Last month, Clayton Pennington's editorial in Maine Antique Digest urged auction houses to help protect consignors through the use of escrow accounts and the requiring of internet bidders to leave credit card numbers in order to leave bids. Both are good ideas.
The use of escrow accounts for consignors is proscribed under Ohio auction law. All payments from auction buyers in Ohio must be deposited by the auctioneer into an escrow account and that account cannot be used for anything else by the auctioneer. In fact, co-mingling of funds (mixing the auctioneer's money with auction proceeds) is one of the deadly sins an Ohio auctioneer can commit that will often get his or her license immediately suspended or revoked. This is good policy that helps protect consignors, and, frankly, all states should require the use of escrow accounts.
Requiring a credit card on internet bids, or regular absentee bids for that matter, is also wise, but doesn't necessarily solve the problem. Andrew had an experience when he worked for an auction firm in Cincinnati that illustrates this. A remote buyer bids on, and buys, a porcelain figure in an auction. Thirty days pass, two invoices are sent, and no payment has been received, so the buyer's credit card is charged for the purchase price and shipping and the item is sent. Within a week, notice was received from the credit card company that the buyer is claiming fraud (the figure was allegedly damaged and that damaged was not disclosed before bidding) and the moneys have been refunded to them. So...now the buyer has the item and the money.
You see, organizations like banks, the post office, UPS, etc. etc. simply do not understand antiques or how the antiques business operates (have you ever tried to explain to FedEx that they could pay to have the item fixed, but it's still worth less because now it's repaired???). In this case, the figure had a factory flaw that was described in the condition report, but the person at the bank didn't know the difference between a factory flaw, a crack, or a chip, so they immediately believed the buyer and refunded their money, and left the auction house hanging. Andrew did end up getting the item back, but after two months of arguing with the bank, appealing their decision, and hounding the buyer.
This is the flaw in the use of credit cards as "security" against deadbeat bidders: it's simply too easy for someone who is determined not to pay to actually just not pay. Use a bad credit card number (does anyone actually confirm card numbers prior to executing bids? And we'll talk later about the expectations of bidders and how frustrating extending deadlines would be if it became necessary to allow time prior to auction for a verification process....), lying about damage or some other issue to get a payment refunded, or had the auction house charged the buyer the purchase price but not shipped it, appealing the charge on the basis of non-receipt. Auction houses are simply at the mercy of the banks who are ignorant of how this process is suppose to work.
What might be a better way to protect consignors, and auction houses, against deadbeat bidders is a national database of non-paying bidders. Let an objective organization, such as the National Auctioneers Association, manage it. If an auctioneer encounters a deadbeat bidder, let him or her submit proof to the organization and that bidder's info gets entered into the database. Auction houses could run checks against the database for bidders new to them. If Joe Deadbeat can no longer register to bid at auctions because he's in the database, then that'll be fewer consignors who get disappointed by not getting paid for their item(s).
Bidders have all sorts of protection against crooked auctioneers (law enforcement, attorney general, auctioneer licensing organization, and, of course, banks), but auctioneers and their consignors have little protection against crooked bidders. And the last thing an auctioneer wants to do, even more than not getting paid, is disappoint a consignor.
Tuesday, July 21, 2009
Thursday, July 16, 2009
Anyone Headed to New England??
As the summer reaches its midpoint, it's time to start thinking about antiquing in New Hampshire. Between Northeast Auctions' annual Summer Americana Auction and the shows in Manchester (and this year, in nearby Marlborough, MA, a sale at Skinner), there loads of great stuff to look at, to learn about, and to buy!
I [Andrew] will be there, visiting friends and colleagues at the shows and previewing the Skinner auction. Sadly, I won't be able to get to the Northeast sale. But, I'm sure I'll see plenty of great stuff.
So, if you find yourself in NH in a few weeks, be on the lookout for a man with no gray hair (i.e., me, a young collector who actually has a little bit of gray). I'll also be picking up some consignments for Garth's fall auctions and I'll be happy to do so for you as well!
I [Andrew] will be there, visiting friends and colleagues at the shows and previewing the Skinner auction. Sadly, I won't be able to get to the Northeast sale. But, I'm sure I'll see plenty of great stuff.
