Frequently Asked Questions > Online Auctions > What about consignment items?
Search the FAQ for entries containing:
Often referred to as "enhancement" or "no risk" programs, I seldom see consignment programs that benefit my client as much as they benefit the company acting as consignor.
While they look attractive and generally carry little or no risk if an item fails to sell, consider a few things.
- On a item that sells for $150.00, if the first $100.00 is going to a consignment shop, who gets the best end of the deal?
- With a $3500.00 vacation consignment package that sells for $3800.00 in your live, that bidder's $3800 is now gone from the room, yet only $300 goes to your organization.
- If you research these items' Fair Market Value, more often than not, the "consignment price" is very close to the FMV of an item.
- A current "Listed" or "Offered" prices on eBay should not be considered an accurate indication of any items value. What, if ever, does it actually sell for?
- Consignors are in this to make money. Very often, the "recommended" opening bids are higher than many buyers will be willing to pay at auction.
- There are serious considerations to evaluate about the authenticity of many "memorabilia" items in the collectors market. The FBI will tell you the overwhelming majority of Sports items offered on the Internet are counterfeit. At the very least, deal locally and insist on Certificates of Authenticity an everything.
- Most donors at your event, believe they are purchasing an item to ultimately benefit your organization. It is the obligation of your organization to make it clear to a buyer, where his money is going.
There is no difference in my advice when considering consignment items items for live, silent or online.
Last updated on May 16, 2011 by Jim Miller
