Regarding eBay, the Roadshow, and Reserves

Just speaking the truth…

Imagine what life would be like without cable TV, worldwide web access in the palm of your hand, fax machines and GPS devices to help us find our way. If you’re over 40 years old (or so) you can remember those days of business when we actually had to hand deliver contracts, ad copy and photographs. We had to go to the library to do research on an item. If one was travelling and needed to make a phone call, you looked for those little blue signs along the interstate that advised the next rest stop or exit that had a pay phone (under 30 years old, search Google for ‘pay phone’). All these technological innovations of the last couple decades have improved the ease with which we communicate, participate in commerce and market/promote our businesses and ourselves.

However, sometimes the smorgasbord of information is digested without completely dissecting the form in which it is presented. And, we now arrive at our first topic, eBay and the Antiques Roadshow. These two entities have actually made the jobs performed by auctioneers, antiques and art merchants and appraisers a little harder.

Back in the old days (OK, early 1990’s…), individuals with items to sell chose an avenue to sell those items that best fit their needs. In the case of auctions, that avenue was seen as the least amount of effort on the part of the owner to achieve the highest net return in the shortest amount of time, while exposing the property to the largest number of people as could be reasonably achieved within budget and time constraints. Auctioneers with experience were seen as trusted advisors who were thought to have a grasp on the market for nearly every item under the sun. Specialists existed in certain areas if a specialist was needed, and individuals knew that a selling agreement with an auction house is the establishment of a percentage partnership, where both parties benefit from the highest gross sale price achieved for any item/items.

Times were, someone would bring an item to us and ask our opinion of value of an item, which we’re usually happy to share when the prospect of a commission looms. (Free appraisals are another story, but that’s a topic for a different day.) In previous times, our opinion of actual secondary market value was considered worthy of deep consideration, given that we, as auctioneers, participate in the market place on a daily basis. Today, many individuals have their own pre-conceived opinion of value for an item based on the ‘research’ they’ve done on the internet, they saw one for sale on eBay or at a retail internet site, or that they saw one almost just like theirs on the Roadshow. When our opinion of value doesn’t jive with the individuals pre-conceived value idea, we’re dismissed as trying to ‘low-ball’ the item, for some reason. Here’s the deal: unless the comparison is to the actual sold prices, what is found on the internet isn’t a comparable value! And the price that a retail dealer is asking for an item doesn’t have a hill of beans (in most cases) to do with value.

As auctioneers, in most cases, we don’t get paid unless we sell an item for a client. In our company, we endeavor to sell quality items for our clients, and provide an excellent resource for our customers to purchase those items using the competitive bidding process that is the auction method.

So, all of this great information doesn’t do an individual any good, unless you have (write this down, there will be a test) intimate knowledge of the item, the circumstances under which it was sold, the market conditions for the day it was sold, the condition of the item and the locality of the market in which it was sold (local, national, international). Just finding an item for sale on the internet, and using the asking price as your basis for determining the value of the item is a flawed and foolish perspective. And, if it was valued on the Roadshow, those aren’t secondary market actual sales, they’re opinions of value, and can vary greatly based on the aforementioned market conditions of sale.

And (OK, this is a bit of a rant), thinking that every appraiser on the Roadshow is able to spew forth every bit of information they share at the drop of a hat about every item that is evaluated, that is a terrible misconception, as well. Certainly, there are world-renown experts who have a wealth of knowledge about the items they evaluate, and yes, of course the knowledge they possess about a certain specialty or discipline is coveted by many. However, that one-hour show in which 8 or 10 items are evaluated is the result of looking at tens of thousands of items in a multi-day period. There are thousands of items that are believed by their owners to be valuable that fall under the category of “stuff”, and are not worthy of a live evaluation on television. Usually before an item hits the air, a team of researchers will spend hours poring over the details of the item ensuring that what gets represented as the history, or provenance, of the item is accurate.

