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I was following the Brightwells Sale yesterday and it appeared that the top lot had made 145,000. It was then subsequently listed as a ‘vendor buyback’. Can someone with sales knowledge explain the chain of events that would have resulted in this conclusion?
It’s simple stilvi,
You put your horse in the sale and rather than put a reserve on it you bid it up to a sum you’re prepared to accept, if it doesn’t reach that sum then you will have the last bid on your own horse and thus retain the horse. There will be commission to pay on the buy back.
Bids would have been made by the vendor (or by someone on behalf of the vendor) in order to pump up the price to what they think the animal is worth. If the vendor makes the last bid then they keep the horse but have to pay the commission to the auctioneer.
EDIT: didn’t see Eddie’s post, which explains things. Although I don’t think it matters if there is a reserve on the animal or not.
Thanks both.
Still confused as to why the seller doesn’t just put a reserve on rather than bidding themselves?
Yesterday, I thought the auctioneer called the lot to Kim Bailey and it was only after several further lots that it was removed from the rolling figures.
I didn’t see them all but of those I did this looked the standout lot.
The vendor will often have somebody discreetly bid on their behalf in order to reach the reserve. It’s not a case of either having a reserve or the owner bidding themselves. When the vendor is pumping the price up the idea is to do so without the other bidder(s) realising that they are bidding against the owner.
Lots led out unsold presumably didn’t make a reserve. Often the bidding for these took just as long as those lots that were actually sold. Isn’t this just a waste of time? Why not just start the bidding at the reserve and just move on?
Only guessing here, but maybe having a "sold at auction" status allows animal to run in some of those races for horses sold at public auction!
Or maybe it establishes insurance value. Only guessing though.Thanks both.
Still confused as to why the seller doesn’t just put a reserve on rather than bidding themselves?
Yesterday, I thought the auctioneer called the lot to Kim Bailey and it was only after several further lots that it was removed from the rolling figures.
I didn’t see them all but of those I did this looked the standout lot.
Three Musketeers. He looks quite good now.
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