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
Sophie: [00:00:00] Welcome, Greg Berry, to the Municibid podcast. We're delighted to have you on board. Greg Berry, you're the CEO and founder of Municibid. Can you start us off, you know, telling us your story about creating Municibid?
Greg: Sure. It's fun to finally do this. We've been talking about doing a podcast for many years now. We're, we're finally doing it. So it feels good to, to get it launched and out to the world. But yeah, I started, I founded Municibid in 2006. I was on a town council and for the borough of Pottstown in Pennsylvania.
And kind of saw how our town was going about selling surplus items and the struggles that we were having. So we would for, as an example, we, we would have an old police car that had a, you know, let's say a blue book value of about 3, 000. And we would list it for sale using the, what's called the sealed bid process, which basically is that we put a [00:01:00] classified ad in the newspaper, a legal ad, letting the public know that this item or this vehicle is for sale.
And then if you happen to see that classified ad the two or three people, they would come in, they would have to come to the town, Borough Hall and fill out a bunch of paperwork just to place one bid. And it was kind of a one bid and done scenario. So we'd get a couple of low ball bids and then we would take the highest of the low ball bid.
So we'd sell that 3, 000 crown Victoria, let's say for 300. And then the next agenda item we would be debating over or trying to find a, you know, an extra thousand dollars to, to pay for another project. And I'm like, well, wait a second. We just gave away 3, 000. And so that kind of got my interest peaked.
Just being an entrepreneur and I guess a general problem solver. And then I noticed that other municipalities in our area kind of were [00:02:00] having the same struggle just from talking with other council members and township supervisors and township managers, borough managers, that sort of thing. And they, 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. So I have a technology background and put together this very rudimentary auction site and got some surrounding municipalities to give it a shot and it worked. And I really didn't know what to expect and nor did they. And so it was interesting.
One of the first sort of test items was a Crown Victoria. And it had a blown engine and the township was really just hoping to get a couple hundred dollars for it to get it kind of out of their you know, out of their lot and move on and it sold for around 2, 500. And they, they, they actually didn't believe it.
They didn't think that it was real. They thought something was wrong until the guy showed up with a [00:03:00] check for 2, 500 and took the car. And so of course they were excited. They were happy to give us a testimonial, and then we kind of went to the next township.
And then, you know, then they started, other townships started listing multiple items, and then it really just kind of grew from there. Our first, our very first item sold was a a lawnmower, a riding mower. They were hoping to sell it for a hundred dollars and it sold for five hundred dollars and they were ecstatic.
And so, yeah, just taking these results and testimonials kind of on the road. And then, yeah, it started to, you know, municipalities would start talking to each other and then started to grow from there. And then we made some investments and then here we are 17 plus years later.
Sophie: That's amazing. Yeah, that's crazy hearing about, like, how archaic that sealed bid process is, and I think most people, you know, unless they've been in government or seen those items listed before aren't aware [00:04:00] that, you kind of have to, like, go in person, submit one bid, and then later they just open them all up at the same time.
Greg: I mean, they, they, they just don't, you know, you don't know what the other person's bidding. So you don't have an opportunity to outbid that, that person, even though you're, you would be willing to pay more money for that item. And then just the convenience factor and sort of the intimidation factor for the general public.
If you're what I'll refer to as a professional buyer, That has experience buying from governments via the sealed bid process. That's kind of one thing you know, but again the outgoing to the borough hall filling out that paperwork It just really limits the audience so, you know, we've made it much easier way more convenient and comfortable for people to to find one find these items and then be able to easily bid on them and yeah, and finding the items is the other big thing, like who really looks at classified ads even, especially now, but even back then, it was, you know, kind of a dying thing.
So[00:05:00] bringing these items forward to the public makes a huge difference in the end results of the items.
Sophie: and what spurred you to run for council for the Pottstown Bureau?
Greg: I grew up in that borough for the most part, it's where I was born and raised. I owned a house there. I owned a sort of a investment property. It was a residential and commercial, like, sort of mixed use property. And, you know, just concern with the direction of the town interested in, you know, in the challenge of running for a public office.
I was only 25 at the time, maybe even 24. And I just thought it would be a great experience. And so, yeah, I got involved. I had a primary. Election and that was hotly contested and I won that and then I had a general election and I won that and so that that alone just the you know, sort of campaigning as A [00:06:00] local elected official was a really an interesting Experience i've learned a lot from that and then actually, you know, of course serving on the the borough council for four years Just offered a plethora of experiences that you know, you just don't have unless you're you're in that so yeah, it was a great opportunity a great experience.
Sophie: Yeah. So, government surplus, like who's generally selling these items and, like, what can people expect to see at a government surplus auction?
