What is an auction? Let's look at this issue in more detail. The participation of enterprises in tenders held in the form of tenders or competitions is one of the forms of trading activities under the Civil Code of the Russian Federation.
The method of selling goods with special properties and values is called commodity auctions (from lat. - public sale).
As a rule, there are permanent workers who spend several times a year, usually at a given time. It is also possible to organize a one-time auction for the sale of a particular product or a whole batch of goods. Here, unlike commodity exchanges, periodic trading is usually carried out; they are not centers of year-round sales.
What is an auction?
This is a specially organized operating platform on which, through public auctions at a predetermined time and a specific place, specific goods are sold.
This is a commercial organization with convenient premises for trading, special equipment and the necessary personnel. Almost all known auctions are organized in the form of joint-stock companies.
Often these are large corporations focused on trading in a certain type of product. Usually they themselves buy goods from manufacturers at their own expense, setting their purchase prices for them, then resell them, making a profit from the difference in purchase and sale prices. Independent manufacturers can also give away their goods for sale at auctions. Corporations that include joint-stock companies, in most cases, have their own pre-production of raw materials (for example, furs, diamonds).
What is an auction, not everyone knows.
Brokerage houses
Some of them are special brokerage houses that take goods for resale on the terms of a certain commission, remuneration in the form of interest or a certain share, they receive from sellers. Directly sellers or buyers do not participate in auctions with a brokerage commission.
Organizers can also be organizations for which auctions are not the main activity. Such institutions include exchanges, museums, permanent exhibitions, art salons, the charter of which must necessarily provide for this type of activity. Online car auctions are very popular right now.
Sellers can be both owners of goods or property (individuals), and enterprises, organizations. During the event, all those present can act as buyers.
How to take part in the auction?
Parties and objects
Since the auction involves the participation of a sufficiently large number of participants, the following mandatory parties are distinguished:
- the owners of the goods;
- sellers;
- organizers;
- buyers.
If only one of the parties announced its participation, then it is considered invalid.
What are they trading?
At the auction, objects for personal use or personal collections with individual characteristics (antiques, paintings), as well as furs, tobacco, cattle, coffee, flowers can be bidding objects. In Russia, the largest trade in furs is carried out in St. Petersburg, Arabian breeding horses - in Moscow, Pyatigorsk. Car auctions are very popular today. You can buy your dream car in any country via the Internet. Depending on the desired brand, you can participate in an online auction in Japan, the USA, Germany, etc. The main thing is not to get on the "gray dealers". Be sure to get acquainted with the statistics (history) of the sale of the selected lot.
Both large batches of one type of goods, and individual specific products can be exhibited. The auction of plots, which is carried out by the municipal authorities, will allow you to purchase land at a lower price than on the market. To participate, it is important to collect the entire package of documents, as well as make a 10% deposit. The money will be returned to the losers.
The main difference between an auction and a regular sale is that when buying at an auction, you will not be able to make claims about the quality of the goods to anyone, neither party is responsible for the quality of the property being sold.
The very meaning of the auction and its commercial benefit is that the maximum price for the goods sold is set by direct competition of buyers who are present at the same time on the site. The result of the auction is simple - the person who offered the highest price takes the goods.
Order of conduct
This is a complex operation that includes:
- preparatory actions;
- all manipulations related to bidding;
- support of transactions with cash settlements between the organizers and all bidders.
How to apply for an auction? This can be done at any time from the moment the customer has published the bidding notice, and strictly up to the moment when the deadline for bidding ends.
Preparatory operations
At the preparatory stage, proposals from the owners of the goods are analyzed, they indicate the full name of the goods, its brief description, where it can be applied, the characteristics, quantity and quality of the goods, the proposed initial price and the details of the owner. After that, the owners of the goods who sent offers are sent invitations to sign auction agreements.
The same operations include the manufacture of entrance tickets, their implementation, checking the presence of signal plates, the manufacture and promotion of advertising for the auction.
At the preparatory stage, premises for storage and preparation of goods for sale are selected, their assessment and examination are carried out, and the initial price is determined. Less often, a reserve price is set, below which the product cannot be sold.
All declared goods are sorted into lots, they are also called lots.
A typical unit of goods or its standard lot in physical terms is called a lot. A sample must be selected from each lot. A lot can contain both one item and several items (for example, sable fur - 30-50 skins). All lots are assigned numbers, according to which they will be put up for auction for sale.
Homogeneous lots, following one after another, form rows - strings. Each string is separated in the catalog from others by lines.
Create a directory
Before the very opening of the auction, in order to inform buyers about the goods available for sale, a catalog is made, which indicates in detail the composition and lot numbers. It also publishes the rules for processing transactions at the auction and their payment.
Regular buyers are required to send out these catalogs indicating the exact start time of the auction.
Usually a couple of months in the media place an announcement about the auction with the obligatory indication of all the goods offered, time, conditions, and place.
Positive moves depend on giving all potential buyers early access to inspect the items to be auctioned. During the inspection, buyers mark the numbers they are interested in in the catalogs.
This need for mandatory inspection implies that the rules stipulate that none of the participants bears any responsibility for the quality of the goods sold, so claims after the sale are not accepted.
This is important to understand before making an application for participation in the auction.
Bargain
Bidding at the auction is usually carried out in a special room, which has the shape of an amphitheater. The host conducts the auction. It is also his job to give brief description goods.
The auctioneer indicates the starting price, and the buyer, who has expressed a desire to buy the goods, using a signal plate, says the price that exceeds the starting price.
Each price offered by buyers is repeated, while the leader names the place where the offer for the increased price came from. After a threefold repetition, if the next price increase did not follow, the auctioneer knocks with a gavel, saying that the last buyer who offered the highest price bought this lot.
He has the right in the process of bidding without explanation of the reasons to remove the lot from the bidding in this moment and post it later. Most often, this is done only when it is not possible to achieve an approximate value of the sale price.
The auction of land is no different from the usual.
Registration of transactions
The buyer, immediately after the end of the auction, draws up the transaction in accordance with the records made by the assistant auctioneer. After payment for the goods, the purchase is recorded in a special statement. A check is issued in 2 copies in order to buy back the sold goods.
After the auction, proceeds are accumulated, which, by agreement of the parties, are divided between the owner of the goods and the organizing organization of the auction.
This creates convenience for sellers and buyers, because prices for goods are set in accordance with real demand.
Forms and types of auctions
Depending on their organization, they are divided into:
- voluntary - carried out at the initiative of the owners of the goods to obtain the most favorable price;
- forced auctions - carried out either by pawnshops, or state organizations for the sale of confiscated or unpaid goods.
By scale of activity:
According to the technology
1. Consonants (vowels, with price increase). First, the minimum price set by the seller is announced. Then, to this price, those who want to buy make allowances (additions) equal to or greater than the minimum price. Rules for the auction and establish the amount of minimum allowances.
2. Silent (silent). Also carried out with a price increase. Buyers with the help of conventional signs agree to raise the price, this all happens after the announcement of the minimum surcharge. The auctioneer in this case announces after each raise without pointing to the buyer. Thus, the secret of the name of the buyer is preserved (relevant when selling jewelry, paintings).
