Auctions, why?

[WatchEater666]

I don't get it. They generally seem to be pricier than buying from a reputable second hand dealer?

After all fees are factored in especially, the math doesn't really work at all.

I get it if someone is after super rare pieces but Phillips and other auction houses seem to routinely sell mass produced pieces well above normal used prices, and even above used prices from reputable dealers.

Can anyone enlighten me?

[Tools]

Auctions almost always result in a higher price for goods. People love the idea that they "won" something and will bid the price up.

[sgwatchguy]

Or large AD’s with big positions in a piece/brand use these to pump up prices, and some brands themselves do so too.

[uksubman]

I agree guys and have been a victim of this price pumping. They add a 20% auction fee to the hammer price, then on top of the hammer price + commission fee they add sales tax at 20%.

[Etschell]

Originally Posted by Tools

Auctions almost always result in a higher price for goods. People love the idea that they "won" something and will bid the price up.

Exactly. Bragging rights.

[cascavel]

Right or wrong, large auction houses generally have a greater air of respectability and are more approachable than high end watch dealers. The merchandise is vetted by other buyers and is available for easy viewing and handling.

[1William]

Auctions for super rare items I can see. For regular items it just layers in more cost.

[77T]

For the buyers, the fees make it a poor choice unless a super rare or a watch with historical significance.

For sellers, the idea is a broader audience, no returns, no pesky tire-kickers, and no haggling.


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[infinitywatches]

Originally Posted by 1William

Auctions for super rare items I can see. For regular items it just layers in more cost.

Yes. And yet those regular items are auctioned with pumped prices.
Why purchase that despite the obvious price hike?

That's where the talk of wanting that feeling of the item being won, like feeding an ego maybe.

[Jay (Eire)]

Originally Posted by uksubman

I agree guys and have been a victim of this price pumping. They add a 20% auction fee to the hammer price, then on top of the hammer price + commission fee they add sales tax at 20%.

Huh? Come on, all of that is fully disclosed in every catalogue. Both seller and buyer pay fees to the auction house. That’s how they make money.

Why would you think you don’t have to pay taxes? (This is obviously location dependent, both auction house and buyer, as taxes aren’t always due).

[Pongster]

Some say, money laundering.

[Jay (Eire)]

I think for some (regular) people it’s just the comfort level, Christie’s or Sotheby’s will always seem safer than some online dealer.

And every major collector and dealer is all over every auction, many (or most) of them in person. In part it’s just the circuit, but they are also participating.

[joli160]

Originally Posted by uksubman

I agree guys and have been a victim of this price pumping. They add a 20% auction fee to the hammer price, then on top of the hammer price + commission fee they add sales tax at 20%.

You knew that before bidding

[DoraTheExplorerII]

Serious question, does winning an auction really impress girls or something?

[cascavel]

Originally Posted by DoraTheExplorerII

Serious question, does winning an auction really impress girls or something?

I guess if you're buying something for the girls, yes.

[Slider817]

I’ve purchased a few watches at auction, some pocket watches and a few vintage Vacheron watches.
I don’t think I overpaid on any of the watches. I’ve purchased from Skinner, Sotheby’s and Philips.
I don’t understand why people pay a premium to purchase relatively common watches from auction, they are often more expensive. But much of the less available watches, are often reasonable priced especially in the lower price brackets.

[WatchEater666]

Originally Posted by Slider817

I’ve purchased a few watches at auction, some pocket watches and a few vintage Vacheron watches.
I don’t think I overpaid on any of the watches. I’ve purchased from Skinner, Sotheby’s and Philips.
I don’t understand why people pay a premium to purchase relatively common watches from auction, they are often more expensive. But much of the less available watches, are often reasonable priced especially in the lower price brackets.

Same thing I'm confused about. I completely understand buying a watch with interesting history like the T. Boone Pickens watch that was just sold but a vanilla rolex makes 0 sense.

[rolexest]

Hahaha imagine paying extra at an auction just to say you won something. People live bizarre lives. Maybe I need to make more money lol idk