Ethnographic Arms & Armour - View Single Post - Warning to bid by Schuler auctions Zürich

A. G. Maisey · 24th March 2019, 02:34 AM

Do auction houses make too much money?

I understand "--- make too much money---" as "make too high a profit".

In simple terms, a profit can never be too high, if any business entity can extract high returns from the market it services, that means it must be doing something right --- and if it is not doing something right, you can bet on it, it will go under.

Then we have the case of Bonhams, elite, old UK firm. Not long ago I think they sold out to a private equity firm. Why did they sell? Why did a private equity firm buy? I'd be very interested in the reasons.

But maybe we think that a business entity is charging too high a rate for what it provides?

We could perhaps start by looking at share prices.

Since ebay is an auction company, we might start with ebay.

Then do a comparative analysis of ebay with houses like Sothebys & Christies.

There's a nice exercise for somebody with time to spare:- do an analysis of the viability of auction houses as investment vehicles.

Or forget all of that bean counter nonsense--- that I've spent most of my life on --- and simply say, "well I reckon they charge too much", and walk away.

Which, as a both a buyer & seller, is what I did years ago.

Then again, perhaps we might like to consider the integrity question. Anybody here ever been involved in the auction of real estate?

Personally I want nothing at all to do with auctions.

24th March 2019, 02:34 AM	#18
A. G. Maisey Member Join Date: May 2006 Posts: 6,700	Do auction houses make too much money? I understand "--- make too much money---" as "make too high a profit". In simple terms, a profit can never be too high, if any business entity can extract high returns from the market it services, that means it must be doing something right --- and if it is not doing something right, you can bet on it, it will go under. Then we have the case of Bonhams, elite, old UK firm. Not long ago I think they sold out to a private equity firm. Why did they sell? Why did a private equity firm buy? I'd be very interested in the reasons. But maybe we think that a business entity is charging too high a rate for what it provides? We could perhaps start by looking at share prices. Since ebay is an auction company, we might start with ebay. Then do a comparative analysis of ebay with houses like Sothebys & Christies. There's a nice exercise for somebody with time to spare:- do an analysis of the viability of auction houses as investment vehicles. Or forget all of that bean counter nonsense--- that I've spent most of my life on --- and simply say, "well I reckon they charge too much", and walk away. Which, as a both a buyer & seller, is what I did years ago. Then again, perhaps we might like to consider the integrity question. Anybody here ever been involved in the auction of real estate? Personally I want nothing at all to do with auctions.