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19K for a Mcfarlane Spiderman page and it does not sell?

Started by Ares,

16 posts in this topic

chromium

chromium

Posted
Posted
A couple more days and the consigner gets to cover $2400 along with having the honor of going through the experience of not making a cent.

 

Sweet,

Edwin

 

So if a page doesn't sell on Heritage, consignors still have to pony up the fees ?

I didn't know that hm

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tth2

tth2

Posted
Posted
A couple more days and the consigner gets to cover $2400 along with having the honor of going through the experience of not making a cent.

 

Sweet,

Edwin

 

So if a page doesn't sell on Heritage, consignors still have to pony up the fees ?

I didn't know that hm

That`s not correct. If that were the policy, Robert Roter would have owed Heritage a whole lot o` money for lots of listings that didn`t meet reserve.

 

The only way an unsuccessful consigner should be out of pocket is if he got an advance from Heritage, but Heritage usually won`t let the consigner put a big reserve, if any, in such cases.

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adamstrange

adamstrange

Posted
Posted
A couple more days and the consigner gets to cover $2400 along with having the honor of going through the experience of not making a cent.

 

Sweet,

Edwin

 

So if a page doesn't sell on Heritage, consignors still have to pony up the fees ?

I didn't know that hm

That`s not correct. If that were the policy, Robert Roter would have owed Heritage a whole lot o` money for lots of listings that didn`t meet reserve.

 

The only way an unsuccessful consigner should be out of pocket is if he got an advance from Heritage, but Heritage usually won`t let the consigner put a big reserve, if any, in such cases.

 

The standard agreement includes a fee for items that do not sell but it's a fixed fee and not related to bids or the sales commission.

 

Regarding advances, they can give advances even with big reserves because, while everything is subject to approval, everything is also negotiable.

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groovyedwin

groovyedwin

Posted
Posted

I should have specified it as a buyback fee. If you want to put a reserve on a piece that is higher than what they recommend, you get charged a buyback fee of 19.5% of your reserve if it was provided more than 14 days in advance. I was incorrect in assuming that it is still 15%. Take a look at the back of the standard agreement form.

 

Since the reserve is out of line with the value, the consigner probably placed the reserve. As such, they would be charged $3,120 to buyback the piece. Based on the value for this particular piece I would be surprised if any negotiations were performed.

 

 

But if you are interested in the piece, you might want to consider waiting it out. If my assumptions above are correct, the same piece will be offered in the next auction with a reduced reserve price being 20% lower ($12.8k - but still over value).

 

Regarding, Robert Roter - Do not know the individual and do not know the situation. But I believe the option exists that the art is considered Heritages if you do not pay the buyback fee given you placed the reserve.

 

Why is it setup this way? They are an auction house that is in the business to make money. The buyback fee is there to cover their cost associated with offering your consignment. The 19.5% buyback fee is intended to cover these costs since they did not make that money from a buyer. If the piece sells then it is 15% to the seller that is less than what a number of prominent dealers charge (20% or more of the sales price). A consigner placing a higher reserve than recommended can result in the auction house not selling the piece; as such this is their avenue to cover costs.

 

Bottom line, they have a wider audience and charge 5% less than prominent dealers do for offering and selling your art. They also allow you the flexibility to put higher reserves than the expected sales price (dealers typically do not let you do this since it prevents them from making money). On the down side the buyer pays 19.5%. It is always you decision.

 

Edwin

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tth2

tth2

Posted
Posted
A couple more days and the consigner gets to cover $2400 along with having the honor of going through the experience of not making a cent.

 

Sweet,

Edwin

 

So if a page doesn't sell on Heritage, consignors still have to pony up the fees ?

I didn't know that hm

That`s not correct. If that were the policy, Robert Roter would have owed Heritage a whole lot o` money for lots of listings that didn`t meet reserve.

 

The only way an unsuccessful consigner should be out of pocket is if he got an advance from Heritage, but Heritage usually won`t let the consigner put a big reserve, if any, in such cases.

 

The standard agreement includes a fee for items that do not sell but it's a fixed fee and not related to bids or the sales commission.

The agreement might state this, but who actually agrees to pay this? Several consignors I know negotiated it out without too much difficulty.

 

Regarding advances, they can give advances even with big reserves because, while everything is subject to approval, everything is also negotiable.

Please note my use of the word "usually". :gossip:

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tth2

tth2

Posted
Posted
I should have specified it as a buyback fee. If you want to put a reserve on a piece that is higher than what they recommend, you get charged a buyback fee of 19.5% of your reserve if it was provided more than 14 days in advance. I was incorrect in assuming that it is still 15%. Take a look at the back of the standard agreement form.

My impression is that the only people who allow that provision to remain in the agreement are the same people who actually pay annual fees on their credit cards.

 

Since the reserve is out of line with the value, the consigner probably placed the reserve. As such, they would be charged $3,120 to buyback the piece. Based on the value for this particular piece I would be surprised if any negotiations were performed.

I would think just the opposite, and would doubt the consignor was willing to put such an unrealistic reserve on his book if he knew he was going to have to pay $3120 for an unsuccessful auction, and therefore likely negotiated this provision out.

 

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