Last topic: reserves. A reserve is a minimum price at which an item in an auction can sell, as agreed upon by the owner and the auction company. In the state of Indiana, by statute, all auctions and items in auctions are ‘with reserve’ unless otherwise stated. The term Absolute Auction conveys that every item in the auction will sell to the highest bidder, regardless of price, day of auction. The general public believes that most auctions in Indiana are conducted more in the method of absolute, than with reserve, and in most cases, they are right, even given the fact that the auction may not have been advertised as absolute. Most auctions/auctioneers conduct their sales with the intent of converting all of a seller’s assets to cash in the allotted time frame.

By law, any item may be withdrawn from the auction block (unless advertised as absolute) prior to the culmination of bidding, usually signaled by the auctioneers statement of ‘sold’, which accepts the bidder’s offer and binds the parties contractually.

Our company, as a matter of course, usually discourages the use of reserves for the following reasons:
1. We are somewhat particular in the style, quality and quantity of items we offer. We have established a history of offering certain types of chattel properties, and our clientele is typically an educated, knowledgeable buyer who seeks certain property(ies). In being selective about what we offer, we are confident that we are exposing those items to the proper audience, and in our ability to find ready, willing and able buyers for these items. What the item brings is determined by the aforementioned market conditions (we keep coming back to those, don’t we…?).
2. Often, a seller’s wish for a reserve price is more consistent with a high retail price than it is with an actual, arms-length transaction price on the secondary market. A reserve isn’t a price you hope for, it’s a price that is the minimum acceptable value at which you are willing to transfer the property. We have turned down the sale of numerous items because the seller’s expectations were way too high, and the offering of the item would be an exercise in futility. An insurance-based, replacement value appraisal isn’t an indicator of actual market value. Those values are sometimes two to three times the actual value of an item. Ask your appraiser…
3. The best time to sell an item is the first time. Given our worldwide exposure to the market, an item will generate the most interest when it’s fresh to the market, not when it’s been offered half a dozen times at three or four different auction houses with the pre-sale estimate declining each time, because the reserve was too high to begin with. That item is now stigmatized and the question that is asked is, “I wonder what’s wrong with it?”. Once an item is stale in the market, it will sell for less than it would have sold for the first time it was offered, assuming it was properly marketed. Promise.

Auctioneers are an excellent resource for the buying and selling of personal and real property, and present an opportunity for real commerce. Since the hybrid of worldwide, live internet broadcasting of traditional auctions, the method provides a global marketplace for the resale of just about anything.

Our business isn’t built on the quick deal, but on the relationships that develop through our interaction with our buyers and sellers, with integrity and honesty at the core of those relationships. If our company is the best resource for a potential client to sell an item or items, we are diligent in our representation of those items and use all our resources, both internal and external, to maximize the value of our service. If a different company, or method of sale, is in the client’s best interest, we will share our opinion and make recommendations in those cases, as well.

Finally, if the auction method is being considered for the sale of any asset, do more homework in choosing the auction company that is right for the property than you do to form your own opinion of value of the asset(s). Trust the auctioneer and auction company you have selected to use their experience and expertise to obtain the best overall result for you, and be confident in your choice of auctioneer. Our success depends on satisfied clients telling their friends and associates about the great experience they had with our company.

OLD HICKORY FURNITURE, AN INDIANA INSTITUTION

Around 1880, two or three individuals were known to have made primitive chairs in their barnyards out of hickory poles in the Monrovia and Morgantown, Indiana area.

Following that humble beginning, a group of people in the Martinsville, IN, area banded together in 1892 in an abandoned church, producing hickory sapling furniture as a full-time business. They chose "Old Hickory" as the company name, the same nickname as the late President Jackson. They incorporated in 1898, and began furnishing nearly all of the new national park lodges, including the Old Faithful Inn at Yellowstone National Park. The dining chairs in the main hall are the very same chairs shipped and installed in 1906. Notable individuals who have enjoyed Old Hickory furniture include President William H. Taft, Greta Garbo and Mrs. Henry Ford.

Our May 16 auction includes a large selection of current Old Hickory furniture, still made in the same style, with sapling hickory logs, now in Shelbyville, IN. Offered in the sale will be chairs and a sofa from the Grove Park series, inspired by original designs in the Grove Park Inn, a four-star, historic American inn near Asheville, NC, which began around the turn of the last century. The inn's decor was an arts and crafts theme, incorporating designs by Roycroft, mica and copper lighting, and rows of Old Hickory rocking chairs on the 500-foot outdoor terrace.

