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Buying At Auction: 6 Hints to Make You a Successful
Bidder
Buying at auction, be it for stamps or coins, antiques or even
cattle, can be one of the most exciting and profitable
experiences possible. It can also be expensive and utterly
frustrating. The best way to come out ahead is to learn the
tricks of the trade early. Here are some suggestions that should
help you get on the fast track to success.
(1) Do your research. Knowledge is your most important tool,
even more important than money.
(2) Learn how to be inconspicuous.
(3) Beware of zombies, shills and lunatics. The best way to
avoid them is
(4) Hire an agent.
(5) Be selective. Don't be afraid to spend the extra dollar
when something especially rare or in exceptional condition comes
your way. You may never get another chance.
To elaborate:
(1) Every experienced buyer knows how important knowledge is.
Questions of authenticity, condition, and rarity are always the
key considerations. If you are fortunate enough to have both
knowledge and money, you have the world by the tail. But even if
you have limited funds you can still do very well if you know
something the rest of the potential buyers don't.
(2) Once you have spotted something you want to buy, fade into
the woodwork as much as possible. The last thing you want to do
is attract attention to yourself or the lot you are interested
in. After you've been around long enough, your competition will
find out who you are. Until then try to keep as low a profile as
possible and guard your information. Use a code system to keep
track of your limits. I'm constantly amazed at how careless some
bidders are with their auction catalogs and what they write in
them.
(3) Zombies, shills and lunatics are every auction bidder's
nightmare. If a zombie knows who you are, he/she will follow your
every move. Their motto is: if that person is willing to spend a
hundred dollars for a lot, I sure can afford to spend a hundred
and ten. Most people know what a shill is. It is someone working
for the auction house or seller who artificially pushes up prices
by bidding against you. In order for an item to get a good price,
two or more bidders must be interested in it. Shills are
especially skilled at figuring out how high you are willing to
go. Lunatics are the ones who absolutely have to have a lot and
will bid whatever it takes to win it. The best way to deal with
these three worthies is to hire an agent to bid for you.
(4) Agents are professionals who have developed skills at
bidding at auction. One famous New York stamp auction agent was
so skilled at hiding his bids that only the auctioneer and a few
other people ever knew how he did it. As strange as it may sound,
paying an auction agent the extra 2-5% fee may save you many
hundreds of dollars or more in the long run. The zombies, shills
and lunatics won't know who is bidding against them.
(5) Finally, one of the most important skills of all is the
ability to recognize when to open up the purse strings. Condition
and rarity are the two most important determinants of price. The
exceptional item is always worth an extra bid or two. One
customer who was examining my stamps at a national stamp show
remarked, "I've been looking for this one for more than 40 years
and you have a very nice copy. But I never pay more than half
catalog for anything." I wished him well. It was a scarce stamp
and I expect he'll still be looking if he lives another 40
years.
To summarize: knowledge is the primary key to success at
auction bidding. Secondly, develop your skills as a bidder and
buyer. Then, learn to recognize the individuals you will have to
deal with on the auction floor. Cross them up and use and agent.
And finally, know when to pay a premium for the exceptional
item.
Best of luck!
John Anderson has been bidding at auction for more than forty
years and has purchased hundreds of stamps, antiques and
collectibles that way. Now semi-retired from stamps he is a
full-time writer. His first novel, The Cellini Masterpiece, was
published under the pseudonym of Raymond John. He is now hard at
work on his second, and an auction plays an important role in the
plot. If you would like to contact John or read the first chapter
of The Cellini Masterpiece, please log on at: http://www.cmasterpiece.com
 MORE RESOURCES updated Wed. March / 10 / 2010
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