Re: High-End Auction Houses . . . Glorified Supermarkets ?
In my opinion both of you made very valid points as to why we are seeing less collectable watches and more commercial watches at the auction houses. Not only are the people who own the $80,000 vintage watch, which is now selling for $25,000, holding on to them. People who could afford to purchase a watch of that caliber are not spending as much. Of course it all goes back to the instability of the economy right now. Where to from here you ask? Wait it out. Eventually I believe the economy will perk back up. At that point the auction houses will again be more selective of what they are selling, and again be known as "high end" auction houses. For now they are selling the commercial watches to stay afloat.
Now lets look at it from the watch sellers perspective. The frugality does not end with citizens who are capable of purchasing high caliber watches. Everyone is tightening their belts and spending less. The collector who might have spent $1500 on a watch, now may restrict it to $700. So what are the stores to do with the overstock? They could put it on the bay and possibly make a slightly larger profit. Or it might cost them listing fees to post it seven or eight times before they find a buyer. On top of that they would more than likely have to increase a salary, or hire someone as an "internet sales specialist". Costing them even more. Then again they could send them to an auction house, have someone buy it at a smaller profit margin and be rid of it. Although the auction house will charge a fee, there is no need for increased salaries or extra personnel. Sounds like a winner for now for both parties.
Either way, great post by both of you.
Dave
