Mound City Auctions

[comeaux]

I watched the video and it still seems like a sham …

 

The “owner /bidder /wife/” bid the book up to $5,600, when it became clear that the only real bidder would not bid any higher, then the “owner” was asked if he would sell it for $5,500 in which the auctioneer says SOLD !

 

Why wouldn’t the auctioneer ask bluechip if he wanted to retract his bid(s) as well?

 

Like most other boardies have already said … whether this is legal or not is not the question, it is definitely not ethical and the whole thing just stinks.

 

I’m with the majority here, I’ll NEVER buy a book from moundcityauctions

 

 

[Jiminy_Cricket-migration]

When bidding in an auction you often consider the market interest in a book as one of the influences in what you are willing to bid.

 

If you are bidding and there there are other interested parties you may bid differently than if you are bidding and know there are no other interested parties.

 

If all bidders (online, offline, video chat, skype, semaphor, or smoke signal) knew that the "other bidder" was actually not an interested bidder and just the reserve being reinforced then I say fine as long at that is explicit for each time it occurred.

 

And to be clear, the above is different than merely showing a book as having a reserve.

 

If everyone bidding did not know this information it was an uneven playing field.

 

Sounds like the seller (and by extension the auction) house wanted both their cake (a reserve) and to eat it too (have the option of taking a sub-reserve bid (that had been bid up buy the reserve, not by another bidder) if the buyer decided to drop the reserve).

 

 

 

 

It seems to me that this hobby's collectors will never accept 3 things.... pressing, shiny stickers, and shill bidding.

 

No matter how much VintageComics puts an alternative spin on them.

 

Am I wrong? I've been wrong before. I can't remember the last time, though. Oh, wait. Nevermind.

 

This forum is full of a lot of smart people, but you still do not have a firm grasp on shill bidding. If you want to know more about Auctions and Auction Law I suggest you read Mike Brandly's post. Mike is a fellow National Auctioneers Association member and like myself and Lite holds the highest designation in the Auction World CAI or Certified Auctioneers Institute. Here is his blog post on what is Shill Bidding http://mikebrandlyauctioneer.wordpress.com/2010/11/25/what-is-shill-bidding/

 

Auction law? Do you mean Tort law i.e. Material Concealment, negligent misrepresentation and Fraud?

 

I believe what Classic is referring to here is the Uniform Commercial Code as it relates to sales performed by auction. I would be very careful using terms like Material Concealment, negligent misrepresentation, and Fraud.

 

Look, this is stupid. We are having a debate about a book that sold almost 3 years ago, in a sale type that we don't perform any longer, one that after a protracted argument with the bidder, the bidder ended up paying for and receiving the comic after the auction. If he doesn't want to do business with us again, that is his choice. If after hearing about the transaction, some of you don't wish to do business with us, that is also your choice. However, passing judgement without hearing both sides is idiotic. Accusing us of breaking the law is likewise idiotic. If you want to understand what happened at the sale, go back, watch the video, and read the post I made prior to this one. If you want to have a big dumb forum fight, go right ahead, have a blast.

 

And really, unless I'm misreading your post, it looks as if you are accusing my company of engaging in fraud. I don't appreciate the accusation.

 

There is only one thing anybody on this board wants to hear from you.......

 

"I'm sorry. We were wrong. We have changed our ways of running auctions. We will never do that again. Please give us a second chance. Again, I'd like to apologize for our dirty pool."

[bababooey]

[A.Romeo]

When bidding in an auction you often consider the market interest in a book as one of the influences in what you are willing to bid.

 

If you are bidding and there there are other interested parties you may bid differently than if you are bidding and know there are no other interested parties.

 

If all bidders (online, offline, video chat, skype, semaphor, or smoke signal) knew that the "other bidder" was actually not an interested bidder and just the reserve being reinforced then I say fine as long at that is explicit for each time it occurred.

 

And to be clear, the above is different than merely showing a book as having a reserve.

 

If everyone bidding did not know this information it was an uneven playing field.