So, in the article we found out that auctions can be open and silent (secret) with an increase in price. There is a Dutch auction with a price reduction, i.e. the starting price is too high and goes down until they agree to buy the product. This is how perishable goods are usually traded.
On the stock market
There are also automated electronic auctions. This type is inherent in trading in the stock market. The price is displayed each time on a specialized scoreboard. Any change in price, its increase, as well as its decrease, must be fixed by the buyer by pressing an electric button that stops the incessant change of numbers on the scoreboard.
When buying at all auctions, you must remember that no one is responsible for the quality of the goods, so it is better to use the provision of all lots for inspection in advance and determine in the catalog which one you want. What is an auction, we examined.
Today, as promised in my previous one, I will tell you about what other types of auctions exist.
The word auction comes from the Latin word "auctionis", which means "increase", "growth".
Auction- public sale of goods, securities, property of enterprises, works of art and other objects, which is carried out according to pre-established rules of the auction. In this case, the object is acquired by the winner of the auction. A common principle for all auctions is the principle of competition between buyers. In the process of competition between buyers for the right to purchase goods, the winner of the auction is revealed. The winner of the auction is the person who won the auction in accordance with its rules. The main criterion for determining the winner of any auction is the price.
A bit of history...
Auctions were common during the Roman Empire and were often held after military victories. They traded prisoners of war, and the proceeds from these auctions went to finance the armed forces. The auction trade was also used to liquidate the confiscated property of debtors. Even the Emperor Marcus Aurelius sold household furniture at auction in order to pay off his debts. The most legendary auction: March 28, 193 - the sale of the entire Roman Empire. The winning bidder was the wealthy senator Marcus Didius Julian, who offered 250 million sesterces for the Empire - 25,000 for each guard, the equivalent of their five annual salaries. However, Didius Julian was unable to pay, lost the support of the guard, and was killed 66 days later.
With the collapse of the Roman Empire, auctions disappeared, and then reappeared in Medieval Europe: In 1254, a decree issued by King Louis IX established the profession of an auctioneer.
Historically appearance modern type auctions are associated with the Netherlands at the end of the 16th-17th centuries. There are suggestions that the emergence of this form of trade was associated with the unprecedented flourishing of the Netherlands after the liberation from Spanish domination and the formation of the first republic in Europe based on the principles of elective power and a market economy. Newly conquered colonies in Indonesia, South Africa and Brazil brought in huge income; the capital of the United Provinces - Amsterdam has become the richest city in northwestern Europe. A large number of wealthy people who want to surround themselves with luxury goods has become the reason for the formation of a vibrant art market in Holland. A relatively narrow circle of collectors did not get tired of buying and selling Renaissance paintings and works contemporary artists. Auctions were held frequently, sometimes catalogs were printed for them.
The development of international trade in the 16th-17th centuries, the great geographical discoveries, the improvement of the world credit and banking system led to the rapid spread of auctions throughout Europe. Already at the end of the XVII century. they became commonplace in England, Germany, France, and in the first half of the 18th century the auction houses Sotheby's and Christie's were created, which are currently leaders in the world antiques market.
In Kazakhstan, auctions appeared much later - the first mention of them dates back to the first quarter of the 18th century. The appearance of the first terms of the auction trade indirectly indicates that in Kazakhstan early XVIII in. auctions have already taken place. This is one of the first regulatory documents regulating the sale at auction: in accordance with it, the procedure for transferring “possessions for sale”, the rules of bargaining (for example, “who will give more, write to him for sale”), are appointed officials- "vendemeister", "broker" and "magistrate member" who conduct the auction. It is interesting that the "vendemeister" who conducted the auction, at the end of each auction, did not hit the table with a hammer, but beat him in the basin.
The decree does not yet contain the terms "auction" or "auction", but the expression "public auction" is used. During the XVIII century. In Kazakhstan, the auction procedure was regulated, which is very similar to the modern one, a set of basic concepts and terms was created, and the auction itself became firmly established in the practice of state trade organizations.
In the USSR, auctions were held solely on the basis of the monopoly right of the state to this form of trade. It is worth noting the auctions for the sale of furs, held in St. Petersburg by the Ministry of Foreign Trade, since 1931. They sold fox, sable, squirrel skins (only about 80% of all furs). Since 1965, an international auction for the sale of thoroughbred trotters and racehorses began to be held in Moscow.
Auctions gained the greatest popularity by the mid-90s. In 1997, there were auctions for the purchase of food products for the army.
Types of auctions
Direct auction (English)
This is one of the most famous and widespread types of auctions. It is based on the establishment of a minimum "starting" price, the basis for further bidding, during which the set price is gradually increased. All incoming proposals are publicly announced. The final price is formed during the auction as the last maximum price offered by the buyer. A direct auction usually lasts for a fixed time (as used in electronic auctions conducted over the Internet) or until new bids stop coming in. If a reserve price is set (the minimum price for which the owner of the goods agrees to sell it) and it is not reached during the auction, then the goods are not sold. And yet, often at such auctions, gambling buyers raise the price very high. One of the clearest examples of a direct auction is an electronic auction - www.ebay.com.
An English auction can be:
- direct. At a direct English auction, prices gradually increase either at the suggestion of the bidder or at the request of the bidders themselves. The seller sets the initial "starting" price, then the buyers enter into competition, setting a price higher than the initial one. Participants have the opportunity to revise their proposals depending on the proposals of rivals. The winner is the one who, at the end of the auction struggle, offered the highest price.
— reverse. In a reverse English auction, the buyer sets the initial maximum price. This is the price he is willing to pay for the product. Sellers make their offers to him, gradually reducing the price. The price decreases until there is a seller willing to sell his product at that price.
First Price Auction
The first price auction is a closed auction. The price is not publicly announced. In this auction, bidders submit their bids in sealed envelopes, and the bidder with the highest bid becomes the winner. For the lot, he pays the "first price" - the value of his offer (rate). According to statistics, more than 2/3 of the world's auctions are held exactly according to this scheme. As a rule, government contracts and various properties, including companies, are sold at the first price auction.
Second Price Auction
Just like the first price auction, the second price auction is closed. The rules for determining the winner are identical - the highest price wins. The lot goes to the participant who offered the maximum price, but he pays for the goods an amount equal to the second highest offer ("second price"). In practice, this type of auction is rarely used, as it artificially limits the maximum profit of the lot owner. An example of the use of a second price auction is the sale of securities, postage stamps, etc.
Reverse wholesale auction (Dutch)
This is a wholesale auction where the seller can list several items at the same time. Accordingly, buyers can apply for the purchase of several units of goods. The initial price is set deliberately higher and is reduced step by step until a buyer is found. All winning buyers pay only the lowest of the winning prices. A wholesale auction is different from a Yankee auction, in which each winning bidder pays the price he has named.
Example: the seller put up for sale 3 laptops. All three winning buyers bid on 1 laptop each. The highest bid was $1000 and the lowest bidder was $850. All three will purchase laptops for $850. Despite the fact that the highest price was $1000.
A Dutch auction cannot set a reserve price. Dutch auctions were originally used for the sale of perishable goods and were held in a very short time. Currently, this type of auction is most often used for the sale of securities, used goods, construction projects, licenses, etc.