Greg: So yeah you know, it's governments of of all types so it can be anywhere from the federal level all the way down to the local municipality or township So you have departments within the federal government you have state departments you have counties Townships, boroughs, cities and then also organizations like water and sewer authorities, transportation authorities, parks and rec organizations, and.[00:07:00]
You know, so it's really any sort of government related institution, we'll call it and then also universities and school districts utilize Municibid to sell their surplus. And then within those, there's various different departments that have a plethora of items and 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 like airplanes and sailboats and jewelry and electric guitars and, you know, furniture and IT equipment and cafeteria equipment and kitchen equipment and gym equipment. And literally, if you name it, it's probably been sold on Municibid.
We even sold a bridge. Literally everything is I feel like there's not been anything that I know of That hasn't been sold on Municibid. I guess with some exceptions, but yeah, it's it's pretty interesting to see what comes up For auction.
Sophie: That's crazy. That's like a whole [00:08:00] bunch of different items. This bridge though, like, was it the structure? Or like, was it like the land or water part of it too?
Greg: It was just the structure of the bridge. So yeah, it was that this was a long time ago I think back in 2008 or 9.
Sophie: Wow.
Greg: yeah,
Sophie: Must have been something to take apart and move.
Greg: yeah, exactly It was it was more of a project than anything else. But yeah,
Sophie: Yeah. Why are governments selling these items that they have?
Greg: For the most part the governments that are selling with Municibid are selling items that they have used, they've bought themselves, they've used and they no longer have a need for or the items are being replaced or upgraded or they've reached the end of life or they just don't have a need for these items where they might have thought they were going to be doing a project and that project was canceled in addition to that there could be items that They obtain that are kind of lost and found items or through [00:09:00] forfeitures And so it's basically anything that a government Owns, that they no longer need and that they're looking to sell or liquidate and you know, obviously we give them a very easy way to be able to do so.
Sophie: what are some of the most unusual items that come to mind, you know, that have been sold over the past 17 years on Municibid?
Greg: Yeah I mean, there's there's quite a few. You know, there was one hovercraft. There was a a sailboat, that a town acquired, in in Massachusetts. It was kind of an interesting story. You know, Maseratis and Corvettes and things like that vintage fire trucks and then just kind of odds and end type items we've.
We had like a whole group of arcade games, like early nineties, arcade games you know, juke boxes, just a wide array of interesting items that have just [00:10:00] come across. And I'm, I'm always sort of surprised to see what comes across, but even more surprised on how much some of this stuff sells for and that the, the interest level.
In some of these unique items.
Sophie: Yeah, and to clarify here, it's not governments buying Maseratis and then Using them, later selling them. Those are
Greg: Yeah, that's typically not the Yeah, that's typically not the case you know when it comes to the maseratis or the corvettes or higher end, you know sports cars as an example You know, those are typically Recovered in what what police, or district attorneys would refer to as forfeitures as a result of a criminal investigation or prosecution.
So again, whatever means that occurs the, you know, obviously there's a process for that. And, you know, at the, at the end of the day, now the government owns it and they don't have a need for it. So they have to. [00:11:00] They're, they're looking to sell it,
Sophie: How has the landscape of government surplus changed, you know, over the years? Nearly two decades now that you've been in this industry.
Greg: Yeah. I mean, it's changed quite a bit back in 2006. When I started Municibid, it was actually in Pennsylvania. It was kind of the first time or the first year that governments were allowed to sell via online auctions, at least in Pennsylvania. And then kind of the same thing was true for other States, but at the time, pretty much most.
Governments, at least in Pennsylvania and, and really throughout the country, we're using that sealed bid process or a live auctioneer.
So that that's when they get in a situation where they sell that 3, 000 police car for 300. And you know, so they're not, they weren't getting a true market value in the case of live auctions, they would have, you know, more, more buyers, but the thing is, they would tend to have those on [00:12:00] an annual basis.
So items would just kind of sit around and waiting for this live auction to happen. And then you get to the live auction day. And all of a sudden it's raining or there's bad weather you know, and a, a number of factors that can come into play with that. And then people just, you know, willingness to travel a certain distance 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, they can, you know, one, they can find the items a lot easier and then bidding on the items is just a lot more convenient, and they only really need the travel to pick up the items themselves, or if they want to go and inspect the items beforehand.
Sophie: What would you say are some common myths that Maybe the general public who hasn't been involved or participated in government auctions before has or like some misconceptions that they might have about government auctions.
Greg: Yeah, I think [00:13:00] the most common one is that the items are all junk, or it doesn't work, or they've, run these vehicles or equipment into the ground, and it, you know, you might be able to get some scrap money value out of it. and that is true for some cases, but We have items in, you know, from brand new where again, they've purchased items or equipment or vehicles for projects that ultimately ended up not getting funded or didn't happen for whatever reason.