 

Sounds like the seller (and by extension the auction) house wanted both their cake (a reserve) and to eat it too (have the option of taking a sub-reserve bid (that had been bid up buy the reserve, not by another bidder) if the buyer decided to drop the reserve).

 

 

 

 

It seems to me that this hobby's collectors will never accept 3 things.... pressing, shiny stickers, and shill bidding.

 

No matter how much VintageComics puts an alternative spin on them.

 

Am I wrong? I've been wrong before. I can't remember the last time, though. Oh, wait. Nevermind.

 

This forum is full of a lot of smart people, but you still do not have a firm grasp on shill bidding. If you want to know more about Auctions and Auction Law I suggest you read Mike Brandly's post. Mike is a fellow National Auctioneers Association member and like myself and Lite holds the highest designation in the Auction World CAI or Certified Auctioneers Institute. Here is his blog post on what is Shill Bidding http://mikebrandlyauctioneer.wordpress.com/2010/11/25/what-is-shill-bidding/

 

Auction law? Do you mean Tort law i.e. Material Concealment, negligent misrepresentation and Fraud?

 

I believe what Classic is referring to here is the Uniform Commercial Code as it relates to sales performed by auction. I would be very careful using terms like Material Concealment, negligent misrepresentation, and Fraud.

 

Look, this is stupid. We are having a debate about a book that sold almost 3 years ago, in a sale type that we don't perform any longer, one that after a protracted argument with the bidder, the bidder ended up paying for and receiving the comic after the auction. If he doesn't want to do business with us again, that is his choice. If after hearing about the transaction, some of you don't wish to do business with us, that is also your choice. However, passing judgement without hearing both sides is idiotic. Accusing us of breaking the law is likewise idiotic. If you want to understand what happened at the sale, go back, watch the video, and read the post I made prior to this one. If you want to have a big dumb forum fight, go right ahead, have a blast.

 

And really, unless I'm misreading your post, it looks as if you are accusing my company of engaging in fraud. I don't appreciate the accusation.

 

I'm not accusing you of fraud. If its legal to do then so be it. But the way you RESPOND (you have a holier than thou attitude - not good for business) and use the "law" as your reasoning for allowing this type of auction doesn't sit well with those of us who understand how unethecial this type of system really is. For you to still be in business is beyond me, but I bet if more people were made aware of how you run your business your customers would be quite scarce and eventually out of business.

 

And your really P**sing a lot of people off in here, probably not the best idea as most of the people on here DRIVE the comic book market. Your getting a bad rep very quickly as you can see

[Mxwll Smrt]

When bidding in an auction you often consider the market interest in a book as one of the influences in what you are willing to bid.

 

If you are bidding and there there are other interested parties you may bid differently than if you are bidding and know there are no other interested parties.

 

If all bidders (online, offline, video chat, skype, semaphor, or smoke signal) knew that the "other bidder" was actually not an interested bidder and just the reserve being reinforced then I say fine as long at that is explicit for each time it occurred.

 

And to be clear, the above is different than merely showing a book as having a reserve.

 

If everyone bidding did not know this information it was an uneven playing field.

 

Sounds like the seller (and by extension the auction) house wanted both their cake (a reserve) and to eat it too (have the option of taking a sub-reserve bid (that had been bid up buy the reserve, not by another bidder) if the buyer decided to drop the reserve).

 

 

 

 

It seems to me that this hobby's collectors will never accept 3 things.... pressing, shiny stickers, and shill bidding.

 

No matter how much VintageComics puts an alternative spin on them.

 

Am I wrong? I've been wrong before. I can't remember the last time, though. Oh, wait. Nevermind.

 

This forum is full of a lot of smart people, but you still do not have a firm grasp on shill bidding. If you want to know more about Auctions and Auction Law I suggest you read Mike Brandly's post. Mike is a fellow National Auctioneers Association member and like myself and Lite holds the highest designation in the Auction World CAI or Certified Auctioneers Institute. Here is his blog post on what is Shill Bidding http://mikebrandlyauctioneer.wordpress.com/2010/11/25/what-is-shill-bidding/

 

Auction law? Do you mean Tort law i.e. Material Concealment, negligent misrepresentation and Fraud?