Reduction (reverse auction)
A reduction is otherwise called a rebidding or an auction for a fall. When carrying out a reduction, the customer does not sell, but acquires the products he requires (goods, work or service). He sets the initial price that he is willing to pay for it, and the sellers (reduction participants) make their offers to him, gradually reducing the price. The winner of the reduction is the participant who offered the lowest price.
Yankee auction (discriminatory), auction of one's own price
This is a bidding closed to other participants (unlike English or Dutch) and the winner who gave the highest price receives the goods for the price that he named. As a rule, each participant submits only one bid (price offer), so preparation for such an auction is especially important.
A closed auction consists of two phases - a bidding period and a winner determination phase, when all bids are opened and a winner is determined (sometimes no winner is announced).
If the product is single, then the winner is one. But if a lot of several units of goods is put up, then not only the one who gave the highest price wins, but also those who gave the lowest price. Due to the fact that not all winners pay the same price, such an auction is called "discriminatory".
In a "discriminatory" auction (more than one item in a lot), blind bids are sorted from highest to lowest and distributed in that order until they run out. Participants who win such an auction pay a different price for the goods.
Auction where everyone pays
In this type of auction, each of the participants pays the amount offered by him during the auction, however, the lot goes to only one - the winner. In its pure form, such auctions are practically never found at present, but they are constituent elements of many other procedures.
For example, when preparing their competitive (auction) application, all suppliers incur some financial costs that no one compensates. However, the contract (lot) goes to only one of them.
Private auction (VIP)
Such auctions usually involve "chosen ones" who require special accreditation. A bet (offer) is accepted for a strictly limited time, and the participant does not have the opportunity to know the size and number of bets of other participants. The participant has the right to make only one bet.
An auction is a public sale of goods, securities, property of enterprises, works of art and other objects. Such sale is carried out according to the established rules. The main principle of the auction is its competition between buyers. During the auction, buyers fight for the right to purchase goods, offering their prices for the selected product. The criterion for determining the winner is the price. As soon as the winner of the competition is determined, the object of the auction is declared sold.
Auctions have existed since the time of the Roman Empire and were usually held after military victories. The term "auction" itself comes from English word auctionis, "increase" or "growth".
What is an English auction
There are eight main types of auctions. Of these, the most common and famous is the English auction. It is also called direct. The principle of this auction is based on the establishment of a minimum price, the so-called "starting". It is the starting point for further trading, during which buyers trading among themselves gradually increase it.
All incoming proposals are publicly announced. The final price is considered to be the price formed in the process of bidding and being the maximum offer for the object of bidding.
The duration of the direct auction is fixed, or the auction lasts until the receipt of new proposals ceases. However, there is the concept of a reserve price, that is, the minimum cost for which the seller agrees to sell the goods. If during the auction it remains unreached, the goods are not sold.
There are two types of English auction - direct and reverse. At a direct auction, prices rise according to the proposal of the bidder or at the request of the auction participants. The winner is the buyer who offers the maximum price. These auctions typically sell unique items such as used items, collectibles, wines, and more.
In a reverse auction, the buyer sets the starting price. And it is equal to the maximum price at which he agrees to purchase this product. And in this type of bidding, sellers compete, competing with each other. They make offers to the buyer. In this case, the price goes down, not up. This continues until a seller is found who is willing to sell his product at that price.
Definition
Auction Items
Auction trade centers
The history of development
Business model
Reasons for the effectiveness of the business model
Hammer sale services
Differences between online auctions and traditional ones
non-standard situations competition
Acquisitions
Interesting Facts
Unusual Items
Cases of deception
Generalizations
Properties
European competition
Scandinavian tender
Alternative point of view
auction houses
Gelos (antique auction house)
Christie's
About 70% of the tea sold on the world market is sold through international public auctions. market, 90-95% unwashed wool exported to Australia and New Zealand.
Historically, each auction product has its own auction centers.
For furs and fur raw materials, the main centers of trade are: St. Petersburg, New York, Montreal, London, Leipzig, Copenhagen, Oslo, Stockholm and some others. In total, more than 150 international fur public auctions are held in the world.
The most important centers where unwashed wool is traded are London, Liverpool, Sydney, Melbourne, Cape Town, Wellington (New Zealand).
Flower trade is concentrated in the Netherlands, where a system of flower contests is constantly operating in several cities.
The auction trade in tea is characterized by the approach of tenders to the places of production of this product. About 70% of India's exported tea is sold in Calcutta and Cochin. In Colombo, Sri Lanka also sells 70% of its exported tea. African countries (Kenya, Tanzania, Uganda, etc.) sell most of the exported tea through public auctions in Nairobi and Malawi. The world-famous tea tender in Singapore, where companies from Japan, australia, PRC, DNA. Tea produced in Indonesia and also in India, Sri Lanka, is sold through public auctions in London, Hamburg, Antwerp.
The most important tobacco trade centers are New York, Amsterdam, Bremen, Lusaka, Zambia); flowers - Amsterdam, Aalsmeer; vegetables and fruits - Antwerp and Amsterdam; horses - Deauville (), London, Uspenskoe (near Moscow).
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Soyuzpushnina
Soyuzpushnina is a foreign economic association that monopolized the sale of furs from the USSR on the world market. It was created on October 24, 1931 on the basis of the All-Union Fur Syndicate (which, in turn, had been operating since January 1930), with the aim of streamlining and centralizing fur export operations.
Since 1926, the issue of creating a fur sale by auction was discussed in the Soviet press. In March 1931, the first competition was held in Leningrad, which was attended by 78 representatives of 67 foreign firms out of 12 countries. Prices turned out to be 6-8% higher than the average prices London competition, which took place in February 1931.
During the Great Patriotic War, the enterprise was transferred from Leningrad to Novosibirsk and supplied about 40% of foreign exchange earnings to the USSR treasury.
In January 1989, it was enlarged into Novoexport. On May 16, 1999, the State Unitary Enterprise "VO Soyuzpushnina" was transformed into an open joint-stock company (JSC) "VO Soyuzpushnina", partial privatization was carried out. On November 13, 2003, JSC "VO Soyuzpushnina" was fully privatized.
Auction trading company
The organizers of commodity sales under the hammer can be individual large trade organizations, unions or associations of sellers, or special auction brokerage companies.
Specialized large organizations that act as organizers of the tender, representing trade monopolies, offer at competitions a product purchased, as a rule, at their own expense. Along with this, they accept for sale on a commission basis products belonging to manufacturing firms, associations or cooperatives of farmers.
An example of such a company is the specialized English fur company Hudson Bay, which has actually turned into an international monopoly with its branches in New York, Montreal, and London. Another major fur trader is the American fur trader New York Oak Co., Inc., an American organization that organizes a public sale of mink in New York. In addition, it has branches in Montreal and Minnesota, where they also hold public mink auctions.
Unions(associations) of producers, farmers, acting as organizers of public auctions, often create auction companies for this. This is most common in the fur trade in the Scandinavian countries (Norway, Finland) and Denmark. This kind of public auction is held, for example, in Copenhagen.
