THE TEN COMMANDMENTS OF PRICING
A perilous mindset has trickled into the antiques business in the past few years: it’s that the business has fallen on tough times and prices are tanking. A recent article in the Palm Springs (Calif.) Desert Sun illustrates this mindset. The headline reads:
“Where is the antiques market going? Expect lower prices, Palm Springs dealer says.” The article continues: “It’s hardly a secret that the antique and collectibles market is mired in a down cycle. Antique shows are smaller, dealers are fewer and prices are lower. It’s a good time for buyers, if not necessarily for sellers.”
That would be scary if it were true. But it’s not. Here are the facts: In the U.S., consumer spending is up, and spending on antiques and collectibles is up. In June 2019, IBIS Market Research had this to say: “The Online Antiques and Collectibles Sales industry has continued to flourish over the past five years, largely due to the growing ubiquity and popularity of online shopping...IBISWorld expects industry revenue to increase at an annualized rate of 5.9 percent over the (next) five years, including a 4.3 percent boost to bring total revenue to $1.5 billion” Consider: 5.9 percent is nearly triple the expected 2.1 percent growth rate of the U.S economy during the same period.
Yes, the IBIS report is about online sales. Unfortunately, there is no reliable mechanism for collecting sales data on antique stores, show dealers, estate sale operators, auctioneers and other segments of the antiques business. Imagine how much higher the IBIS numbers would be if those statistics were included in their report!
Antiques sales are up and demand is strong. Those bricks-and-mortar (B&M) dealers who suffer from low prices and lost sales do so because they have failed to adapt to new market realities. Online sales are strong for all industries. Auction sales are strong, achieving record-setting prices. Even so, the current trend in retail is “clicks to bricks”: online stores are opening B&M stores. Major online sellers have discovered that there are advantages to doing so: Customers like to browse a variety of products (rather
