Collecting is More Than a Passion

 

QUESTION: My passion for collecting seems to becoming an obsession. How can I control this? And how can I judge what things are worth collecting?

ANSWER: You’ve obviously been bitten hard by the collecting bug. Ever since the launching of the Antiques Roadshow and Pawn Stars, as well as eBay, Ruby Lane, and other antiques and collectibles, many people think that everything is worth something. And if something is old, it must certainly be valuable. If you believe this, then you’re wrong on both counts.

The first question you need to ask yourself is “Why do you collect things?” Is it for their intrinsic or monetary value, is it for the pleasure they give you, or is it for some vague idea of self-worth?

Asking avid collectors why they do what they do is like asking, "Why do you breathe?" They might reply that something about human behavior wants—or is fated—to gather and accumulate, to crave and classify, to seek out and hoard. Passion plays a part in many serious collectors' pursuits, as does, many admit, the thrill of the hunt.

This can be true even, or perhaps especially, when time is long between looking, finding and acquiring. The rarer an object of desire, the less frequent or instant the gratification of its discovery; for some determined collectors, though, pleasure resides in the long, unpredictable search for a coveted item. Inexplicably, it may also dissolve when it leads to a find.

For many people, collecting is a way of getting in touch with a past era, even if they didn't live through that particular period themselves. Some enjoy owning objects from what they may imagine was a simpler, less stressful age. Or they may have a strong nostalgic or family connection to a certain period and place.

Some people collect with investment value in mind, others to develop an informed knowledge of a our material culture. Either way, passion plays a part in many serious collectors' pursuits, as does the thrill of the hunt. Identifying personally with the objects one admires can also feed the collecting impulse.

Some collectors embrace—and celebrate—their magnificent obsessions. Like entertainers, they enjoy displaying what they have amassed and sharing their enthusiasm with friends. Conversely, many people keep their treasured collections to themselves.

Collecting has broaden in scope over the decades. It used to be that antiques included only decorative objects and furnishings. Today, collectors consider any object 100 years old or older an antique. Anything newer a collectible. And while some antiques may be considered collectibles, not all collectibles are antiques. Take typewriters, for instance. The oldest ones are antiques but newer ones from the late 20th century are technically collectibles.

What's old is new in the evermore-diverse collectibles market, and as long as someone, somewhere values something enough to acquire it and stimulate trading in its field, it can become a common practice to do so. Thus, along with such old favorites as stamps and coins, items like Barbie dolls, comic books, and computers, in fact, just about everything can be deemed a collectible.

So where do you draw the line.  The first rule of collecting is collect what you like. The second rule is to be knowledgeable about your collection. The third rule is buy low and sell high. 

Understand why you’re collecting what you do. What got you started? Have you kept up with your collection or has it run its course? If your collection is languishing, then perhaps you’ve lost interest. Life changes. You change. 

Do you know a lot about what you collect? Have you studied up on the history of the objects? Do you know the makers and the marks? Do you know the last word on the subject? Have you kept up with the market value?

Too many people get caught up in the entertainment value of auction sites like eBay. For some it’s like playing poker. They even get to “win.” Many pay far more than an object is worth just because they want to be the winner. If you’re a true collector, you’ll not even bid on an item unless you know you can get it for a good deal below market value. And that means you have to know what it’s worth before you bid. 

Do you just collect things or do you keep an inventory of your collection? To understand the true value of your collection, you need to know when and where you purchased each piece, how much you paid and how much it’s worth now. You may even want to photograph each item as a record for insurance purposes.

Of course, as any collector knows, there’s a price to pay. Thus, beginners and seasoned veterans alike usually pursue their collecting passion at some cost. No matter what your field is, there's something all of us inevitably collect and unless you pick the pieces off the junk pile, you’ll have to pay for them.