Specialized auction brokerage and commission organizations play a leading role in the trade in tea, wool, tobacco, fur trade items and other goods. They usually organize public auctions and sell goods on behalf of their clients for a commission. For example, the auction trade in unwashed wool in australia and New Zealand, more than 90% is carried out by brokerage firms. Transactions in these tenders are carried out through brokers seller and brokers buyer. All brokers who auction wool in Australia and New Zealand are united in broker associations seller and brokers buyer.
Auction trade in tea, both in tea-producing countries and in London, is concentrated mainly in the hands of English brokerage firms or their branches and subsidiaries. Sometimes they buy the product themselves and act as owners of the product at competitions, but more often they sell tea on a commission basis (farmers - tea producers - are not allowed to participate in tenders).
Auction trade technique
From the point of view of pricing technique, two types of tenders are distinguished:
A tender with a price increase, the winner of which is the person who offered the highest price.
Price reduction tender (Dutch tender), the winner of which is the person who first agrees to pay the price offered at the tender.
The firm and technique of conducting international tenders have their own characteristics, which are determined by the nature of the product. At the same time, their firms have much in common, there are four stages of conducting sales under the hammer:
Training,
goods inspection,
auction,
Registration and execution of the auction transaction.
AT period preparation of the auction sale, which sometimes lasts several months, the owner of the product delivers it to the warehouse of the organizer of the competition. During the preparatory period catalogs are compiled, advertising activities are carried out, large political party products are divided into so-called lots. AT lot a product of the same quality is selected. To each lot a number is assigned, under which it is entered in the catalog of this tender, indicating the characteristics of the lot. Several lots with the same quality indicators form the so-called strings. A characteristic sample is selected from each lot or string and exhibited in a special hall for inspection.
During the inspection of the product, potential buyers have the opportunity to get acquainted with the lots and strings for sale. Tastings are organized for buyers at competitions for food products. Inspection is an important step in the conduct of auctions, since in the case of a purchase of a product, claims for its quality (with the exception of hidden defects that cannot be detected during inspection of the product) will not be subsequently accepted. Sometimes buyers may purchase samples of the product during the inspection to further check their quality.
The main stage of the sale by auction is the auction, which is carried out by the auctioneer together with assistants. It starts on a prearranged day and hour in a specially equipped room. There are ways to increase the price - public and private.
With the public method, the auctioneer announces the number of the lot offered for sale, names the starting price and asks: “Who is more?” buyer who wants to purchase at a higher price, names a new price that is higher than the previous one by an amount not lower than the minimum markup specified in the auction rules. The auctioneer calls the number of the buyer, under which he is registered at the competition, the new price of the lot and again asks the question: "Who is more?" If, after repeating the question three times, no new offer follows, the auctioneer strikes with the gavel, confirming the sale of the lot to the buyer who last called the highest price.
With the covert method, buyers submit to the auctioneer symbol(for example, by raising a sign with his number) about agreeing to raise the price. The surcharge to the price is standard and stipulated in the auction rules. The auctioneer announces a new price each time without naming the buyer.
The pace of the auction is very high and requires maximum attention and quick response from buyers and the auctioneer. On average, it takes less than 50 seconds to sell one lot. In some countries, tenders use the method of price reduction. This method is called "Dutch competition" (Dutch competition), as it is widely used in this country. Its essence lies in the fact that at first the auctioneer sets the maximum price, which lights up on the dial installed in the auction room. If none of the buyers expresses a desire to purchase a lot at this price, then the auctioneer begins to reduce the price. The buyer of the product is the one who first presses the button in front of him, which stops the price change on the dial. After that, the number under which the given one is registered with the organizers of the competition lights up on the dial. He is considered the buyer of this lot. This method of tendering significantly speeds up the pace of the auction and makes it possible to sell up to 600 lots per hour.
Types of public auction
By type of initiative: forced (realization of property confiscated for various legal reasons) and voluntary public auctions (conducted at the initiative of the seller himself).
According to the composition of participants: open (everyone can take part) and closed (only persons specially invited by the organizer of the sale under the hammer take part).
Contest types
The English tender is the most common type of tender, which involves buyers bidding for a product in incremental increments until there is only one auctioneer left - the winner. It is also called upward competition.
A Dutch competition is a competition in which bidding starts at a very high price and goes down until a buyer is found who is willing to buy at the advertised price.
Dutch tender
The Dutch tender is a tender, during which the highest price for the product being sold is first announced, and then the rates are reduced to the one that the first buyer agrees to, to whom the product is sold. It got its name due to its wide distribution in this country. Feature in that this is a wholesale competition, which can exhibit many units of the product at the same time.
The essence of the Dutch tender is that at first the auctioneer sets the maximum price, which lights up on the scoreboard installed in the auction room. If none of the buyers expresses a desire to purchase a lot at this price, then the auctioneer begins to reduce the price. The buyer of the product is the one who first presses the button in front of him, which stops the price change on the scoreboard. After that, the number under which this buyer is registered with the organizers of the sale under the hammer lights up. He is considered the buyer of this lot. This method of holding the competition significantly speeds up the pace of the auction and makes it possible to sell up to 600 lots per hour.
An example of such a tender is the tender for the sale of flowers in Aalsmeer (Netherlands). From Monday to Friday, large political party flowers, which are sold in five large halls at once. Flowers move on a conveyor through the hall. Wholesale buyers sit at specially equipped tables located in the amphitheatre. In front of each there is a button connected to a large dial hanging on the opposite wall, on which the arrow moves from the maximum to the minimum price. As the transport, on which the carts with the lots of flowers for sale are installed, moves, the arrow also moves. It takes seconds to make a decision. Whoever presses the button first will get the right to the flowers. The purchase is recorded and processed by the computer in 10-15 minutes - from pressing a button to issuing an invoice. The same conveyor transports the flowers to the neighboring hall, where they are quickly packed and immediately delivered in refrigerators to their destination - the airport or the store. Unsold flowers go to compost. Every day in Aalsmeer, 12 million cut flowers and a million pot flowers are sold in four hours of operation. Up to 900 million roses, 250 million tulips and 220 million potted flowers, etc., are sold here annually, more than 3 billion in total. And in general in Netherlands at 12 specialized competitions - more than 6 billion flowers. Approximately 80% of them go to export even to countries like Australia, Singapore. In general, the share of the Netherlands in international trade flowers is more than 60%, and they firmly occupy the first place in this regard.
English competition
English (or direct) tender - a competition based on the establishment of a minimum price as a starting point, a basis for further bidding, in process which the asking price is gradually increased. The final price is formed during the auction as the last maximum price offered by buyers.
English tender can be:
1. straight; In a direct English tender, prices gradually increase either by offer the leading bidder, or at the request of the bidders themselves. sets an initial price, then buyers enter into competition, setting a price higher than the initial one. Members have the opportunity to review their suggestions depending on the proposals of competitors. The winner is the one who, at the end of the auction struggle, offered the highest price.
2. reverse. In reverse English competition, the customer is the buyer, he sets the initial maximum price that he is willing to pay for the product. Sellers make their offers to him, gradually reducing the price. decreases until there is a seller willing to sell their product at that price.
