Valuers, like auctioneers, are really caught in the middle. Buyers want the cheapest price they can get, sellers on the other hand want the highest price they can get.
Buyers scour auction markets looking for collectibles at bargain basement prices. But if that elusive bottle is their ultimate dream purchase, they will bid up, as they must have that unicorn. For an auctioneer, bidding wars are encouraged.
So, you can see how people like me get caught in the middle. And sometimes no-one is happy.
The common complaint from a seller then, is “why is the valuation lower than what I can find in a retail shop.”
Retailers buy either through a wholesale supplier or at auction, they then need to put a margin on it and then GST. They need to cover their costs plus a little in their pockets, so they too can eat.
But for the buyer, that means they can walk into a shop or purchase online and you are almost guaranteed of getting it.
For an auction house, it’s all about open competition. What will the bidder be prepared to pay for a particular item? It can go really cheap if no one is interested, or it can go crazily high, when there is massive demand. Just take a look at current Springbank pricing in the current auction scene.
And here’s a little trade secret. My time in the business has taught me that auction starting values do coincide with wholesale trade prices. So that gives me a benchmark when it comes to valuing a product.