V-Auction

The most important part of any auction is the bidding. In a traditional auction, the lots are auctioned one lot at a time. Bids are placed, the bidding price increases until eventually the highest bid is placed, and no more bids are placed. The bidder with the highest bid wins the lot.

Specialty coffee auctions are different; they work as a ‘Helmsman’ style auction also known as ‘ multi-unit. It works like this:

• Open bidding starts and continues on all lots simultaneously until each and every lot has received an initial bid.
• As soon as each lot has received a bid, the auction clock for each lot, starts ticking down from 3 minutes towards zero.
• Every time a bid is placed, the clock resets to 3 minutes remaining.
• Once the clock reaches zero, the auction is over and the winners are declared.

This means the full value is achieved for each and every coffee in the auction. This is because the outcome for each coffee is tied to the outcome of the auction as a whole. The more people bid, the more the coffees remain available across the whole auction. This means the producers will receive good value for their coffee and we will all contribute to the sustainability of their farming.

To participate in any V-Auction event, registration is required. You will need to create a V-Auction account and agree to our Auction Platform's Terms & Conditions. By doing so, we can verify your identity and ensure that you are aware of and agree to our policies. Once your registration has been approved and you have accepted the bidding agreement for the upcoming auction, you will be ready to bid on the day of the event.

To participate in bidding, you must first log in or register on the site, and create a V-Auction account. Once you've confirmed your details, you will be directed to a page showing the upcoming auctions, where you can accept the bidding agreement.

Alternatively, if you already have a V-Auction account, you'll see a reminder each time you log in to accept the current year's bidding agreement, and also on the auction page.

It's worth noting that the bidding agreement is reviewed annually to account for any changes in the circumstances of the coffee producers. Therefore, you must accept the current bidding agreement every time you wish to bid in an auction. Please remember that you won't be able to participate in an auction unless you've accepted the bidding agreement for the current year.

Your V-Auction login details will be valid across all our different auctions throughout the year. This means that you can use the same email address and password to log in to all auctions from the various producers that we work with at V-Auction.

Bid at the suggested increment: Simply press "Bid" and then "Confirm" to place your bid at the next suggested amount.

Bid higher: Enter an amount greater than the current bid plus the minimum increment into the text box next to the "Bid" button. Press "Bid" and then "Confirm" to place your bid.

Auto Bidding: Set a maximum bid amount (also known as 'Proxy Bid'). The system will automatically bid on your behalf up to this amount. Note that your auto-bid must be higher than the current highest bid. If bidding exceeds your maximum, you'll need to set a new auto-bid.

Pre-bidding lets you set an autobid before the auction starts, ensuring you won't miss out on lots you're interested in. You can establish your autobid upfront, so you don't have to keep an eye on the auction once it begins. This means you can increase your chances of winning while staying flexible with your bidding strategy.

The identity of each bidder will be anonymous and unknown to other bidders prior to and during, the online auction. Bidders will be identified by a random ‘Paddle Number’.

The identity of the highest bidder for each lot will be made public when the winners are declared at the end of the auction. The winners' details will be passed on to the producers and used to form the contract for the sale of the coffee and to finalize the shipping arrangements.

The usual time allowed for the initial period (before all lots have received a bid) is an hour but will be determined by the number of lots and participating buyers. Once the clock starts ticking, it all depends on the level of demand. Do not be mistaken into thinking that this style of auction is over very quickly - expect several hours for specialty coffee auctions.

Real-time updates are essential in a coffee auction where the auction clock is counting down quickly between bids, and it is what makes online systems perfect for this type of auction. We recommend that you have a fast stable internet connection for your auction participation.

Payment for auction lots is due in FULL 15 days after the auction date. Please ensure you are familiar with the Terms & Conditions you agree to when you register for the auction.

If the winning bidder does not pay the due amount within this time, the lots will be offered to the bidder who placed the second-highest bid.

After the auction has closed the producer will be in touch with you to arrange payments, contracts and shipping. Once all these are agreed upon, payment will be made by bank or wire transfer. Other options are available and we can discuss those as they arise.

We're always eager to build new relationships and discover fresh, exciting coffees for our platform.

• If you are interested, please fill this form and our team will get in touch.

• The story behind the coffee: Buyers sell this story to their customers. Do you have unique branding that sets your coffee apart from your neighbor's?

• The processing: Is this the right process for the high end market? There are many new and alternative and experimental processing methods. Colombia has good examples.

• The variety: Are you able to offer anything unique or special to your growing region?

• The quality and score: Buyers trust in regional competitions, but they also know that the coffee can be overscored in origin also. We would suggest coffee around 88 points or more. 

• The awards: Has your coffee been featured in any local or international quality competitions?

• The lot size: 20 lots is the average in a coffee auction, weights offered are variable from 6kgs up to 1000kgs. We suggest smaller lots as they are more exclusive. 30kgs is also easier to ship post auction.

• The samples: Are you able to design and print 20-30 high quality exclusive sample boxes and then prepare sample sets in a timely manner prior to auction? Sample sets need to be ready two months before the auction day. 

• The logistics: Are you able to arrange shipments of coffee lots and sample box dispatch from origin to destinations over the world?

We offer three different price plans:

• Basic
• Smart
• Professional

These differ in the scope of the functions on the platform, the number of marketing activities and the support before and during the auction. Depending on the chosen pricing plan, there is a fixed fee and depending on the total turnover of the auction, there is a commission as a final fee after the auction. For more information, please contact us.

Auctions offer a valuable opportunity to reach into the global market and need some preparation time to be successful:

• 5 months before the auction date we will sign the contract and start with a kick-off meeting
• 4 months before the auction date your website will be set up and filled with life
• 3 months before your auction date you will approve the website and the marketing plan
• 2 months before the auction date we will start the promotion for your auction

Coffee producers and organisations do an auction every year with their best lots this is usually with a key theme to promote the auction and build a story around your coffees.

All lots are auctioned at the same time. Every time a bid is placed, the clock resets to 3 minutes. Once the clock reaches zero, the auction is over and the winners are declared.

This style promotes maximum participation from bidders, leading to the highest possible turnover for each coffee. It is an ideal way to auction items that are almost identical. It leads to a higher average price for each lot. When all lots are pegged together against a 3 minute clock, the pricing outcome of all the lots is dependent upon the bidding on the auction as a whole. This auction can go from 1 hour to 12 or more hours. Competition among the lots ensures continuation in the auction. Bidders change their bidding strategy during this style of auction.

Each lot is auctioned individually and there is an auctioneer pushing the bidding in the room, bids can be placed online or offline. This mostly suited for organisations and members. As each lot is auctioned separately. Each lot will get very different pricing results. 

No, you don't. But you will need to ensure that you can partner with another company to ship the coffee to the winners after the auction.

Yes, you must ensure that the coffee is available in a warehouse and that you will be able to ship the coffee to the final destination once the auction ends.

Coffees prices listed on V-Auction should reflect the FOB price in $/kg. Therefore this should consider not only your production costs but also the cost of preparing your coffee for export. The aim is that the price will raise during the auction, so we suggest to state your openning bid or reserve price with the minimum amount that you will be willing to accept for your coffee.