Goldin auction record breaking prices

[ChrisCavalier]

The auction was good for buyers also. As always, a great auction. I finally got a Swoboda game used 1966-67 bat, MEARS A-9 for, are you ready-(show of hands who's into numbers?)-$444.04. I Sh@% you not.

I hope you added a .40 tip when you made the payment

[TwinLakesPark]

Just to mimic what was said earlier, I feel like there were some great buys in the auction with some under valued items.

Just an idea to throw out there Ken/Chris, what if you were to waive the consignment fee on item(s) in exchange for an auction credit? I would think this would increase your consignments and therefore increase the collected buyer premiums.

Thanks again guys.

[truvalue123]

I didn't read that items were undervalued...
Would you explain how waiving a consignment fee for an auction credit would be a benefit to the auction overall besides forcing the selling to try to overbid to ensure they don't lose the credit(which may happen with the GUU night bidding),,,when you get a statement from the auction house, the proceeds of a sale offset the expense of a winning bid , anyway...
If I had a credit in lieu of a cash payout, and, I didn't spend it, I would not be happy...

[seanbaseball]

What would be the point in waiving the consignment fee for Ken or any auction house? They would then bring in less revenue and even if that made the consignor bid a little more on items the auction house would only get a % of that "overbid" back as the majority goes to the consignor of that item. Sounds like a lose and lose more for an auction house.

But to argue the other side if Ken were to hand me free money each auction I would gladly bid more How bout it Ken?

[TwinLakesPark]

It's a pretty simple concept...

I am not willing to consign my items at a fee of 20%, so I keep my 10 jerseys in my closet.

or...

Ken waives the consignment fee for my items and I send 10 jerseys into the auction, let's say at value of $1,000 per jersey. The 10 jerseys hammer for $10,000 and Ken collects 20% in buyer's premiums and I in turn have $10,000 in auction credit to spend.

Last time I checked, $2,000 is greater than $0, and I haven't even analyzed the additional buyers premium revenue because I have agreed to spend my $10,000 in the current/future auction.

What is so difficult to understand?

[truvalue123]

With the explanation it is understandable...but, I'd hazard a guess that most of the consignors are already bidders as well, and, the auction house doesn't have to give up the sellers money to entice them to consign more...The issue you would have is why wouldn't those that are already consigning and buying convert to your proposal? If so, the business model for the auction house suffers...
It is interesting, though, as a new consignor incentive..but, you still have the legalese of what happens if the consignor doesn't spend the credit? How , or when do they get it back?

[seanbaseball]

It's a pretty simple concept...

I am not willing to consign my items at a fee of 20%, so I keep my 10 jerseys in my closet.

or...

Ken waives the consignment fee for my items and I send 10 jerseys into the auction, let's say at value of $1,000 per jersey. The 10 jerseys hammer for $10,000 and Ken collects 20% in buyer's premiums and I in turn have $10,000 in auction credit to spend.

Last time I checked, $2,000 is greater than $0, and I haven't even analyzed the additional buyers premium revenue because I have agreed to spend my $10,000 in the current/future auction.

What is so difficult to understand?

LOL. I can understand math. I have consistently found that Goldin can get me a much higher % for my stuff than i can on my own even after their %.
I imagine there is more complicated math here than u represented. For instance Ken could just waive all buyer and seller fees and I bet he would have an amazing amount of listings but then be broke. There is a cost to running an auction house way above what any of us imagine. Business is expensive. Most people dont keep jerseys in their closet because they dont want to pay a consignor fee. If they are jerseys u dont want wouldnt some % of 100% be better than the zero $0 u are currently getting for them. And no one is going to pay u 100% of any auction comp on your jerseys as buyers realize u can rarely get that price without an auction house. If u dont like auction houses making money or u think they charge too much then u could always not use them? The same reason I am boycotting my local Bentley dealership. LOL

[TwinLakesPark]

I imagine there is more complicated math here than u represented. For instance Ken could just waive all buyer and seller fees and I bet he would have an amazing amount of listings but then be broke.

That would be a bad business decision.

There is a cost to running an auction house way above what any of us imagine. Business is expensive.

There are costs in every business, what makes an auction house any different? If you are an business owner (which I am) and you are not constantly thinking of maximizing revenue and reducing expenses, you are destined for failure.

Most people dont keep jerseys in their closet because they dont want to pay a consignor fee. If they are jerseys u dont want wouldnt some % of 100% be better than the zero $0 u are currently getting for them.

I like my money, so no, some % of 100% is not better. 100% is better.

If u dont like auction houses making money or u think they charge too much then u could always not use them?

Look man, I merely proposed a trade concept based on Reaganomics rather than a cash out. I don't want to get clipped 45% selling and buying in the same auction, but 22.5% is somewhat attractive to me for trading.

[seanbaseball]

I too am a business owner. I do know that maximizing revenue is not done by cutting fees to appeal to one potential consignor, or maybe a few. No doubt there is a sweet spot for revenue/profit for auction houses. I doubt u nor I know that math specific to auction houses and or Goldin auctions. Im sure more people would buy items if there wasnt a 20% premium but how do u decided how low to go. I suspect fixed expenses determine this.
No doubt u are expressing an opinion or idea and whats great is that people can disagree. Makes the world great. When u open your no consignor fee auction house let me know, but I will expect the same advertising, promotion, customer service etc of course. Good luck.

[truvalue123]

Interesting dialog...Why go with eBay vs an auction house? Also, Goldin started their auction house with a 10% buyers premium..10 PERCENT!!! And, it has walked up to the top range at 22.5%...at the end of the day, the bottom line price of the buyer can be sliced and diced...all depends on how much of the total the auction house(or any other platform) gets...