• Jeschke Jádi
    Rare Book Auction 155
    Saturday April 26, 2025
    Jeschke Jádi, Apr. 26: Lot 962. Baird. United States Exploring Expedition. Philadelphia 1858.
    Jeschke Jádi, Apr. 26: Lot 772. Edith Holland Norton. Brazilian Flowers. Coombe Croft 1893.
    Jeschke Jádi, Apr. 26: Lot 49. Petrarca. Das Gluecksbuch, Augsburg 1536.
    Jeschke Jádi
    Rare Book Auction 155
    Saturday April 26, 2025
    Jeschke Jádi, Apr. 26: Lot 1496. Jacob / Picasso. Chronique des Temps, 1956.
    Jeschke Jádi, Apr. 26: Lot 8. Augustinus. De moribus ecclesie. Cologne 1480.
    Jeschke Jádi, Apr. 26: Lot 17. Heures a lusaige de Noyon. Paris 1504.
    Jeschke Jádi
    Rare Book Auction 155
    Saturday April 26, 2025
    Jeschke Jádi, Apr. 26: Lot 13. Schedel. Buch der Chronicken. Nürnberg 1493.
    Jeschke Jádi, Apr. 26: Lot 957. Donovan. Insects of China. London 1798.
    Jeschke Jádi, Apr. 26: Lot 123. A holy martyr. Tuscany, Florence, mid-14th century.
    Jeschke Jádi
    Rare Book Auction 155
    Saturday April 26, 2025
    Jeschke Jádi, Apr. 26: Lot 438. Dante. La Divine Comédie. Paris 1963.
    Jeschke Jádi, Apr. 26: Lot 602. Firdausi. Histoire de Minoutchehr. Paris 1919
    Jeschke Jádi, Apr. 26: Lot 994. Westwood. Oriental Entomology. London 1848.
  • Swann, Apr. 22: Lot 124: Henri Courvoisier-Voisin, et alia, [Recueil de Vues de Paris et ses Environs], depicting precursors of the modern roller coaster, Paris, [1814-1819?]. $2,000 to $3,000.
    Swann, Apr. 22: Lot 148: Pablo Picasso & Fernando de Rojas, La Célestine, First Edition, Paris, 1971. $30,000 to $40,000.
    Swann, Apr. 22: Lot 201: Omar Khayyam & Edward Fitzgerald, Rubaiyat, William Bell Scott's copy of the First Edition, London, 1859. $20,000 to $30,000.
    Swann, Apr. 22: Lot 223: Charles Dickens, Great Expectations, First Edition, extra-illustrated with hand-colored plates by Palinthorpe, London, 1861. $7,000 to $9,000.
    Swann, Apr. 22: Lot 248: L. Frank Baum, The Wonderful Wizard of Oz, First Edition, inscribed by the illustrator, Chicago & New York, 1900. $20,000 to $30,000.
    Swann, Apr. 22: Lot 305: Tycho Brahe & Pierre Gassendi, Tychonis Brahei Vita, Paris, 1654. From the Collection of Owen Gingerich. $8,000 to $12,000.
    Swann, Apr. 22: Lot 338: Giovanni Battista Riccioli, Almagestum Novum, two folio volumes, Bologna, 1651. From the Collection of Owen Gingerich. $8,000 to $10,000.
    Swann, Apr. 22: Lot 350: Tobias Cohn, Ma'aseh Toviyyah, first edition, Venice, 1707-8. $3,000 to $5,000.
    Swann, Apr. 22: Lot 359: Alan Turing, Computing, Machinery, and Intelligence, first edition, Edinburgh, 1950. $3,000 to $5,000.
  • Sotheby's
    Sell Your Fine Books & Manuscripts
