MEARS Auctions has created some new dynamics that have prompted some collectors to ask about potential bidding strategies and considerations. I am more than happy to share those same thoughts with the general collecting public.
I will focus my comments on the flannels, but the same things apply to other items with higher opening bids. First of all, the opening bid is set by the consigner and represents the minimum amount they are willing to let the jersey go for. While these may seem high, the fact of the matter is they have typically been this high all along, only you didn’t know it because the other auction houses had placed a hidden reserve on it. These are the same auction houses that bid you up to that amount anyway. Since MEARS does not employ the deceptive practices of a hidden reserve nor do we goad you along with equally deceptive “in-house” bids, the first bid on the item may be the best bid. Let me explain.
Consider the five flannels currently at auction and the legitimate opening bids:
1954 Warren Spahn Road (A10): $36,000.00
1956 Stan Musial Road (A10): $35,000.00
1966 Mathews Home (A10): $27,500.00
1966 Clemente Home (A9): $69,000.00
1971 Rose Road (A10): $25,000.00
Subsequent bids are at an increase of 10% of the previous bid. There is also an industry low 10% Buyers Premium. For these items (and for the fact of matter any other item), the 10% Buyers Premium (BP) essentially represents a life long insurance policy because of the Buyers Protection Program. How important is the 10%? Ask the collectors who are now engaged with other auction houses and trying to get their money back on five and six figure flannels objectively deemed Unable to Authenticate.
Right now many collectors are having a hard time mentally adjusting to the current opening bids in the short term. Once again folks, they have really been there all along, you just didn’t know it. The point I am getting at as until the general collecting public can internalize and accept this reality, the first bid in a MEARS auction may be the best bid. Higher opening bids may currently give some bidders a reason to pause in the short term. Consider the value in the first bid-one bid sale as compared to a winning bid at the second bid.
1954 Warren Spahn Road (A10): $36,000.00 + 10% BP = $39,600.00
Winning at the second bid: $39,600 + 10% BP = $43,560.00
1956 Stan Musial Road (A10): $35,000 + 10% BP= $38,500.00
Winning at the second bid: $38,500 + 10% BP = $42,350.00
1966 Mathews Home (A10): $27,500.00
Winning at the second bid: $30,250 + 10% BP = $33,275.00
1966 Clemente Home (A9): $69,000.00 + 10% BP = $75,900.00
Winning at the second bid: $75,900 + 10% BP = $83,490.00
1971 Rose Road (A10): $25,000.00 + 10% BP = $27,500.00
Winning at the second bid: $27,500 + 10% BP = $30,250.00
Now compare the value of a legitimate first bid-winning bid in a MEARS Auction compared to the same winning bid if it were placed in an auction venue with a much higher BP:
Grey Flannel: 20%
Lelands: 19.5%
Legendary Auctions: 18.5 %
Average Buyers Premium: 19%
1954 Warren Spahn Road (A10): $36,000.00 + 10% BP = $39,600.00
Winning at the second bid with MEARS: $39,600 + 10% BP = $43,560.00
Winning at MEARS opening bid at a non-MEARS 19% BP= $42,850.00
1956 Stan Musial Road (A10): $35,000 + 10% BP= $38,500.00
Winning at the second bid: $38,500 + 10% BP = $42,350.00
Winning at MEARS opening bid at a non-MEARS 19% BP= $41,650.00
1966 Mathews Home (A10): $27,500.00
Winning at the second bid: $30,250 + 10% BP = $33,275.00
Winning at MEARS opening bid at a non-MEARS 19% BP= $32,750.00
1966 Clemente Home (A9): $69,000.00 + 10% BP = $75,900.00
Winning at the second bid: $75,900 + 10% BP = $83,490.00
Winning at MEARS opening bid at a non-MEARS 19% BP= $82,110.00
1971 Rose Road (A10): $25,000.00 + 10% BP = $27,500.00
Winning at the second bid: $27,500 + 10% BP = $30,250.00
Winning at MEARS opening bid at a non-MEARS 19% BP= $29,750.00
Even with a second winning bid in a MEARS Auction for any of these flannels, this is still a value added decision based on the great disparity of the information provided on the jersey and the long term value of the Buyers Protection Program.
As I have told the advanced and sophisticated collectors that have asked, in my opinion, the first bid on any of these is likely to be the best bid. This dynamic is likely to remain in place for only a short time until the reality of past, and in many cases current non-MEARS auction house bidding practices sinks in.
The other very real dynamic that is play is MEARS objectively re-defining of what the legitimate population is of genuine and authentic flannels are from players like these. Once that truly sinks in, these first bids hold potentially even greater value in both the short and long term.
For the record, I have no financial interest in any of these jerseys nor am I compensated in any additional manner whether they sell or not. I will say I wish I was in a position to buy any and all of them at the opening bid.
As always, collect what you enjoy and enjoy what you collect.
MEARS Auth, LLC
For questions and comments on this article, please feel free to drop me a line at DaveGrob1@aol.com