So, if you find yourself in NH in a few weeks, be on the lookout for a man with no gray hair (i.e., me, a young collector who actually has a little bit of gray). I'll also be picking up some consignments for Garth's fall auctions and I'll be happy to do so for you as well!
Wednesday, July 8, 2009
That's more than what I paid....
I (Andrew) hear this a lot. Too much, in fact. When talking with a potential consignor, I often give them my thoughts on what a given object might bring at auction (always subject to further examination and further research, of course). So often, when I say that Joe Consignor's refinished cherry 4-drawer Sheraton chest will probably bring 500-800 at auction, I get, "But I paid more than that twenty years ago." I then, of course, begin lecture number 313, which is on the economics of the ever-changing marketplace and that trends come and go, and that today's marketplace emphasizes different things than the marketplace of the 1980s.
It seems to me that a large number of collectors, when they were building their collections, either assumed, or were told by dealers/auctioneers, that antiques appreciate in value. These collectors are then disappointed by my estimate, and then often again when their things sell.
It can be true that antiques appreciate in value. It can also be true that antiques can depreciate in value. Frankly, I don't believe that anyone can reliably predict what will and will not appreciate. Sure, if you are fortunate enough to be able to buy the very best (best forms, best decoration, best condition, etc. etc. etc.), AND you don't have to pay top retail (say, at the Winter Show in NY), then your collection might have a better-than-average chance of selling for more than you paid. Maybe. Let's not forget about trends. Victorian was all the rage a generation ago. Today...not so much. In the early 2000s, weathervanes were breaking records, but that market has already cooled, and I really don't believe the $6 million Indian weathervane purchased in NY a few years ago will ever achieve that price again.
On one level, this trend frustrates me. As an auctioneer, I feel like I'm getting blamed because the market has changed and someone's stuff isn't worth as much as it once was. But on a more important level, this trends saddens me. These life-long collectors have poured their hearts and souls into their collections, have felt a quickened pulse when "on the hunt" for their next purchase, and smiled every time they looked around their home and the objects that filled it. These folks' last emotion related to their collection is that of disappointment. Folks, that's truly unfortunate. It's hard enough to let go of your lifetime collection. I have had collectors cry when I emptied their house because they know that they will miss the stuff I'm taking to auction. I can appreciate that. I'm going to be like that. But then, for some reason, some of these same collectors seem to forget all the good memories, all the joy, all the passion, and focus only on the dollars and cents, thus the disappointment. Yes, I'm sure it might be a bit of a blow to the ego that the market doesn't "appreciate" your collection like you do. But you know what? No one will appreciate YOUR collection like YOU do. So why worry about it?
I do realize that for some, the financial hit might be troubling. I'm truly sorry for that. And that is why we NEVER encourage anyone to think of their antiques as investments. We want folks to collect because they love the stuff. When we talk to our friends about antiques, we talk about history and art and usefulness and green. Yes, we also talk dollars and cents, but we talk about "retained value," not appreciation or investment.
Living surrounded by history and art...that's why we buy this stuff. And when it's time to sell, we're going to be thankful that we were able to act as stewards for a collection of history and art. If we make money, great; if we don't, we'll consider the loss a small price to pay for the memories. Isn't that why you started collecting in the first place?
It seems to me that a large number of collectors, when they were building their collections, either assumed, or were told by dealers/auctioneers, that antiques appreciate in value. These collectors are then disappointed by my estimate, and then often again when their things sell.
It can be true that antiques appreciate in value. It can also be true that antiques can depreciate in value. Frankly, I don't believe that anyone can reliably predict what will and will not appreciate. Sure, if you are fortunate enough to be able to buy the very best (best forms, best decoration, best condition, etc. etc. etc.), AND you don't have to pay top retail (say, at the Winter Show in NY), then your collection might have a better-than-average chance of selling for more than you paid. Maybe. Let's not forget about trends. Victorian was all the rage a generation ago. Today...not so much. In the early 2000s, weathervanes were breaking records, but that market has already cooled, and I really don't believe the $6 million Indian weathervane purchased in NY a few years ago will ever achieve that price again.
