Inside Track: Andrew Hamilton on his wide-ranging Auction Xchange

Andrew Hamilton is managing director of Auction Xchange, an auction house in Sandyford Industrial Estate in Dublin. It is open to the public, commercial buyers and sellers. It handles catering, retail, office and household fixtures and fittings at fortnightly auctions.

What sets your business apart from the competition? Traditionally the items associated with auctions are antiques, cars, property and plant and machinery. So the range of items we deal with make it unique.

We offer a complete end-to-end solution to businesses whereby we can go into a building, list all the assets they want to dispose of, take them away and sell them. We sell to a diverse market. So, for example, we’ll take not just the desks but the canteen furniture and fridges as well.

It’s a 28-day sales process and we have every asset marketed individually online, on mobile and in the auction rooms.

The advantage is that people can go and view the items before they go to auction unlike other online sellers. We sell at the market value – the bidders determine the price.

What is the best piece of advice you've ever received? 'Those who recognise change and are the quickest to adapt will be the ones to succeed.'

Coming from a background in the motor trade, there were peaks and troughs in the market and the various models and brands performed differently.

At Auction Xchange, we have applied an online, as well as an in-house model to the traditional notion of auctioneering.

What's the biggest mistake you have made? It would have to be being too reliant on a specific business segment and its accompanying seasonality. When I ran Victor Motors, the business was exposed to the seasonality of the new car sales market. Sales were not spread evenly throughout the year and also it was a luxury product to some extent.

At Auction Xchange we focus on a number of different industries so there is less seasonality.

What has been your major success to date? The decision to sell the family motor dealership at the right time was a successful business move.

After that I also adapted to a new career in corporate finance while qualifying as a chartered accountant.

From the point of view of Auction Xchange, I am delighted to have been able to grow the business during the recession and to be able to employ five staff.

Having worked in corporate finance in a rewarding but demanding role, I am happy as a father of three young boys to have a work-life balance which means I can have dinner with my family each evening.

Who do you most admire in business and why? My father Victor. He worked his way up to senior management in Hertz, before making the decision to go it alone. He started out by renting my mother's car from their house and went on to grow a successful multi-franchise motor dealership that operated for more than 30 years in Goatstown, Dublin, which at its peak employed 25 people.

My father had a strong respect for education and instilled in me the desire to further my education and focus on the “corporate” path. Ironically my career to date has mirrored his own. With an entrepreneur as a father, we always had interesting conversations round the dinner table as a child.

Are the banks open for business with SMEs? Auction Xchange's business model is "cash-flow positive". We are selling on behalf of third parties and do not spend on stock. No credit terms are provided and we are paid on the fall of the hammer.

Therefore, thankfully I have never been limited by or dependent on the decision of a bank manager.

In my opinion, however, bank charges are excessive and inflexible, which has driven new entrants to the market such as Stripe and crowd-funding options.

What advice would you give to the Government to stimulate the economy? Remove the barriers that discourage entrepreneurship. Don't discriminate against entrepreneurs but make the system fair and equitable.

Currently, proprietary directors do not qualify for the PAYE tax credit of €1,650 so they enter the tax net on earnings of €8,250 compared with €16,500 for PAYE workers. But while the self-employed are taxed more heavily, they also secure fewer social benefits.

What has been the biggest challenge you have faced? Adapting to significant changes in the business environment.

Historically, we had a client base of predominantly liquidators and receivers but the number of liquidations has dropped.

In the relatively short period since opening our auction house we have had to adapt and now attract clients who are manufacturers, distributors and retailers who are auctioning incorrect orders, aged and end-of-line stock.

How do you see the short- term future for your business? We have a great team here and are constantly reacting to our clients' requirements following the principle of continuous improvement.

Originally we held monthly auctions, then they went fortnightly and, for 2015, we are seeking to double productivity by holding weekly auctions. What is your business worth and would you sell it? In the corporate finance world, there are many formulas to value a business but experience has taught me that the real value is determined by the highest bidder.

Our bespoke online platform looks set to double revenues in 2015 so I’m holding off on auctioning it any time soon. In coversation with Ruth O’Connor