A Subject of Over Pricing; Antiques and Speculation

A SUBJECT THAT NEEDS ATTENTION - THE OVER-PRICING OF OLD STUFF IS BECOMING A GAME-CHANGER

THE MARKETPLACE IS COMPLAINING -DEALERS SHOULD LISTEN TO THE WARNINGS

     EVERY WEEK, WE TRY TO TAKE TIME TO VISIT ANTIQUE VENUES ALL AROUND OUR REGION. WE NEED TO KNOW WHAT'S GOING ON OUT THERE. WE CAN'T OPERATE OUR FAMILY ANTIQUE BUSINESSES WITHOUT KNOWING WHAT OUR COLLEAGUES, ASSOCIATES, AND COMPETITORS ARE DOING. WE NEED TO SEE FOR OURSELVES, WHAT THEY ARE SELLING, WHAT THEY ARE DISCOUNTING, AND WHAT THE TRENDS ARE IN THE BIG CENTERS OF OUR PROVINCE.

    WE CAN'T POSSIBLY OPERATE OUR OWN BUSINESS, WITHOUT KNOWING WHAT IS GOING ON ELSEWHERE IN THE PROFESSION. EVERY DEALER SHOULD BE THIS CONCERNED ABOUT THEIR COMPETITION. ON MOST OF THESE SEEK AND DISCOVER MISSIONS, TO OUR ANTIQUE DEALERS FRIENDS, WE COME BACK WITH VERY LITTLE MERCHANDISE BUT A LOT OF ACQUIRED KNOWLEDGE. THIS WEEKEND, AT OUR WEEKLY POST MORTEM, WE HAD A LOT TO DISCUSS ABOUT THE OVER-PRICING OF ANTIQUES AND COLLECTABLES. AS I NOTED IN YESTERDAY'S BLOG, I NEVER SAID "HOLY CRAP," SO MANY TIMES IN SUCCESSION, AFTER SEEING THE RIDICULOUS PRICING OF ITEMS THAT ARE NOT EVEN CLOSE TO BEING RARE…..PAINTINGS THAT ARE NICE BUT PRICED AS IF THEY WERE MUCH NICER. EVERYWHERE WE TURNED, THERE WAS SOMETHING ELSE THAT WAS PRICED WELL BEYOND WHAT IT WAS WORTH, AND HAD BEEN PRICED ON A MATTER OF "RARITY" THAT WAS A LONG WAY FROM REALITY. IT'S ONE THING TO PRICE ACCORDING TO RARITY BUT QUITE ANOTHER TO KNOW WHAT BEING "RARE" MEANS. YOU DON'T GET AWAY WITH THIS WHEN SELLING THROUGH ON-LINE AUCTIONS, BECAUSE YOU WILL OFTEN FIND MANY OF THE SAME "RARE" (TO YOU) ARTICLES FOR SALE AT THE SAME TIME, WHICH DOES WONDERS, LET ME TELL YOU, FOR ADJUSTING THE WILD THINKING THAT EVERYTHING OLD IS WORTH TWENTY BUCKS AND UP.