    Sotheby’s: The Shem Tov Bible, 1312 | A Masterpiece from the Golden Age of Spain. Sold: 6,960,000 USD
    Sotheby’s: Ten Commandments Tablet, 300-800 CE | One of humanity's earliest and most enduring moral codes. Sold: 5,040,000 USD
    Sotheby’s: William Blake | Songs of Innocence and of Experience. Sold: 4,320,000 USD
    Sotheby’s: The Declaration of Independence | The Holt printing, the only copy in private hands. Sold: 3,360,000 USD
    Sotheby's
    Sell Your Fine Books & Manuscripts
    Sotheby’s: Thomas Taylor | The original cover art for Harry Potter and the Philosopher's Stone. Sold: 1,920,000 USD
    Sotheby’s: Machiavelli | Il Principe, a previously unrecorded copy of the book where modern political thought began. Sold: 576,000 GBP
    Sotheby’s: Leonardo da Vinci | Trattato della pittura, ca. 1639, a very fine pre-publication manuscript. Sold: 381,000 GBP
    Sotheby’s: Henri Matisse | Jazz, Paris 1947, the complete portfolio. Sold: 312,000 EUR
  • Gros & Delettrez, Apr. 23: BELLEFOREST (François de). La cosmographie universelle de tout le monde. €12,000 to €15,000.
    Gros & Delettrez, Apr. 23: DESNOS (Louis Charles). Mappe-monde, ou Carte Generale de la Terre. €5,000 to €6,000.
    Gros & Delettrez, Apr. 23: BLAEU (Willem Janszoon & Joan). Theatrum Sabaudiae. €18,000 to €20,000.
    Gros & Delettrez, Apr. 23: LINASSI. Ferdinando Ie Maria Anna Carolina nel Litorale in Settembre 1844. €4,000 to €5,000.
    Gros & Delettrez, Apr. 23: AMBROSOLI (Francesco). Monumento a Francesco Primo in Vienna. €3,000 to €4,000.
    Gros & Delettrez, Apr. 23: Plano de la plaza de Mesina y de su ciudadel y castiglios. €5,000 to €6,000.
    Gros & Delettrez, Apr. 23: ROCKSTUHL (Alois Gustav), GILLE (Florent A.). 78 Lithographies du Musée de Tzarskoe-Selo. €1,000 to €1,500.
    Gros & Delettrez, Apr. 23: Chtchedrovski, Ignatiy Stepanovitch. €2,000 to €3,000.
    Gros & Delettrez, Apr. 23: DE BRUYN (Cornelis). Voyage au Levant. €3,000 to €5,000.
    Gros & Delettrez, Apr. 23: ABI ISHAQ AHMAD B. IBRAHIM AL-THAʿLABI (M. 1035) : TROISIÈME VOLUME DU KASHF WA-L-BAYAN ʻAN TAFSIRI AL-QURʼAN. €3,000 to €5,000.
    Gros & Delettrez, Apr. 23: DESNOS (Louis Charles). L’Afrique. €3,000 to €4,000.
    Gros & Delettrez, Apr. 23: DE BRUYN (Cornelis). Voyages de Corneille Le Brun par la Moscovie, en Perse, et aux Indes orientales. €1,500 to €2,000.
    Gros & Delettrez, Apr. 23: DESNOS. (Louis Charles). Amérique septentrionale et Méridionale. €4,000 to €5,000.
    Gros & Delettrez, Apr. 23: ÉLIOT (J.B.) ; MONDHARE (Louis Joseph). Carte du théatre de la guerre actuel entre les anglais et les treize Colonies Unies de l'Amérique Septentrionale. €5,000 to €6,000.