This type of sale by auction is the most common. It is carried out with public bidding and raising the price. Unique items such as used items, collectibles, wines and more are sold in this way. The competition starts with the minimum price. Buyers set higher prices in turn. terminate when the tender period set by the seller expires (from 1 to 14 days). The product goes to the highest bidder. Bidding does not always end in a sale. If a reserved price (the minimum price for which the owner of a product agrees to sell it) is set and it is not reached, then the product is not sold. And yet, often at such tenders, gambling buyers raise the price very high. Usually, the buyer pays for the product below the maximum price that he expected, since the price increase occurs in small steps.
Auctioneer
An auctioneer is a person who runs a competition.
The tender, as a form of trade in goods with unique properties, is carried out strictly according to certain rules. The main function of the auctioneer is to control the observance of the auction rules by bidders.
The rules for conducting a sale under the hammer most often involve an increase in price during the bidding process. In this regard, one of the main tasks of the auctioneer is to fix the intermediate price and fix the final price.
The auctioneer at the tender represents the organizers of the auction, whose economic interest is to obtain the maximum price from the goods sold. Therefore, one of the main tasks that he solves during the auction is the skillful management of the price increase process, maintaining the competition between potential buyers.
2. VDP Mosel tender: Weingut Egon Müller-Scharzhof, Scharzhofberger Eiswein 2004, 1150 Euro
3. VDP Rheingau tender: Weingut Robert Weil, Kiedrich Gräfenberg Beerenauslese Goldkapsel 2006, 840 Euro
4. Tender VDP Nahe: Weingut H. Dönnhoff, Oberhäuser Brücke Riesling Trockenbeerenauslese Goldkapsel 2005, 1450 euros
5. Tender VDP Ahr: Weingut Meyer-Näkel, Walporzheimer Kräterberg Spätburgunder Grosses Gewächs 2005, 100 euros
The most expensive bottle of old wine, the 1937 Erbacher Markobrunn Riesling Trockenbeerenauslese Cabinet Riesling sold for 2650.
The most expensive wine was purchased by buyers from the US and Japan.
Auction terminology
The tender of the first price (the term of the foreign exchange market) is closed, so the participants send their bids in envelopes and the winner is the auctioneer who offered the highest one. For the lot, he pays the "first price" - the value of his bid.
Second price tender (term Forex currency market) is closed. The rules for determining the winner are also identical - the highest bid wins. However, the lot goes to the winner at the "second price" - the price of the second highest bid.
eBay Inc. (Russian eBay) is an American organization providing services in the areas of online auctions (the main field of activity), online stores, instant payments, VoIP. Operates the .com website and its local versions in several countries, owns Paypal and Skype.
The history of development
Software developers who enroll in the eBay Developers Program can use the eBay API in their programs to interact with the auction.
In the years that followed, eBay evolved from a "flea market" C2C marketplace to a "B2C" platform used by retailers and retailers alike. legal persons.
Reasons for the effectiveness of the business model
1) No geographic barriers - sellers and buyers can bid on eBay from anywhere in the world, it is enough to have access to the Internet. This increases the number of sellers/listings and the number of buyers/bids.
2) No language barriers - participation in the auction trade is possible in different languages. Many countries have their own, local subsidiaries selling under the hammer, for example, Germany, Holland, Australia and the list can be continued.
3) No Time Limits - You can bid on items on eBay 24 hours a day, 7 days a week. Lots, in turn, can be put up for a period of up to 10 days - a sufficient period for searching, reviewing and buying.
4) A large number of buyers - visitors to competitions are attracted by a huge assortment of various goods exhibited at relatively low prices. Also here you can find rare, collectible items that are almost impossible to buy offline.
5) A large number of sellers - low on the placement of goods, a huge buyer audience, ease of use of eBay contest services are also attractive to sellers. Moreover, each participant can become a seller.
6) The multiplier effect of the model - an increase in the number of buyers leads to an increase in the number of sellers, an increase in the number of sellers stimulates an increase in the number of buyers. Which guarantees the development of eBay.com all over the world.
Tender services
eBayPulse. A service that provides information about eBay's top searches, trends, and most viewed items.
eBay Express. Service developed by eBay for work as a traditional online store for US consumers. Selected auction items are displayed on eBay Express, giving buyers the ability to add items to their shopping cart. There is a branch in England.
Best of eBay. A service focused on finding unusual and unique lots.
eBay Matchups. Allows you to compare two different products and vote for the most attractive of them.
EBay Community Wiki and eBay Blogs. These are content projects that include chats, forums, user groups, an answer center, and product reviews.
In addition, eBay provides users with SMS services and a PDA version of the site.
Differences between online auctions and traditional ones
An Internet auction, also known as an “online tender”, is organized via the Internet. Unlike conventional tenders, online auctions are held not on the basis of buyers' personal participation in them, but remotely. You can participate in them from anywhere in the world and make bets through the competition website or a special computer program. The moment of the end of the online auction, in contrast to traditional auction sales, is pre-determined by the seller himself when the product is put up for auction. In ordinary competitions, the struggle goes on as long as the auction rates increase. At the end of the online auction, the buyer must transfer money the seller by bank transfer (less often - in cash, for example - upon receipt of the product personally), and the seller is obliged to send the product to the buyer by mail to almost any country in the world. The boundaries of the possible shipment of the product are indicated by the seller in advance. Internet auctions are an integral part of e-commerce.
Non-standard situations at the competition
These should include:
1. Making changes to the description of the lot after it is put up for auction.
2. Changing the initial price of the lot, shipping costs and form payment.
3. Early withdrawal of the lot from the auction.
4. Crossing out an unwanted buyer.
5. Refusal to participate in the auction after the bid.
6. Buyer Cancellation payment product.
7. Non-receipt of the product after payment.
8. Refusal to return funds for a product received that does not match the description.
9. Recent Changes on the eBay Tender
Since February 2008:
1. The seller has no right to leave negative or neutral feedback: either positive or none.
2. On the German tender website - eBay.de, in the case of an initial price of 1 euro and the non-sale of the product, the seller does not pay anything for the sale under the hammer.
Acquisitions
In May 1999, eBay acquires Billpoint, an online payment system that was later closed by the Paypal acquisition.
In 1999, eBay acquired the Butterfield & Butterfield competition, which was sold in 2002 to Bonhams.
In 1999, eBay acquired the Alando tender from Mark and Oliver Zamwer for $43 million, which was then converted to eBay Germany.
In June 2000, eBay buys Half.com, later integrated into the eBay Marketplace.
In August 2001, eBay buys Mercado Libre, Lokau and iBazar, the largest Latin American online auction sites.
In July 2002, eBay acquires PayPal for $1.5 billion.
July 11, 2003 eBay Inc. acquires EachNet, China's leading e-commerce organization, for approximately $150 million.
June 22, 2004 eBay acquires Baazee.com, the leading auction site in India for approximately $50 million.
In September 2004, eBay made a significant move in the Korean market by acquiring 3 million shares of Korean online trading Company for approximately 125,000 Korean won (about US$109) per share.
In November 2004, eBay takes over Marktplaats.nl for €225 million. It was a German company that owned 80% of the public auction market in Netherlands and received mainly from the sale of advertising.
December 16, 2004 eBay acquires rent.com for $30 million money and $385 million in eBay stock.
In June 2005, eBay acquired Shopping.com, a site that provides a comparison service for products and prices, for $635 million.
In August 2005 eBay buys VoIP firm Skype for $2.6 billion in cash and stock.
