The right auction company for your item is the one that can reach potential bidders and tempt them to bid with a good presentation of your item.
Recently, a colleague and I were discussing the lofty prices recently attained by collectibles auctioneers. What drives these prices, we wondered: “the luck of the draw,” highly desirable items, greed or skilled auctioneers? Perhaps all of these drive prices to some extent, but my personal opinion is that consistent greater-than-estimated prices are the result of matching good items with the right auction company.
What, exactly, do I mean by good items and the right auction company? And, how can consignors be reasonably confident that their item will be well represented?
When I say the right auction company, I’m not talking about auctioneers who are skilled bid callers. Bid calling is the most visible part of an auction, but it’s not the most important part. The important work goes on behind the scenes. Of course the skill of an auctioneer impacts an auction, but a well-prepared, mediocre bid-caller will out-perform an unprepared State Champion bid caller every time.
The right auction company for your item is the one that can reach potential bidders and tempt them to bid with a good presentation of your item.
It takes years to develop a reputation as a good auction company, such as Susainn’s in Chicago. Bidders must trust an auction house, they have to believe that item descriptions are accurate and provenance is valid.
The strength of an auction company begins with its mailing list. It takes years to develop a list of collectors. A good list is more than names; it is relationships. Bidders must trust an auction house. They have to believe that item descriptions are accurate and provenance is valid. A reputation for honesty and forthrightness is imperative, and includes such elements as:
• Specialization in the types of collectibles being offered;
• Buyers and sellers vetted as to ability to pay and the right to sell;
• Auction terms and conditions are clearly stated;
• Phone calls and emails are returned promptly;
• Transparent bidding: bidders must know that online, live, phone and “left bid” bidders are valid;
• Access to price archives from past auctions;
• Effective accounting and reporting;
• Reasonable fees and commissions.
Even with all of the above in place, nothing happens without a solid support team and a thorough promotional plan. Consignments have to be cleaned and set up in the gallery or safely stored until auction day. Photos must be taken, descriptions written, catalogs developed, advertising placed, press releases dispatched, social media engaged, websites updated, emails sent and phone calls made.
Such an undertaking requires a large, cooperative team of people; this is not a job for a Mom-and-Pop auction company. Only major regional, national and international auction firms like Heritage Auctions, Susanins and a handful of others have the resources to bring all these elements together. Talent is only part of what’s required; a company must also have the financial resources to make bulk buys for printing, media advertising and mailing services.
On auction day, only “good” items will hold their own and bring greater-than-estimated prices.
Heritage Auctions in Dallas is one of the fastest-growing houses in the country, handing all sorts of objects, from comic books and baseball cards to million-dollar paintings.
Of the five value drivers typically associated with collectibles—authenticity, provenance, condition, rarity and demand—the most important is provenance (genealogy of ownership). Who owned a particular collectible has more to do with achieving a high price than what the item actually is. In March of 2016, in discussing “The Contagion of Collecting” on WorthPoint, I wrote:
“A lock of John Lennon’s hair just brought $35,000 at auction. The crusts of Justin Timberlake’s French toast sold for $3,154. A mucus-filled tissue used by Scarlett Johansson on The Tonight Show garnered $5,300.”
Clearly, these items had no intrinsic value; their value was found in their provenance alone.
At a collectibles auction, provenance rules supreme. A 1964 Fender Stratocaster in excellent condition may bring $20,000 if owned by you or me, but the same model guitar owned by Bob Dylan recently sold for $965,000. A baseball cap worn by Neil Armstrong sold for $14,160; I doubt that my cap would bring that much. Most of us are not rock stars, sports heroes or astronauts. When items are owned by “average Joes,” an item’s four remaining value markers increase in importance.
Bob Dylan’s Historic Newport Stratocaster to Soars to Nearly $1 Million, a Guitar Record
When that’s the case, authenticity becomes the primary price driver: is what we offer the real deal? Fakes and frauds abound in almost every collectible category. As collectors, our best proof of authenticity is to have bills of sale or other paperwork that identify our item. If we don’t have these, we need to rely on appraisers or auction staff to evaluate our property. Without proof of authenticity, an item won’t command a respectable price, no matter what it is.
Rarity is relevant, but not as much as you might think; demand is more important. Just because an item is one-of-a-kind or very old doesn’t mean it’s valuable. The established supply-and-demand economic model breaks down when applied to collectibles auctions. No matter how old an item is or how few exist, if nobody wants it nobody will bid. No Demand = No Sale. You may think that your 1910 Jon Deaux oil on canvas is the most beautiful painting you’ve ever seen, but if you’re the only one who feels that way, it will never sell.
Of course, an item’s condition impacts its price. Collectors don’t like junk. Unless an item is very rare and in demand, poor condition will always result in a poor price.
The key to getting a high price for your collectible is competitive bidding. Bidders drive auction prices. No matter how good your item is, it has to be properly presented and promoted in order to draw a good field of bidders. That’s where a good auction house enters the picture. If you want to sell a desirable collectible, only a top auction house can get you top dollar.
Wayne Jordan is a Virginia-licensed auctioneer, Certified Personal Property Appraiser and Accredited Business Broker. He has held the professional designations of Certified Estate Specialist; Accredited Auctioneer of Real Estate; Certified Auction Specialist, Residential Real Estate and Accredited Business Broker. He also has held state licenses in Real Estate and Insurance. Wayne is a regular columnist for Antique Trader Magazine, a WorthPoint Worthologist (appraiser) and the author of two books. For more info, visit Wayne Jordan Auctions or Resale Retailing with Wayne Jordan.
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