Rare Book Monthly

Articles - March - 2022 Issue

The Changing Economics of Rare Paper Auctions

In my February 2022 article for RBH, we parsed out the numbers from last year to understand if and how change is occurring within the auction markets for rare books, prints and ephemera. From analyzing the charts (www.rarebookhub.com/articles/3135) we were able to determine a concentration of auction houses hosting the bulk of auction events, resulting in an increase of supply through the market.

 

More lots are out there than ever before, however competition is tight and the profitability of each auction event has never been more crucial for auction houses caught in the middle range of the market.

 

This article will look at the micro-level of the auction event itself to provide an analysis of the economics of the auction event in order to understand emerging trends and tendency within the market. If you are going to work with auction houses, best know how they make money.

(www.rarebookhub.com/articles/3044)

 

 

 

The graph provided imagines the revenue and cost curves of two distinct auction events, the Value Model (#1) and the Volume Model (#2).

 

Revenue curves

 

The revenue curves are generated by multiplying the Gross Auction Value by the seller’s commission and the buyer’s premium and adding any service revenues that might occur. Gross Transaction Value (GTV) represents total proceeds from all items sold at the auction houses’ in person auctions, and online marketplaces.  Auction Revenue is generally 15-30% of the Gross Auction Value.

 

The angle of each revenue curve provides insights into the average value of each lot offered in the auction, with the steeper curve of the Value Model being indicative of an auction event with higher value items and the shallower curve of the Volume Model being an auction event containing lower value items.  The Value Model, because there is a higher contribution to profit per lot, has a lower breakeven point (the point in an auction event where all fixed costs are covered by revenues) than that of the Volume Model.  As shown in the graphic, the Value Model is profitable (the point at which the revenue line exceeds the Total Cost curve) with the sale of many fewer lots (150-175 lots) than the Volume Model (300-325 lots).  In reality, the Revenue Curves are indicative of two different auction event business models.

 

Cost curves

 

Some of the costs for an auction event are fixed and some costs are variable. The fixed costs of an auction event, usually allocated from a pool of fixed costs from the auction houses, do not vary as a function of the number of lots presented or lots sold. Big drivers of fixed cost in any auction business are facilities costs and the salaries of staff.  As you can see from the graphic, the Fixed Cost curve is flat, and does not vary across all numbers of lots; both Value and Volume Models face the same fixed cost of the event.

 

Variable Costs relate to a specific auction and can include unique auction event marketing, product acquisition costs and specific staffing requirements driven by the auction event.  As you can see from the graphic, the variable costs layer on top of the fixed cost to provide a Total Cost line.

 

As previously noted, Profit (Total Revenue greater than Total Cost) for the Value Model occurs at 150-175 lots, while the Volume Model require the sale of 300-325 lots to be profitable.  These are two different auctions likely held by two auction houses with differing business models and strategies.

 

Event Profitability

 

Each auction event has a profit dynamic. In order to increase revenue an auction house needs to increase Gross Transaction Value (GTV). This can be achieved by either increasing the number of units offered or increasing the unit value of items offered. The Volume Model’s draw being a confluence of many, lower prices lots resulting in an increased sell thru rate (STR), the Value Model’s draw being the showcasing of a few, rare items to achieve the same GTV objective.

 

Another way to increase profitability of an auction event is through increasing revenue per unit by increasing either the seller’s commission or buyer’s commission (or both). This can be justified if evidence of high STRs can be demonstrated, supported by an infrastructure of client management programs and multi-prong marketing campaigns.

 

At the same time, decreasing costs by reducing variable costs per unit and/or reducing fixed costs need to be continually reassessed by the auction house. For example, a major method by which to reduce auction event cost levels is by transitioning auction events from in-person to online formats. We saw this prior to the Pandemic by a few auction houses, then almost ubiquitously during.  This digital transformation of the auction industry is likely structural meaning that we will not likely completely return to the “old way” of heavy reliance on in-person auction events.  As a result, many auction event costs will be permanently driven downwards.

 

Auction business profitability moving forward

 

An auction business is a portfolio of individual auction events. Not all auction events need to be profitable, but the portfolio of auction events when consolidated over the year needs to be or the auction house will not survive. As was observed in the previous article, there are many more in the ecosystem, mostly in the low/mid-price range.

 

At present, within each auction event and after, auction houses running a legitimate growth strategy are seeking to increase the revenue per event, decrease the variable costs per event and decrease the fixed costs per event.

 

Moving forward, the following responses are indicative of auction organizing adapting to the structural changes underway:

 

Commission percentages paid by both Buyers and Sellers will likely continue to rise with more services invented and delivered to augment auction revenues.

 

On-line auction events will become the rule rather than the exception as all auction houses seek to drop the level of fixed and variable costs in their operations. Sizes of auction events (number of lots offered) will continue to increase until an “optimum event size” is discovered that maximizes profit per event.

 

The number of auction events per auction house will continue to increase in order to spread fixed costs over more auction events.  This will continue subject to the constraints of consignment availability and the willingness of auction houses to invest in new, expanded infrastructure (i.e. online platforms and further intelligence toward targeted marketing of yet unidentified collector clients).