Interesting Facts
Some of the most valuable items sold on the eBay contest:
340-year-old Shakespeare's "Prince of Tire" manuscript that survived the great fire of London in 1666 (£5 million)
Grumman Gulfstream II aircraft ($4.9 million)
1993 yellow McLaren F1 ($1.7 million) (There is only one yellow McLaren F1 in the world)
1909 Honus Wagner baseball card ($1.65 million)
Diamond Lake Resort, Western Kentucky, USA ($1.2 million)
Bat of famous baseball player Joe Jackson "Black Betsy" ($577,610)
Political golf party with legendary golfer Tiger Woods ($425,000)
One of the largest items sold on eBay's tender is a World War II submarine. wars, sold by a small town in New England when the city decided they no longer needed such a relic.
One of the largest items ever entered into the competition was a decommissioned aircraft carrier. was created by an anonymous seller from Brazil on eBay Motors.
Unusual Items
In June 2005, Utah resident Karolyne Smith sold the right to permanently tattoo someone's advertisement on her forehead for $10,000. The popular virtual casino Golden Palace took advantage of this offer.
Even if the tender administration does not use fraudulent methods such as dummy bidders, the "Scandinavian public auction" is still more of a lottery than a competition.
How can you distinguish an honest tender from a fake one? openness of the organizers: the presence of a forum, a chat of participants, feedback, indication of the contact information about the organizer (office address, city telephone, etc.)
the presence of a well-thought-out interface and a beautiful (and necessarily high-quality) website design (the owner of the auction sale is a fairly serious company that can afford it, and not a figurehead of one or two people)
constantly implemented new ideas, promotions, any other changes, taking into account the wishes of users.
discussion on forums and thematic sites
Alternative point of view 2. This type of competition contains all the signs of gambling. For example, Federal RF dated December 29, 2006 No. 244-FZ “On state regulation of company activities and gambling and on amendments to some legislative acts of the Russian Federation” defines the concept of “gambling” as follows: - based on risk agreement about the winnings concluded by two or more participants of such an agreement between themselves or with the organizer of the gambling game according to the rules established by the organizer of the gambling game.
In fact, the losing participants pay the winnings of the winner and the organizer of the tender. Carrying out this type of sale under the hammer through the Internet leads to the possibility of uncontrolled abuse.
Alternative point of view 3. On the example of one of the Russian public auctions. Let's imagine that a product with an initial cost of 1 ruble is offered at a tender, you buy bids at a tender, the cost of the bid varies from 6.5 to 7.5 rubles. Bidding for the product begins. The price of the product rises by 25 kopecks with each bid. When the auction ends, the cost of the product is, for example, 500 rubles, with its market value of 2,000 rubles - it’s profitable, but let’s calculate how much the organizer of the auction received: 500 / 0.25 = 2000 rates of 6.5 rubles (minimum) = 13,000 rubles. We add 500 rubles for the product, subtract the cost of the product, and we get 11,500 rubles of net profit.
Sometimes the organizer undertakes to provide the same product to the person who has placed bets on an amount equal to or greater than the cost of the product, which is quite logical and fair. The remaining non-winning and non-compensated bids constitute the Bid Organizer's Income. After the end of the auction, there is an opportunity to see who won them, at what price, etc.
tradera.com
Tradera.com is the largest online auction in Scandinavia. It is currently owned by eBay, the world market leader in online auctions. Both individuals and organizations can act as sellers at an online auction. For using the competition, the seller pays a fee in the amount of a certain percent from the amount for which the product was sold. As a security measure, there is a rating system: the buyer and the seller have the right to leave a positive or negative feedback from each other.
Online auction Tradera.com was founded in 1999. On April 24, 2006, it was announced to be acquired by an eBay tender for 365 million SEK (approximately US$48 million). At the same time, eBay made the decision to close its regional office for further development under the better known Sweden trade mark Tradera.com.
Gagen.ru
Gagen.ru is the most popular Scandinavian competition in the Russian Federation. What attracts participants to Scandinavian public auctions? Of course, the opportunity to get the coveted product, sometimes quite expensive, for a penny, that is, practically "on the ball."
As in similar competitions operating in other countries (Kopeikoff.com, Swoopo.co.uk), when visiting gagen.ru, the clock immediately catches your eye, on which minutes and seconds are counted until the end of the tender. Everyone is waiting for this end, because only then it will become clear who won after all, because the participant whose bet is the last one wins.
The starting cost of goods on gagen.ru is 1 ruble. The cost of one bet is from 6 rubles. The more bets - the more winnings, although, of course, a large number of bets cannot guarantee victory, it all depends on happy occasion. However, the peculiarity of gagen.ru is that the participants who spent on the tender in the struggle for the product an amount greater than the real cost of the product, it (the product) is provided as a gift. Such a system operates on tenders with compensation. Thus, all participants are insured against risk lose large sums of money, but get nothing in return.
Gagen.ru faced attacks that are traditional for Scandinavian competitions: they called it a “divorce”, shouted that it was not realistic to win in it, but ... Go to the “Winners” page. The people listed there won. And they continue to bet, because it is also recklessly.
For visitors who are at the competition for the first time, educational public auctions are organized. Beginners are provided with 50 practice bids upon registration, with which they can familiarize themselves with the system of Scandinavian tenders and try to play for free. Of course, training auctions are training ones that take place “for fun”, however, participants have a great opportunity to get into the system and then try their luck in a real tender.
Swoopo.co.uk
Swoopo.co.uk, formerly known as Telebid.com, is the largest Scandinavian tender in the UK. In order to take part in the auction, participants must first register and buy bets, which will get the opportunity to bet on the product they like. The competition is held for a certain period of time, and the winner is the participant whose bid is the last.
The appearance of Swoopo and similar auctions created a sensation among Internet bloggers. On the Internet, there are both opponents of this type of public auction, who claim that so-called bots (pseudo-players) are used in the auction, which do not allow you to win a lot until the cost of the item being played is paid off by bets, and defenders who admit that although they can be used here bot players, but the chances of winning an expensive item for 10% of the cost are very high.
The Swoopo contest is often accused of being a scam, as each bidder is charged 50 cents per click, and at the end, if the bidder wins the bid, they must pay the "per click" amount as well. In the UK, opponents of the sale by auction tried several times to enroll him in gambling, but authorities they did not find any significant reasons why the Swoopo contest could be equated, say, with a casino.
However, despite the large number of opponents of Swoopo and the Scandinavian contests in general, there are more and more people wishing to participate in the auction every day. Gambling people try to win the opportunity to purchase a valuable product for a penny. And sometimes the auction itself, when the hands of the electronic clock are ticking and there are only a few minutes left before the end of the competition, brings more pleasure and adrenaline than the joy of winning.
auction houses
North American Fur association of enterprises (NAFA) is a Canadian fur tender. It occupies the 3rd place in the world in terms of its size.
NAFA's main product is American mink, branded BlackNafa. In addition, the fur of such animals as otter, sable, raccoon, coyote, fox, lynx, muskrat, badger, skunk, possum, squirrel, ermine and bear is sold here. The competition is held 4-5 times a year in Toronto. In February, the best product is exhibited, in May, a lower quality product, and in September, defective leftovers.
