When in doubt, Go With What You Know

Last Tuesday I went to my first auction of the year, and sadly the selection wasn't very good. The few nice lots they did have either went for a lot of money or were sterling silver, so it would be hard to make a decent profit. Instead of leaving empty handed, I decided to change my game a little.

Here's a list of what I came home with: some books by Taschen, Bruce Weber and Annie Leibovitz, an Epson scanner, a wheel from a BMW, and a wireless router with some USB wifi adapters. So the question is, what do all these thing have in common?

Well in truth, nothing, unless you're a photographer who uses high end computer equipment and drives BMWs. In other words, me. It's what I know about aside from antiques, and while it's a lateral purchase that's not going to increase the value of my inventory, it's still going to make about $500-600 on a $112 investment.

Some days are Filet Mignon, and some days are hamburger; the trick is, not going hungry.

How to Price a Rare Antique

Owning an antique and being able to sell it are two entirely different things. First of all, there's a bell curve of how rare your item is and how many people want it (who also happen have the money to buy it). Here's the curve:

On one end you would have, something like the Koh-i-noor, and on the other side lets say a single Lego block. In between you have items that are desirable and sell-able. I try to buy items that are uncommon, rare or one of a kind. The main reason is, when you have something unique, you can set your own price and it's hard for a customer to comparison shop. Basically, I go for items with subjective value rather than objective value.

Now here's the second half of the issue. Even if you have a very rare item, you still need a buyer. A few months ago I was at a live auction, bidding on a large Dunhill humidor; I went up to $400 and let it go after a $450 bid against me (I would have had to bid $500 plus buyers premium). I figured I could list the humidor on eBay for $995, take any offer above $750, and after I paid the eBay fees I would clear about $200-250 on a $400 investment.

Here's why I mention this particular item; I just came across it on eBay, listed for $3800. I did a quick price check, and the highest priced comparable Dunhill humidor selling on either eBay or Live Auctioneers was $650. Frankly I did wonder at the time if the other dealer was buying it to keep for himself.

This next chart is a very basic supply and demand graph that you should have learned in school:

So the answer of how to price a rare antique item is; find the point where the scarcity intersects with the value. If you're far out in left field, chances are you will be sitting on the item for a long time.

To Clean or not to Clean, That is the Question

In terms of antiques, the general school of thought is that you don't clean antiques for fear of damaging the patina. In America (unlike the UK where they polish everything to a near new finish) an antique without patina is worth a fraction of the price. I don't disagree with that however...

Here's a pair of sterling overlaid candlesticks, the left one has the original patina, the right one I cleaned lightly with silver cream.

The one on the left looks good here, but the one on the right looks more like silver. Overall it's a toss-up between patina and presentation. But take a look at the same pair presented on a black background:

From the point of view of a dealer, it will be easier for me to sell a pair that looks like the one on the right (if I display them on a dark background). Is it going to devalue the candlesticks? I doubt it. Keep in mind that they're only $75; if they were were worth $750 I would think twice about it.

Here's another example, a 19th century reliquary in before and after states. It is rare and expensive enough that I paid to have this professionally restored. I think the results speaks for themselves; it's still authentic, but now you can actually see that the roof is gold plated (which I didn't even know before), which was hidden by corrosion (aka patina). In this case, I feel justified in asking for more money than I thought it was worth before.

The Secret of Finding the Highest Buyer

I've been wrapping my head around this concept all year in tiny increments, but just recently an example came up that make it easy to understand. You can make money by selling in the right place. Here's the example:

Earlier this year, I purchased at online auction (not eBay), this small brass box with copper and silver overlay in Arabic script. It looked like a nice piece and despite not being able to read the calligraphy, I thought I could double my $150 investment fairly quickly.

 

I took it to every swap meet I went to and tried to sell it. I displayed it prominently at the front of my table so all could see. Many people came, looked, touched, appreciated the box; some asked for a price. I started at $300, then after a couple months of no takers, lowered the price to $250, and later again to $200. I was beginning to feel like I had made a mistake, and the best case scenario was going to be a break-even. Things like this can shake your confidence, and the last thing I need is more doubt.

Anyway, I was putting together a few items to take to a local live auction, and on a whim I added the box in to the other 11 items I was bringing them. Imagine my surprise when I heard the box sold for $800! Turns out there were two bidders who were both intent on going home with the box and dukes it out with their bids.

Although the question "What did I do wrong?" in trying to sell it at the swap meets does come up, I think it is not the right question. The correct question from the very beginning should have been "Where is the best market to sell this item?".

