Over the last 10-15 years we have witnessed a huge growth in the number of auction rooms which in turn has since a massive decline in antique shops.
The reasons for this are quite simple. Many entrepreneurs have jumped on the auction house bandwagon because who wouldn’t if they knew they could earn a minimum of 50% on every sale without taking any risk!
How does an auction house earn its’ money. Well very easily and with very little effort. If an item is valued by the valuation expert at say £1000 then usually the auctioneer will set an estimate of £800–£1200 with a fixed reserve of perhaps maximum £800. Of course he will tell you it will almost definitely sell for more. What he forgot to mention was that the buyer must pay the same commission as the seller in most cases a minimum of 20% plus vat equalling 25%. So the buyer will only pay up to £800 and if the auctioneer uses his so called 10% discretion then more than likely the sale price will be around £720. From this you will also have 25% deducted leaving £540 for the seller. However there are more costs. Hammer strike £1-3, insurance usually 0.7% catalogue insert £10 or considerably more with a photo and of course let’s not forget any storage charges. So your £1000 item will probably return little more tan £475!!! Not forgetting the time involved before you are paid!!!
Had you come to us you would have received more money and no wait as we always pay immediately in cash if so desired.
Did you know that we own every single piece of stock in our business unlike auction houses which own nothing and take no risk investing in any items at all?