On one level, this trend frustrates me. As an auctioneer, I feel like I'm getting blamed because the market has changed and someone's stuff isn't worth as much as it once was. But on a more important level, this trends saddens me. These life-long collectors have poured their hearts and souls into their collections, have felt a quickened pulse when "on the hunt" for their next purchase, and smiled every time they looked around their home and the objects that filled it. These folks' last emotion related to their collection is that of disappointment. Folks, that's truly unfortunate. It's hard enough to let go of your lifetime collection. I have had collectors cry when I emptied their house because they know that they will miss the stuff I'm taking to auction. I can appreciate that. I'm going to be like that. But then, for some reason, some of these same collectors seem to forget all the good memories, all the joy, all the passion, and focus only on the dollars and cents, thus the disappointment. Yes, I'm sure it might be a bit of a blow to the ego that the market doesn't "appreciate" your collection like you do. But you know what? No one will appreciate YOUR collection like YOU do. So why worry about it?
I do realize that for some, the financial hit might be troubling. I'm truly sorry for that. And that is why we NEVER encourage anyone to think of their antiques as investments. We want folks to collect because they love the stuff. When we talk to our friends about antiques, we talk about history and art and usefulness and green. Yes, we also talk dollars and cents, but we talk about "retained value," not appreciation or investment.
Living surrounded by history and art...that's why we buy this stuff. And when it's time to sell, we're going to be thankful that we were able to act as stewards for a collection of history and art. If we make money, great; if we don't, we'll consider the loss a small price to pay for the memories. Isn't that why you started collecting in the first place?
Monday, June 29, 2009
Lightening the Load.
Maureen Winer's commentary in this week's Antique Week made a good point. She describes a friend who developed a "habit" of paying for and filling up storage units, costing him both time and aggravation. This is often called hoarding (see previous post on the Collyer brothers (February 2009)) and it's sadly all-too familiar among antiques collectors.
Over the past six years in this biz, we have been in a lot of houses. Many have been pleasantly full of antiques, but we've also seen many that can only be described as "packed, with paths." Rarely do we find a house that we would describe as "sparsely decorated." And what's so sad is that, as a general rule, the folks with the most stuff are the least likely to actually want to sell it. We'd like to say we know someone who regularly complains about not having any money, but is paying for at least five storage units that are filled with antiques, but in reality, we know a lot of someones with this problem! And when some of them do finally send a few things to auction, they often insist on high reserves on everything, many times getting it all back, even when there wasn't enough room for it to begin with. And let's not go into all the fees and expenses related to storing and (attempts at) selling that only increase the amount of money tied up in the something that they still haven't actually gotten rid of! So many of these folks consider themselves dealers, but we have to wonder if they have ever really sold anything. In actuality, they seem like their own best customers!
Based on what we've seen, it's pretty clear that a fairly small number of "collectors" and "dealers" have, over the past 30-40 years, done an enormous amount of buying, perhaps supporting a not-insignificant segment of the middle and lower end of the market all by themselves. Seems like every auction has a guy who'll bid on anything if it gets cheap enough, and we always wonder what this guy's house looks like. We can only imagine....
You want to help move the antiques marketplace along, perhaps help it start its climb out of this slump? Look around your house or shop, pick out 5-10 things, and send them to auction or sell them to a dealer from whom you have purchased over the years. Don't think about what you paid for these things...just sell them. Put them back out there and let them find a new home. You'll be doing a couple of good things. Firstly, as mentioned, you'll be helping the antiques marketplace. Secondly, you'll be lightening your own load. You have enough stuff - honestly, we all do. It might be painful at first, but just let these 5-10 things go. Wish them luck and say goodbye. After a few weeks without them in your home, see if you *really* miss them. You just might find the process of "load lightening" liberating.
