American Memorabilia: Ethics

[both-teams-played-hard]

Re: American Memorabilia: Ethics

But something tells me we'll see a final number close to Victor's prediction. Good luck, bidders!

I am in my computer office right now. I can see my current AMI catalog on the coffee table in the living room. This makes me an expert on sports memorabilia auction houses. This also gives me expert knowledge on vintage Bears jerseys. Since, I am an expert, I will have to agree with Skip that the final bid price will be determined by whoever is allowed to place the high bid.

[skipcarayislegend]

Re: American Memorabilia: Ethics

The consignor spoke with the OWNER of this auction house and complained, saying he could have sold the ball for, and I quote, $14,000 on ebay. The owner said not to worry, it will get that high. The morning the auction was to end, the price was still in the $4,000 range with 3 bidders. The ball sold that night for $14,000 with 4 bidders.

AM's Luckman jersey ends tonight. As of 12:30 pm EST today, it's at $31,386 with 13 bids. Long way to go before it hits $100,000 (and then some, according to Moreno). But something tells me we'll see a final number close to Victor's prediction. Good luck, bidders!

http://www.americanmemorabilia.com/Auction_Item.asp?Auction_ID=45086

[buc]

Re: American Memorabilia: Ethics

Actually, ethical auction houses place reserves on items, just like reserves you see on ebay. This is a common practice for auction house like Huggins and Scott, Heritage, and a few others. I'll give you a nice little story about a not so ethical auction house that may or may not be the one listed in the title here. A few years ago, a Babe Ruth single signed ball that was of mediocre grade was placed on auction with this auction house. The ball is/was about a $10,000 ball. The consignor called the auction house with about a week left to go in the auction and the ball was bid up to around $4,000. The consignor spoke with the OWNER of this auction house and complained, saying he could have sold the ball for, and I quote, $14,000 on ebay. The owner said not to worry, it will get that high. The morning the auction was to end, the price was still in the $4,000 range with 3 bidders. The ball sold that night for $14,000 with 4 bidders.

[sammy]

Re: American Memorabilia: Ethics

Joel,

The disclaimer itself is new, as it is on every category page and it would have been noticed and questioned long ago.

The practice itself is not new, and I don't believe it has anything to do with hitting a reserve.

Per your scenario, if the consignor bids it up to the reserve, then they are on the hook for the 20 percent buyer's fee unless someone else bids, as well as the consignment fee.

It is just flat out, dishonest shill bidding, and I would concur that many other auction houses have, or had the same policy.

[trsent]

Re: American Memorabilia: Ethics

Noticed this on the AMI web site, and wondered if the recent FBI investigation of shill bidding at auction houses prompted the following disclosure of a practice AMI has always done?

The auction house reserves the right to place a bid on any lot on behalf of the seller. Auction house will not specifically identify bids placed on behalf of the seller.

The seller, and AMI can shill bid the price up and both make more money, while legitimate bidders get ripped off. This is morally, and ethically wrong.

This is also on top of the 20 percent fee to spend your money with them, if you choose.

A few observations.

First, is this new or has this always been there and we have never seen it?

I assume this policy is for hidden reserves on items, so say they take a consignment that the seller will not sell for less than $20,000 - They start the bidding at $10,000 and the consignor automatically bids it up until the $20,000 bid is met. I assume many other auction houses have the same policies and hidden reserves.

If this is the reason they offer such terms, it would be nice if items with hidden reserves were disclosed. It would make sense. I doubt AMI would ever agree to such terms, but it would make for a more honest environment where people would not accuse them of not being ethical.

[sammy]

Noticed this on the AMI web site, and wondered if the recent FBI investigation of shill bidding at auction houses prompted the following disclosure of a practice AMI has always done?

The auction house reserves the right to place a bid on any lot on behalf of the seller. Auction house will not specifically identify bids placed on behalf of the seller.

The seller, and AMI can shill bid the price up and both make more money, while legitimate bidders get ripped off. This is morally, and ethically wrong.

This is also on top of the 20 percent fee to spend your money with them, if you choose.