What factors are contributing to the sudden 30% decrease in consignments for Ritchie Bros's live auctions in the Western region this month?

Introduction

The sudden 30% decrease in consignments for Ritchie Bros's live auctions in the Western region this month is a critical issue that demands immediate attention. To address this problem, I'll employ a systematic approach to identify, validate, and resolve the root cause while considering both short-term and long-term implications.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking this could be a seasonal trend. Has this decrease been observed in previous years during the same month?

Why it matters: Helps distinguish between cyclical patterns and unique issues. Expected answer: No, this is unprecedented for this time of year. Impact on approach: If seasonal, we'd focus on adapting to known patterns; if not, we'd investigate new factors.

• Considering the specificity to the Western region, I'm wondering about local market conditions. Have there been any significant economic changes or events specific to the Western region recently?

Why it matters: Isolates regional factors from company-wide issues. Expected answer: No major regional economic shifts reported. Impact on approach: Regional factors would require localized solutions, while company-wide issues need broader strategies.

• Given the focus on live auctions, I'm curious about our online auction performance. Has there been any corresponding increase in online auction consignments during this period?

Why it matters: Helps identify if this is a channel shift or an overall decline. Expected answer: Online auctions have seen a slight increase, but not proportional to the live auction decrease. Impact on approach: A channel shift would require different strategies compared to an overall decline in consignments.

• Thinking about our consignment process, have there been any recent changes to our policies, fees, or procedures for live auctions in the Western region?

Why it matters: Identifies internal changes that might have impacted consigner behavior. Expected answer: A new fee structure was implemented last month. Impact on approach: Recent internal changes would prompt a review of those specific alterations and their communication to consigners.