The Price Discovery tool finds similar lots recently sold and returns the minimum, maximum and average prices, alongside a ‘Confidence’ rating.
Summary
Australia’s highly varied livestock production models, market volatility and opaque price transparency can make it extremely difficult to understand the current value of marketed livestock. An inaccurate valuation either excludes the seller from the market, or undervalues the listed stock - both undesirable outcomes for seller and agent alike.
There is an opportunity for AuctionsPlus to offer some assistance by utilising the values entered into the assessment to offer price analysis of successful historical transactions of ‘similar’ stock. The Price Discovery tool finds similar lots recently sold and returns the minimum, maximum and average prices, alongside a ‘Confidence’ rating.
What does the Price Discovery tool provide?
These insights provide both an analysis of relevant historical sales results and further insight and evidence as to where these values are derived.
Refer to the screenshot diagram below for a detailed explanation:
A - Offers the assessor the facility to select the historical time range from which the analysis is calculated.
B - The minimum price returned for similarly assessed livestock across the defined duration.
C - The weighted average price returned for similarly assessed livestock across the defined duration.
D - The maximum price returned for similarly assessed livestock across the defined duration.
E - The sample from which the sale price insights are drawn. These represents actual assessed lots that have been submitted to AuctionsPlus for listing. The sample includes all lots sold prior to auction via 'Buy Now' or 'Make an Offer', all lots sold at auction, and the highest bid for all passed-in lots.
F - A ‘Confidence' estimate to offer the assessor an indiction as to the number of assessment data points utilised to draw the sample of sale assessment results. The assessor can review the individual lots or review a chart that may offer some understanding of trends and cycles.
What data from the Assessment does the Price Discovery tool use to find similar lots?
This feature utilise a range of data points provided within that unique assessment to locate a sample of sale results from which to create the price insights. This process occurs at at each assessment, and revisions to the assessment may have a impact upon the resulting price insights.
The Price Discovery tool utilises the following fields in identifying market results of similar livestock:
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Species
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Dam Breed
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Sire Breed
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Pure Bred status
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Live Weight
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Sex
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State & Region
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Stock Category
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Best Description
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Age range (low & high)
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Joining Details
Combined with a default duration of 30 days the minimum, average and maximum is calculated.
What does Confidence Estimate mean?
The Price Discovery tool offers great value in providing tailored sale price insights unique to the assessment. However the vast range of livestock assessment characteristics offers challenges in collating identically assessed lots and for that reason a proprietary algorithm is used to match the assessment with the most similar sample. The Confidence Estimate offers the assessor an indication of the level of data point hierarchy used to identify a sufficient sample.
Retrieving a sufficient sample follows 3 phases:
Phase 1
A comparative sample is drawn from the relevant species, sex, age range and ‘best description’, state and live weight range.
Phase 2
Include the joining details, if specified, and narrow the sample to region.
Phase 3
Incorporate the assessments breed data (including Dam and Sire) to refine the sample.
Ratings
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Indicates that a sufficient sample is drawn from all 3 phases. |
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Indicates that in the absence of region-specific sample, a sufficient sample is drawn from the wider state albeit with a tighter weight range. |
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Indicates that insights are drawn from a sample that is not specific to region, but rather state-wide. |
Important Considerations
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This Price Discovery tool is designed to offer the assessor an accessible opportunity to review recent sale results.
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The feature is not a replacement for Livestock Agents' experience, expertise and professional understanding of livestock markets and buyers demand.
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The insights offered are visible only to the assessor/agent within the Assessment Entry Portal. Sharing these insights with producers is at the discretion of the assessor/agent.
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Responsibility for setting prices (including Reserve Prices, Start prices, increment bid values and Buy Now values) remains with the assessor/agents. There is no obligation to adopt the AuctionsPlus Market Insights' values.
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The values presented are based upon the values submitted via the Assessment and so are unique to that assessment. Care should be taken interpreting these values as indicative of other assessments, or the livestock market in general.
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In the rare case where insufficient similarly assessed lots exist to provide reasonable sale price insights, the assessor will be notified as much.
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The Price Discovery tool does not draw upon current-date sale data results.
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The Price Discovery tool draws from AuctionsPlus sale results only.