To read more articles on antiques, please visit the Antiques Articles section of my Web site.  And to stay up to the minute on antiques and collectibles, please join the over 30,000 readers by following my free online magazine, #TheAntiquesAlmanac. Learn more about railroad antiques in "All Aboard!" in the 2021 Summer Edition, online now. And to read daily posts about unique objects from the past and their histories, like the #Antiques and More Collection on Facebook.

How Do Antiques Dealers Price Their Items?

 

QUESTION: I’ve always wondered how dealers decide on the price of an antique. Sometimes, the prices seem deliberately inflated. And at other times, they seem downright cheap. What governs pricing in the antiques business?

ANSWER: That’s a great question. Most of the time, collectors dwell on the value of an antique. They usually don’t think about the price, unless it has a direct relationship to that value. 

The important thing to remember is that buying and selling antiques is a business. And just like any other business, dealers have overhead—if operating a shop, then electricity, heating, phone, and other utilities; if selling at shows, then the booth fee, advertising, etc. 

The key to making a profit in any retail business is to buy low and sell high. Most dealers mark up the price of their antiques by 50 percent over the buying price. But the higher the buying price, the less they can mark items up. High-end dealers selling antique for four to six figures often only use a 20 percent or less mark up. In this case, they need to sell the item quickly to make enough turnover to make a profit.

But a lot of dealers have antiques inventory that’s been in their shops too long. The longer an item remains unsold, the less the dealer makes on it because unlike the static price of an antique, the cost of running a business continues to change. 

And what about sales and bargaining? Many antiques dealers will bargain with a customer over the price of an antique. They know how much they must make on the item and won’t go below a certain price. Bargaining lowers the mark up and cuts into overhead costs.

Some antiques dealers, much like other retail business owners, will occasionally have sales to move merchandise. But don’t expect deep discounts on these items. Remember the mark up. Usually, sales bring customers into the shop who most likely will find something else that they like and buy that instead. Or they may buy several smaller items.

Generally, the higher the prices of the antiques, the less likely a dealer will bargain much for them. And those same dealers will not have sales.

Unlike antiques dealers who operate shops and do shows, flea market and antiques mall dealers usually deal in much smaller and less expensive merchandise. They’re more willing to bargain the price down a bit to make a sale. And often will lower prices on items that have been in their inventory for too long.

Antiques are such subjective items that prices vary tremendously depending on demand, current trends, and rarity. Prices can vary from dealer to dealer, so it’s difficult to compare the price of one piece with that of a similar or identical one. Antiques appreciate over the long term. Like the stock market, antiques rise and fall in value depending on demand and trends.

So how do antiques dealers ultimately figure the price of the items in their inventory? First and foremost is what the dealer paid for the item. Obviously, the higher the original price, the higher the retail price. And thanks to T.V. shows like The Antiques Roadshow and Pawnbrokers, the buying public has an inflated idea of what an antiques value actually is. 

The value of an antique is what someone is willing to pay for it. So the value is essentially what the last person paid for the piece. Values for high-end pieces usually result from auction sales while those for lesser valued collectibles may result from books dealing with a specific category of collectibles such as Depression Glass or world’s fair collectibles. While the prices of the former are kept in proprietary, subscription-only databases, those of the latter are available to the general public. And then there are auction/buy-it-now sites like eBay online. 

And many antiques dealers consult online auction results and other sites to determine what the going rate will be for the items they’re pricing. 

Finally, dealers add the percentage of markup, determined by the amount of their overhead and what their local market will bear.

One of the reasons many antiques sell for many times over their auction estimate is that many live on-site antiques auctions now include phone bids while many online auctions allow bidders to bid in real time. These phone and live online bids now come from anywhere, thus the final selling price of the item isn’t affected by the local market.

So the next time you’re out antiquing and come across that piece that you just can’t live without, remember the complexities of antiques pricing. And if you can purchase the piece for a reasonable price in the end, all the better. 

To learn more about what it’s like to start your own antiques business, read How to Start a Home-Based Antiques Business.

