Goldin Increasing Buyer's Premium

[raulus]

Originally Posted by Rhotchkiss

I don’t understand the disdain over an auction house making new customers prove their financial wherewithal to bid in an auction. If a bidder doesn’t pay, it’s a real pain for the AH and the consignor gets screwed. Plus, I think it’s pretty standard business that if you are going to extend credit, which is pretty much what a legally binding bid is, you want to know the person to whom you are extending credit is creditworthy. You don’t have to give a social security number or any info other than a bank statement showing you have the financial wherewithal.

Also, remember the customer is the consignor, not the bidder, and the AH should take reasonable steps to protect the items they sell for their customers. Maybe if they weren’t dealing in other people’s stuff. But AH’s are selling other people’s stuff. As someone who has consigned to numerous auction houses, I would sure want to know that the high bidder on my stuff can and will pay.

Finally, I wonder whether this is more because Goldin or PWCC is requiring this info vs more loved AHs like REA or LOTG.

I don’t know, I don’t think it’s a big deal and a pretty good business practice to make sure bidders can afford to close before you allow them to bid on your customer’s stuff! Seems like a minor inconvenience for the ability to bid

I concur with your thinking here. If I were the AH, I would want to know that buyers can pay. Hell, as a bidder, I want to know that the goons bidding against me aren't just yanking my chain with no ability or intention of actually paying.

I do think that the general disdain tends to be a function of other AHs in our space not requiring it. So when it is required, we get all hot and bothered. "Don't these people know what a big deal I am??!!!"

That and the means verification process itself tends to be rather uncomfortably personal. It's not common to have to share a bank statement with a vendor, and that can feel a bit invasive, particularly for a group that is trying to entice us to participate in their auctions.

Then again, most vendors require payment before they even serve us. So I suppose this works better than having to pre-submit our banking information or a credit card for an automatic charge if we win.