 

No, I was thinking more like full disclosure, video feed and UCC 3-238

But if your mind is already made up facts will not matter.

 

The UCC 2-328 Sale by Auction will probably not protect your business in a case that could be brought against you under Tort Law - and you might wish to speak with your attorney - but hey, what do I know. Secondly, you clearly fail to recognize that your behavior here on this board is being followed by some pretty active participants in the hobby - and some have real jobs with real relationships - never on someone if you can't drown them. Lastly, regardless of the protections you may feel you have or your perception of the legal basis to argue your position, you have only succeeded in isolating yourself and polarizing any good feelings towards your company or you. JMO.

[RockMyAmadeus]

[moundcitycomics]

 

So if I read this correctly, I can set a super high reserve with you provided I provide it to you well in advance of the auction in writing. I then have the ability to see what the highest bid anyone is willing to make on the book and then decide if I want to accept it or not. This is how you conduct your auctions?

 

One more question, if I decline the highest offer so the book doesn't sell, do I have to pay you anything?

 

You read that incorrectly. First of all, in case it wasn't made plain when I said it earlier, we do not currently have comic book auctions that are live simulcast - our current format for selling books that could potentially have reserves is to sell them in timed internet only auctions similar to eBay style, with automatic time extensions for lots which receive bids within 5 minutes of the scheduled end time of each individual lot. In sales done in this online only format, there is no changing of the reserve once it is set - when a book has a reserve established in the contract signed by the consignor in advance of the auction, that reserve is the price the book must reach.

 

Secondly - when I accept comics on consignment for auction, I discuss any reserves being placed on the comics being consigned with the person consigning the books. We have been leaning away from taking comics on consignment with reserves specifically because of issues such as this - remember this is all in response to a complaint by someone who purchased a book from one of our auctions that took place in September of 2010.

 

I'm not fully opposed to taking on consignments with reserves - however I am very candid with my consignors about being realistic when placing reserves on items they consign. I do not like reserves - I much prefer to sell without reserve whenever possible, as it makes my job easier - marketing anything - whether personal property, collectibles, or real estate - without a reserve is much easier to advertise and to sell to bidders than accepting consignments with reserves.

 

Finally, if you do consign a comic, and it does not reach its reserve, there is a reserve fee we charge.

[bluechip]

Okay, I just got home, and now I'm going to try and put this mess to bed.

 

Bluechip registered and participated in a comic book auction we held in 2010. At this auction, we sold a copy of Marvel #1. The copy was in pretty terrible shape, and ended up being graded as NG. The owner placed a reserve on the comic. We offered the comic at the auction along with many other comics from a wide variety of consignors - some of those books had reserves, most did not.

 

The auction in question was a live simulcast sale - there were people bidding in person at a facility we rented for the sale, and people participating through online bidding provided by Proxibid and if I recall correctly, Auctionzip Live. Bluechip was participating via Proxibid's web based bidding application. I was one of the employees running that application.

 

When we signed the contract with the consignor who provided us with the copy of Marvel #1, it laid out the rules we as the auction company and he as the consignor had to follow. One of them was that any reserves had to be submitted to us in writing well in advance of the live auction event. He did that - providing us with a written reserve on the Marvel #1. I believe that Classic was correct when he stated earlier that the amount was roughly $5,700 - but it was nearly 3 years ago, so I might be off by a small amount. Regardless, the reserve was submitted both legally, and according to our contract. The seller did not give us permission to publicly state his reserve amount before the auction took place.

 

The video showing the sale of the comic has already been posted. If you haven't watched it, go do so. The original complaint we received from Bluechip has also already been posted in this thread.

