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Posted By: peter chao

That's a good question. How is what the auction houses do different than retailers. Have you noticed that auction houses take a much larger percentage than most retailers. I really think they do it with smoke and mirrors.

It starts with the catalog, almost every item is said to be rare or rarely seen and then it progresses from there. They sell the sizzle (future value) of an item. And to be cynical about it, they get you ready to mortgage the house to obtain that must have item.

Then they initiate a competitive process where only one person can win the rare item.

It's smoke and mirrors, I tell you.

My opinion is that REA does it best. They also limit their auctions to once a year to give you an even deeper feeling of exclusivity.

Peter