Getting the asking price right is as much a skill at chattels auctions as it is when putting your home on the market: price it too high and you can kill demand, but undercook it and you risk giving it away.
Overexposure over a prolonged period tends to raise questions as to the condition of the property on offer. A newly redeveloped house near me has recently gone on the market for around 30 per cent more than I would think is reasonable. This is because it will have been priced according to what the plot cost to buy, what the developer paid to knock it down and create the house that now stands there, and what their projected profit is added on top. No one has shown any interest. After a while, market reality will kick in and it will be re-priced accordingly, but that exposure will cost the owner dear and they may well end up with less than if they had simply pitched it at a more competitive rate in the first place.
It’s the same for chattels auctions. Those prepared to consign items at come-and-get-me estimates very often spark a bidding battle, with lots selling for what they really hoped to get for them, or even higher.
Likewise, dealers exhibiting at fairs will often start to discount pieces if fail to shift after a day or two – better to sell something a for a bit less than return home with nothing to show for all the time and expense spent.
Oddly, if you cross the Channel, you will find that French dealers exhibiting at fairs will take the opposite approach. If little or nothing sells, they will start to put prices up, arguing that they need to make up the shortfall. It doesn’t seem to occur to them that potential buyers are even less likely to stump up the cash if what they are looking at is more expensive. It’s a cultural difference, I suppose, but I can’t believe that the French way is a successful strategy.
