Welcome to the Municibid podcast. Today, we have the pleasure of speaking with Greg Berry, the CEO and founder of Municibid. In this episode, Greg shares his story of creating Municibid and discusses the unique aspects of government surplus auctions. We delve into the challenges faced by municipalities in selling surplus items, the wide range of items available at government auctions, and the misconceptions surrounding these auctions. Greg also highlights the impact of Municibid in revolutionizing the government surplus landscape and shares some memorable stories from his 17 years in the industry.
The Creation of Municibid: Solving the Challenges of Selling Surplus Items
Greg Berry founded Municibid in 2006 after experiencing the struggles faced by his own town council in selling surplus items. He observed that the traditional sealed bid process, where items were listed in classified ads and bidders had to physically visit the town borough hall to place a bid, resulted in low prices for valuable items. Greg's entrepreneurial spirit and problem-solving mindset led him to create a more efficient and convenient solution for municipalities to sell their surplus items.
"I noticed that other municipalities in our area kind of were having the same struggle… they all kind of said, yeah, we're having the same problem. Like, we're just not getting the true market value for these items." - Greg Berry
The Wide Array of Items at Government Surplus Auctions
Government surplus auctions offer a diverse range of items, from vehicles and heavy equipment to airplanes, sailboats, jewelry, and even bridges. Greg recounts some of the most unusual items that have been sold through Municibid, including a hovercraft, vintage fire trucks, and arcade games. The variety of items available is a major differentiator of government auctions compared to regular peer-to-peer auctions.
"It's quite an array of items that could range from vehicles and heavy equipment, which is pretty much our top sellers, all the way to airplanes and sailboats and jewelry and electric guitars and furniture and IT equipment and cafeteria equipment and kitchen equipment and gym equipment. Literally, if you name it, it's probably been sold on Municibid." - Greg Berry
Debunking Myths and Misconceptions about Government Auctions
One common myth surrounding government auctions is that the items are all junk or in poor condition. However, Greg emphasizes that the condition of the items varies greatly, with some being brand new and others being used but still in good condition. Another misconception is that only companies or individuals with special licenses can participate in government auctions. Greg clarifies that Municibid auctions are open to the public, allowing anyone over 18 years old in the US or Canada to bid on items.
"The biggest thing is really just understanding what you're buying and the condition of it… really trying to understand what your top dollar is because you do get into, it's an auction, so it's a competitive environment, and you might be willing to go a little higher than what you thought you wanted to go." - Greg Berry
The Evolution of Government Surplus Auctions
Over the past 17 years, government surplus auctions have undergone significant changes. When Greg started Municibid in 2006, most governments relied on the sealed bid process or live auctions, which often resulted in low prices or limited accessibility. However, the advent of online auctions, like Municibid, has revolutionized the industry by making it more convenient for buyers and allowing governments to reach a wider audience. The ability to bid online has increased competition and led to higher prices for items, benefiting both governments and buyers.
"At the time, pretty much most governments, at least in Pennsylvania and really throughout the country, were using that sealed bid process or a live auctioneer… Whereas, of course, online we have buyers that buy items from across the country all the time, and it's just because it's more convenient." - Greg Berry
The Impact and Future of Municibid
Municibid has had a profound impact on the government surplus landscape, providing a platform for nearly 6000 governments across the US to sell their surplus items. By maximizing the results for each item and ensuring a true market value, Municibid has helped governments generate more revenue. Buyers, on the other hand, have access to a wide range of items and the convenience of online bidding. The success of Municibid is evident in the referrals from satisfied governments and the continuous growth of the company.
"We have an amazing team that works at Municibid and everyone really cares about the results, not only just for the governments and making sure that we maximize the results for each individual item, but also we really take care of making sure that our customers are happy… I'm really proud of our team for doing that and seeing how everyone has grown and how the company continues to grow at a pace that I could never have imagined." - Greg Berry
Stories of Creativity and Innovation: What Buyers Do with Government Surplus
Buyers of government surplus items have showcased their creativity and innovation in utilizing the items they win. From landscaping companies purchasing dump trucks for their businesses to collectors adding unique items to their collections, the possibilities are endless. Greg shares stories of parents buying their children's first cars, individuals repurposing fire hoses into wallets and belts, and the surge in conversions of vehicles into recreational vehicles during the pandemic. These stories highlight the diverse range of buyers and their unique use cases for government surplus items.
"The use cases for what people do with the items that they win are super interesting… We have several buyers who buy used fire hoses that turn them into wallets and belts and a number of other items from that. So that's kind of a really interesting use case." - Greg Berry
Conclusion: Transforming Communities through Government Surplus Auctions
Government surplus auctions, facilitated by platforms like Municibid, have transformed the way municipalities sell their surplus items. By providing a convenient and accessible platform for both buyers and sellers, Municibid has revolutionized the industry and ensured that governments receive fair market value for their items. The wide array of items available at government auctions, coupled with the creativity and innovation of buyers, has led to unique and impactful outcomes. As Municibid continues to grow and serve more governments, the future of government surplus auctions looks promising.
"In the end, it's a win-win for everyone. The government wins with respect to they're now getting a true market value for their items instead of pennies on the dollar that they were getting before. The buyer is still getting a great deal or even having availability to items right away." - Greg Berry
