Gentlemen and Ladies of the ALR forum.
Heed the message presented by CCF. As the stock market continues to rise the antique market continues to fall. Will it turn around? History says it will. Are all antique markets affected? Yes, and will continue to be so. And as the antique market goes-so goes the contemporary market. It is definitely time to buy: if you buy smart.
Buying smart does not always mean search the auction sites for value as the hammer price is only the beginning of your expense. You must consider buyers premium, sales tax and landed cost. Buyers premium can reach 20% or even higher if you bid on-line.Shipping costs have doubled in the last 7 years and sales tax isn't going south any time soon.
Ex: a quality contemporary piece might hammer down at $3500. Add 20% BP and sales tax and you will, for certain, exceed $4400. Now you have to figure out how to get it home. Say you ship the gun and insure your purchase; Now you are closing in on or surpassed $4600. But you say, 'I was at the auction so I won't have that expense'. True, if you live close by but most of the time you will have at least one overnight expense along with meals and gas money if you attend the auction. Landed cost, the real true cost in dollars and cents of getting your purchase to your gun room-is seldom considered by young auction buyers and often neglected by old ones.
So what do we do? We can wait out the drought or we can network effectively. Use the above example when a buyer, young or old, shows an interest in your craftsmanship.Point out the hidden cost associated with the false accounting of a auction hammer price.
Basically, sell the steak and not the sizzle because if your work is good enough the sizzle will take care of itself. The cost of getting the steak home is the landed cost. Regards to all, HIB
