The Role of Art & Antique Dealers An Added Value
iii. Discretion:Dealers offer much greater discretion in both sales and purchases than buying publicly through auctions. Buyers may wish to keep aspects of their transactions private, particularly the price, but this may not be possible when purchasing at auction. Privacy and particularly exclusivity were noted by collectors in the survey as important reasons for working with a dealer. For sellers, although the reserve price at auction can protect their bottom line, if a painting does not sell or is “burned” at auction, the negative effects of this on its future value can be long lasting. Dealers, on the other hand, can protect a work from publicity and only show it privately, waiting until the right buyer comes along.
iv. Access: Dealers often have advantages in relation to accessing and sourcing materials. Due to a higher degree of specialisation they may be better at finding things, “sifting through rubbish to pick best works”, finding the best new Contemporary talent or simply have better contacts from concentrating on one area for a longer period. In the collectors’ survey, several collectors mentioned that one of the primary advantages of working with a dealer was that they had better access to scarce and rare items, as well as fresh-to-the-market merchandise ahead of what was available at auction.
v. Quality: Some dealers have higher quality stock and more choice than auction houses as they are focused on always getting the best works in their particular areas. As a retail stockist, many dealers will also carry multiple items by an artist or maker versus the one option offered at auction. Buyers also do not have to wait or take what is on offer according to a particular auction’s schedule, but can work closely with dealers to build collections over time. Collectors cited greater choice and a wider range of works to choose from as a benefit from working with dealers. Having a dealer’s stamp of approval was seen as important and many felt that dealers were much more focused on top quality works in their specific area than auction houses. Dealers also reported that they felt they were clearer on condition and more actively involved in restoration than auction houses, which allowed buyers to select higher quality. Some buyers felt that dealers were also more likely to provide works in top condition, which they felt added value and reduced ancillary costs related to further restoration and repair.
vi. Value: Although often not well publicised, dealers often offer better value than auction houses. Many have smaller commissions and lower prices, plus the margins they do have can be explained and justified directly to buyers. A common problem at auction on the other hand is that many buyers do not know what to pay and prices can vary widely. While some collectors noted lower real commissions and no hidden or third party charges as an advantage of choosing to work with dealers, the most commonly cited benefit in terms of value was the ability to negotiate or haggle with a dealer over prices and terms. Many collectors also valued the flexibility afforded by dealers in terms of payments over an extended period or other plans, along with option to resell and swap items with them in future.
vii. Longevity: Dealers are more concerned with building long-term relationships and assembling collections whereas auction houses are often more focused on the next sale.
Historical & Future Perspectives 43
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