 

The reserve placed on this comic was not met during the live bidding. The fact that the book had a reserve was PATENTLY obvious - just watch the video, or read the earlier posts here - I won't belabor that point any further. For Bluechip to claim he was unaware there had been a reserve on the comic is simply something we cannot be responsible for - we fully disclosed that fact both in the internet bidding platform and through the live video feed we provided during the auction event. Once that objection was met, his next complaint was related to the manner in which the reserve was played out. The video we shared before shows precisely how the reserve was bid - live bids from either the floor bidders or from the participants online were received by the auctioneer, then the reserve was bid by a staff member - the auctioneer's wife in this instance. I understand that this can seem disconcerting to people not used to it. But look at it this way - there was an established reserve on that book - I don't believe anyone doubts me on that issue. The bidding reached by the crowd (whether in person or online) did not come close to the number needed for that book to sell. So the bidding was advanced to determine the highest bid the public would go to - the fair market value for the item. Once this point was reached, it was still lower than the reserve on the book. At that point, the auctioneer had not closed the sale of that item - he did not say sold, and he did not indicate otherwise that the lot had been either sold or passed - again, see the video for proof. Instead, in order to fulfill his duty to the client - the owner of the comic - he asked if the owner was willing to lower his reserve to the amount the bidder had offered in his most recent bid. The owner accepted Bluechip's offer, and the auctioneer announced the sale, closing the contract. Without us bidding the reserve, the comic would have never reached the bid it did, and the seller would in no way have accepted the lower bid for the book. It is our job to act as an intercessory agent between the buyer and the seller, to procure bids to present to the seller for their goods. If the seller has stated as this one did, that they will not accept a bid lower than a certain amount, it is in our best interest, as well as the sellers best interest AND THE BUYERS BEST INTEREST to try and find a price that is acceptable to both parties.

 

In response to an earlier question - yes, the above method of handling reserves is VERY common in other auctions in other segments of the auction industry. Additionally, it was explained in the terms and conditions of the sale which Bluechip agreed to by registering and by participating in the auction - in no uncertain terms.

 

That all being said, we have already changed the manner in which we sell comics - remember, this complaint by Bluechip was in regards to an auction that took place nearly 3 years ago. Currently, we have 2 distinct venues in which we sell comics. Lower value comics (whether due to condition or to their being Modern comics) are sold in our monthly consignment auctions - either in bulk lots of low value books (sold by the box to local bidders without internet bidding provided) or in grouped lots (typically between 10 to 100 comics) with online pre-bidding (absentee bidding provided through Bidopia). Comics with values higher than those sold during these monthly consignment auctions are scheduled for our quarterly Marquee Comic Auctions, which are held as online only auctions similar to an eBay style auction, but with linked soft close - the lots automatically extend when bids are placed within the last 5 minutes of the end of the item (typically extending by 5 minutes) and these time extensions are linked amongst similar books (typically grouped by title - so for example if someone bids on a copy of ASM #1 in the last 5 minutes, it would extend the time on that lot as well as other ASM books in the same auction).

 

With our current selling method being online only, the issue of reserves being bid by representatives of Mound City Auctions at comic book auctions should be laid to rest. Our monthly consignment sales are primarily for bulk lots of lower value comics, and to the best of my knowledge in the past 12 months of doing those sales, we have not had a reserve placed on any book sold during those monthly consignment auctions, rendering those auctions a non-issue in regards to reserve bidding.

 

As far as posting ads on this section of the board, I'll inform Classic not to do so in the future, and see if I can have him edit and remove that post - I can't speak for him, but I'm sure it wasn't an intentional violation of board rules, we simply don't post on here all that often - so my apologies on that one. Future advertisements will go in the correct place here.

 

Finally - at least for this post - I'm well aware that some of you have had bad experiences dealing with us in the past - whether it was shipping concerns from the auction in 2009 (which I'll note, we made strenuous efforts to correct that I'm certain at least some forum members will remember) or related to posts made by people who were unsatisfied that they bid more than they intended and didn't read the terms and conditions they agreed to follow, and thus had a bad sale with us, or simply those who have met us in person and aren't impressed. Everyone here is entitled to their opinion - and I am WELL aware that I'm simply not going to cut the mustard with all of you. And that's fine - I could spend all my time trying to please everyone on this board, and what I'd end up with is some very big headaches and a lot of time used up that could have probably been spent better elsewhere. I know I can't make all of you happy - but I can tell you this. I'm trying to do the best that I can to make our sales as good as they can possibly be. I'm not Comiclink, Comicconnect, Heritage, Hakes, Christie's, Sotheby's, or anybody else for that matter. I'm one of 5 people who comprise a small auction house in the midwest. We stumbled into a world class collection of books back in 2009, we did the best we could to sell them, we learned a lot and we are still learning.