 

Investors will likely get an opportunity to invest in the publicly listed shares of auction houses as established firms such as Sotheby’s (again) go public (https://news.artnet.com/market/sothebys-takes-another-step-ipo-2060295) or K Auctions in South Korea (http://www.koreaherald.com/view.php?ud=20220113000959&np=1&mp=1) to raise money to grow and expand infrastructure and venture backed auction houses, such as Catawiki, go public to create liquidity for the original investors.

 

The forces impacting the rare book auction market are bigger than books. The economic drivers as outline above seem unfamiliar because they are originating from areas of the economy (Capital Markets, Digital technology, Social Media marketing and Cloud-based auction platforms) that have not historically played a major role in rare book, manuscript, and ephemera ecosystems. However once introduced, these forces have permanent impacts on the bottom lines of auction houses and the services they provide Collectors and the Trade.

 

About Spencer W Stuart
 
Spencer W Stuart provides analytic services to collectors and dealers using auctions to build their collections and inventory. For Dealers, Spencer provides consulting services to develop hybrid or total transitions of book business to the use of auction mechanisms as a growth strategy.
 
In concert with his advising, Spencer is an active writer and lecturer on histories of the printed word for a variety of publications including The Book Collector and Amphora as well as with the Canadian Broadcasting Corporation.

