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GovDeals.com allows city to sell outdated items online By Ryan Mignone The city of Dover’s affiliation with GovDeals.com netted $59,200 in resold assets since last March. According to Pete Gregg, city procurement manager, the website allows him to sell obsolete and outdated items such as surge protectors and a street sweeper along with cars and trucks to interested bidders. In fact, Gregg said he recently sold a dump truck with no transmission that couldn’t even be put into gear to a man from North Carolina for $3,200. In another instance, 236 non-functioning water meters sold for $8,700. Street signs are also popular, he said, as a bundle of 300 went for $685 to an antique dealer outside of Delaware. The benefit of the website is that it essentially replaces the annual city auction, allowing Gregg to sell items quicker and for more money. “At the city auction, police cars would sell for $400 to $700,” he said. “We haven’t had one sell below $1,000.” Generated sales go directly back into the fund where the item originated, he said, and they are charged 7.5% for using the website. “It’s very reasonable since we’re tripling what we get at the city auction,” he said. Steve Kranzusch, vice president of company development for GovDeals.com, said 1,658 government entities participate on the website. Generally winning bidders have five business days to pay for the item and 10 days to pick it up. Registration is free for users and he said some participants have likened the website as the eBay for government surplus items. Similar to eBay, bidding wars continue up until the last minute of the item being sold. With registered bidders in every state, he said on average GovDeals.com brings in more competition for the items and exposure throughout the country, as opposed to a local group of people. Kranzusch said the company started its first auction seven years ago, and is headquartered in Montgomery, Ala. Since his involvement, he’s seen a whole catalog of items for sale, including a helicopter that’s currently up for bid at more than $500,000. Julius Eseni of Newark learned of the website from his brother. In the past he’s bought two cars and a truck, and said he prefers buying from the government since they are up-to-date on their maintenance of the vehicles. However, he recently bought a Dodge Intrepid and said he’s dissatisfied since it doesn’t perform to his expectations and inferred that it was seized in a police auction and then resold. “I regret buying it,” he said. Gregg said Dover is the only government entity affiliated with the website in the state and urges other municipalities to give it a try. For more information, visit www.govdeals.com.
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