 

To our credit, we haven't had a single complaint about shipping since the first comic auction, and we've had several since then.

 

You say you are learning, yet you keep saying the issue is about something that it's not about.

 

This is not about whether I knew there was a reserve. I never said that my complaint hinged on whether there was or wasn't a reserve.

 

And I never said my complaint hinged on whether or not a seller can bid on their own auctions.

 

I have always said that my complaint was that the seller was able to BID and then WITHDRAW that bid.

 

Again.

 

I have always said that my complaint hinged on the fact that the seller was able to BID and then WITHDRAW that bid.

 

As another poster put very well, it is the "crux" of the entire situation. Yet you keep dancing around it and portraying it as something else.

 

Maybe another time will help the focus?

 

I have always said that my complaint is hinged on the fact that the seller was able to bid and then WITHDRAW that bid.

 

 

Saying that I paid for it, implying all is well, is also misleading. I had already paid for books that I did not dispute, and I was told that Mound city would keep that money and not send the books I had paid for. Among other threats. And I was insulted in a childish manner.

 

You see people here saying they feel it is not a good thing to have a buyer OUTBID another bidder and then WITHDRAW that bid, yet despite protestations of "learning" you keep dodging that issue, and from what I have seen you doggedly refuse to acknowledge in the slightest way that they have a point.

 

Which doesn't surprise me. Because when I made that same point, I was threatened and called, among other things, a Knuckle dragg(er)" for not recognizing, presumably, that there is absolutely nothing wrong with a seller bidding and being able to withdraw his last bid.

 

And, I presume, that anyone here who feels the same is also a knuckle dragger, as well.

 

The heels-dug-in at all costs and irrationally stubborn oppositional behavior of 3 years ago seems not to have abated today, despite any protestations that "we are still learning"

 

Before you answer, with another post talking about how you disclosed there was a reserve, let me repeat, so it is clear.

 

It is not about the reserve or whether that was obvious or not

 

It is not about whether a seller can bid on their own items.

 

It is about the fact that the seller was able to bid and then WITHDRAW that bid.

 

 

 

 

 

 

 

 

 

 

[A.Romeo]

 

So if I read this correctly, I can set a super high reserve with you provided I provide it to you well in advance of the auction in writing. I then have the ability to see what the highest bid anyone is willing to make on the book and then decide if I want to accept it or not. This is how you conduct your auctions?

 

One more question, if I decline the highest offer so the book doesn't sell, do I have to pay you anything?

 

You read that incorrectly. First of all, in case it wasn't made plain when I said it earlier, we do not currently have comic book auctions that are live simulcast - our current format for selling books that could potentially have reserves is to sell them in timed internet only auctions similar to eBay style, with automatic time extensions for lots which receive bids within 5 minutes of the scheduled end time of each individual lot. In sales done in this online only format, there is no changing of the reserve once it is set - when a book has a reserve established in the contract signed by the consignor in advance of the auction, that reserve is the price the book must reach.

 

Secondly - when I accept comics on consignment for auction, I discuss any reserves being placed on the comics being consigned with the person consigning the books. We have been leaning away from taking comics on consignment with reserves specifically because of issues such as this - remember this is all in response to a complaint by someone who purchased a book from one of our auctions that took place in September of 2010.

 

I'm not fully opposed to taking on consignments with reserves - however I am very candid with my consignors about being realistic when placing reserves on items they consign. I do not like reserves - I much prefer to sell without reserve whenever possible, as it makes my job easier - marketing anything - whether personal property, collectibles, or real estate - without a reserve is much easier to advertise and to sell to bidders than accepting consignments with reserves.