Gelos (antique auction house)
Gelos (lat. Gelos) is one of the first auction houses in Russia.
Antique-Auction House "Gelos" was founded in 1988, has a license number 1, license for valuation activities No. 008214. The sale of the Inkombank collection was an important milestone not only in the history of the Gelos Auction House, but also a landmark event for the entire Russian antique market. Over the years, clients business associations"Gelos" were: Representatives of the administration president, the Parliament and various ministries of the Russian Federation, ambassadors and employees of foreign embassies in Moscow, heads of the Association of Russian Banks, the Most Group, Alfa-Bank, the International Olympic Committee, the Moscow Kremlin Museum-Reserve and the GTSTM. Bakhrushin, Kommersant publishing house, Moskovsky Komsomolets newspaper, Arguments and Facts weekly, ITAR-TASS, Ostankino All-Russian State Television and Radio Broadcasting Company and many others.
Gelos holds weekly (Wednesdays and Fridays) antique public auctions, large Friday public auctions, public auctions of the Month, Season and Year, collection public auctions, specialized second-hand and numismatic public auctions, public auctions of contemporary painting.
Each contest of the Month and Season has its own name and, accordingly, its own specifics. The general bidding scheme and the composition of strings at the competition remain traditional, but the emphasis is on items of a certain theme.
Tender of the Month is held on the last Friday of every month. The collection of antiques for this tender consists of the most interesting and original items that are selected throughout the month. Accordingly, the price bar at these competitions is higher than at the weekly dealer tenders on Wednesdays and Fridays.
Tender of the Season - the final tender of the quarter. It usually takes place on the last Saturday of the month. At the competitions of the Season, the most significant and expensive items are exhibited, as well as at collection tenders, the collection of items is formed in advance, the experts conduct a thorough selection.
Competition of the Year - the main competition at the end of the year, which presents museum-level items of the entire spectrum of antiques.
You can participate in the auction in two ways: by being present in the hall in person or in absentia, leaving a special order (bid) - in person, via the Internet or by telephone set from any corner of the globe.
antique public auction
Antique public auctions on the Internet or by telephone set
Sale of items through the salon
Expert assessment and advice on antiques
Legal advice on antiques
Selection and acquisition of collections
Educational programs
Christie's
Christie's is a world famous auction house. Now it is the largest auction house in the world (judging by Profits). Together with the auction house Sotheby's, he occupies 90% of the world market for auction sales of antiques and art objects.
It was founded on December 5, 1766 in London by the antiquarian James Christie. Since 1823, the main office has been located on King Street near St. James's Palace. In 1975 an additional office was opened in South Kensington. There are branches in several major cities around the world, including New York and Moscow.
Christie's is currently the largest auction house in the world. 1800 employees, 116 branches auction house in 42 countries; the largest branch is located in New York.
Christie's conducts more than 1,000 tenders each year with a turnover of over $2 billion. dollars.
In 1998, Christie's auction house was bought by French billionaire Francois Pinault. The new owner of the auction house made a number of changes in the activity of the auction house, in particular, he moved the department of Russian art to the branch of the auction house in South Kensington (ie, to a much less prestigious place).
The new owner of the auction house plans to turn the world famous building on King Street, which has hosted the world-famous Christie's public auction for more than 200 years, to a hotel with a complex of fashionable boutiques. The public auction, currently taking place at Christie's King Street headquarters, will be spread across the company's six regional locations. And only the most prestigious auctions will be held in the new complex.
Lots exhibited at the next auction are presented in the auction halls. All lots are tagged with the lot number. brief information about the lot and the estimated price.
In the exhibition halls you can see everything that will be exhibited at the next auction. And not only to see, but also to sit on the chairs that will be put up for auction, and walk around the carpets that will be put up for auction. Mandatory attribute of all exhibition halls- Natural flowers. The flowers in each of the showrooms are different (and no artificial flowers!). Collectors and antique dealers are discussing the upcoming auction, inspecting the exhibits. A catalog of upcoming auctions and a centimeter for furniture measurements immediately distinguish professionals from amateurs like me. But even obvious amateurs are allowed to inspect and feel all the exhibits.
The name of Christie's auction house very often stands next to the words "most expensive". Here are some of the most expensive lots:
The most expensive painting of the 20th century was sold at the Christie's tender in 2000. She was the work of Pablo Picasso "Woman with Crossed Arms". The painting was sold for $55 million.
By the way, Pablo Picasso was recognized as the most prolific painter: during his long life (1881-1973), the Spanish artist painted about 135,000 paintings, made 100,000 engravings, 34,000 illustrations for books and created 300 sculptures. Pablo Picasso has also become the best-selling artist - his work has been exhibited in competitions more than 3,600 times, and the total amount of sales of his paintings is $ 954,710,889.
The most expensive book was also sold at the Christie's competition in London. On July 8, 1998, a copy of The Canterbury Tales by Geoffrey Chaucer was sold for 7,394,000 dollars, which is 9 times higher than the starting price.
This book was published in 1477 and is considered the first major literary work printed in England.
The most expensive bottle of wine in the world (the 1787 Château Lafitte) was sold at a Christie's tender in London last century for $160,000. The history of this bottle began in the basement of one of the fathers of American people power - Thomas Jefferson.
The most expensive illustrated manuscript - "Leicester" - an illustrated manuscript by Leonardo da Vinci, in which he predicted a steam engine and a submarine, was sold on November 11, 1994 at the Christie's competition in New York for $ 30.8 million. , the head of "Microsoft" Bill Gates, the richest man in the world, thus became the only private owner of the original manuscript of Leonardo.
The most expensive letter, written by Abraham Lincoln on January 8, 1863, was purchased by the Historical Portraits Museum in Beverly Hills (USA) in 1991 at a Christie's tender in New York for $748,000.
Sotheby's
Sotheby's (Eng. Sotheby "s) (NYSE: BID) is one of the world's oldest auction houses. Together with the Christie's auction house, it occupies about 90% of the world market for auction sales of antiques, art objects, etc. .
The history of Sotheby's, one of the oldest art auctions in the world, began in 1744 in London. company, Samuel Baker, originally sold books under the hammer. On the early stage activities through the company passed the richest libraries in the world from the collection of prominent figures, including the library of Napoleon Bonaparte.
By the end of World War I wars auction house "Sotheby's" significantly expanded the scope of activities and was already trading in other rarities, such as engravings, medals and coins. In addition, the organization moved to the famous building on New Bond Street, which to this day remains its London residence. Moving to this fashionable street marked the beginning of a new era in the history of Sotheby's - finally, the sale of paintings and other works of art began to bring much more Profit compared to the turnover on the used market. Entering a wider trading arena was a well-thought-out move, with the calculation being made on the paintings and drawings of the old masters. Thanks to a change in profile, the company achieved record turnover growth in the 60s under the leadership of Peter Wilson.
