CPK Posted February 16 · Supporter Share Posted February 16 One thing I wish HJB would do differently is update the auction listings when a coin is sold. I had a number of coins on my watchlist on biddr, then happened to go to HJB's own website only to find that a lot of them had apparently already been sold. Yet they were still listed on biddr/Numisbids at starting price. How does that work? 1 1 Quote Link to comment Share on other sites More sharing options...
Deinomenid Posted February 16 · Supporter Share Posted February 16 2 hours ago, Tejas said: I find this method problematic. There are many ways we can overpay, and the frenzy of a real (not Dutch) auction has parted many more "fools" from their money than the HJB auctions! For some, a high starting price is instead a great way of making them step away having truly assessed what something is worth to them, rather than being tempted low and then getting caught up in the resulting bidding war. It's probably also a good way for HJB to demonstrate to clients who are selling through them whether their own views of value are too much, but that is mere supposition. If you know the nature of the beast, you can do well from HJB sales. Especially the after-sale. And if your desired coins are sold by then, there's no reason to complain, as the market made its decision. One way of looking at whether it's a terrible way for buyers (as I assume you are writing as or worrying on behalf of a buyer) to buy, as in making them overpay is that IF it were such a good way to fleece the sheep then many others would do the same. Other auction houses are no less merciless. To me it's not hugely different from say many VCoin sellers who list high prices for their wares, and if no-one takes it, are often perfectly prepared to negotiate down. The nuance seems mostly in the details. The biggest curiosity for me is - if the HJB system works well, and they aren't exactly new to it - why more haven't directly copied it. 3 minutes ago, CPK said: update the auction listings when a coin is sold. Amen! Quote Link to comment Share on other sites More sharing options...
Tejas Posted February 16 · Member Share Posted February 16 28 minutes ago, Deinomenid said: The biggest curiosity for me is - if the HJB system works well, and they aren't exactly new to it - why more haven't directly copied it. Because Dutch auctions are less appropriate for the sale of coins and the like. The Dutch auction method is used for selling multiple lots of identical items, where prices drop until the cut-off price at which all lots are allocated. Hence, Dutch auctions are used to sell financial products like Treasury Bills and commercial paper. The traditional (or English) auction method, which all other auction houses is more appropriate for the sale of single items. A Dutch auction that is used for selling single items like coins puts the buyers at a clear disadvantage, as there is no time to react if somebody makes a bid. 2 Quote Link to comment Share on other sites More sharing options...
red_spork Posted February 16 · Member Share Posted February 16 1 hour ago, CPK said: One thing I wish HJB would do differently is update the auction listings when a coin is sold. I had a number of coins on my watchlist on biddr, then happened to go to HJB's own website only to find that a lot of them had apparently already been sold. Yet they were still listed on biddr/Numisbids at starting price. How does that work? I could be wrong but I suspect the auction houses do not control the listing on those sites when they're not actually auctioning the coins on them directly. I've seen this with a few others as well. I believe it's up to the platform to properly detect that a given coin is sold and what the current bid level is and it doesn't work right with some auction houses. Quote Link to comment Share on other sites More sharing options...
Deinomenid Posted February 16 · Supporter Share Posted February 16 1 hour ago, Tejas said: Dutch auctions are used to sell financial products like Treasury Bills Of course! But I wonder why HJB persists. Maybe it works more broadly for them somehow. It's certainly curious. Quote Link to comment Share on other sites More sharing options...
Tejas Posted February 16 · Member Share Posted February 16 Yes, that is what I meant. It puts the auction house at an advantage and the buyer at a disadvantage. This is why HJB uses it and this is also why others don't use it, which is why I said it is problematic. 1 1 Quote Link to comment Share on other sites More sharing options...
