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The Honolulu Advertiser
Posted on: Wednesday, March 25, 2009

THE NEW FRUGALITY
Grocery auctions drawing crowds of bargain-hunters

By Michael Rubinkam
Associated Press

Hawaii news photo - The Honolulu Advertiser

Auctioneer Kirk Williams, center top, called out bids as aides displayed items at a recent grocery auction in Dallas, Pa.

MATT ROURKE | Associated Press

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DALLAS, Pa. — Out of toilet paper? Need to pick up a few things for dinner? Take a number and start bidding.

Many bargain hunters these days are trading supermarket aisles for the auction circuit in search of deep discounts on everything from cereal to spare ribs. Past the sell-by date? Bidders are happy to ignore that detail if they're getting a good deal.

As consumers seek relief from the recession and spiraling food prices, grocery auctions are gaining in popularity as a way to cut costs. The sales operate like regular auctions, but with bidders vying for dry goods and frozen foods instead of antiques and collectibles. Some auctioneers even accept food stamps.

When Kirk Williams held his first grocery auction in rural Pennsylvania last month, nearly 300 people showed up. Astonished by the turnout, he's scheduling auctions at locations throughout northeastern Pennsylvania.

"Right now, people don't have a lot of spare pocket change," said Williams, 50, operator of Col. Kirk's Auction Gallery near Bloomsburg, Pa. "They're looking to save money."

Rich Harris, 28, who was recently laid off from his welding job, showed up at Williams' auction in Dallas earlier this month looking for meat for his freezer and snacks for his kids. With his wife pregnant with their third child, "I'm basically trying to expand my dollar right now," he said. "The deals, they seem to be fairly good."

Grocery sales make sense for auctioneers, too. Sales of baseball cards, estate jewelry and other auction staples have "fallen off a cliff," Williams said. He hopes to average about $12,000 in sales per auction, which would net him a profit of about $1,000.

The popularity of the auctions — which sell leftover or damaged goods from supermarkets, distribution centers and restaurant suppliers — comes as people are stretching their grocery budgets by using more coupons, buying inferior cuts of meat, and choosing store brands over national brands.

At Steve Schleeter's grocery auction in St. Mary, Ohio — where attendance has swelled in recent months — some regulars have told him they now shop mostly at the auction and only go to the store for milk and lunch meat. He estimates his customers can knock 50 percent off their grocery bills.

Like any auction, grocery auctions aren't automatically a bargain. Savvy bidders should know what things cost at the supermarket to make sure they're truly saving money.

The excitement sometimes leads bidders to overpay.

"Every once in a while, a customer bids it, and you're going, 'I'm pretty sure that's cheaper in the store,' "Schleeter said.

For the most part, though, the auctions pair food that needs a home with consumers who want to save a buck.

Marvin Mason, who runs grocery auctions in Indiana, Michigan and Ohio, said the percentage of shoppers who use credit cards and food stamps instead of cash has increased, indicating more people are showing up out of necessity.

"We've had more people who are needy, who have to watch their money," he said.