To read more articles on antiques, please visit the Antiques Articles section of my Web site.  And to stay up to the minute on antiques and collectibles, please join the over 30,000 readers by following my free online magazine, #TheAntiquesAlmanac. Learn more about railroad antiques in "All Aboard!" in the 2021 Summer Edition, online now. And to read daily posts about unique objects from the past and their histories, like the #Antiques and More Collection on Facebook.

Beauty and Collectibility Are in the Eye of the Collector

QUESTION: How do I determine an artist’s most collectible works? Are they the ones that sell for the most money? And, if so, are they the ones I should be collecting?

ANSWER: Collecting art can be tricky. More than any other collectible, the popularity of certain artists and their works ebb and flow with the trends in the art world. An artist that’s extremely popular one year may fall to the bottom of the heap the next.

An artist's most collectible works usually depict subject matter that has gained popularity among art collectors. If more people collect the works of a particular artist, those works will go up in price and value. In this case, outside forces play a large role in the determining what type of  subject matter looks like, not necessarily the artists, themselves. One year, it could be landscapes and seascapes, another year city scenes, abstracts, portrait, or interiors. The only way to discover  what an artist's most collectible works look like is by talking with dealers, collectors and others familiar with that artist's body of work.

The farther a particular work departs from favored subject matter, the less collectors of that artist’s works will be interested in it. You might compare this to a musician who becomes famous for one or two songs because his or her fans insist on hearing those songs over and over regardless of what direction that musicians career takes. That doesn't mean that artists or musicians have only one or two noteworthy moments in their careers, but rather that tunnel vision of fans affects what’s perceived to be popular or collectible. The same holds true for writers who become successful based on a particular style of writing or subject matter. When they deviate from that, their fans find someone else to read.

Art work featuring the best, most collectible subject matter usually sells for the most money. But determining whether or not a work falls into the "most collectible" category based purely on how much it sells for isn’t how the art business works. Instead, an individual piece of art must be evaluated by experts in terms of the artist's entire output, his career evolution, and with respect to what was going on around him at the time. Price does not enter into that evaluation—it’s the consequence.

Works of art can also sell for high prices even though they may not fall into an artist's"most collectible" category. For example, a piece might be valuable because an artist produced it during an important time in art history. It then becomes more collectible by fans of the movement rather than by fans of the artist.

As for what art work you should or should not collect, follow the golden rule of collecting— collect what you like. If your tastes center around pieces that don't have that "most collectible" look, fine. Go ahead and buy them. Just know the artist's market well enough so that you pay the going rate for that type of art, not the going rate for the most collectible types.

Also, pay attention to collecting trends in the art world. Subscribe to publications that offer news about recent auctions or sales of art. Know which artists are hot and which are not. And know if a scam may be afoot. One woman hid her late artist husband’s work from the public for a number of years so that it would appear to be rare and pristine—translation: never appeared on the market before. She thought that doing so would raise the prices of the works when they did appear. When she did begin selling his works, she did so in dribs and drabs, so as not to flood the market with his works, thus lowering the price.

Clean Out and Clean Up

Garage and yard sale season officially starts today, April 1. No, it’s no April Fool’s joke. As the weather gets warmer, people start thinking about doing some Spring cleaning and getting rid of a lot of junk that’s piled up. I thought I’d take a break from the usual question-and-answer format to offer some tips on setting up and selling at a garage or yard sale.

It’s time to get rid of that old waffle iron, those old copies of National Geographic, your teenager's baby clothes, grandma’s costume jewelry. But before you do, you should do a bit of planning.

From now until the end of October, depending on the weather in your region, Americans will hold more than 10 million yard and garage sales. These sales are the bottom rung of the antiques and collectibles market. It’s the entry-level position where items, long hidden in attics and basements, see the light of day and join the thousands of others in the giant stream to flea markets and antique shops and coops.

Since garage and yard sales began in the mid-1960s, they have become an estimated $1.5 to $2-billion -a-year business. For some buyers its entertainment on a Saturday morning, for others it’s serious business finding inventory for their booths and shops.