It was Wilson, who came to Sotheby's in 1936, who brought the company to international level. He provided the company with a colossal profit from the sale of Impressionist and Modernist paintings, which enjoyed unheard of popularity. Perhaps the most sensational and significant during Wilson's tenure in the leadership of the organization were the auctions that took place in 1958 and went down in history under the name "Goldschmidt auctions". All seven paintings put up for tender were sold within just 21 minutes. amounted to 781,000 pounds sterling - at that time a record amount for sales of works of fine art. Paul Mellon bought Cézanne's The Boy in the Red Waistcoat for £220,000, five times the previous record for a painting sold in the competition. The Goldschmidt auction became one of the most significant cultural events in 1958 and perhaps the most exciting art auction of the century.
Mainly thanks to the intuition of Peter Wilson, Sotheby's was the first auction house to recognize the prospect of trading in works of art on the international market. That is why in 1955 the organization opened a representative office in New York, and in 1964 made an even more far-sighted decision to acquire auction company Park Burnet, the largest art auction house in the United States. By becoming the property of the Sotheby's organization, the Park-Burnet auction house has taken a key position in the rapidly growing North American market for the sale of Impressionist and Modernist paintings.
Having included the largest American auction house, Sotheby's continued to look for ways to expand its influence. Over time, representative offices of the company opened around the world.
In the early 1980s, there was a period of uncertainty in the market and in the corporate world, and in 1983 Sotheby's auction house was acquired by A. Alfred Taubman, together with a small group of investors. At the same time, a series of brilliant auction sales led to a revival in the art market. The revival led to a series of auctions at Sotheby's that left their mark on the history of trading forever, causing unprecedented heat, fantastic bids and unrelenting public attention.
One of the most striking public auctions took place on Lake Geneva in 1987. The jewelry of the Duchess of Windsor was put up for sale. The situation was extremely gambling: bets were taken from New York via satellite, they were blocked by celebrities present in the hall, applications from buyers from all over the world were accepted by telephone. Over 50 million dollars were spent during the auction, which exceeded the wildest expectations of Sotheby's by more than five times.
In the late 1980s, the possibilities seemed endless. By that time, prices had risen to such a level that the auction began to attract unprecedented attention from journalists around the world. Encouraged by the success of the contests, in 1988 the management of Sotheby's decided for the second time to transform the organization into an open joint-stock company (JSC). In 1989, the proceeds from the sale of Impressionist and Modernist works in New York and London amounted to no less than $1.1 billion. American dollars.
During the years of economic recession in the early 1990s, it became clear that Sotheby's managed to correctly determine the cyclical demand for works of art: a period of recession was invariably replaced by a period of stabilization. Surprisingly, over the next ten years, the Sotheby's organization only increased its market share. In the 1990s, both the headquarters of the organization, in London and New York, significantly expanded their territory. So, in London in 2001, in addition to the Sotheby's branch on New Bond Street, a branch was opened in Olympia. The New York branch of Sotheby's has also expanded its holdings. In the spring of 2000, the York Avenue headquarters was expanded by six floors, adding warehouse space to the New York office and showroom space for specialty departments. Crowning these acquisitions was a magnificent gallery on the tenth floor, praised as "one of the most important exhibition halls in New York ... a setting that would be the envy of virtually any museum in the city."
In 2000, Sotheby's was the first international auction house to hold an online competition. Sothebys.com hosted many memorable and unprecedented auctions, including the sale of the first printed edition of the Declaration of Independence for $8 million, 21 panels from the famous Boston Garden basketball court and a painting by Lord Frederick Leighton. In addition, thanks to the eBay Live Auctions service, Sotheby's traditional public auctions have become available via the Internet. Although the Sotheby's website no longer conducts tenders, it is still a useful source of information and news about the activities of the Sotheby's auction house around the world.
As we expand our infrastructure and open up the possibilities of cyberspace, Sotheby's is always innovative and sensitive to the needs of our ever-growing international clientele. As customer needs and tastes evolve, our unrivaled flexibility and emphasis on professionalism and high quality customer service will continue to be our trademark into the 21st century.
Important information about the process of conducting sales under the hammer "Sotheby's":
Anyone can take part in Sotheby's tenders, and absolutely free of charge.
Approximately 3-7 days before the start of the auction, all lots are put on public display.
The catalog of any auctions can be obtained approximately one month before the competition. They contain a description of each lot, information about its origin and exposure, references to references in specialized literature and an approximate cost. In addition, catalogs can be found on our website in English, French and Italian about a month before the tender. For this information, open the public auction schedule and click on the "browse catalogue" option next to the auction you are interested in.
In addition, you can offer a price for the lot put up for the Sotheby's tender by visiting the auction in person or by submitting an application for absentee participation. The application form can be found on the last page of any Sotheby's catalog or on our website. In some cases, it is allowed to accept a bid from a potential buyer by telephone.
The auction house "Sotheby's" charges a commission, the so-called buyer. The commission is added to the highest price offered by the winner of the auction sale (the auction price) and is included in the total purchase price.
Buyer Interest Rates
For purchases, Sotheby's accepts checks or wire transfers, Visa, MasterCard and American Express credit cards, as well as cash (subject to certain restrictions). NOTE: Some contests do not accept credit cards or only certain cards are accepted. In some cases, the amount is taxable. For information on applicable taxes, please contact your local Sotheby's representative.
You can receive your purchase in the trading floor or by mail. Shipping can be arranged through Sotheby's or, alternatively, you can arrange for your purchase to be shipped via the delivery service of your choice.
Sometimes rare items, art and collectibles (for example, coins, badges or stamps) can be purchased not only in antique or art stores, but also at auctions.
The word "auction" is of Latin origin and is derived from a word that literally means "to increase".
What is an auction: definition
An auction is a public sale of things, the acquisition of which goes to the one who can pay the highest price for them. In addition to antiques, it can also be goods of special properties and qualities. For example, these are vegetables and fruits, furs and fur goods. Horses can also be presented at auctions. There are also used car auctions. This is not the whole list of goods that can be sold at auction. But, speaking of auctions, one should not forget the intangible sphere, which can be represented by various kinds of assets. For example, it can be stocks, bonds, etc.
The meaning of the auction
The main essence of auctions is the convenience of their conduct for both buyers and sellers. It is expressed in the fact that there is no need to search for active bidders - sellers and buyers. At the auction, here and now, the price and demand for a particular product is formed online. And this price is usually the most profitable.
Auction Rules
The auction, as has been noted, is the place where bidding takes place. Thus, the auction is a tool for making a deal. And this procedure should be clearly spelled out and organized according to certain rules. These rules establish the procedure for holding an auction (its stages) and the specifics of behavior at each stage. In the generally accepted classification of stages, there are 4 steps of any auction: preparation, inspection of goods, auction trading, execution of the auction transaction. A special place in the whole procedure is occupied by the third stage - the auction itself, where by raising the price the auctioneers achieve the sale of the goods.
Types of auctions
There are many reasons for dividing all auctions into groups. So, it is possible to distinguish the types of auctions only by the goods presented at them. But the classification uses broader categories, such as industries. And in this case, they talk about sectoral auctions, among which the following can be distinguished: currency, timber, gold, deposit and others. All types of auctions can be divided into the following types:
- On the initiative - compulsory and voluntary. Forced auctions are most often carried out when valuables are seized from the owner, and voluntary auctions are carried out at personal desire.
- By the number of participants - open and closed. Whether the auction will be open or closed is explained by the fact that everyone or a conditionally limited number of persons are present at the auction.