Prices and Pricing of Antiques, of Anything
April 22nd, 2010 by admin
I have always been a strong advocate of disclosed prices in the art and antiques industry. The fear of disclosing an asking price is nothing less than a secret reserve price. It creates a setting for being deceived and manipulated before you even make an inquiry about the item. As a method that has become an accepted format for doing business, a minimum (auction reserve price) or maximum (dealer asking price) that is not disclosed creates an artificial wall to the consumer.
I love how the famous Sotheby’s/Christie’s catalogue notation “estimate on request” attempts to add a mystique to the item; it also sets up further blockage to the reserve price. A disclosed reserve price at auction would suck the wind out of the auctioneer’s theatrics. The personality of the auctioneer is critical to the success of having a secret reserve. It demands a skill to cajole buyers very differently than the selling efforts by a dealer. At some point a dealer will have to disclose a selling price; secret reserves are secret until it is breached by either two bidders or a bidder being manipulated by an auctioneer. With any reserve you have a legitimate minimum pricing, why is this secret form of price manipulation accepted?
The fear of pricing, be it a minimum or maximum starting point, is fear of the market and its natural capabilities. Part of the problem is an institutional acceptance with these forms of deception. Going to an upscale art and antiques show and seeing price tags in one booth and none in another is a bit disconcerting and reveals a lack of standards among dealers and show operators. What could you possibly hide more from a potential buyer than price; certainly your competitors knowing your prices aren’t really surprised by them and probably confirms their own valuations. For the retail public, knowing your prices gives them a sense of where a valuation point exists.
The transparency created by pricing is the best starting point to any potential transaction. Antiques and art somehow have made a case to deny that fact. What makes art and antiques so exclusive to this form of commerce? Investment banks deal in significantly larger numbers when trading companies and they aren’t ashamed of starting off with a generous asking price.
What has happened with the auction segment by this non-disclosure of the reserve price has degenerated into rampant conflicts of interest and other techniques for deception and manipulation. This was never how auctions were originally designed to function. It is also how two competitors, Sotheby’s and Christie’s, learned that together they could seize control of the industry by expanding these tactics. They lost the battle of colluding charges, but won the war to institutionalizing their methods.
For many dealers the fact that there exists a secret offers the opportunity to play the same game (if you have to ask for the price, you really aren’t ready to buy the item). Price tag(less) items must separate the boys from the men! Get over it; an asking price isn’t necessarily a selling price, nor should it be. Besides “everything has a price”, just start the process with one.
Anita Picarella wrote on 04/23/10 at 2:22 am :
“Price upon request” I suggest is not an attempt to add an element of mystique or mystery. Rather, I believe it is used to seek the level of interest. In 1997, I consigned an important painting to Sotheby’s. While vacationing in Israel at the time of the sale, I received a phone call from Sotheby’s asking me to reduce the “reserve” based on lack of interest. I was acting as an agent. I decided not to reduce the reserve. The end result was that the painting sold well in excess of the high estimate. Of course, everyone wants to get a great deal; I am convinced that artwork presented for sale at a well-advertised auction will achieve it’s correct price, or value, subject to market acceptability. Kindest regards, Anita Bartlett-Picarella
admin wrote on 04/23/10 at 6:46 am :
Anita,
You make the correct point that “a well advertised auction will achieve its correct price”. This is the reason why a reserve shouldn’t be secret but be a disclosed, realistic starting point. Deception shouldn’t be part of the pricing process.
Another issue is related to how Sotheby’s wanted you to lower the reserve because of “a lack of interest”. I guess from your sucessful results, they shouldn’t necessarily be relied upon as the judge and jury on valuations. The mechanics of an open market seem to work just fine for establishing a true price point.
Marcus wrote on 04/26/10 at 3:10 am :
Any way you can remove mystery, or deception, from the antiques industry would be a welcome CHANGE. I am an avid collector of antique, and deco, furniture. Through the years, however, I’ve become turned off by dealers and auctions since the majority are such grifters. And I’m not alone. The industry is on the downside for quite sometime. Not in small part from feeling ripped off when dealing with dealers who would cheat a grandmother out of her old rocking chair to make a buck.
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Netsuke wrote on 05/3/10 at 1:10 am :
Yes it’s fact!
james conrad wrote on 05/29/10 at 2:16 am :
Ive had this discussion with dealers who do the “price on request” thing. I say it puts off many potential buyers as it really proclaims “if you have to ask price, you cant afford it”.