Sellers get rid of a lot of junk they don't need and in the process make a few bucks. The average garage sale takes in about $150 to $200. And it's all free. These sales are one of the great unregulated sectors of the U.S. economy. No one cares about child labor laws, sales tax, or product guarantees. And generally, everyone has a good time.

Of all the items sold, dressers, beds, tables, especially smaller ones, are always in demand. More buyers are looking for antiques and collectibles, many of which end up on eBay. Antique mirrors, furniture, art, rugs, pottery, and glassware often sell at garage sales for a fraction of the price they’d sell for in a dealer's shop.

Fabrics—curtains, blankets, quilts, and tablecovers, all expensive in stores, sell well, especially if they’re  custom-made.

Household items are another favorite. Everything from a salad spinner to a potato peeler, new or old, sells, especially if priced under a dollar.

While the majority of buyers at these outdoor sales are women, men like to poke around, too. Tools of all sorts are popular with them. Antique tool collectors scour the sales far and wide looking for that piece to fill out their collection.

There’s even a market for old sports equipment—ice skates, tennis rackets, old baseball gloves— anything from the early days of a sport, especially if they’re in good shape.

To make sure a garage or yard sale is profitable, the seller must plan carefully. It’s a good idea to go to a few sales in the neighborhood to see what others are selling. And it’s just as important to watch the crowd since many of them are regulars who will end up at future sales.

It’s important to check local ordinances. Some municipalities don't care. Others have restrictions on sales. Many require a permit which is often free. Some restrict the number of sales per year.

Good weather is important. While the seven-day forecast can’t always be trusted, it’s a start. But plan for any contingency. Setting up a backyard canopy is good in any case as it will draw visual attention to the sale.

Ads for the sale need to be specific. While a seller doesn’t have to list every item, listing groups of items is a good idea. But don’t say ‘Antiques” if there’s only one or two pieces. And unless the ad states "No early binds," eager shoppers will show up way ahead of time. And don’t fall for some sad story on a Thursday evening about how the person has to work on Saturday and can’t come to the sale. Could they just have a peek? The answer is no. Being fair to all buyers is the mark of a good seller. A telephone number in the ad is helpful for directions and for people to see if you have what they want.

Attract buyers with  easy-to-read street signs, balloons, or streamers. Make all signs legible and the lettering dark enough to read while driving by.

Prepare everything ahead of time. Most of the action occurs in the first hour or two. Price all items. No buyer should have to guess how much an item is. Ask friends to help out and make sure to have plenty of dollar bills and coins on hand for change. Many buyers stop at an ATM machine before setting out and come armed with $20 bills.

Offer several boxes of smaller items that buyers can rummage through. Perhaps group these items by price from low to high in separate boxes. This stimulates buying. Also, a table of giveaways keeps people lingering. Some sellers serve coffee, always good at the beginning and end of the garage and yard sale season..

For those selling antiques, it’s important to know how much they’re worth before selling at some ridiculous price. But remember, this is the lowest place in the antiques market, so even valuable items can only go for a fraction of their value. A good rule of thumb is to send valuable pieces to auction. 

Be flexible on pricing; especially at day's end. Sometimes, it's better to get rid of an item than make money on it. One seller smashed an old crock against a tree rather than sell it for $1.

Next week: Tips on buying at garage and yard sales.

Put a Price on It

Last week, I told you the story of a flea market dealer who hadn’t priced anything and wondered why no one was asking about her items, let alone buying them. So to help you price your antiques and collectibles, especially for a yard sale or flea market, I thought I’d offer some guidance. But before I do, I’d like to offer another example of how not to.

