The Art of Auctions

Daniel Grant writing for the Huffington Post has a great article on "Auctioneers as Psychologists".  Most of the content is anecdotal, but all very interesting with discussions on how different auctioneers place lots in order to create a buzz in the room, and build excitement and of course bidding. It gives some very good insight on how an auction is "curated" and how lots are placed and grouped.

A great article for appraisers,dealers, collectors and auctioneers to read.

Grant states

Part of that effort involves presale marketing, which includes telephone calls to prospective buyers, sending specific pieces on traveling exhibitions and even bringing the artworks to individual clients' homes. Another element is how the estimates are set, perhaps a little higher to elevate the stature of less promising artwork or lower to bring more people into the bidding for a major lot. "When you bring an important piece in that has an accessible price, nobody sits back in the room," he said. "They all jump in at once; they all know it's going to sell, that it's not a matter of beating the game. People get competitive and lose the discipline they came in with, often going 20-30 percent higher than they intended. I guess you could call that the winner's penalty."

A third method is the advantageous placement of lots in a sale. "For lots that look to be an uphill battle, we put a great piece that is related to it just before the lot comes up," he stated. Strong results generate interest that will carry over. "People aren't scared off when things do well; they are more likely to be scared off when works are bought in." For that reason, "difficult works" are never clustered ("that brings the room down") but are carefully interspersed in the overall sale.

In general, lots are placed in an auction on the basis of how they may affect, or be affected by, other pieces on sale. (Consignors themselves often have strong opinions on when their lots come up in an auction - usually in the middle, not at the end - and where it appears in the catalogue: they prefer the right-hand page.)

To read the complete article, click HERE.