Over the past six years in this biz, we have been in a lot of houses. Many have been pleasantly full of antiques, but we've also seen many that can only be described as "packed, with paths." Rarely do we find a house that we would describe as "sparsely decorated." And what's so sad is that, as a general rule, the folks with the most stuff are the least likely to actually want to sell it. We'd like to say we know someone who regularly complains about not having any money, but is paying for at least five storage units that are filled with antiques, but in reality, we know a lot of someones with this problem! And when some of them do finally send a few things to auction, they often insist on high reserves on everything, many times getting it all back, even when there wasn't enough room for it to begin with. And let's not go into all the fees and expenses related to storing and (attempts at) selling that only increase the amount of money tied up in the something that they still haven't actually gotten rid of! So many of these folks consider themselves dealers, but we have to wonder if they have ever really sold anything. In actuality, they seem like their own best customers!
Based on what we've seen, it's pretty clear that a fairly small number of "collectors" and "dealers" have, over the past 30-40 years, done an enormous amount of buying, perhaps supporting a not-insignificant segment of the middle and lower end of the market all by themselves. Seems like every auction has a guy who'll bid on anything if it gets cheap enough, and we always wonder what this guy's house looks like. We can only imagine....
You want to help move the antiques marketplace along, perhaps help it start its climb out of this slump? Look around your house or shop, pick out 5-10 things, and send them to auction or sell them to a dealer from whom you have purchased over the years. Don't think about what you paid for these things...just sell them. Put them back out there and let them find a new home. You'll be doing a couple of good things. Firstly, as mentioned, you'll be helping the antiques marketplace. Secondly, you'll be lightening your own load. You have enough stuff - honestly, we all do. It might be painful at first, but just let these 5-10 things go. Wish them luck and say goodbye. After a few weeks without them in your home, see if you *really* miss them. You just might find the process of "load lightening" liberating.
Wednesday, June 24, 2009
Young folks DO like antiques!!
For you curmudgeons who don't think that the younger generation isn't interested in antiques or history, check this out:
We went to Connecticut last weekend for the wedding of a couple of very good friends. The wedding was in an historic barn at the Webb-Deane-Stevens Museum in Wethersfield. So, in the midst of a complex of great 18th-century houses, these two 30ish folks got hitched. The needlework embroidery above is their chuppah (marriage canopy in a Jewish wedding), which they made themselves based on a tree of life embroidered picture (made by young Mary King of Philadelphia) at the Winterthur Museum.
Now pay attention...these are your potential young collectors. Why aren't they collecting now? Same as so many 20- and 30-somethings...college debt, tough job market, trying to save a few pennies to start a family or for the long term. We need to spend some serious energy reinvigorating the middle market, because for folks like these (and, frankly, us), that's our entry point into the wonderful world of collecting.
We went to Connecticut last weekend for the wedding of a couple of very good friends. The wedding was in an historic barn at the Webb-Deane-Stevens Museum in Wethersfield. So, in the midst of a complex of great 18th-century houses, these two 30ish folks got hitched. The needlework embroidery above is their chuppah (marriage canopy in a Jewish wedding), which they made themselves based on a tree of life embroidered picture (made by young Mary King of Philadelphia) at the Winterthur Museum.
Now pay attention...these are your potential young collectors. Why aren't they collecting now? Same as so many 20- and 30-somethings...college debt, tough job market, trying to save a few pennies to start a family or for the long term. We need to spend some serious energy reinvigorating the middle market, because for folks like these (and, frankly, us), that's our entry point into the wonderful world of collecting.
Sunday, June 21, 2009
Get involved!
It's been a hectic couple of weeks for us. A friend's wedding in CT, plus several work trips for Andrew have largely kept us away from our digital lives. But we're back.
We just got word that Ohio's governor is proposing a ginormous cut to Ohio library budgets. It may result in as much as a 50% reduction in funding and for many of the state's nearly 300 public libraries, this could spell disaster. Reduced staff, reduced hours, or outright closure...just when library services are so desperately needed. This comes on the heels of the Ohio Historical Society's announcement that if local funding for some of its sites around the Buckeye State isn't obtained, they will be forced to shut those sites down at the end of the month. One of these sites is the Campus Martius Museum...site of the first official settlement in the Northwest Territory, and the place where Andrew cut his teeth on decorative arts research.
