We have proven that increasing the rate at which lots are auctioned per hour drives higher bidder engagement, improves bidder retention throughout the sale, and significantly increases the number of lots sold in a given day—all while minimizing passed lots and maximizing realized prices.
However, the recent trend in the antique and fine art auction industry is moving in the opposite direction. During and after COVID, more auction houses shifted toward online bidding, leading to a significant reduction in floor or “live” bidding as well as telephone bidding.
The net effect? Fewer bidders. And with fewer bidders, several negative consequences arise:
There is a growing tendency to slow the auction down and “wait” for bidders. However, slower auctions reduce bidder engagement and enthusiasm, ultimately lowering realized prices. A sluggish pace decreases bidding frequency and effectively stifles any “auction fever” among buyers.
Fewer bidders can lead to unethical and potentially illegal behavior. When an auctioneer has fewer active participants, they may be tempted to create or engage in “shill” bidding—artificially inflating bids to stimulate activity and drive higher realized prices.
This results in the ultimate lose-lose scenario. A slower auction naturally yields lower prices, and if an auctioneer resorts to shill bidding, they risk compromising their integrity. In the end, they not only lose money but also damage their reputation.
As the pace of the auction increases, the number of lots needs to rise as well. Increasing the number of lots for a given day has several benefits for both the auction house and the buyer. By exceeding 600 lots in a day, the auctioneer can achieve efficiencies in labor and administrative costs. Additionally, single-day sales with a larger number of lots attract more bidders, encouraging absentee bids and prompting bidders to view the entire auction online on the day of the event. We have also found that this approach results in higher prices per lot and higher sell-through rates.
However, a recent trend in the antique and fine art auction industry is moving in the opposite direction. Since the COVID-19 pandemic, the average number of lots for a single-day sale has actually decreased. This trend follows the logic of a slower pace of sales, as discussed earlier. A slower pace means fewer lots can be sold in a given day. These sales with fewer lots have led to another detrimental phenomenon – a lack of variety.