In several of my previous blogs, and in my book 31 Steps to Your Millions in Antiques & Collectibles, I’ve commented that the marketplace will always adopt to the conditions its presented. Right now, in the Antiques and Fine Art Markets, we’re presented with various venues, along with their associated fees, that today, have risen to unheard of levels. For example, today you find Auction houses collecting close to 50% of an item’s value in commissions and fees. They collect this amount by “double dipping” – collecting, what I consider, out-of-line- fees from the seller, and then charging the buyer a fee for the privilege of buying. I don’t know about this, but I have to ask myself this: When did auction houses become part owner of your inventory or your personal belongings? Last time I checked, my real estate agent was collecting 6% or less from the seller, and the buyer certainly didn’t have to pay a buyer’s fee for the privilege of buying.

This is just one example of what’s happened within industry, but the point is this: There is only so much people will take before they “revolt.” Lately, I am beginning to see the marketplace adapt to the conditions its been presented with lately, and people are beginning to rumble.

Business who have thrived on eBay in the past, are heading for the exit doors today, finding alternative sales formats due to eBay’s escalating fees. It can’t be too far down the road that people will revolt against the fees charged at auction houses, as well. I believe a shakeup is imminent, and ideas that have been germinating are now just sprouting.

31 Club and its programs for our industry is part of this shakeout and is sprouting a new venues, where both seller and buyer will benefit by lower fees and no buyers premium. A company who makes money on the back end after having provided a service, rather than on the front end.

There is no question in my mind that the Antique and Fine Art markets are going to have a shakeout, however the bigger question is this: What form will replace the existing way of doing business? I believe it will be a model similar to what we are creating at 31 Club, and a place where you can do the majority of your business on one site. 31 Club is a company you can partner up with and one that has been formed to assure your success before thinking about themselves. For these reasons and many more, I believe that the formation of the 31 Club is a glimpse into the future of this industry.

I believe companies like Blackwells Live Auction and Antique Associates at West Townsend are companies whose pages you might want to explore, among others. If you become aware of companies who are shaking off the unreasonable ways, or you might be one of these companies yourselves, please send us an email and let us know. We’ll be writing about this approaching shakeout over this coming year and want to include those who are in step with the changing times.

Jeremy has assured me he hasn’t even begun to create the most exciting site on the web for us, and we have begun discussions conducting having our own auctions. Wouldn’t that be great to have fees for services that don’t require you to declare them as half owner of your belongings.
Your ideas about how we might improve services to members are welcome and encouraged. Please e-mail us at info@31corp.com or give us a call at 847-784-8544

Civil War Letters written by a Confederate Soldier, a Lot of 147, sold at 31 Club Gallery & Marketplace in September, 2008.

How does your bank account look today? If there’s money in your Antique & Fine Art Business Account, this is the time to be very patient with your buying. The economic winds are shifting and time is needed to see where these winds are headed. Wisely use the things you’ve learned and continue to learn through the 31 Club. Do not be too venturesome in your buying right now. Time is needed to see where these winds are headed.

The Economic Shift May Leave Only One “Out” For Many People.

I foresee a tremendous amount of merchandise coming to the market in the short term, as people find their portfolios decreasing in value while their expenses escalate. This may leave only one option open for many people — selling the items of value they have treasured.

A Likely Flood of New Treasures.

A likely flood of merchandise coming to market can cause the value of many things to suffer a temporary dip. You don’t want to get caught with items you can’t sell. Be willing to really do extra research before you buy during these periods of economic uncertainty. Your knowledge will lead you to items that will sell under any economic condition.

So what sells well during times of economic shifts?

The rare and the unusual will always be sought after regardless of economic conditions. But don’t kid yourself — the collectors of the rare and unusual are savvy. After all, while the rest of the nation might be experiencing tough times, they aren’t. They must know a thing or two, wouldn’t you say? In this economic shift, their investment savvy will tell them to take more time to search out the real treasures and purchase at a good price.

Restrict Your Buying to Keep Your Money Moving.

Now is the time to restrict your buying to items that are still trading on a regular basis today. During this time, the best buys you will ever make will be found in the short term. Buy it right, sell it quickly, keep your money moving.

A Real Example from 31 Club Sales.

The Civil War Letters that were just sold by the 31 Club sold very quickly. Why? Let’s begin by examining their value.

The information I was able to uncover through research showed me the largest lot of letters written by a Civil War soldier,sold publicly, was a little over 40 letters, written by a Union Soldier. The lot 31 Club sold was a lot of 147 letters written by a Confederate Soldier and are considered more rare and desirable than that of a Union Soldier.

The content of this Confederate Soldier’s letters contained much information about were he was during certain battles and mentioned the time when General Lee had to recruit “Negro soldiers” to fight for the South due to his dwindling troops. From the tone of this particular letter, one gleans that this event didn’t make the soldier very happy. This kind of historical and at-the-scene information is what you’re looking for in material from the war. I seriously believe that within a year or two, a book about these letters will find its way to the market.

I’m sure you now realize why this first hand historical information from a Confederate Soldier’s perspective has great value, regardless of what the economy is doing. This is the reason why they sold so quickly. It isn’t like a painting painted by a fairly good artist that a prospective buyer might consider waiting a bit for because the price might come down. The buyer of the Civil War letters knew there was one chance to buy. If they waited, someone else would own them.

So, What Should We Search For?

If you spend your money buying more common items you are unable to quickly turn, where will your funds come from when something rare comes your way? Be patient in your buying right now, and strike while the iron is hot.

Make a serious effort to search out the more rare and unusual that can be quickly sold. No, we may not be buying as much as we could when people are upbeat and when selling something doesn’t take as much time, but that doesn’t matter. What matters is the quality and rarity of what you purchase.

Remember the Purpose of Working the 31 Club’s Model Before You Buy.

Compounding Your Money!!!

If you can compound 31 times, all your financial desires will be beyond met. If you can even compound 15 times, I’m willing to guess your financial desires might still be met. If you’re buying items you can’t quickly turn, you eliminate the compounding factor and minimize your opportunity to progress and meet your financial and lifelong goals. Patience, perseverance, research, and smart buying will work in your favor in any economic climate. Take an offensive position against the shifting economic winds.

What To Do When You Find a Rare Item You Can’t Afford to Purchase Right Now

Contact me at 31 Club. Club Members can take advantage of the 31 Club Associates Program when they come across rare or unusual items but don’t have the money in their buying budget. We buy it, sell it, and the member makes 35% of the net sale. Questions? Ask me at info@31corp.com or call me at 847-784-8544.

Don’t just follow the daily Blog. Join with like-minded 31 Club Members and put a turbo charge on your treasure hunting skills. Learn Inside the Industry Secrets. Learn to make high profits and continue to grow your money buying and selling antiques, fine art, and collectibles. My 220 page book, 31 Steps to Your Millions in Antiques & Collectibles is FREE with your membership.