The condition of the items really does range. The other the other sort of myth is that you have to be a company or have a dealer's license or something like that to be able to buy a government surplus.
And, you know, with Municibid, the, the auctions are open to the public. So anyone can buy. And in 18 years or older in the U S or Canada. Of course with verification and things like that, [00:14:00] but yeah, I mean it's it's open to basically everyone You don't need a special license. You don't need a reseller's license.
You don't need a dealer's license. You don't have to be a company and we have quite a few individuals that buy items. We have parents that buy their kids their first cars on Municibid Or we have people that are kind of DIY ers that do, you know, crafts and projects that buy sort of, you know, raw materials on Municibid for those projects.
So it really does run the full gamut of opportunity for, you know, what's available.
Sophie: With the general public being able to buy items that the government's selling are there any legal concerns that the public should have, you know, when it comes to some of these, emergency service or, like, military items that governments can be selling.
Greg: Yeah, typically if the government's selling you know, they know that the the items are up for sale to the public [00:15:00] in some cases, with respect to Pretty much law enforcement some items can be restricted to other To only other law enforcement agencies and you know, and we do have other governments that buy from other governments on Municibid we do have businesses.
We do have individuals. We have non profits and so, it's quite the mix of of buyers So, you know in the in the instance where there there might be a specialized piece of equipment generally police related then, you know, it's They can restrict that to only police departments or certified police departments.
And then when it comes to lights and sirens, let's say on a fire truck or an ambulance, sometimes they come with them because they're just too difficult to remove. Obviously it's not legal to Buy a fire truck and drive it down the street with the lights and sirens on. So I definitely don't recommend that.
But in, in the case of police vehicles, typically they do remove the lights and [00:16:00] sirens from the vehicles, unless they know that it's going to another police department.
Sophie: Right, right. And, what tips would you have for The general public who's maybe brand new to government auctions but is interested in checking out the items and finding things that'll work for them.
Greg: Yeah, the biggest thing is really just understanding what you're buying. And you know, the condition in it, and we work very hard with with our selling, selling agencies to make sure that they provide as much information and an accurate listing as possible. But really to kind of do your own research and due diligence into the items condition and that sort of thing.
And that might mean going and inspect the items before bidding asking questions through our Q& A channels on the listing pages and then really trying to understand. You know, what, what your top dollar is because you, you do get into, you know, [00:17:00] 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, but having sort of that idea in mind. Allows you to, not get so caught up in the excitement of, of the auction and kind of stick to your guns as far as what you budgeted for that particular item. So yeah, just really understanding the, the quality and the condition of the items, asking questions, inspecting the items and then understanding, how much you're, you're really looking to spend.
And then I would also add understanding sort of the, the terms and conditions, if you will you know, the rules of the auctions just so that there's no you know, misunderstandings at the end. So for, in some cases, and we make this very clear on the listing pages, in some cases, the governments have to vote on the results of the items and we work with the governments to try to end their auctions as close to the meeting that they'll be voting on the items That way there's [00:18:00] no.
You know real delay So that the winners, you know, the person who won the auction doesn't have to wait a month before They find out whether or not the the town accepts it for the most part the towns accept the auction results. It's very rare that they don't but there are some cases where that is, but that's made very clear.
On the the item pages So really just kind of understanding and reading the item pages the listing pages to get All the information, understanding where the item is, I would say is another one sometimes, and we include a map on all of the listing pages so that it's very clear where, where the items located.
Because again, we have buyers that buy cross country all the time.
Sophie: Right, you know, this is not a store, where you just walk in, pick up an item, pay for it, leave. You're placing a bid, you're working with governments and they've got each is a little different and has their own, like, process. What's some, major differentiators or what really [00:19:00] makes governmental auctions unique versus You know, every day kind of peer to peer auctions.
Greg: Pretty much the type of equipment that you would find available and while you can find, you know, and you will find a wide array of items up for auction on Municibid you're in a, in a general local auction that you might go to, that's, not a government auction.
You're just not going to see you're typically not going to see fire trucks and ambulances and police cars and EMS equipment. So things along those lines they tend not to come up in these other auctions unless they're being resold by people that have bought them previously from governments.
Yeah, I mean, I think that's kind of one of the key differentiators between just the regular auction or like, you know, an eBay auction or something like that. It's just kind of the, the unique items that you'll find things like fire hoses and just, just kind of general random equipment that governments would own [00:20:00] that.
Sophie: Very cool. And can you share one of your most memorable experiences or stories, you know, over the past 17 years of running Municibid?
