IPBA IPBA Auctions 101

Have you ever thought it would be fun to participate in an auction? A chance to pick up a treasure for your collection? But, not too sure of the process, concerned about how to bid, or afraid to scratch your nose? In this article we hope to make the process understandable so you’ll have a great time at your first or next auction.

HOW THE AUCTION COMES TOGETHER:

Sellers consign their items to an auction house for an upcoming auction. In limited cases, the auction house might buy items outright if the seller cannot or does not want to participate in the auction process. The contract between the auction house and the consigner is an agreement that the auction house will be responsible for doing everything required to bring an item to the point of sale. This includes preparing the catalog through a painstaking process of photographing the items, writing descriptions, and researching like and similar items that have sold in the recent past to determine the estimated price range for each item. Other responsibilities include storing each item, transporting to the auction site, and displaying prior to the sale.

The seller may request a reserve price, that is, the lowest hammer price that the seller is willing to accept, or they may agree to sell the item unreserved. In return, the consigner agrees to pay the auction house a percentage of the hammer price, generally 15-25%. The hammer price is the highest bid accepted by the auctioneer, but not the final price the buyer pays. More on this later. Please note that estimates are not reserved prices. They are educated guesses … a price range of what the item may sell for. The final result may be higher or lower than the estimate.

PARTICIPATING AT AN AUCTION:

Items in the auction are generally available for viewing immediately prior to the auction. Prospective buyers should inspect the items they are interested in, and ask any questions at that time.

If you are interested in bidding, you can register in many different ways:

* If you are attending the auction, you will complete a form requesting basic information and receive a numbered bidder card which will allow you to bid any time during the auction.

* You may also submit your bids prior to the auction via mail, telephone, email, or fax to the auction house. In this case, a staff member will bid for you, up to the maximum you have specified.

Many auctions also offer telephone bidding during the auction where you bid via telephone with a representative of the auction house, or internet bidding where you are bidding live through your electronic device. These methods for non-attendees allow you to decide on each bid rather than specifying a maximum bid. However, any communications problems or lack of connection may mean you miss an opportunity to bid. The auction house is not responsible for any missed bids.

LIVE BIDDING AT THE AUCTION:

If you are attending an auction and wish to bid, the process is easy. View the items prior to the auction. Make a list of the items you’re interested in bidding on, and think about your top bidding price. You might adjust your maximum on a later item depending on you success with earlier items. That’s one of the big benefits of bidding in person rather than bidding via one of the absentee methods.

When your item comes up for auction, you will bid by raising your hand or bidder card high in the air. You do not have to worry that you will be thought to have bid if you move your hand or head. The auctioneer and spotters are looking for bidders, and will acknowledge each bid, repeating it at the podium. If you are outbid, the auctioneer will give you a chance to bid again. The auctioneer will only declare an item sold once there is no more bidding, presuming the item has reached its reserve if there is one. In the case of identical bids from the room and from absentee bidders, the auctioneer recognizes the bid in the room.

Generally, starting bids are about one-half the lowest estimate. Bidding increments are listed in the catalog, and usually progress at $25 for bids up to $500, $50 for bids between $500 – $1,000, etc. The auctioneer will announce the amount needed for the next bid.

An important point to remember is that the price you are bidding is called the hammer price. The final price you pay includes the hammer price, plus the buyer’s premium, which is typically 15-25% of the hammer price, plus sales tax for the location where the auction is held. Consider the final price calculation when determining the highest price you might bid. In addition, if you are bidding remotely, there will be a packing, shipping, and insurance charge for the items to be sent to you.

SPECIFICS FOR THE IPBA AUCTION:

* Items are available for preview at posted times on the day of the auction.

* You may register to bid during the preview time.

* The catalog is available in early April from Ken’s website (www.perfumebottlesauction.com) or by contacting Ken Leach at 800-942-0550.

* Fax, email, internet, and telephone bids are allowed, but are not guaranteed when due to human error or technical difficulties.

* You will be able to pay for your items at the auction and pick them up immediately afterwards. Non-attendees will arrange with Ken Leach for the packing and shipping of items.

* Visa and MasterCard credit cards are accepted (please notify your card company that you will be traveling to avoid problems). Checks are accepted from IPBA members and by prior arrangement with Ken Leach. Cash is always acceptable.

* Dealers with tax id numbers will not pay the sales tax. Everyone pays the buyer’s premium.

* Please keep your conversations during the bidding to quiet whispers to that those who may want to bid can hear the auctioneer.

* Many of the people working at the preview, at the registration desk, and at the checkout desk are IPBA volunteers.

ANSWERS TO COMMON QUESITONS ABOUT THE IPBA AUCTION:

* Ken Leach, and all auction houses, get a percentage of the sale from both the seller and buyer. This is industry standard, and mostly NOT profit. Ken Leach donates 5% of the hammer price to the IPBA, as did Monsen & Baer when they conducted the auction at the IPBA conventions. From the proceeds, Ken reimburses the IPBA for auction expenses at the hotel. Other costs and expenses also borne by Ken include: acquisition of bottles, storage, insurance, photography, research, catalog production, transportation, staffing, showcase rental, and electronics; plus fees relating to internet bidding, telephone bidding, and use of credit cards for payment.

* You may lose out on a bottle to someone on the telephone, an internet bidder, or to a bid left prior to the auction unless you top their bid. The auctioneer gives preference to a buyer bidding in person, but must accept all bids, regardless of source. Auctioneers are certified and licensed, and must hold to the standards set by the industry. Having bidders from multiple sources does make for higher prices, something you may not appreciate as a prospective buyer. But as a seller, you would want the largest possible audience so you can recieve the highest price for your bottle. As as prices rise, so does the value of your collection.

* The auction house does its best to examine every item and provide a description that is accurate, but ultimately the buyer is responsible for examining items during the preview and for asking any questions at that time. If you are bidding remotely, you should request a condition report prior to the auction on the items of interest to you.

* No, you do not find a lot of common, easy-to-find, or inexpensive bottles here. Ken reviews an analysis of each auction, and the comments provided by IPBA members. He takes the consignments based on your requests to offer unusual perfume and vanity items in various categories and price ranges. Also, in order for the auction to continue its international reputation as the premier auction for perfume bottles, Ken looks to find the rarest and most uncommon bottles for inclusion in the IPBA auction.

So – jump in and bid. It’s great fun!

Source:  “Auctions 101” article by Janet Ziffer in PBQ Spring 2014.