Heritage Auction

[oriolesbb6]

I would also like the issue addressed on the note or lack there of? Secondly, how many emails are appropriate when a customer has questions or concerns? Lastly, agreed-reserve the items-in house bidding represents a touchy subject-if you are pushing an item up to a certain amount then isn't that intentionally running up an item-whether at the beginning or end of an auction.........

[HRBAKER]

Factoring out whether the whole concept is good or bad, acceptable or unacceptable, etc.; does the explanation intuitively follow to a bidder from reading the rule in the auction catalog? Also as stated it doesn't seem to me to limit the house to the strictures stated above.

[Leon]

Folks in this thread will not be able to remain private. Just a heads up....

[sports-rings]

I have to word this response very carefully. I too have lost a lot of respect for Heritage during the last couple of years.

I was concerned about one of their consigments in an auction this year and I mentioned to them I wanted to discuss this item on this board. I was told that if I did this, I was opening myself up to a lawsuit for liable. I won't go into the details of this situation but I was warned not to discuss this matter. So I never posted my concerns on this board.

Furthermore, a couple of years ago, I tried to purchase an item from the family of an old-time ball player. I thought we had a done deal but the family decided to sell the item to Heritage. It wound up in their catalog without any disclosure that it was owned by them.

[barrysloate]

Jonathan- if Heritage bids so low that they virtually never win anything, why conduct this practice at all? On the positive side you win virtually nothing and accomplish little; on the negative side you create a great deal of suspicion and a boatload of bad will, since nearly 100% of your customers would likely hate this practice.

I believe you when you say it is done a week before the auction closes, and I understand the distinction you make between placing early bids and shilling. But how could Heritage risk the reputation it has built over decades, with the only thing to show for it is a few stray lots that slip between the cracks?

Sounds like the risk far outweighs the reward.

[Matt]

Also, I'm not sure I follow the distinction he makes - the difference between this and shilling is that these bids come in before competitive bidding starts and shill bidding takes place after? Before/After the start of "competitive bidding is an imaginary line.

[HRBAKER]

Is the conventional wisdom and the borne out experience of auctioneers regardless of field that starting an item with an opening bid of the lowest acceptable amount for a lot as oppposed to a low opener with a hidden reserve stifling to participation and routinely results in lower amounts realized for lots?

That would be interesting to know if it was possible to draw a hard conclusion. I am assuming it would have something to do with the psychology of the bidding/have to win process.

Sorry for the wordy question.

[perezfan]

Originally Posted by barrysloate

Jonathan- if Heritage bids so low that they virtually never win anything, why conduct this practice at all? On the positive side you win virtually nothing and accomplish little; on the negative side you create a great deal of suspicion and a boatload of bad will, since nearly 100% of your customers would likely hate this practice.

I believe you when you say it is done a week before the auction closes, and I understand the distinction you make between placing early bids and shilling. But how could Heritage risk the reputation it has built over decades, with the only thing to show for it is a few stray lots that slip between the cracks?

Sounds like the risk far outweighs the reward.

This question from Barry was well articulated, and really cuts to the heart of the matter.

I will be eager to hear the response from Heritage, as it really seems "the juice ain't worth the squeeze"

[RichardSimon]

The thing I find probably most annoying in this whole mess is that Heritage will not stand behind their employee, Mr Gutierrez. What is the point of having executive employees rendering opinions on authenticity if the auctioneer won't stand by that opinion.
I guess they really have no intent to stand behind their employees. How can you have faith in an auction house that operates in this manner?
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[barrysloate]

Didn't Jonathan say please don't hesitate to ask a question regarding this matter? I asked a question, but it was never answered. And I even asked it politely, I think.

[sago]

There is always the chance for impropriety if employees can bid, consign, etc. for the auction house where they work.

If it's that important or necessary for employees to consign an item, or for Heritage to both buy and broker the sale of items, then have a separate section in your catalog for those lots. Since it's such a simple concept that most people already understand, I'm sure the employee and Heritage lots would do just as well.

From HA.com
21. The Auctioneer, its affiliates, or their employees consign items to be sold in the Auction, and may bid on those lots or any other lots. Auctioneer or affiliates expressly reserve the right to modify any such bids at any time prior to the hammer based upon data made known to the Auctioneer or
its affiliates. The Auctioneer may extend advances, guarantees, or loans to certain consignors.

22. The Auctioneer has the right to sell certain unsold items after the close of the Auction. Such lots shall be considered sold during the Auction and all these Terms and Conditions shall apply to such sales including but not limited to the Buyer’s Premium, return rights, and disclaimers.

My question on HA 21: Heritage employees and the house itself are allowed to bid on the same lots they consign. Perhaps a clarification such as "up to and including the pre-determined reserve amount" would help eliminate some shill bidding questions, and possibilities.

My question on HA 22. "Such lots shall be considered sold during the Auction": Is this the Heritage equivalent of a lot being "passed"? If so, is the final price indicated in the HA archives as sold, thereby skewing the sales results for the item?

I'm not sure if these questions will get answered, but here they are.

David Davis