Nerosmyfavorite68 Posted February 16 · Member Share Posted February 16 I've picked up a small handful of bargains at HJB over the years, such as a 1990's buy of a not-terrible Pescennius Niger denarius for $200 or 250. I probably overpaid for my ma-shops Justinian II second reign Ravenna follis (I suspect it was also in the bid-or-buy), but one doesn't see those often and I don't grossly overpay often, so it levels out. That would have been an add-on to the Constantine IV large follis which I also purchased, but they didn't have in stock, which was a bargain. While I don't buy from them often, my experiences are pleasant. I also know that it won't be like pulling teeth to obtain a refund if something goes wrong. I'm more of the Allen Berman type of customer. HJB generally isn't going after the $200 coin buyer, although such buyers aren't made to feel unwelcome. Quote Link to comment Share on other sites More sharing options...
Deinomenid Posted February 16 · Supporter Share Posted February 16 1 hour ago, Tejas said: This is why HJB uses it That's an assumption (unless you know in which case do tell!) and it could suggest HJB uses such a system to put buyers at a greater disadvantage that others won't use it as a result. Though I've seen enough shady dealers around to know that quite a few would leap on any opportunity to shaft a customer. At risk of it making it seem I work there (I don't/didn't/won't!) I think they are one of the better guys. And I've also been able to use their system to get some great deals. You've just got to know how it works and be comfortable with it. Which absolutely does agree with your point on less-experienced buyers, unless they do their homework on the system. At the expensive (to me) end of my collection my 2 fairest prices of everything I have were post auction purchases from them so. My interest here was largely academic in that if there's something to the system that makes it better to use, on the working assumption it's not because they are exploitative or possibly just hide-bound to something introduced a good while ago. Guess I'll ask at the next show and report back🙂 1 Quote Link to comment Share on other sites More sharing options...
John Conduitt Posted February 16 · Supporter Share Posted February 16 (edited) I get the impression they thought they could revolutionise the auction system but no-one else was enthused. They remind me of a store here called Argos, where they tried to revolutionise shopping by having nothing on display - you choose what you want from a catalogue, pay for it, and collect it from the adjacent warehouse. Absolutely no-one else followed suit, but they still exist even now Amazon has stolen their thunder. Harlan persist probably a bit out of stubborn pride, but also because it's a unique selling point, and it likely doesn't matter all that much to their overall earnings. Some people over-pay by buying too early, while other coins sell for less than they would if there'd been a chance of a bidding war. Like any auction, it's the luck of the draw. No-one else does it because it takes far too much explaining. Edited February 16 by John Conduitt 3 Quote Link to comment Share on other sites More sharing options...
Tejas Posted February 19 · Member Share Posted February 19 I think another reason why nobody is following this Dutch auction mechanism is that it is difficult to implement. All online auction platforms use the standard English method, so even if somebody wanted to adopt this odd (and as I think frustrating) method they would have to have their own platform. Quote Link to comment Share on other sites More sharing options...
Tejas Posted February 19 · Member Share Posted February 19 On 2/16/2024 at 5:26 PM, Deinomenid said: That's an assumption (unless you know in which case do tell!) and it could suggest HJB uses such a system to put buyers at a greater disadvantage that others won't use it as a result. True, it is an assumption. I don't have it in writing from HJB that they use the Dutch auction method because it is advantageous for them, but I think this is a good assumption to make. If you offer a common coin, like a Victorinus Antoninian at 3 to 5 times average market value, you have: 1. an outside chance that some inexperienced collector jumps on it (I think this is called fishing for rookies) and 2. a higher anchor price. I.e. your unrealistically high starting price serves as a value anchor and falsely signals that you made a bargain if you by the coin at double the average market value. Auctions are all about psychology. In the Dutch method the buyer has a 100% chance of getting the item only if he pays several times the average market value. At an English floor auction the buyer has a 100% chance of getting the item if he bids one increment above the runner up. (Online auctions have a time element, which complicates matters). Of course, it can happen that the Dutch auction method puts off many buyers, so that good bargains can be had in from unsold lots. My assumption would be that sought after high quality coins are sold above average market value, while common and lower quality lots are sold at or even below average market value. 3 Quote Link to comment Share on other sites More sharing options...
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