The Auction Business and the Economy

Some people say, "If an auctioneer is really good then he or she can sell anything." This statement assumes that a good line of bull is king. That is not always the case. There are some really experienced auctioneers out there who were born to auction. They are so skillful at what they do that they really can pretty much sell anything. However, most auctioneers, even the really good ones, in order to do a good job should know the ins and outs of what they are auctioning.

Probably the most difficult auction classification is antiques and collectibles. Since there are so many different kinds of antiques and collectibles - the range of knowledge needed to be proficient at them is quite extensive. No matter how many years people are in the antiques and collectibles business, they continue to learn every day.

A person's ability to be a good salesperson through auctioning really comes in handy when he or she is selling to retail people who don't know all that much about the items at hand. Retail people are spending their hard-earned money to buy something personal for themselves and it's those people who will look to the auctioneer for some guidance. If an auctioneer is selling to professional antiques dealers, then those antique dealers already know exactly what they are bidding on and how much the antiques and collectibles are worth.

There are auctioneers with dynamic personalities who cover for their lack of knowledge by using cute phrasing and some impressive double-talk. Phrases like, "It has a great look, give me $100 to start." This is code for, "I don't have a clue as to what the heck this is, but give me $100 anyway." That was all well and good when the money was flowing freely. For awhile the merchandise was pretty much selling itself. Antique shops and antique malls were selling a lot of antiques and collectibles and were therefore always in need of more stock. One of the places they would go to get that stock was at their local auction houses.

When the economy starts to falter and continues to falter, an auction house's first priority is staying in business and keeping people in their jobs. In the auction business, it is common knowledge that auction houses are one of the few businesses that usually do well when times are tough. People who still have money want to buy the hard to find antiques and collectibles that don't come on the market very often. The owners of these antiques and collectibles usually hang onto them, either as an investment or until the price climbs higher. But when things get tenuous, many people need to sell those items because now they need the money.

Under these circumstances, people seek out auction houses because they have to. When someone consigns antiques and collectibles to an auction house because they want to, that's great! When someone consigns their grandmother's gold locket that she left them when she died because they need to buy medicine or formula, that's not so great. It is a difficult situation for everyone involved.

Antique dealers and antique mall owners spend less money at auction when the economy is in trouble because they are selling less. The money that comes out of the woodwork, so to speak, is from those who are taking advantage of the great items that are suddenly hitting the auction block. These additional sales replace the drop in dealer spending which helps the auction houses maintain the status quo. Sometimes auction houses even grow their revenues during these precarious times.

Unfortunately, in the current recession auction houses have not seemed to fare quite as well as they have in the past. Houses like Sotheby's and Christie's are still doing a land office business. Heck, they are even breaking world auction records left and right. However it's hard to relate to that particular layer of the stratosphere. Most people have trouble breathing up there. Down here on the ground there are hundreds of neighborhood auction houses having a difficult time making ends meet, just like so many other types of businesses.

No one seems to have an obvious explanation for this anomaly. Many auction house owners are also auctioneers and do their own auctioning but there are also many houses that do not. They hire a freelance or an independent auctioneer to call for them. Although this is more costly than it would be if they were to serve as their own auctioneer, some people are good at running a business but not good at "selling" or "performing." Freelance auctioneers rely on their reputation and they are only as good as their last performance.

What is obvious is that it is in times like this when a really good auctioneer really earns his or her money. When under the gun, an experienced auctioneer can always get one or two additional bids out of an item where an inexperienced auctioneer cannot. Also, an experienced auctioneer is in control of the audience, not the other way around. It is also when the expression, "It's got a great look," just won't cut it anymore.

Written by Anne Benedetto, Auction House Talk
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