Darn auction house

[Welder Dave]

OK, I never heard anything from Ethan. I was talking to Debi and she called to see what was going on. Ethan answered the phone. Now apparently it isn't 1 axle but 5 axles the same bidder won that amount to $500 something. So that was a lie about only 1. They have tried and tried to get payment and the bidder keeps saying he'll pay but doesn't come through. Apparently they've asked other bidders if they're interested too. The high bidder is being banned from any future auctions.

The owner and his wife are away until next Wed. I'm supposed to decide if I want the axles back or want to put them in another auction. I have a problem with putting them in another auction. Not so much because I think they'd screw me again (I would sue them if they did) but because they could sell for less because of various reasons. I could put subject to on them for the same they sold for or bid them up but I don't like doing that. Maybe I could get an agreement that any losses they go after the original high bidder for the difference or they cover it but that's really doubtful. What I'm thinking is going and talking to them in person. I'd ask them why they require credit card info in order to register to bid if they can't use it for this exact reason? The bidder entered into a legal contract agreeing to pay for won items. They have a legal right to go after the buyer. Letting them off the hook and only banning them is too easy and lazy in my opinion. They could take legal action. I would suggest they send a demand letter asking for payment, possibly from their lawyer with a time limit. If they don't respond will take legal action (whether they would or not). Maybe it would be enough to intice the buyer to pay rather than go to court. Going to court is a big hassle most people don't want. The auction has a fiduciary duty to the consignor and that is their main responsibility. Instead of just asking for payment, press the issue aggressively. It makes them money too. Does this seem like a good plan?

 

[OzDozer]

Winning bidders who don't pay are a huge problem for all auction houses and they threaten all kind of heavy-handed actions if a winning bidder doesn't pay.

But at the end of the day, I have seen very few auction houses pursue non-paying bidders - it's not worth their while. They still retain ownership of the item/s, so they just put them up for bids again.

 

[Welder Dave]

It's seems lazy to me and not looking after the consignor. There is nothing in the bidder registration mentioning non payment. Even though it says items not paid for will be retained by the auction house and resold in another auction on the consignors agreement, I'm curious if say a big dollar item worth 20K plus, if legally the buyers contract (breach of contract) would take precedence over the sellers clause that items not paid for will be resold. Especially since everything I read says the auction's main responsibility is to the consignor? Would the auction take a buyer to court over non payment of an expensive item? I've read major auction houses have had million dollar items sell and the buyer backs out and the item later sells for substantially less. The original buyer is then sued for the difference.

 

[Welder Dave]

The gong show continues. I'd called last week and only Ethan was there. He was busy and couldn't let me know what lots weren't paid for. He said everyone's back on Mon. I called yesterday (Tue.) and there was a some delay and they didn't get back until really late Mon. so weren't in. I called today and talked to the owners wife. I said I need the lot numbers that weren't paid for. I asked what they normally do when someone doesn't pay. She said legally we can take them to court but we're not going to pay $10,000 to go to court for $500. $10,000?, I said it costs $100 to file a small claims. We'll block them from any future sales. I suggested a demand letter because the buyer has no idea if you have a lawyer or what steps you'd take to get payment. It couldn't hurt and is better than just asking on the phone. She kind of agreed. I said it's been kind of a gong show already with the most expensive axles given away. She said she thought was resolved. (it was but it still happened and cost me some money) She said she'll have to talk to Ethan and will call me back with the lot numbers. Ethan is f#@&king useless and has never called me back even when they asked him to call me in the past! He certainly never called to tell me he gave the axles away. Three hours later and nothing. What is so damn hard about looking at the sale sheet and getting the lot numbers that weren't paid for?? Maybe it's not a coincidence the unpaid lots are around the same value as the penalty for giving the axles away?? Sure makes me think something is up. It's unbelievable how incompetent this place is. I think I need to schedule a meeting with the owner since it's his name on the door. I'm holding off making a complaint to the auctioneers association and the gov't. agency that governs online auctions. If they knew I made complaints they'd just stall me longer and make up some ridiculous excuses. It just boggles my mind! There shouldn't be all this drama just to sell some items at an auction.