     I GET FURIOUS WITH ANTIQUE DEALERS, IN MALL AND SHOW SITUATIONS, WHO WON'T PERFORM DUE DILIGENCE, BY TRAVELING BOOTH TO BOOTH, NOTEPAD IN HAND, COPYING DOWN SOME PRICES ON COMPARABLE ITEMS, BEING SHOWCASED IN THEIR RESPECTIVE CUBICLES. WHEN YOU HAVE FROM FIVE TO TWENTY-FIVE DOLLAR DISCREPANCIES ON THE SAME ITEMS, A FEW ROWS SEPARATE IN AN ANTIQUE MALL, OR SHOW, FOLKS THIS IS POOR BUSINESS PRACTICE. IF YOU FIND THIS ON A REGULAR BASIS, THEN YOU HAVE TO WONDER, WHO'S MINDING THE ENTERPRISE….AND WHO IS RUNNING THE SHOW? THE VENDORS OR THE OWNERS OF THE ESTABLISHMENT? HAVING THESE DIFFERENCES IN PRICING, FOR THE SAME ITEMS, IS A DISSERVICE TO THE CLIENTELE, WHO, BY THE WAY, ARE PARTICULARLY SAVVY ABOUT THESE KINDS OF THINGS. IF YOU'RE AN INDEPENDENT ANTIQUE DEALER IN YOUR OWN SHOP, AND YOU WISH TO PRICE RIDICULOUSLY HIGH, THEN THERE WILL SOON BE A VACANCY IN THAT SAME STORE-FRONT. THERE'S A PRIVILEGE ATTACHED TO HAVING YOUR OWN SHOP, AND IF A DEALER DECIDED TO GOUGE BECAUSE IT'S THE PROTOCOL THEY ADHERE TO, WELL THEN, ECONOMIC REALITY WILL DO ITS THING AND CULL THE FIELD. I'VE KNOWN DOZENS OF DEALERS WITH THIS ATTITUDE AND NONE OF THEM EXIST TODAY AS MAIN STREET ENTITIES. CONSUMERS CALL THE SHOTS, AND IF THEY SEE RIDICULOUS PRICING ON COMMON PIECES, AND PRICE DIFFERENCES FROM STORE TO STORE, BOOTH TO BOOTH, THEY WILL REMEMBER THIS….AND IT IS ENTIRELY NEGATIVE. IF YOU WERE TO ARRIVE AT A MALL COUNTER, WITH TWO OR THREE IDENTICAL ITEMS, (EVEN CONSIDERING SCRATCHES AND WEAR), WITH THREE SIGNIFICANTLY DIFFERENT PRICES, WHAT WOULD MANAGEMENT DO IN THIS CASE. PULL THEIR HAIR OUT? GET MAD? LAUGH IT OFF? OR WONDER WHAT THE BIG DEAL IS. "SO BUY THE CHEAPEST ONE!"

     I AM A DEALER AND A CUSTOMER, AND I DON'T LIKE DISCREPANCIES. WHAT REALLY PISSED ME OFF THIS WEEKEND, WAS TO HEAR, ON NUMEROUS OCCASIONS, VENDORS AND MANAGEMENT OPENLY TALKING ABOUT HOW "SLOW" BUSINESS HAS BEEN, AND IN ONE LOCATION, A CHAP BEGAN CHATTERING AT US ABOUT DISCOUNTS HE WAS PREPARED TO GIVE US, BECAUSE HE FELT IT WAS TIME TO LET OTHERS ENJOY HIS UNIQUE STUFF. SUZANNE, SINCE BEFORE WE WERE MARRIED, HAS BEEN ABLE TO STIFLE ME, LIKE ARCHIE BUNKER WOULD HUSH EDITH, FROM BLURTING. I WANTED TO BLURT ALL OVER THIS GUY, AND TELL HIM THAT HE WOULDN'T HAVE TO HUSTLE DISCOUNTS TO UNSUSPECTING, RANDOM CUSTOMERS, IF HE PRICED THE ITEMS RESPONSIBLY FROM THE GET-GO. I DON'T LIKE HEARING THESE COMPLAINTS IN OUR PROFESSION, BECAUSE THE VENDORS LIPPING-OFF ABOUT THIS, ARE SPREADING THE COLLATERAL DAMAGE TO OTHER DEALERS, WHO DO PRICE SENSIBLY, WITH AN EYE ON THE LIMITS OF THE MARKET PLACE.