We certainly don't want to step up on a political soapbox, and we know that the economy sucks and cuts need to be made....BUT libraries and museums form the foundation for our shared culture and heritage. Without these treasured institutions and their hardworking staff, much of what we collectors, dealers, and auctioneers know about the stuff we buy and sell would not be known. If we, as an industry, are serious about turning young folks on to antiques, then we need to do what we can to support the libraries and museums that get kids and young adults interested in history and in learning. Call your reps and senators, make a donation (of time or money), and, most of all, go and visit your local library, museum, or historical society. Tell them you appreciate what they do!
We just got word that Ohio's governor is proposing a ginormous cut to Ohio library budgets. It may result in as much as a 50% reduction in funding and for many of the state's nearly 300 public libraries, this could spell disaster. Reduced staff, reduced hours, or outright closure...just when library services are so desperately needed. This comes on the heels of the Ohio Historical Society's announcement that if local funding for some of its sites around the Buckeye State isn't obtained, they will be forced to shut those sites down at the end of the month. One of these sites is the Campus Martius Museum...site of the first official settlement in the Northwest Territory, and the place where Andrew cut his teeth on decorative arts research.
We certainly don't want to step up on a political soapbox, and we know that the economy sucks and cuts need to be made....BUT libraries and museums form the foundation for our shared culture and heritage. Without these treasured institutions and their hardworking staff, much of what we collectors, dealers, and auctioneers know about the stuff we buy and sell would not be known. If we, as an industry, are serious about turning young folks on to antiques, then we need to do what we can to support the libraries and museums that get kids and young adults interested in history and in learning. Call your reps and senators, make a donation (of time or money), and, most of all, go and visit your local library, museum, or historical society. Tell them you appreciate what they do!
Sunday, June 7, 2009
More time on the road...
It's a busy time for us. Two auctions in the past three weeks at Garth's, and then this weekend, it was showtime...that is, the Fairhaven Antiques Festival in SW Ohio and the Heartland Show in Richmond, Indiana.
There has been much said about the Fairhaven Show in recent years, mainly about its decline. We were not around for its heyday back in the 1980s, but it's still a damn good show. Small, yes...maybe 50 dealers, but some great stuff. David Good, Sam Forsythe, Clifton Anderson, Steve Powers, Chuck White...when you get these folks together, you're going to see some great Americana. And there are less well-known dealers there with moderately priced objects, and even some folks peddling flea market stuff. There is something for everyone, and the setting is fabulous!
Heartland, though much larger, is similar...some great dealers with great stuff and some smaller dealers with good and varied stuff. We were able to document a couple more examples of Midwestern-German stencil-decorated furniture (www.midwesterngermanfurniture.org), including a great blanket chest with birds.
We think that these types of shows, those with a wide range of offerings, are the best kind for the young collector. Let's face it, NY and Philadelphia are just too intimidating for young collectors. But these smaller shows are a great place for the novice to examine some great things and thus learn, but also go home with a nice thing that is affordable. Note, we said "nice thing" and "affordable". That's what it sounds like when when the middle market is NOT disparaged.
There has been much said about the Fairhaven Show in recent years, mainly about its decline. We were not around for its heyday back in the 1980s, but it's still a damn good show. Small, yes...maybe 50 dealers, but some great stuff. David Good, Sam Forsythe, Clifton Anderson, Steve Powers, Chuck White...when you get these folks together, you're going to see some great Americana. And there are less well-known dealers there with moderately priced objects, and even some folks peddling flea market stuff. There is something for everyone, and the setting is fabulous!
Heartland, though much larger, is similar...some great dealers with great stuff and some smaller dealers with good and varied stuff. We were able to document a couple more examples of Midwestern-German stencil-decorated furniture (www.midwesterngermanfurniture.org), including a great blanket chest with birds.
We think that these types of shows, those with a wide range of offerings, are the best kind for the young collector. Let's face it, NY and Philadelphia are just too intimidating for young collectors. But these smaller shows are a great place for the novice to examine some great things and thus learn, but also go home with a nice thing that is affordable. Note, we said "nice thing" and "affordable". That's what it sounds like when when the middle market is NOT disparaged.
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