Each item I buy and sell has the optimum (highest price) buyer, sometimes that happens to be on eBay, sometimes at a swap, sometimes live auction. The secret is to figure out what the right market (location where you find the buyer who will pay the most for your item) is for each item and sell it there. I mean some items you can make a good profit on at $20, and there's no sense in taking that to auction or eBay. While other items are heavy, bulky or fragile and there's no sense in beating yourself up lugging them to countless swaps until they sell (unless you're a furniture dealer or masochist).

Now all you have to do is figure out your market for your items, and how to get them there.

On Antique Binoculars

Yesterday at the auction there was tons of stuff I wanted, but most of it went out of my comfort level. Some people get carried away at auctions, but I try to stick to my budget. For instance, there was a really nice brass fire extinguisher that I wanted, but it went for $150 (plus fees). Rather than duke it out, I did an eBay search, and it turns out they are readily available, most for under $100, some under $50. Needless to say, I'll be buying one on eBay for a fraction of the auction price. This time my lesson learned the easy way.

I did manage to bag a couple of lots of vintage binoculars, and another antique lap desk (writing slope):

The lap desk is really cool because it's one of the ones with the built-in stand, and it's quite large (10"x20"). It does have a few cosmetic condition issues, but I'm going to try to sell it as-is (~$500); if it doesn't move, I'll have it restored (cost of restoration $200, increases value to $800-1000 but makes it harder to sell).

Binoculars are an interesting bunch, because they can range in value from $20 to $1000. Leica and Zeiss binoculars top the scale at I got this lot for around $1000 per pair, then in the mid $500 range you have top end Japanese brands like Nikon and Canon. The next tier down are military binoculars from World War 2 like the US Navy Mark 33 that got in the $150-250 range. Down below that is what I got.

Clockwise from top left: 

• Lichter 7x50. Nice binocs made in Japan in the 60's with a German sounding name. Value  $75-100.
• Bushnell Rangemaster 7x35. 11º Field of view, superior quality, all metal construction. Value about $125. A really excellent pair of glasses, I might keep these for myself.
• Tasco 7x35. Entry level Japanese glasses. Value $25.
• Lamaire Paris opera glasses with case. Mother of pearl and brass, 99.5% original condition. Value $125-150.
• Busch-Stellux Prisma-Binocle 6x. Made in Germany, imported by Paul Meyrowitz Fifth Ave & 36th Street New York, circa 1910. Value $100.

In all it turned out to be a good lot and should easily bring $400. Not a bad haul, shouldn't bee too hard to get money back out.

One night at Midnight Sun Antique Auction

Last night was the monthly Midnight Sun Auction, and I went to see what I could score on the cheap. The place was full of the usual suspects, and 300 lots of fine junkery. It was one of those nights that nothing excited me very much, meaning there were no "have to have" items for me. In those cases, my strategy is to pick-off somewhat interesting items for the opening bid price; if I don't get it, no big deal. Here was my take:

 

From top left, clockwise: Hand-painted Japanese vase, real elephant ivory elephant (with poorly repaired trunk that my restorer will make perfect, and missing tusks), a mini tackle-box of trade beads many of which are real turquoise, an unsmokes meerschaum cheroot holder in the original case (lacking a stem which I will have made by my pipe repairman). All of this rests on a nice signed etching of Norte Dame, most likely a tourist piece from the 1960's, but nicely executed. Total cost was $137 including buyer's premium. I will have to invest a couple hundred more to make everything more attractive, but overall I think it's not too shabby.

Santa Monica Airport Swap Meet recap

Last Thursday I decided to see if I could get a spot at the Santa Monica Swap meet. I had done that swap a few times before with varying degrees of success from $400 to $3500 in one day. I called, left a message and hoped I could get a stand-by spot on Sunday.

Sunday I got there early waited around for a bit and got a space by 7am, which was lucky. I set up and had a couple slow hours with no sales, but then the customers started trickling in. I think the dealers were hampered by Thanksgiving, I'm sure many regular shoppers were out of town, while others were at the mall.

Here's a panoramic snapshot of my little 16'x16' patch of tarmac:

 

And a close-up of one of the tables:

Now what's neat about the first shot, is that recently I found another shot I took over a year ago in the same space the first time I sold there. I was sharing the space with a couple friends, 50/50, but I gave them the lion's share of the space because they had cheaper inventory.

The two ovals are my stuff, along with a card table or two at far left. In comparison, it's amazing that I made any money at all. In truth though, all that stuff are things I accumulated over the years and not really "inventory" in the truer sense. I do see that I was making an attempt to accept electronic payment (see orange case at center, it says PayPal accepted), but overall I look back and laugh.