 

Finally, if you do consign a comic, and it does not reach its reserve, there is a reserve fee we charge.

 

do you mean its easier on you because you don't have to pay your wife to sit there and bid up the auctions?

[comeaux]

I have always said that my complaint was that the seller was able to BID and then WITHDRAW that bid.

 

[Jiminy_Cricket-migration]

 

So if I read this correctly, I can set a super high reserve with you provided I provide it to you well in advance of the auction in writing. I then have the ability to see what the highest bid anyone is willing to make on the book and then decide if I want to accept it or not. This is how you conduct your auctions?

 

One more question, if I decline the highest offer so the book doesn't sell, do I have to pay you anything?

 

You read that incorrectly. First of all, in case it wasn't made plain when I said it earlier, we do not currently have comic book auctions that are live simulcast - our current format for selling books that could potentially have reserves is to sell them in timed internet only auctions similar to eBay style, with automatic time extensions for lots which receive bids within 5 minutes of the scheduled end time of each individual lot. In sales done in this online only format, there is no changing of the reserve once it is set - when a book has a reserve established in the contract signed by the consignor in advance of the auction, that reserve is the price the book must reach.

 

Secondly - when I accept comics on consignment for auction, I discuss any reserves being placed on the comics being consigned with the person consigning the books. We have been leaning away from taking comics on consignment with reserves specifically because of issues such as this - remember this is all in response to a complaint by someone who purchased a book from one of our auctions that took place in September of 2010.

 

I'm not fully opposed to taking on consignments with reserves - however I am very candid with my consignors about being realistic when placing reserves on items they consign. I do not like reserves - I much prefer to sell without reserve whenever possible, as it makes my job easier - marketing anything - whether personal property, collectibles, or real estate - without a reserve is much easier to advertise and to sell to bidders than accepting consignments with reserves.

 

Finally, if you do consign a comic, and it does not reach its reserve, there is a reserve fee we charge.

 

do you mean its easier on you because you don't have to pay your wife to sit there and bid up the auctions?

 

[Mxwll Smrt]

@ Mound City:

 

"I believe what Classic is referring to here is the Uniform Commercial Code as it relates to sales performed by auction. I would be very careful using terms like Material Concealment, negligent misrepresentation, and Fraud".

 

Why would you suggest being "careful" - especially since they fall under Tort Law?Again, for amplification, I suggest you speak with your attorney.

[brendanb438]

 

[THE_BEYONDER]

Can't we all just get along?

 

 

 

[thehumantorch]

 

So if I read this correctly, I can set a super high reserve with you provided I provide it to you well in advance of the auction in writing. I then have the ability to see what the highest bid anyone is willing to make on the book and then decide if I want to accept it or not. This is how you conduct your auctions?

 

One more question, if I decline the highest offer so the book doesn't sell, do I have to pay you anything?

 

You read that incorrectly. First of all, in case it wasn't made plain when I said it earlier, we do not currently have comic book auctions that are live simulcast - our current format for selling books that could potentially have reserves is to sell them in timed internet only auctions similar to eBay style, with automatic time extensions for lots which receive bids within 5 minutes of the scheduled end time of each individual lot. In sales done in this online only format, there is no changing of the reserve once it is set - when a book has a reserve established in the contract signed by the consignor in advance of the auction, that reserve is the price the book must reach.

 

Secondly - when I accept comics on consignment for auction, I discuss any reserves being placed on the comics being consigned with the person consigning the books. We have been leaning away from taking comics on consignment with reserves specifically because of issues such as this - remember this is all in response to a complaint by someone who purchased a book from one of our auctions that took place in September of 2010.

 

I'm not fully opposed to taking on consignments with reserves - however I am very candid with my consignors about being realistic when placing reserves on items they consign. I do not like reserves - I much prefer to sell without reserve whenever possible, as it makes my job easier - marketing anything - whether personal property, collectibles, or real estate - without a reserve is much easier to advertise and to sell to bidders than accepting consignments with reserves.

