Posted By:
Aaron M."Aaron- I have a question:
Even though Legendary is a new auction house, under what circumstances would they get less money for a lot than Mastro? It's the exact same customer base. Besides, if somebody is willing to pay $500 for a lot in a Mastro auction, are they going to limit themselves to only a $400 bid with Legendary?
While I agree that consignors should have been consulted in advance I can't imagine a nickel of difference in the prices realized. If you feel otherwise, please explain."
Barry, I think there could be issues of trust/confidence in the new venture that could curtail bidding. Given the on-going FBI investigation and the now rather drastic step of essentially folding Mastro as a brand, there could be concern over the legitimacy of the auction. You could say that there were bidders who were on the fence about the whole issue, but now that Mastro has been disbanded, perhaps there was truth to the allegations of card doctoring, shilling etc., and those bidders stay away from Legendary or simply limit the amount they are willing to bid for fear of being shilled or otherwise ripped off.
There could also be fear over whether or not you will actually receive your item once paid with the possibility that Legendary could have their assets frozen or seized by the government at any moment. Again, maybe this causes bidders to stay away entirely or simply limit the amount of their bidding to limit their exposure.
Since the launch of Legendary was rather fly-by-night, and there are reports of unpaid consignors, there could be fear that Legendary will not survive financially as a functioning auction house and will simply take payments and never ship items -- either tied up in a bankruptcy or simple disappearance. Or that Legendary stays in business but will not be able to process and ship items in a timely manner. Again, maybe this causes bidders to stay away entirely or simply limit the amount of their bidding to limit their exposure.
There could also be basic awareness issues in terms of brand recognition of the new auction house from the (I would imagine many) collectors who don't regularly read this board and have the opportunity to learn more about the company and the circumstances of the "switch" like we do, so the change could seem sudden and unexplained. Mastro's brand attracted certain collectors. Will those collectors follow Mastro to Legendary?
I'm not saying it will happen, just that it could weigh into the decision-making process and deter bidding.