As a matter of fact, arts and crafts designer Charles Limbert, of Grand Rapids, MI, was an agent for Old Hickory furniture circa 1895-1905, further instilling the furniture's place as complimentary to the arts and crafts designs of the period.

The company was owned and operated by the Patton family of Indianapolis from 1908 until the closing of the doors in 1978. In 1982, the company was re-formed in Shelbyville, IN, and then sold in 1989 to the current ownership. Notable orders of Old Hickory furniture include 5,000 oak chairs sold to Indiana University in 1969 for their libray, a $1M order for Walt Disney World in 1989, and in 1994, Old Hickory furnished the first Rain Forest Cafe at the Mall of America in Minnesota. Old Hickory has also provided furnishings and fixtures for subsequent Rain Forest Cafe locations.

In 1999, recognizing the significance of hickory furniture to the culture of Indiana, the Indiana State Museum hosted the exhibit RUSTIC TRADITIONS: INDIANA HICKORY FURNITURE. Old Hickory donated many different furniture settings to the museum.

Whether in a rustic lakeside retreat, a back-woods hunting lodge or as a compliment to an arts and crafts decor in an early 20th century craftsman bungalow, Old Hickory Furniture has stood the test of time due to the style, quality and workmanship present in each piece produced. This auction offers a rare opportunity to purchase a symbol of Indiana heritage on the secondary market. View the Old Hickory in the May auction by clicking here.

Reference Source: Old Hickory Furniture Company website, www.oldhickory.com

WHY BUY FURNITURE AT OUR APRIL AUCTION?

In last week's "Current in Carmel" weekly newspaper, one of the weekly columnists discussed the lack of value in furniture marketed by national chains. In the article, she referenced a study completed by Smart Money Magazine in 2006 which revealed the lack of quality construction techniques and materials used in home furnishings sold by trendy "lifestyle" retailers. The article was titled "Pottery Barn Unstuffed".

Also referenced in the article are items sold by Restoration Hardware and Crate and Barrel. To summarize the article, buying furniture at the aforementioned stores is not neccessarily "smart" use of your money.

Poor quality veneers, low-grade adhesives, cardboard (yes, cardboard!) frames on upholstered furniture...this stuff is made to be thrown away after it's life expectancy, which gets shortened considerably if you use the furniture for any purpose other than to just look at. In addition, the slickly-created advertising for these items is a total misrepresentation of the contents and materials.

Our April auction is replete with the polar opposite of these items, as home furnishings are concerned. Much of it was produced in either North Carolina or Grand Rapids, MI, using American hardwoods and hardware, hand-assembled by American craftsmen. After an international exhibition in Philadelphia in 1876, Grand Rapids became recognized worldwide as a leader in the production of fine furniture. National home furnishing markets were held in Grand Rapids for about 75 years, concluding in the 1960s, then moved to North Carolina, probably for better weather.

This auction includes high-quality furniture by companies such as Baker (pre-Kohler), Henredon, Kittinger, Statton, Davis Cabinet Company, Drexel/Heritage/Morganton and a few others. An auctioneer friend of mine uses the term "antiques of the future" as a cheesy sales line, but these quality items in our April sale do, in fact, represent generational furniture. Produced with quality and sold via select decorators and high-end retailers, these are the type of items that, with proper care, can actually be passed from generation to generation.

For less than the cost of a made-in-China, Crate and Barrel leather sofa, a buyer at our April 18 auction will likely obtain a Henredon dining room table with eight chairs that was made in America in the 1980's, using the finest quality solid-brass hardware, kiln-dried, solid grade-one hardwoods, thick veneers and quality control that didn't allow sub-par objects out of the factory to benefit the bottom line for shareholders.

Anyone, from younger couples on a budget furnishing a first home, to a second-home buyer looking to furnish the large family home, to a downsizer needing just a few quality items to accentuate the space of a condo or townhome, will appreciate the quality, craftsmanship and timeless style of furnishings made in the mid to late 20th century in the United States.