Greg: You know, it just, I guess, kind of looking back from the very beginning, it was, you know, we had zero customers. We had zero buyers. We had zero sellers. And, with it being a double sided marketplace, it's like, okay, well, what side do we, we go after? And for me, it was pretty clear that we needed the governments to, to list items because I was pretty confident in our ability to get the word out.
Locally, and at the time it was very local. And so depending on where the item was located, we would do all kinds of advertising in that particular area. You know, both kind of in print even so much as those flyers with the pull tabs, putting them up in Home Depot and Lowe's and grocery stores, and just really on the ground[00:21:00] sort of marketing is how initially it got started.
And then, you know, sort of word started spreading and then we, we started getting a little bit more sophisticated with our marketing. And now we have an entire, what I call a marketing machine. That really gets the word out to to people about these items, which of course then brings in more buyers and, provides a better result for the government, which is actually a win, win, win for everyone.
So the, the government. Wins with respect to, they're now getting a true market value for their items instead of, you know, 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. Over the last couple of years with respect to the supply chain issues government auctions.
We're a great place to buy items that were available right now, as opposed to having to wait six months for inventory to arrive or for parts to arrive.[00:22:00] So it really filled the gap with respect to that. So and then just generally. Growing the team over the years. We have, we have an amazing team that works at Municibid and, and everyone really cares about , the results.
You know, not only just for the government's and making sure that we maximize the results for each individual item, but also we really, really take care of making sure that our customers are happy, that their questions are answered. We put a lot of work into refining things to make things easier and simpler and faster and more organized.
And that's an ongoing, that's an ongoing process. So really, really proud of our team for doing that and seeing how you know, everyone has, has grown and how the company has, continues to grow at a pace that I could never have imagined to this day. And, you know, now we're serving nearly 6, 000 governments [00:23:00] across the U. S. You know, and I think that says a lot and a lot of those governments come in by referrals. So these, you know, one government talks to another and they recommend Municibid. And so we see, we see quite a bit of that, which is, I think the ultimate testimonial.
Sophie: That's incredible. Yeah, happy customers and, great successes. Definitely the best natural word of mouth growth for a business. Would you like to share some of the stories about what buyers are doing with the government surplus they win and how they're upcycling items or how they're reselling them in their own businesses?
Greg: Yeah, it's, it's really interesting. The use cases for what people do with the items. That they win are super interesting. I mean some are just kind of like obvious Okay, a landscaping company buys a dump truck, you know, for their, for their landscaping business. Okay, that's obvious, but then there's [00:24:00] a whole number of use cases that are, that are interesting.
So it's, well, it's, it could be collectors. You know, looking to add to their collection and that collection could be anything from coins to firetrucks and literally everything in between. There's a number of collectors out there who collect almost anything. Then we have stories of parents buying their kids, the first car on Municibid.
Then we have, people that are into, do it yourself projects. They source materials in fact, one interesting one is 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.
Then during the pandemic, we really saw an uptick in interest. In conversions for RVs. So whether it's an ambulance or a school bus or a [00:25:00] transit bus you know, any number of items that could kind of be turned into a recreational vehicle. We saw a huge uptick in that as people, especially during the pandemic, as people wanted to kind of escape and hit the road and. You know sort of live that nomadic life but then we've had other buyers who we have one particular buyer who took a city bus and turned it into a disney themed rv star wars and you know that sort of thing and then he took his family to disney in it I thought that was pretty cool.
We have another buyer who took an ambulance and turned it into a a tailgating machine and use the the gurney or the stretcher as the grill holder. And I thought that was pretty cool. And you can find that story on our blog and each year. We do what we call a share your story contest where buyers submit unique stories about what they've done with the items.
And then we, we, we pick winners from there. So it's [00:26:00] always really interesting to, to read through how buyers are using. The things that they won on Municibid, but yeah, so it really does run a wide, there's, it's a wide range of use cases from just businesses buying equipment that they, that they use to provide their services to individuals buying things that they can use personally, resellers collectors.
It really is a wide range of, of buyers.
Sophie: That's amazing. That's so cool how creative people are with the items they win, like turning into RVs, what was before just, running bus stops around town. That's amazing. Thank you so much, Greg, for coming on the podcast today. It's been an absolute pleasure chatting about Municibid and all of these awesome stories of, you know, settlers and bidders and how they're transforming their communities.
Greg: Yeah, it's my pleasure. I'm again, I'm really excited that we're finally [00:27:00] kicking this podcast off and getting it off the ground and getting it launched to the world. So I hope everyone enjoys it and get something from it. And you know, especially hit us up in the comments. If you have questions or just general comments, we'd love to read them and be, and be in touch with you.
Sophie: Yes, and, we'll be releasing a new podcast episode every week, so subscribe and tune back in next week.
Greg: Wherever you get your podcasts, as they say.
Last Updated on June 25, 2024