Rare Book Monthly

  • Bonhams, Apr. 21-29: ANDERSEN'S EXTREMELY RARE FIRST APPEARANCE IN PRINT. "Scene af: Røverne i Vissenberg i Fyen." in Harpen, 1822.
    Bonhams, Apr. 21-29: FIRST ISSUE OF THE FIRST THREE FAIRY TALE PAMPHLETS, WITH ALL INDICES AND TITLE PAGES. Eventyr, fortalte for Børn. 1835-1837.
    Bonhams, Apr. 21-29: THE FIRST FAIRY TALES WITH A SIGNED CARTE DE VISITE OF ANDERSEN AS FRONTIS. Eventyr, fortalte for Børn. 1835-1837.
    Bonhams, Apr. 21-29: KARL LAGERFELD. Original pastel and ink drawing in gold, red and black for Andersen's The Emperor's New Clothes (1992), "La cassette de l'Empereur."
    Bonhams, Apr. 21-29: PRESENTATION COPY OF THE SIXTH PAMPHLET FOR PETER KOCH. Eventyr, Fortalte For Børn, Second Series, Third Pamphlet. 1841. Publisher's wrappers, complete with all pre- and post-matter.
    Bonhams, Apr. 21-29: HANS CHRISTIAN ANDERSEN RARE AUTOGRAPH QUOTATION SIGNED IN ENGLISH from "The Ugly Duckling," c.1860s.
    Bonhams, Apr. 21-29: HEINRICH LEFLER, ORIGINAL WATERCOLOR FOR ANDERSEN'S SNOW QUEEN, "Die Schneekönigin," 1910.
    Bonhams, Apr. 21-29: FIRST EDITION OF ANDERSEN'S FAIRY TALES IN ENGLISH. Wonderful Stories for Children. London, 1846.
    Bonhams, Apr. 21-29: ANDERSEN ON MEETING CHARLES DICKENS. Autograph Letter Signed ("H.C. Andersen") in English to William Jerdan, July 20, 1847.
    Bonhams, Apr. 21-29: PRESENTATION COPY FOR EDGAR COLLIN. Nye Eventyr og Historier. Anden Raekke. 1861.
    Bonhams, Apr. 21-29: DOLL HOUSE FURNITURE BY HANS CHRISTIAN ANDERSON, DECORATED WITH FANTASTICAL CUT-OUTS, for the children of Jonna Stampe (née Drewsen), his godchildren.
    Bonhams, Apr. 21-29: PRESENTATION COPY FOR GEORG BRANDES. Dryaden. Et Eventyr fra Udstillingstiden i Paris 1867. 1868.
  • Old World Auctions (April 23):
    Lot 748. Second volume of Blaeu's atlas featuring 89 maps of the Americas and Asia (1642) Est. $12,000 - $15,000
    Old World Auctions (April 23):
    Lot 12. A world map with popular cartographic myths and unique embellishments (1788) Est. $3,000 - $3,750
    Old World Auctions (April 23):
    Lot 30. One of the most sought-after charts from Cellarius' work (1708) Est. $1,200 - $1,500
    Old World Auctions (April 23):
    Lot 38. Anti-Vietnam War persuasive cartography on a velvet poster (1971) Est. $350 - $425
    Old World Auctions (April 23):
    Lot 43. Ortelius' influential map of the New World - second plate (1584) Est. $4,750 - $6,000
    Old World Auctions (April 23):
    Lot 95. Scarce German map illustrating the French & Indian War (1755) Est. $8,000 - $9,500
    Old World Auctions (April 23):
    Lot 149. Bachmann's dramatic view of the Mid-Atlantic region (1864) Est. $1,200 - $1,500
    Old World Auctions (April 23):
    Lot 373. De Jode's very rare map of Europe with costumed figures (1593) Est. $6,000 - $7,500
    Old World Auctions (April 23):
    Lot 674. De Bry's Petits Voyages, Part VII with all plates and map of Sri Lanka (1606) Est. $1,400 - $1,700
    Old World Auctions (April 23):
    Lot 704. The first printed map devoted to the Pacific in full contemporary color (1589) Est. $7,500 - $9,000
    Old World Auctions (April 23):
    Lot 734. Superb hand-colored image of the Tree of Jesse (1502) Est. $700 - $850
  • University Archives
    Rare Autographs, Books & Photos; Abraham Lincoln Collection
    April 23, 2025
    University Archives, Apr. 23: Best Image of Abraham Lincoln: "Closest… to ‘seeing' Lincoln… A National Treasure" Original Hesler/Ayres Interpositive. $800,000 to $1,000,000.
    University Archives, Apr. 23: Einstein, 3pp of Unified Field Theory Equations: “I want to try to show that a truly natural choice for field equations exists.” Formalizing His Final Approach, Association to Theory of Relativity. $80,000 to $120,000.
    University Archives, Apr. 23: Marilyn Monroe's Best Personally Owned & Annotated Script for Unfinished Last Film, "Something's Got to Give" (1962). $75,000 to $100,000.
    University Archives
    Rare Autographs, Books & Photos; Abraham Lincoln Collection
    April 23, 2025
    University Archives, Apr. 23: David Ben-Gurion ALS: "The Jewish people have attained the epitome...the State of Israel is born," 1 Day After Signing Israeli Declaration of Independence, Best Ben-Gurion Ever! $80,000 to $100,000.
    University Archives, Apr. 23: Lincoln ALS to Youth: "A young man, before the enemy has learned to watch him...votes... shall redeem the county" Evocative of Famous "Work" Letter. $70,000 to $100,000.
    University Archives, Apr. 23: Lincoln Appointment for Cabinet Member With Largest, Boldest, Full Signature! Important Content: Detente with England. $10,000 to $15,000.
    University Archives
    Rare Autographs, Books & Photos; Abraham Lincoln Collection
    April 23, 2025
    University Archives, Apr. 23: Abraham Lincoln Rare Signed Check To Law Partner W.H. Herndon, Perhaps Unique as Such! $20,000 to $25,000
    University Archives, Apr. 23: Tokyo War Crimes Files of Prosecuting Attorney For POW Camp Atrocities, 500+ Pages, Unpublished Court Documents, Photos and More. $25,000 to $35,000.
    University Archives, Apr. 23: 1698 South Carolina Slavery Archive Huguenot Planters Earliest Rare Plat Maps for Plantations 41 Docs 107 pp. Most Colonial. $25,000 to $35,000.
    University Archives
    Rare Autographs, Books & Photos; Abraham Lincoln Collection
    April 23, 2025
    University Archives, Apr. 23: Adam Smith ALS While Revising “The Wealth of Nations” - A New Discovery Documenting Meeting with Influential Editor. $18,000 to $24,000.
    University Archives, Apr. 23: Margaret Mitchell Rare ALS to Her Editor as Epic Film "Gone With the Wind" Gains Heat "Forgive this scrawl. I haven't written a letter in long hand in years and I've almost forgotten how it's done." $3,000 to $4,000.
    University Archives, Apr. 23: Einstein 1935 TLS, Hopes to Warn Non-Jews of "The true nature of the Hitler regime.” $8,500 to $10,000.

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