Why spend money on items that are made overseas by companies using shoddy materials assembled with unskillled labor, when fewer dollars can be spent to acquire pre-owned, finest quality furniture that will outlast the owner's desire to use it? And, those dollars stay in the United States, at a time when our government is giving 'bailout' money to companies that are servicing overseas debt with our tax dollars. In addition, buying pre-owned items at auction is 'greener', as another motivation for you.

Come see the selection we have in this April 18 auction, and be open to the idea of avoiding trendy, national retail stores when a new end table, area rug or dining room suite is needed. Quality is all around us this month, and some wise bidders are going to take home some treasures for less than will be spent on a stainless steel spoon rest at Crate and Barrel.

Make a point to visit our showroom this Friday for our gallery preview from 2-7 pm, or preview our catalogue here.

WHAT IS SELLING WELL THESE DAYS?

Quality. Period.

We're often asked to give our opinion of what items are selling well in today's economy, and the answer is the same as it always has been...quality, my dear.

The economy has simply amplified a trend that began around the time of the new millennium. In a post a couple months back, I spoke about the changing tastes and desires of today's secondary-market buyers, so we'll not re-hash that story; please visit that dialogue if you wish that insight.

Whether it is art, jewelry, oriental rugs, furniture or decorative arts, today's buyer seeks quality over quantity, and is willing to pay a fair, and sometimes more than anticipated, price if an item becomes available that fits their self-described criteria of quality and desirability.

Using the economy to explain soft prices for middle-of-the-road items is appropriate ; buyers are not going to part with their money these days for something that is not exactly what they're looking for. Anticipating a rebound in prices for mid-level items in any category of art, antiques or collectibles is, in my opinion, unfounded.

I do not see a new demographic of buyers emerging who will fill the void of mid-market buyers as relates to the aforementioned categories. In other words, holding on to grandmother's Hummel collection in anticipation of higher prices is unlikely to result in increasing demand, and thus, profit.

Therefore, if anyone is considering selling an item or items in today's world, be advised that the gap in prices between the top tier in any category and the middle tier of items in that category is widening. It has been widening for years, and will likely continue to do so. As we have always counseled our clients, the best time to sell something is when you are ready to sell. But be prepared that if you're ready to sell the average item, know that it is going to sell for less-than-average prices, and the best of the best will still garner all the attention from the market, as it always will.

THE SOCIAL IMPACT OF AUCTIONS

A current trend employed by many auction companies today, in an effort to reach new buyers, is that auctions are 'green', and are an effective way of recycling furniture, appliances, antiques, collectibles, etc., while keeping the proceeds of such sales directly in the control of United States citizens who will reinsert those proceeds into the economy. I firmly believe that is all true, and do encourage auctions as alternatives to retail shopping.

But the point of this letter is to say that I am often surprised at how the prospect of buying and selling items at auction is such a foreign concept to so many of my peers. Having grown up in rural, southern Indiana, and having a father who went to auction school before I was born, I am in a unique position to have been exposed to auctions my entire life. However, auctions were not at all foreign to those who lived in our small community, whether your Dad was an auctioneer or not.

For example, at an estate sale, friends and neighbors would travel for miles to attend the auction of items which had belonged to a friend or relative who passed away. Some would bring pies or other home-baked goodies for the Sunday school group to sell to raise money to give to mission, others would come with the intention of 'helping' someone else pay a fair price for the more significantly-valued items, some would come intending to buy items to use in their own homes, garages or farms, and yet others would come because it was the right thing to do. It's viewed as a way to show respect, or bring comfort, to a surviving widow or children of a lost companion by reminiscing about good times past, and showing the family members that the dead live on through their impact on others' lives in ways that are oft overlooked. I can't tell you how many times I've seen heirs of an estate weep openly and joyfully because the children of an old family friend was the winning bidder for the farmhouse, planning on restoring it and moving in, and the family had no idea of their intentions until the hammer fell.

