Would you agree that prices at auction houses are MUCH more expensive than fashionphile, the other resale sites, and of course ebay? So if you're looking to sell one of your bags/H goods, why wouldn't you sell it at Christie's or Sotheby's, assuming it's in good enough condition to do so? Do they HEAVILY screen out most of the consignors?
Selling Hermes Auction House Vs Resellers
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Usually, the incentive to sell with a reseller v an auction house is that an auction date may be some way into the future and once people decide to sell, they want to sell ASAP. They also take their sweet-while to pay-out.
The other issue is they often encourage you to accept a low-ish estimate (to entice bids to get started) but not only could your bag go for that low estimate, but also the insurance is set at the low-end so that if anything happens to your bag (or item) you will again only receive the low-end figure.
However, both models are moving closer together as some auction houses now offer luxury items permanently for sale under 'private sales' where the buyer usually has to enquire, and you will see an expanding extension of this in future IMO. Resellers also often offload unsold stock at auction houses (buyers will have to add VAT or whatever tax to those bids, as well as the buyer's premium).
The other issue is they often encourage you to accept a low-ish estimate (to entice bids to get started) but not only could your bag go for that low estimate, but also the insurance is set at the low-end so that if anything happens to your bag (or item) you will again only receive the low-end figure.
However, both models are moving closer together as some auction houses now offer luxury items permanently for sale under 'private sales' where the buyer usually has to enquire, and you will see an expanding extension of this in future IMO. Resellers also often offload unsold stock at auction houses (buyers will have to add VAT or whatever tax to those bids, as well as the buyer's premium).
It's on hammer price (not added VAT and/or buyer's premium) and it's usually only 10-15%. Sometimes they will charge you a 'Performance Rate' (or similar) if it goes over the high estimate. It's all taking by stealth. Buyers premiums are also creeping-up and with auctions there's no sending back - so 'buyers beware'.
The wait for the calendar date is long, and they pay 35 days in arrears so most casual sellers aren't motivated as they normally want to sell something in order to buy something else.
100% this. The ‘performance rate’ also works extremely well in the auction house’s favour and not the seller’s when the estimates for the item are low (£6k-£8k for a new Birkin for example, and they always go for >£14k before buyer’s premium is added).
Why not sell at auction?
1) It's a consignment, not a sale, and you don't control the pricing. You can set a reserve for a desirable item. In that way it's like many consignment platforms, except that it's not immediate.
2) Beyond your low reserve (which has to be at or below the low estimate), you cannot control what the item sells for. Could be really low, could be really high, but you are waiting til the auction (usually months) to find out.
3) Most houses take 10-15% of the hammer price for your consignment as well as their selling premium. So remember, when you see in auction results that a bag sold for 20000€, that means the hammer price (with a 25% premium) was 15000€ and the consignor will be getting around 13500€ or less. So, if you could get 20K€ for your item on another platform and the consignor took 25% or less, you would be better off.
4) Unless they really really want your item, many houses will also charge you an "illustration fee" for photographing your item and putting it in their catalog, as well as insurance while it's in their care. This isn't much, but still a few hundred dollars.
5) Finally as noted above if your item is VERY successful the house may also take a performance rate.
It's a very valid way to sell (I sell a lot of art at auction although not bags), but you just need to understand all the fine print. In my opinion for bags specifically the resale market is pretty sophisticated and not subject to the same frenzy you see with art, so you don't have as much upside at auction. What you ideally want is a ton of competition for your item - that is what will drive the price up - so for something extremely rare when you don't need to get paid quickly, it can be a good way to realize a high price.
1) It's a consignment, not a sale, and you don't control the pricing. You can set a reserve for a desirable item. In that way it's like many consignment platforms, except that it's not immediate.
2) Beyond your low reserve (which has to be at or below the low estimate), you cannot control what the item sells for. Could be really low, could be really high, but you are waiting til the auction (usually months) to find out.
3) Most houses take 10-15% of the hammer price for your consignment as well as their selling premium. So remember, when you see in auction results that a bag sold for 20000€, that means the hammer price (with a 25% premium) was 15000€ and the consignor will be getting around 13500€ or less. So, if you could get 20K€ for your item on another platform and the consignor took 25% or less, you would be better off.
4) Unless they really really want your item, many houses will also charge you an "illustration fee" for photographing your item and putting it in their catalog, as well as insurance while it's in their care. This isn't much, but still a few hundred dollars.
5) Finally as noted above if your item is VERY successful the house may also take a performance rate.
It's a very valid way to sell (I sell a lot of art at auction although not bags), but you just need to understand all the fine print. In my opinion for bags specifically the resale market is pretty sophisticated and not subject to the same frenzy you see with art, so you don't have as much upside at auction. What you ideally want is a ton of competition for your item - that is what will drive the price up - so for something extremely rare when you don't need to get paid quickly, it can be a good way to realize a high price.
I've only sold designer clothes at auction (Bonhams in London)..
The main downside is the estimate and selling price being pretty much out of your hands, and a fair wait after the item has sold to get the money into your account.
I also had an experience of an item selling but the buyer not actually paying (shocking that you do actually have people put in winning bids then go awol) but they asked me if they could put the item into their next sale...It was a long wait but then two days before the sale they suggested I lower the reserve due to no commission bids on the table as yet..I agreed because tbh at this point I just wanted to sell the item and add to my 'Hermes fund'.
The item sold for more than the original non-paying bidder had offered and over the original estimate by about 30%.
Would I sell at auction again? Yes..If I didn't need the money relatively quickly.
I have also sold designer clothes via consignment stores and though I got probably took less than I would have at auction (btw these were recent designer garments and not collectable vintage or show pieces) I had sold everything within 6 weeks and was paid on the week each item got sold.
The main downside is the estimate and selling price being pretty much out of your hands, and a fair wait after the item has sold to get the money into your account.
I also had an experience of an item selling but the buyer not actually paying (shocking that you do actually have people put in winning bids then go awol) but they asked me if they could put the item into their next sale...It was a long wait but then two days before the sale they suggested I lower the reserve due to no commission bids on the table as yet..I agreed because tbh at this point I just wanted to sell the item and add to my 'Hermes fund'.
The item sold for more than the original non-paying bidder had offered and over the original estimate by about 30%.
Would I sell at auction again? Yes..If I didn't need the money relatively quickly.
I have also sold designer clothes via consignment stores and though I got probably took less than I would have at auction (btw these were recent designer garments and not collectable vintage or show pieces) I had sold everything within 6 weeks and was paid on the week each item got sold.
Thanks for all the wonderful insights. Have any of you compared offers at the reseller websites vs auction houses? Cash flow timing and certainty asides, is there a financial advantage of going with one vs the other?