Posted By:
Jim VBAll auction house business is built on trust.
Consignors trust that lots they send in will be cared for, represented well in the auction, and, after the auction ends, payment will be timely.
Buyers trust that lots will be accurately described, and when they send in payment, merchandise will be shipped safely, and in a timely manner.
If that trust begins to erode, for whatever reason, that particular house faces serious problems.
The biggest houses can survive a little longer because of a broader customer base, but even they will suffer soon enough.
For all Bruce's doom & gloom, he's mostly correct on this one. Why would anyone send a consignment to an auction house with a sliding reputation?