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Discover Mid-America — January 2008

Pricing younger buyers out
of the market

This small, early 20th century Japanese Kutani vase, not the best example of its kind but not too bad, either, happened to be reasonably priced on the secondary market. But with the high prices on most older export porcelains from China and Japan these days — even on the mediocre examples — who can say whether young buyers pass them by because they don't like them or simply because they can't afford them? (photo by the author from her own collection.)

As we saw in his interview with editor Bruce Rodgers (published in the November edition of Discover Mid-America), collectibles dealer and maven Harry Rinker has long advised dealers to attract younger consumers by giving them what they want rather than what the traditionalists in the trade want them to want. And, according to Rinker, what today's younger consumers want is not antiques, but collectibles — nostalgic items from their youth (in the ‘60s, ‘70s or even ‘80s). Rinker believes the antiques and collectibles trade has been experiencing such tough times over the last decade or two because it refuses to accept the reality that younger consumers are not "into" 18th century English furniture or 19th century art pottery.

But I'm not so sure about that. An implicit — and I believe valid — premise of the trade has always been that a good antique has a timeless appeal that spans generations. So, if that's the case, why aren't younger consumers buying?

The power of price to exclude a younger demographic

One factor that accounts for the disinclination of younger consumers to collect older antiques is the price points at which such objects are offered. If we're talking about 20- and 30-somethings, that demographic doesn't generally have the disposable income to spend three or four figures on the trade's current definition of a "great starter."

Consequently, much of what's exhibited in mid-level antique shops — and nearly everything exhibited at the higher end shops and most shows — is tagged well beyond the means of younger consumers. I don’t think younger buyers care any less for, say, Rookwood Pottery; than do older consumers. But what young professional just starting out — and probably still trying to pay off student loans — can afford Rookwood at today's prices?

On the other hand, one hears all the time about the buying power of youth. "Kids" from their teens through their 20s, spend big bucks on designer clothing and shoes, not to mention electronics, from big screen TVs to computers to iPods. But this argument misses the point. For a hunter, a rifle isn’t a discretionary purchase. Power tools aren't discretionary items for a serious home workshop. Such analogies are by way of pointing out that, for younger consumers, designer clothes and electronics fall within the realm of the necessary rather than the discretionary.

Fire King kitchenware and serving dishes from the ‘50s and ‘60s used to be the definition of a "good starter" for young couples wanting "something old" for their kitchens. Once Martha Stewart discovered Jadeite, the most popular color in Fire King, most Fire King glassware began to be priced exorbitantly on the secondary market. The lowest "price guide price" I could find on this "tulip" painted grease jar in ivory Fire King was $25, and the highest was $50. Good luck justifying that price to a younger buyer — and, yes, this item can be found priced that high in the shops. (photo by the author from her own collection.)

Besides, computers these days are built to take a beating. An 18th century maple candle stand or a sterling silver candleholder is not. From the perspective of a buyer in his/her 20s or early 30s, then, the choice is between electronics s/he can use and an antique that's pretty to look at and that, due to its age and value, has to be handled with kid gloves.

I'm obviously playing devil's advocate here. Still, when it comes to how people choose to spend their money, perception is reality. Youth aren't going to cough up their hard-earned cash — nor incidentally, the available balances on their debt-staggered credit cards — on antiques they perceive to be priced beyond them.

'Twas ever thus! When my parents were young marrieds back in the early ‘50s, they collected Depression Glass — a category at which modern purists in the trade are prone to turn up their noses. My parents dearly loved much older — and more expensive — antiques, but Depression Glass was what they could afford at the time. Until they reached their
"golden years," with no debts and their kids all raised, the only time they were able to acquire a "genuine" antique was via the occasional successful bid at a local auction or through bequest in someone's will.

The problem with Price Guides

What makes the problem of affordability worse for younger consumers today than it was when my parents were starting out is the ubiquity of the modern price guide. Price guides are one of Rinker's pet peeves, and, even as the author of one myself, I have to admit they're fast becoming a pet peeve of my own. Some dealers have to sell high because they bought high. But it's also the case that dealers buy plenty low, then tag at the upper end of "book" (read price guide).

A classic problem for pickers and dealers is collectors who want to sell for a price that leeches the deal of all profit potential for resale. So I really don't get it when dealers who should know better buy an item, not for their own use but strictly for resale, for, say, 25 bucks at auction, and then figure a 100%-200% profit isn't good enough. (I'm not talking here about the "special find" that turns out to be worth thousands of dollars; I'm talking about fairly ordinary merchandise acquired in the routine course of doing business.)

We can all name dealers who make a career of selling items at markups of several hundred to as much as 1000 percent over dealer cost.

A random assortment of identification and price guides from my own rather extensive collection of them. If dealers are using published guides to set highest end prices on already pricey antiques, it's little wonder younger buyers can't afford them.

To take our $25 dollar example — let's say a Rose Medallion Chinese export bowl — a consumer in his or her early 30s might well be persuaded to buy the item for $50 (100% markup) or, with a stretch, $75 (200%). A price of $275 (1000%) — even if a price guides says that's what it's worth — may just be more than the younger consumer can come up with.

Yes, we all know dealers who get by charging markups like this and who even seem to be doing rather well at it if their inventory is exceptional. But the question we're dealing with here is not whether such a dealer can find any buyer at the price but whether s/he can find
younger buyers at the price.

A dealer who really wants to appeal to younger consumers will market to them by pricing, whenever possible, within their means.

Peggy Whiteneck is a writer and collector living in East Randolph, VT. If you would like to suggest a topic she can address in her column, email her at allwrite@sover.net.

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