Auctioning can be an immensely enjoyable way of making money, with record prices often inspiring gasps of applause from audiences while celebrity bidders creating quite the spectacle.
Important times to sell art through auction include gallery shows, museum acquisitions or any other high-profile engagements.
1. Know Your Market
Auctions can be invaluable tools in certain markets for determining value. For instance, two medical residents married together can’t effectively evaluate a surgical position without first knowing which positions have already been filled by their colleagues, nor assess the value of a spectrum band for broadband service without knowing its total costs associated with using nearby bands.
Auction house experts often set estimates of what items might sell for, although these should only serve as general guidelines. Estimates can either be low to promote bidding or high to discourage it.
Sometimes an item does not reach its reserve price and remains unsold, in which case auctioneers call this an unsold lot that was “bought in”. However, this does not necessarily indicate that it will be put back up for sale again but could instead be moved onto other forms of sales such as private sales or even be destroyed completely.
2. Set Your Bar
Auctions tend to move more quickly than traditional negotiations, yet can also be riskier for schools new to auction fundraising and looking for ways to test out this approach. This is particularly relevant if schools are exploring auction fundraising as a means of fundraising.
Education your guests on how auctions work is key and reminding them that their maximum bid should always be bid upon an item they truly desire can help avoid spending more than necessary. Bidding can quickly become exciting when something catches your eye, which can distort judgment and force people to spend more than necessary.
Experienced high-end buyers often examine auction sales records to identify artists whose prices perform particularly well at auctions, often offering premiums due to more stable market values versus retail costs.
3. Educate Your Bidders
Auctions often bring out the competitive edge in buyers. Particularly in high-demand markets, it is vital that potential bidders thoroughly research products to understand their value.
As spectators, it can also be helpful for them to attend multiple auctions to observe how the event runs and form strategies for bidding strategies. A nervous or emotionally driven buyer may give off clues during bidding that other bidders pick up on and use against them to increase their own bids.
Prospect research can help identify top donors, but building relationships at events can make all the difference in terms of fundraising success afterward. For instance, teachers who win items may be more inclined to donate again when they know that their gift was matched by someone they know.
4. Don’t Over-Consign
Auctions provide an exciting opportunity for your guests, leaving them energized that they have won an item they have been searching for. No other form of commerce or sales makes customers so thrilled at winning something they paid for!
Auction processes tend to move faster than negotiation, which makes them an excellent solution when time is of the essence or assets are rapidly depreciating. However, faster processes may also carry greater risk.
Auctions reveal bidder identities and make valuations transparent, which may put off experts who prefer not to be exposed. Furthermore, the more bidders there are at an auction, the less value each additional buyer brings – so before choosing auction as your selling method it is crucial that you carefully assess your pool of buyers first.
5. Don’t Go Overboard
At an auction, it’s crucial not to overbid. Setting your budget beforehand and purchasing only equipment you require are vital steps towards preventing overspending.
Auctions can be thrilling events for art enthusiasts, with record prices drawing gasps of excitement from audiences and celebrity bidders attracting headlines. But they can also be daunting and disorienting experiences for non-experts who find the experience daunting and confusing.
Understanding the psychology of both buyers and sellers at auctions can be difficult, yet essential to your success. A bit of research and careful strategic planning will go a long way toward helping you become a winner at auctions – plus you might even discover yourself having lots of fun in the process! So get going now!