Antiques and the Economic Tsunami

The last three months have been some of the worst the antiques business has experienced in terms of sales and certainly the worst for my business. Buying basically stopped- our turnover was down ninety percent which, as you can imagine, leads one to make some quick and drastic adjustments to survive.

Firstly, we've cut back almost completely on buying. My business is lucky in that we have a large stock and can continue selling without having to go on buying heavily.

Secondly, we've successfully cut back on every cost we could- including canceling some of our upcoming antique shows, particularly those that have a high cost; shows are the largest part of our cost base. So while we can not reduce our costs by ninety percent we are going forward with a significantly lower monthly cost base more closely matched to our new turnover.

My plan for the next six months is to take cash and, thus, stay liquid. If I have a client interested in a piece on my web site or on my stand, I am doing everything I can to make the sale. I look at the cost price to me rather than the marked ticket price. I look at a sale as the start of a path to a lifetime partnership between myself as the dealer and my client as I help them build a collection or help them create a beautiful home; I'm not looking for a victim where I make a killing on one sale. As a business that is fourth generation and in business for over one hundred years that approach has worked well over the last ten decades.

As the New Year arrived, I nervously awaited the cluster of antiques shows which were coming into view. The first was the Washington DC Antiques show two weeks ago and then last weekend The New York Ceramics Fair. And....the atmosphere has changed! Business has not returned to the level of economic activity that we had before September but the panic appears to have gone and buying has begun again. Our clients wanted and got great discounts on items they were considering. We made the sales and our clients got wonderful values and great objects. In fact, I meet a good number of new clients buying from me for the first time and a good percentage were younger clients under the age of forty five.

I have spoken to many dealers at the same shows and at shows like The American Show and The Winter Show in New York and the reports are similar. Those dealers who are willing to work with clients and recognised the change in the market are surviving and will be in good shape for the revival which we will experience later in the year. There are others who somehow seem to think that they can go forward oblivious to the times. I spoke to a folk art dealer in Washington as the show wrapped up and he had done almost nothing in sales. He was insulted that clients were making offers and expecting better prices! I heard that he had a terrible show in New York.

The Palm Beach Antiques and Jewelry Show is my next outing and I am optomistically looking forward to being there. If you would like tickets please email me at info@vandekar.com.