 

Finally, if you do consign a comic, and it does not reach its reserve, there is a reserve fee we charge.

 

Your auctions are designed to maximize the final price for the seller and the auction house. Makes perfect sense.

 

Having an employee bid to represent the sellers reserve is more exciting than just stating when a reserve has been met or not met, and may help increase the hammer price.

 

Allowing the seller to waive their reserve may be legal but it's a construct to allow the seller and auction to maximize the hammer price yet not risk losing the sale.

 

Your rules are the best of both worlds and seller and auction house friendly. Problem is it's not buyer friendly and we're the buyers looking in and realizing it's a legal but stacked deck.

[slym2none]

Or the confusion could be from why the owners wife is allowed to bid at all. :shrug:

If she is bidding, or anyone else associated with the auction, up to the reserve and then back out, then that, whether legal or not, is in my humble opinion, dirty pool.

 

Arex, did you watch the youtube video?

 

They explain in detail to all live bidders what they are doing and why they are doing it.

 

 

That would just make me walk out on the spot.

 

 

 

-slym

[thirdgreenham]

Something stinks here.

 

db

 

 

 

-slym

[slym2none]

Hey... why are you signing my name to your post??

 

 

 

 

-slym

[mycomicshop]

It must be considered acceptable in some circles because many auction houses (not just one or two) use the practice.

 

Does anyone have a list of (comic) auction houses that are allowed to bid on their own auctions? Right now all I know is Mound City in Missouri and Heritage in Texas. Any others? Is Clink in a state that allows this? Comic Connect? Hakes? BidStart? Mycomicshop is in Texas, anyone know their policy?

 

 

We don't bid in our own auctions. We also don't use reserves, and probably never will. If a seller in one of our auctions wants a guaranteed minimum price, I'd rather set that as the starting bid instead of setting a reserve. More transparent and bidder friendly.

[Tuffy]

 

So if I read this correctly, I can set a super high reserve with you provided I provide it to you well in advance of the auction in writing. I then have the ability to see what the highest bid anyone is willing to make on the book and then decide if I want to accept it or not. This is how you conduct your auctions?

 

One more question, if I decline the highest offer so the book doesn't sell, do I have to pay you anything?

 

You read that incorrectly. First of all, in case it wasn't made plain when I said it earlier, we do not currently have comic book auctions that are live simulcast - our current format for selling books that could potentially have reserves is to sell them in timed internet only auctions similar to eBay style, with automatic time extensions for lots which receive bids within 5 minutes of the scheduled end time of each individual lot. In sales done in this online only format, there is no changing of the reserve once it is set - when a book has a reserve established in the contract signed by the consignor in advance of the auction, that reserve is the price the book must reach.

 

Secondly - when I accept comics on consignment for auction, I discuss any reserves being placed on the comics being consigned with the person consigning the books. We have been leaning away from taking comics on consignment with reserves specifically because of issues such as this - remember this is all in response to a complaint by someone who purchased a book from one of our auctions that took place in September of 2010.

 

I'm not fully opposed to taking on consignments with reserves - however I am very candid with my consignors about being realistic when placing reserves on items they consign. I do not like reserves - I much prefer to sell without reserve whenever possible, as it makes my job easier - marketing anything - whether personal property, collectibles, or real estate - without a reserve is much easier to advertise and to sell to bidders than accepting consignments with reserves.

 

Finally, if you do consign a comic, and it does not reach its reserve, there is a reserve fee we charge.

 

Your auctions are designed to maximize the final price for the seller and the auction house. Makes perfect sense.

 

Having an employee bid to represent the sellers reserve is more exciting than just stating when a reserve has been met or not met, and may help increase the hammer price.

 

Allowing the seller to waive their reserve may be legal but it's a construct to allow the seller and auction to maximize the hammer price yet not risk losing the sale.

 

Your rules are the best of both worlds and seller and auction house friendly. Problem is it's not buyer friendly and we're the buyers looking in and realizing it's a legal but stacked deck.