Perhaps that sense of community has been lost on my generation, endearing those past relationships to history. Or, perhaps, a reawakening of that sense of community is the actual 'change' that many in our culture are depending on Washington to provide. I urge you to seek elsewhere, and change the lives of those with whom you live and work by buying the family farmhouse, or at least by bringing a pie.

JANUARY ART AUCTION RESULTS

Standing-room only in our gallery, phone and internet bidders from the UK, Scotland, Spain, the Netherlands and all over the United States, combined with the most per-item page views on our web catalogue since we began tracking, indicated the global marketplace that is present for fine art at auction.

This auction was a testament to sellers who believed in the auction method, had assembled a desirable collection of domestic and European art (including many paintings by historic, Indiana artists), and trusted our company to effectively market this collection to a worldwide audience.

Active bidding by numerous bidders on nearly every piece resulted in most of the paintings selling within estimate, and while no auction records were set, the market responded positively, even considering the state of the national economy.

Sale results from the January sale can be found here- Wickliff January Sale Results

We are equally as excited to present the furniture, porcelain, antique Oriental rugs, wicker, patio furniture, lighting and decorative accessories from the Verble Collection at our February 21 auction. Bidders may preview that catalogue here.

Additionally, we are pleased with the exposure gained by our partnership with Artfact/Invaluable. The site has long been an excellent resource for determining values on fine art and antiques, and the company, which formerly was service provider for ebay Live Auctions, now has it's own proprietary live bidding platform. We have committed to Artfact to broadcast all our auctions for 2009 using this service, and hope that our bidders will find value in the convenience of online bidding. Their service fee is only 3%, making the total Buyer's Premium only 15%, a tremendous value when compared to other auctioneers' 20%-25% online buyer premiums. Check out http://www.artfact.com for more details. Currently, they are offering an Artfact Basic membership, an excellent price/value resource, free for new users.

VERBLE ART COLLECTION IS QUALITY AND VARIETY

At this point in our marketing of our January sale, many of our patrons are surprised to learn that nearly every painting in our January 24 Art Auction comes from one home. It is true, and the collection represents decades of collecting Indiana, American and European art.

One of the sale highlights, at least from our perspective, is the group of paintings by Brown County artist Varaldo Guiseppe (VJ) Cariani. Many times throughout the year, we will offer one or two large Cariani oils in our art auctions, but this collection has three large still life paintings, two large landscapes and two smaller landscapes, each well-presented and ready to hang.

Another favorite of our staff are the pair of William Aiken Walker (South Carolina 1838-1921) oils depicting cotton harvesting in the old South. While these paintings are unsigned, a letter of provenance from the Indianapolis Museum of Art, referencing Ellwood Parry as consultant who authenticated the paintings, is attached. Rarely are Walker’s paintings sold outside of the southeast United States, and these paintings represent a real opportunity to own a piece of Americana.

Also featured are three great paintings by George Ames Aldrich. Aldrich is claimed by Indiana as affiliated in this state, as he exhibited regularly in the Hoosier Salon in the 1920’s and 1930’s, and was involved heavily in the South Bend art scene in the 1920’s, but he was classically trained in Europe as early as the 1890’s, and then in the early 1900’s, attended Academies Julian and Colarossi, and later joined the Societe des Artistes Francais. We are pleased to offer three outstanding examples of Aldrich’s work in this auction.

The Verbles also appreciated and decorated their home with historic European paintings. Many 19th century oils graced the walls of their large, waterfront home. Some are historic paintings by artists with little or no biographical information, but several are by listed artists, featuring a Petrus Kremer (Antwerp, Belgium, 1801-1888) oil on canvas, 39 x 31, entitled "In Her Studio", depicting acclaimed artist Maria Van Oosterwyck in 1660, painting in a studio setting, and presented in an ornate gold leaf frame .

In all, over 80 paintings from the Verble collection comprise this rare offering of such a pure, fresh-to-the-market group of art. Visitors to our gallery will also have the opportunity to preview our February auction, also comprised of the Verble collection, featuring period and period-style French furnishings, antique and semi-antique oriental rugs of high quality, a large collection of Dresden porcelain and a fantastic selection of period decorative accessories and decorative arts.

See our catalogues for upcoming auctions here!