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.

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.