     SO MANY TIMES I HEAR THESE COMPLAINTS, EVEN AT ANTIQUE SHOWS, AND I WANT TO ASK THEM, IF THEY ASSUME ANY OF THE RESPONSIBILITY, FOR THE SALE'S DOWNTURN……WHICH BY THE WAY HAS BEEN GOING SOUTH FOR YEARS, NOT A FEW WEEKS OR MONTHS. THOSE WHO CONTINUE TO HIKE PRICES ON COMMON COLLECTABLES, AND FURNITURE THAT IS NOT MUCH MORE THAN VINTAGE, ARE CONTAMINATING THE ENTIRE PROFESSION…..AND IT'S NOT FUNNY. THESE MALL VENDORS NEED TO SMARTEN UP, AND THE MALL MANAGERS NEED TO START LOOKING THROUGH THEIR MEMBERSHIP BOOTHS, TO SEE JUST WHAT IS BEING OFFERED FOR SALE……AND THE PRICE DISCREPANCIES FROM ONE BOOTH TO THE OTHER. THEY NEED TO LISTEN TO THEIR CLIENTELE, AND NOT BLAME SLOW DAYS PERPETUALLY ON A PECULIAR ECONOMIC MOOD. I WAS WITNESS TO A LOT OF CUSTOMER COMPLAINING, THE OTHER DAYD, AND IF IT WAS A GROCERY STORE, INSTEAD OF AN ANTIQUE MALL, THERE WOULD BE HELL TO PAY. YOU CAN GET AWAY WITH THIS FOR A PERIOD OF TIME BUT YOU KNOW, SOONER OR LATER, THIS STATUS QUO WITH HIGH OVERALL PRICING, WILL COLLAPSE INTO THE MIDDLE, AND YUP, EVERYONE IN THE ANTIQUE PROFESSION WILL SUFFER THE CONSEQUENCE.

THE BIG DUMB PRICES AT YARD SALES - SO ASK THEM WHERE THEY GOT THEIR ESTIMATIONS

     There is a huge disconnect these days, between what is an antique value, for insurance purposes, and what a "for sale" market value represents. If I hear the claim again, that "In Toronto it will sell for a hundred dollars more," I'm going to blurt something, I swear to God. This isn't Toronto. If Toronto customers wish to pay eight to ten times more for something than it's actually worth, bully for them. I went to a yard sale on the weekend, where a lady was busy telling a couple of customers, about "antique shop prices," as compared to her collection. I started clearing my throat, and that's when Suzanne dives in, and removes me from what could be ground-zero. But then I remember, this is exactly what is being learned by customers coming to most of today's antique shops, malls, and shows. "We must be worth a fortune," they cry out, looking over the price tags on everything from glass to wood, pottery to porcelain. A false sense of security. Do you think? Market value isn't clearly represented here, in these venues, but I'll tell you what. I would be interested to know the actual selling prices instead of just what is printed on the stickers. Even in a matter of four hours, wandering around in antique shops, I heard at least four offers of discounts being provided to customers, who were considering making a purchase. I know it goes on all the time, and we often give discounts to customers who are spending considerable money on multiple items. I understand all about factoring this into the equation of establishing prices, but the kind of padding I've been seeing lately, is to the exponent of ten.

     If these antique vendors found the same kind of pricing at the grocery store, or the hardware emporium, or even at the gas station, imagine the bluster of complaints. Why do they see themselves as that much different than any other retailer, who by the way, can not get away with a 2,000 percent mark-up. The pricing of antiques, by these folks, falls under the statement, "I own it, so I can ask what I want for it!" This is true but it's also the case that mall managers can intervene and say "No way! It's not worth that!"  Contemporary retailers need to be able to justify their prices, and that is based on the same fair market principles as the antique trade. While it's true antique retailers often get their inventories, for well below market value, they still wouldn't want you to know how much the item you're interested in, has been marked up from the acquisition price. I know why? No one wants to tell a prospective buyer that the item was purchased by the dealer for ten dollars at a yard sale, and is being sold to you for three hundred….at a whopping big mark-up…."because they can."

     I've said this dozens of times before, but the problem I see and experience out there, on the antique hustings, is that far too many vendors are either too well-off, to worry too much, about whether their prices are acceptable or not. They always wanted to be antique dealers. I don't know why. So they get themselves booths at antique malls, and go-to-town so to speak. They like to price their inventory as if the items are museum pieces. Actually, museum pieces could be acquired for less. I managed a museum and a Sports Hall of Fame exhibit, so I know what I'm talking about. I've seen a lot of antique venues that were more like museums than retail operations. A lot of gawking but not a lot of buying.

