurants may want a program that also handles recipe cost and allows front-of-house to back-of-house communication. Medical offices may need something that integrates insurance coding. Manufacturers could use materials tracking and supply chain info, while service-based businesses may prefer a task-timing option.

Business Size

There is software out there that will all but run your business for you - but they may cost several times the total value of your business itself. You don’t need an M.B.A. to recognize that as a bad investment. Chances are, that mega-software has entire areas of function that you just wouldn’t use.

The right software investment is one that doesn’t require a tremendous loan, and provides perfect functionality for your individual business. That means that there should ideally be no software feature that you’re not using, but it shouldn’t lack anything you need. Many smaller or mid-range programs offer add-ons at additional cost, which allows the software to grow with your business. This is the perfect scenario, as you can use the basic version for as long as it serves you, then pay for individual upgrades as they become necessary.

Features

Like any software developer, the companies that make business management software often load the thing with a bundle of tiny little features that inflate the price without adding any real value. If these are optional add-ons, avoid them. If they are bundled into the package and you cannot opt out, look for a more basic program.

Some of these features may seem like a cool idea, but they’re only worth paying for if you’ll actually use them. For example - smartphone synching - sure, it’s a neat idea and very technologically sleek. But do you really see yourself doing payroll from your phone? Mobile alerts and reminders are another - if you open the program everyday anyway (this is your business, after all), those very same alerts will pop up on your home screen. Do you really need them sent to your iPad?

Support

No matter how good software is, it’s always made better with good customer support. Your fancy new software is useless if you can’t figure out how to set it up in the first place. If you do try to set things up yourself on a wing and a prayer, pray that you don’t type anything in the tax info section - or the IRS may come calling. Mistakes have a way of screwing you down the road.

A company should stand firmly behind its product, and that means providing you with a rep who will train you and your staff to use the software to your utmost advantage, and set up any necessary networks, new terminals, etc. Larger software companies should have local reps that will actually come to you when there’s a problem, instead of forcing you to spend hours on the phone with tech support. This is part of what you’re paying for. Of course, these kinds of features don’t come with the cheaper programs - then again, the simpler programs usually don’t warrant that kind of hand-holding.

Now that you have an idea of what you need, start looking around. Do your own research before you even speak to the first sales rep, because the pitch is hard and will throw you off track. Take advantage of trial periods before you buy, and get feedback from applicable staff before taking the final plunge.

Types of Auctions

Selling of goods and services through auctioning can be dated back to 500 BC. Though initially uncommon, this practice has gained significant popularity, resulting in the development of various kinds of auctions...

When a certain item is sold in public through competitive bidding by the buyers, it is known as an auction. This term was derived out of the word augeo, which is Latin for 'to increase'. An auctioneer is a person who conducts the entire process on behalf of the seller. Auction professionals suggest the kind of auction suitable for a particular item so that maximum profit can be derived out of it. There are different types of auctions, each having their own unique format. Discussed below are the various kinds of auction a seller can choose from.

Depending on the Method of Conduction

» English Auction
Also known as an open ascending price auction, this method is highly used for selling real estate, antique items, paintings, and secondhand goods. At least two participants are required to carry out this auction. Before beginning the process, the auctioneer may or may not announce a minimum exceeding value for every higher bid. The seller may set a minimum price for the item to be sold, which if not reached, will render the item unsold. Participants openly call out their bids, and the one who bids the highest, pays that amount and takes the item home. Another variant of this method is the silent auction in which an auctioneer is not involved, participants write their bids on a sheet of paper placed beside the item to be sold. The person writing the highest bid takes the item along.

» Multi-par Auction
Land, farms, timberland, etc., are generally sold through this method. The seller may either sell the entire land to one person or sell portions of it to different buyers. The portions are decided beforehand so that the offer package is ready before the auction. On the day of the sale, the land is offered as a whole as well as in small portions. After the bids are submitted, the seller goes through each of them and decides how he wants to sell his property. If selling the land to a single buyer is more profitable, he may sell his property to him, or else he may choose to derive profit by selling portions of land to multiple buyers.

