I know one lobbyist.  I do know Sotheby’s, one half of the industry duopoly with Christie’s, presented their view in a memo to the New York State Legislature concerning a bill to prevent sham or chandelier bidding. The legislation would prevent the deception of hiding the amount of the reserve during the bidding process.  As a dealer, I can’t quite see how they can have my interests in mind.     Almost every industry has a trade representative, or lobbyist, whose job is to represent their interests to government.  It could be the auto, computer, farm industries, or a trade union.  The lobbyist is an essential tool for any industry…

If ever there was a time for the “big two” to flex their collective political muscles, the pending New York State bill prohibiting sham bids by auctioneers is their moment of truth.  They have boards of directors that are designed to influence and lean on both political and financial institutions that threaten their way of operating, as they should.  But here is where the weakness and limitation of dealers and their organizational representative is revealed.   The case for the legislation to protect bidders is a no-brainer.  The fraud of phantom bidding is perpetrated at all auctions, with the goal to deceptively keep the bidding alive and moving upward.  The…

Finally, after preaching this type of legislation in my blog since I started it in January, New York State legislators have taken the high ground on the auction process as is now practiced. Of all the opportunities to level the playing field with the present auctioneering process, this proposed legislation is the correct 1st step to stop sham bidding by the deceptive use of the secret reserve. An article on the legislation, including a feeble rebuttal by Sotheby’s can be read at: http://www.maineantiquedigest.com/stories/index.html?id=88   This legislation will allow for a fair base or floor for the auction pricing process, and then let the market forces take hold, not the other…

While being essentially classified as a small business, I feel that antiques dealers today are very preoccupied with the daily responsibilities of managing the multiple needs of their operation to survive. However, these issues vary from dealer to dealer based on their size, method(s) of selling, and location.  But the overriding issue for dealers to not only survive, but grow, is to know about the area of the marketplace you want to compete in.   Knowing the size and scope of the market, the market players (auctioneers, dealers, collectors, interior designers), and financial risks of inventory investment vary with each segment of the decorative and fine arts.  That is the…

Being an antiques dealer today is more challenging and demanding than it has ever been.  The days of buying for $1,000.00 and selling for $2,000.00 (or more if you’re lucky) are fraught with more legal, accounting, marketing, and operating expenses than were ever contemplated by dealers in the past.  Today, I couldn’t be in business without my educational background (BS in accounting at Lehigh University) in order to deal with the more time demanding chores of payroll, insurance, taxes, etc, etc, etc.   Oddly enough, the easiest part of being a dealer is the buying, because that aspect comes from experience and the “gut reaction” I get to an object…

At a party last week, I was discussing the issues I have raised in my blog about the antiques industry to a good friend, neighbor, and client who is a very successful fund investor.  He responded that, yes I was right on most accounts, but the government or any regulatory agency just won’t and can’t make political hay out of an issue that affects the top 2% of most affluent people.     On the surface, I would agree; if you’re rich enough to play the game and don’t care about being duped with secret reserves, collusion on pricing and operating methods, or multiple conflicts of interest, why should politicians.…

There is no way to deny that the Sotheby’s /Christies conviction of collusion was just a hollow financial road block.  Ever since being proved guilty of the crime, they now are able to flaunt their activities with total impunity (lost the battle; won the war).     The most obvious examples of colluding are posted every Friday in the New York Times Arts section, where they both dutifully post their auction schedules for the next week or two. I wonder if I’m the only casual observer of their scheduling to notice that the NEVER seem to have sales that overlap in the same category.  By what miracles or possibility can…

The great phenomenon of dealer liquidations that have been going on for the last several years has one very interesting trait; they all lacked a diversified stock.  Today, the decorative art dealer who is pigeon holed into one area or period of the decorative arts is going to have a tough go of it.   This topic comes to mind because of the announcement of the forthcoming sale of Ariane Dandois’s stock of fine French and continental furniture and furnishing. It sounds a bit like the liquidation of the French dealer Maurice Segoura, or the partial liquidation of English dealers Partidge and Mallott.  These are not fly-by-night dealers.  They have…

The art of deception is the most import tool in the auctioneer’s bag of unregulated practices. I have to tell you that I feel like I was duped at one of the last aspects of getting a deal at auction; buying a bought-in item.  What if there was not a “secret reserve”, could I have bought the lot?   The problem with the “secret” is why it isn’t disclosed after the lot fails to meet that price.  Shouldn’t the secret price be available to any one after the sale?  Some auctioneer’s have begun to do this, and I think it is a step in the right direction for setting a…

Jacobs responded to one of my blogs with the following question: I’ve been curious about how Sotheby’s auction works recently.  I know the BP rates changed recently but when I called Sotheby’s they said the seller’s commission has stayed pretty steady.  I’m wondering what exactly the seller’s commission is, do you know?  Is it tiered, same across categories, geographies, etc…?   I responded to him with the following email: Thank you for your question related to Sotheby’s seller’s commission.  It is interesting that the Sotheby’s representative you spoke to stated that it has been “pretty steady”, which is has been (just not as steady as the increases in the buyer’s…