Starting an Auctionhouse and looking for Opinions

[PrescottSportsCards]

Sorry to bother guys, but been lurking on here and sorta, but not really discussed with Leon about posting about this, so, if he feels the need I suppose the topic will go by the way side.

I know that there are a lot of you here who frequent auctions, in fact, I have read about many of your problems and concerns as well as overall general complaints with many of the companies around. I have decided to embark on the project of an auction house myself and was wondering what it is that you look for in an auction house? I know that many of the current companies have problems with background of people running them or have done things that have raised attention and I obviously am using that as a platform on what not to do. However, I haven't seen too much about what to do and what you'd like to see. Obviously quick turn around on both the shipping of items and consignor checks is a must, but, beyond that, what do you want to see?

Thanks for your time, its been a pleasure to lurk on here.

[Leon]

It's a fair question and good luck. Hopefully you will join in discussions about pre-war cards sometime....take care

[drc]

#1 is that the lots are accurately described. This not only important for the customers but the long term viability of the auction house. Also, correcting description errors promptly is important, in part due to accuracy of description and in part because it will demonstrate to customers that you are honest. Everyone makes mistakes-- so that in and of itself is not problem with collectors, unless you have too many errors--, but collectors will judge an auction house by what they do about mistakes when notified. There are auction houses out there that try and hide errors and hope the winner never figures it out-- there may short term $$ gain, but this usually hurts an auction house over the long term. If your descriptions are good and collectors think you are honest, you will have a good reputation with collectors.

[Rich Klein]

Here are some of my suggestions

1) Treat people as if you wish to be treated the same way

2) Be Honest

3) Be on Time

4) If you make a mistake; admit it; fix it; and move on.

5) Good pts by Mr Rudd: Describe Lots honestly (Obviously a PSA 1 1933 Goudey Ruth can probably be explained with a good scan

6) Good Scans

There are more; and I'll defer to someone who can create the 10 commandments of good auction houses!

Regards
Rich

[barrysloate]

Rich- here are the ten commandments of a good auction house:

1) Be honest and courteous with your customers.

2-10) Get good consignments

[V117collector]

How is the company formed? Limited, partnership etc etc … hmmmm….? Right!

Proprietor’s credentials ~ resume

A criminal blackground check for owners and all new employees.

All personal information in regards to membership should be regulated through a non- participant (escrow).. I’m not sure this would work, but I’m on the right track.

Monthly email news releases.

[drc]

Background checks on consignors and bidders as well.

[V117collector]

Why do you think sellers have so much protection on Ebay?

[PrescottSportsCards]

Originally Posted by V117collector

How is the company formed? Limited, partnership etc etc … hmmmm….? Right!

Proprietor’s credentials ~ resume

A criminal blackground check for owners and all new employees.

All personal information in regards to membership should be regulated through a non- participant (escrow).. I’m not sure this would work, but I’m on the right track.

Monthly email news releases.

Sole proprietor LLC.

Credentials/resume I have, but, definitely always room for improvement there.

Background check is an interesting one, makes sense to me. Will have to look into the best way to go about that.

What do you mean by all information in regards to membership should be regulated through escrow? In that there can be verification by consignors and bidders via this third party?

[PrescottSportsCards]

Originally Posted by drc

Background checks on consignors and bidders as well.

I think I can see the value in being able to keep tabs on bidders in regards to making sure that they will abide by the rules, but, consignors I'm a bit lost on unless its to make sure they're not involved, or have been involved in fraudulent activity?

[barrysloate]

You want to try and make sure consignors have good title to their lots. You don't want them to give you stolen material to sell for them. I'm not sure legally how this is best done, but it's something to consider.

[drc]

Note that my background check comment was a joke.

[Rich Klein]

The likelihood is that there is not a problem.

Regards
Rich

[PrescottSportsCards]

Originally Posted by drc

Note that my background check comment was a joke.

I seriously thought it could be descent given as I understand to be the background of some people in the auction arena already.

[drc]

It's true that there are some folks who submit cards to auction houses and graders who are more devious than any auctioneer. It's also true all shilling comes from from bidders.

[jbsports33]

I would just try to approach the process slow and ask lots of questions, I have been working to try and develop a site as well and still have a long way to go.

Good luck

Jimmy

[bijoem]

I would name the auction house..... 'Sloate Auctions'.

[Matt]

Originally Posted by drc

It's also true all shilling comes from from bidders.

Do you mean that is the definition of shilling? Because there are houses that openly acknowledge placing bids on behalf of consignors...

[barrysloate]

Joe- I would sue for millions...

[calvindog]

Jeff, here's another tip when starting an auction house:

when challenged about anything, blame it on Dave Forman.