» Sealed First-price Auction
Also called first-price sealed-bid auction, it is a type in which the participants do not bid openly, but rather submit their bids in a sealed format to the auctioneer. This way no participant is aware of what others have bid. When the time frame for submitting bids is over, the sealed envelopes are opened, and the participant with the highest bid pays the price to enjoy ownership. This method gives the seller an option to secretly study the bids and decide along with the auctioneer the best deal for the item. Government contracts, tenders, etc., are usually issued using this method.

» Vickrey Auction
An auctioneer conducting this kind of session uses the same format as mentioned in the sealed first-price auction, with a slight difference in that the winning participant does not need to pay the amount he is willing to pay. Rather, the amount mentioned in the second highest bid must be paid. This is the reason why this method is also referred to as sealed-bid second-price auction.

» Dutch Auction
Items which can easily perish, like fish and other eatables, are sometimes sold by this method. Here, the auctioneer announces an extremely high bid which is subsequently lowered till a participant agrees to pay a particular bid. This is why it is also known as open descending price auction. It is not widely used for the purpose of auctioning.

» Commodity Auction
This multi-unit auction is used when similar items need to sold to consumers. It does not follow an open bid system, and the participants are required to follow the sealed envelope method. Auctioning is carried out either with a uniform and single transaction price, or varied transaction prices. Commodities like wool, fish, or livestock which can be sold in bulk at wholesale prices are usually auctioned by this method.

» No-reserve Auction
This type is also known as an absolute auction. A minimum price for the item is not decided by the seller, due to which more participants are attracted towards the bidding. The highest bidder wins, even if the actual worth of the item is not met. This may not be in the favor of the seller, therefore, not many auctioneers suggest this method.

» Reserve Auction
In this method, the seller has the right to decide a minimum price for the item, with or without disclosing it to the participants . If the final bid is lower than the reserved price, the item remains unsold. The reserved price is either discretionary or fixed beforehand. This form is suitable for sellers who do not want to take any risk of underselling. They can set their bottom line and exercise power on every aspect of the sales process.

» Multi-seller Auction
Here, items belonging to different sellers are auctioned in a single event. This kind of auction is beneficial for buyers as well as sellers. Buyers get the opportunity to bid for several items under one roof, and sellers get to share the cost of promotion amongst each other. This sort of event draws several participants simply because there is a wide range of choice.

» Minimum Bid Auction
This format presents a minimum bid value to the bidders before they actually come up and bid for the item. This way they are aware that if they bid below the set price, they will not qualify for the sale. The minimum value is fixed beforehand, and the seller cannot modify it on any occasion.

Depending on the Venue

» Ballroom Auction
Bidders are expected to check out the original property on their own, and come to a predetermined convention center or an indoor meeting place for the bidding. Highlights of each property and its pictures are only displayed during the bidding process.

» Online Auction
The Internet is now used for auctioning several products and services. Details of products and their images are available on the auction website. People can browse through them and bid on a desired product. Bidding continues till the deadline is met, after which the product goes in favor of the person who has bid the highest value for the product.

» Webcast Auction
Also known as live online auction, it is conducted via the Internet with the auctioneer at a remote setting and bidders scattered worldwide. Participants can place their bid through a bidding interface after going through live videos of the product and other audio clips on the Internet.

» Catalog Auction
When it is not feasible to gather the items for sale at a single place, simply because all are scattered in different locations, this method is used. Participants can inspect the goods by visiting respected locations before the event takes place at a hotel or convention center. A catalog containing list of goods to be auctioned is available there for the bidders.

» Caravan Auction
It is called so because the auction professional and bidders actually move from one property to the other located close by, so as to carry out auctioning on the site.

» On-site Auction
When sale of a real estate property is conducted in the actual premises of the property, it is known as an on-site auction.

Auctioning is frequently done for real estate, antique items, livestock, businesses, cars, holiday packages, etc. Each method mentioned above is different in terms of time required for conduction and pricing. When conducted properly, starting right from the first bid to the preparation of the binding agreement after the winning bid is announced, an auction can get the best deal for the seller and the buyer.