    I am not trying to pump our own shop, as having lesser prices than all my competitors. What we are continually cognizant of, is what we paid for something, and what we can afford to offer it, in a retail environment, that will make it salable. We're not running a museum now. This is our livelihood, so we must produce a profit. It's not to say that we don't have certain pieces, like my newly acquired brass alter cross, (from last week) that we marked up considerably, to reflect fair market value, but this is also the nature of the way we have to shop to fill our stores…..or booths. So we can't ring up the wholesaler to get our shelves and floor space filled. So there are lots of occasions when, because we have been good hustlers in our profession, we do make value purchases, such that we can afford to raise the asking price upwards of a thousand percent, to bring it to a fair and comparable market value. And we will have to defend the price to any one making the purchase. The point is, what is market value after all? My perception is much different than many of my competitors. We operate a business in a seasonal economy, so we don't have any choice but to pay strict attention to market conditions, and market evaluations, which nine times out of ten, prove too high even on our estimation. So we have no choice but to bring our items down in price, because once we hit Thanksgiving, it's pretty much over as a profitable-season. I've always believed that our tourist economy has been excellent, for developing more retail sensitivity and realistic pricing, especially for those vendors who wish to make enough money through the short season, to survive through the rest of the year. We could not get away with exorbitant pricing and last through the winter, when our customers diminish severely until the next spring. It doesn't mean we don't get customers through the off-season, but just not enough to float an enterprise on its own.

     I worry about what ridiculously high prices are doing to the antique profession. I don't like to see these excesses on common items, that honestly, are not rare whatsoever. I saw many pieces wrongly identified. Many pieces badly damaged, with no apparent discount as compensation for condition. I saw items with huge price tags, and said to Suzanne, "Well, we should have bought them the other day at the Re-Store." And that would have been at a huge savings. As I've wondered before…..how do antique vendors react when they pass by the meat counter of the local grocery store? What do they mumble about the high price of a head of lettuce, a bunch of broccoli, or a container of orange juice? I've heard them complain about the high prices of groceries, in small talk, with other vendors, while participating in antique shows. They don't get it! But me thinks, that in the long run, there will be a pricing revolution out there, and prices will come down. In the meantime, we have to justify every price, all of the time, and if we can't afford something we see out on the hustings, we leave it for someone else. We want to be able to offer our customers fair pricing as a rule, not just on the off-chance.

     I began in the antique business in the late 1970's. I've written about the profession, in numerous publications since the late 1970's. I've managed museums and exhibits, and I've been involved with online sales and three store-fronts. We've done antique shows, and I've helped operate an annual show in the region. I've lived with antiques and collectables for most of my life, and I adore my profession. It's why I hate to see what it is becoming in this new age……suffocating itself with indifferences and excesses. There needs to be some discipline out there, and some imposed boundaries, regarding market value pricing……versus what can only be seen as baseless, and inaccurate. Even in the antique business, there is market value, and then there is pricing based only on wild expectation; speculation fueled by greed.

     There are a lot of competent, fair, experienced dealers, who love their industry……but alas, very few of them speak up, and join together in protest, of what is becoming a damning epidemic of over-pricing based on whim, not on market value.

     You don't write a blog like this to become popular in the profession of buying and selling antiques and collectables. But to save the industry, it needs to be said…..and it needs to be acted upon. There's a public relations disaster going on out there, and it's not being caused by a blogger like me. It's being caused by chatter between customers, and it's not the kind of advertising we would like to hear. Thanks for joining me today for this little blog-atorial about some excesses in the antique profession, that are costing all of us something…….and maybe it's as simple as a declining customer following. We will suffer the decline with everyone else.

Please visit my other blog at http://muskokaaswaldenpond.blogspot.ca