RIYADH, 11 October 2006 — A person traveling to the general transportation station south of Riyadh will notice tens of people standing on the side of the road under the heat of the sun from afternoon until dawn. They chase cars carrying furniture and used electronic equipment. They create a huge traffic jam in front of the entrance of Ibn Kasim public auction. These are Saudi auctioneers hoping to triple their investments by buying low and selling high.
Once the car arrives inside, the auctioneer, going undercover as a customer, takes a quick look at the merchandise to evaluate it and estimate its price. The auctioneer operates with a group of helpers in an effort to get the merchandise at the price they want. The buyer takes the money and leaves. They then take the merchandise to the public auction.
“I come here after Asr prayer, especially on Thursday and Friday,” said auctioneer Abu Faisal. “It is a tough job. We run after trucks carrying all sorts of equipment for sale, like airconditioners, refrigerators, stereos and many other things.”
Abu Faisal, a government worker by trade, says that he has worked a second job at the public auction for the past five years earning about SR80 to SR120 a day. He says that some days he can work at a loss, since the buyers determine the price, but says he earns enough to pay the bills.
On one typical workday last week, a big truck driven by a Sudanese driver pulls in carrying five used couches. Auctioneers approached him and tried to convince him to sell the couches for SR40 and then increased them to SR50. The Sudanese driver was a tough negotiator and agreed to sell them at SR90. The Sudanese driver pulled away SR200 richer and less five used couches.
Salem Ahmad, a young Saudi who works at the public auction every day, said that the prices are very attractive for buyers.
“We as Saudis are a very consuming nation and we love to change things every year,” he said. “Many of the people change their furniture because they want to get a new set just like that. For us, it is a good deal because we can get items that are in good condition for low prices.”
Ahmad boasted he once sold a large amount of furniture for SR50,000 that he had bought for SR2,000.
“The problem with this place is that it is not designed for the auctions,” said Mansour, another broker at the public auction. “For example, you see many auctioneers standing on the side of the road waiting for a truck carrying products to pull over. The auction takes place on the public road and this sometimes causes a huge traffic jam. The municipality sometimes destroys the furniture displayed on the public road using tractors. This causes loss to auctioneers who bought the furniture to sell it and profit from it.”
Mansour said that he earns between SR2,000 and SR4,000 a month.
An Arab man pulled in with two large area rugs. He sold them for SR300. Later, the broker tried to sell the rugs, but the buyer discovered a burn mark. The rugs were re-sold at a loss, SR250 ($67). “It’s the nature of the business,” said the seller as he shrugged and went off in search of another deal.