To do that, I continue a few tables down from the previous dealer to another at the same flea market. This guy had a number of U.S. stamps for sale, all packaged in groups by age. Since I collect U.S. stamps, my eye immediately zeroed in on a little “stock” book, with four manila pages with overlapping strips into which he had inserted an assortment of U.S. commemorative stamps. Collectors use these little books to transport stamps to shows or to store a particular group for further study. The dealer had placed two stickers on the cover. One said “$3.50 net with book” while the other said “$4 postage.” At first glance, I noticed the $4 sticker, so I offered him $3, and after some hesitation, he agreed. Then he directed me over to a plastic bin with other packages of stamps. I didn’t see any I wanted, so he directed me to a looseleaf binder with plastic pages filled with stamps. I chose two of them, each with a sticker that said “$2 postage.” He said I could have the stock book filled with stamps and the two pages for $10. I did some quick calculations and came up with $7 for the three items, not $10. “Oh,” he said, “that’s only for the face value of the postage.”

“You said I could have the book with its stamps for $3, so I’ll just take it,” I replied. Needless to say, he wasn’t too pleased. If he had put a definite price on each of his items, there wouldn’t have been a controversy. Instead, his stickers were vague and communicated the wrong message.

So how do you go about pricing your antiques and collectibles so they sell? First, price isn’t the same as value–it’s usually about half that. So while you may use an antiques pricing guide to look up your items, what you’re really looking at is a value guide. The authors of these guides research the value of a particular item by checking the most current amounts the item fetched both at auctions and in shops, then they average the different amounts together.

For you see, the market value of an antique is what someone is willing to pay for it. And just because an items lists for $25, for example, doesn’t mean that you’ll be able to charge the same amount for it, especially if you’re selling your item at a market entry-level venue like a yard sale or flea market. To sell successfully at these places, you’ll have to start your pricing much lower than the guide amount.

Some antique sellers take a shortcut and go directly to eBay to check prices. While prices are current there, many have been inflated by what I call the “entertainment” factor. Many eBay shoppers look upon “winning” an auction much as they would winning a game of chance at a casino. At a regular auction, the highest bidder “buys’ the item while on eBay, the highest bidder “wins” the item. Generally, this drives final prices up.

But even beyond using pricing guides and eBay to research prices, you should check the prices in the same sort of selling venues near you. Go to several yard sales and/or flea markets and check what similar items are going for there. This is known as pricing what the market will bear. You can’t charge more than people are willing to pay in a particular area. The item just won’t sell, no matter how valuable it might be.

The Quagmire of Value

QUESTION: I just inherited a lovely old armoire from my mother. As we were taking stock of her things, an antique dealer, who had come to look at some other items, told me he’d give me $1,000 for it. I really love the piece and am not considering selling it, but I would like to know its value. Can you help me?

ANSWER: While the answer to this person’s question may sound simple, in fact, it’s far from it. What type of value does she mean–retail value, insurance replacement value, fair-market value, auction value, or cash value? In the end, each of these values will be a different amount. Other factors determining value are age and condition. So where to begin.

Let’s start with retail value. This is the price for which an antiques dealer expects to sell an item after marking it up from the price the dealer paid for it in order to make a profit. This amount can  be anywhere from 20 to100 percent of the dealer’s purchase price.

The amount of money it would take to replace an item from a antiques shop or online if it were lost, stolen, or damaged is called the insurance replacement value.

The price that an item would sell for on the open market between a willing buyer and a willing seller is known as the fair-market value. This is also the value that’s used when an item is donated to a charity or is part of someone’s estate.

And when someone puts an item up for auction, the price that an appraiser feels the item should bring at auction, based on comparison of like items and recent other auction sales, is known as the auction value, but has nothing do with the actual value of the item.

However, being told something is worth a specific value is meaningless if the appraiser doing the appraisal has no knowledge of the item itself or the market for it. And auction prices, such as those eBay are not an indicator of true "worth," since many of these sales prices are inflated many times over in the heat of bidding up an item. And a verbal appraisal is worth nothing without a written one to back it up, especially in the case of settling an estate.

To learn more about how to value your antiques and collectibles, read my article, “What’s It Worth?,” on my antiques Web site, The Antiques Almanac.