FAQ: BUYING FROM AN AUCTION
Last Updated: 1 March 1993
INTENT AND DISCLAIMERS:
Copyright 1993
The authors hereby grant permission to reproduce and distribute
this document for personal use, subject to the condition that
the document (along with any copyright and disclaimer notices)
is not modified in any way.
The opinions expressed within this document are those of the
authors only and not necessarily those of their respective
employers.
This FAQ was created to assist beginning and established
collectors by providing useful information about dealing with
the current owners of video games. Because this hobby can
involve deals that can be in the $1000s, the reader is advised
to use the following information carefully.
This FAQ is provided for informational purposes only. Although
the authors have made every effort to provide accurate
information, they cannot guarantee the accuracy or usefulness of
any of the information contained herein due to the complexity of
the issues involved.
The authors take no responsibility for anything arising as a
result of anyone using the information provided in this FAQ, and
the reader hereby absolves the authors of any and all liability
arising from any activities resulting from the use of any
information contained herein.
If you're new to collecting, we advise you to read the "Buying
From an Operator" FAQ before proceeding; it explains in detail
many of the jargon terms you'll encounter in this FAQ.
Q: What goes on at an auction?
A: An auction consists of two parts: a preview period and a
bidding period.
During the preview period, all the items are available for
inspection. This is to allow the buyers to inspect the
merchandise and decide for themselves what they're willing
to pay for it. In the case of video game auctions, this
usually means that you will be allowed to power up the
various games and play-test anything of interest.
During the bidding period, the auctioneer will offer each
game up for sale and accept bids on it. The auctioneer will
first power up the game to show that it is indeed
operational and is worth bidding on.
The auctioneer (and/or the company who employs the
auctioneer) gets a percentage of all proceeds. Sometimes
this percentage is included in the winning bid or gets paid
by the seller of the game, but sometimes it is added onto
the "hammer price", and the buyer is responsible for paying.
Ask the people running the auction before the bidding
starts and keep the answer in mind when bidding...
Then the fun begins. The auctioneer asks for a starting
price (an "opening bid"). If nobody accepts this bid, he
will lower the opening bid until someone accepts his offer.
He will then slowly raise the price as other customers show
interest in the item. As the price rises past the personal
limits of the various bidders, the bidders stop bidding. The
last person to make a bid (i.e. the one willing to pay the
most for the item in question) "wins" the bid and gets the
item. Bidding then proceeds to the next item.
Q: Sounds like fun. How do I find out where an auction is being
held?
A: You can find out about auctions by looking in the Yellow
Pages under "Amusement Machines" and asking the people at
the other end of the lines if there are any upcoming
auctions in your area.
You can also find out about auctions by looking in Replay
magazine (the trade journal for operators). You can order a
single copy of Replay by sending $5.00 to Replay Magazine,
PO BOX 2550, Woodland Hills, CA, 91365.
Q: Okay, I've found an auction. What should I bring with me?
A: The most important item to bring is an extension cord.
Preferably 100' or more, with multiple plugs. A good
solution is a self-dispensing spool of cord with four
outlets in the center. It's lightweight, compact, portable,
and helps to prevent tangled cords. There will likely be
over a hundred games available, and very few of them will be
in reach of the cords dangling from the warehouse ceiling.
The warehouse will supply the power, but it's up to you to
get the power to the machine you want.
Many auctions are held in rented buildings that don't have
any dangling cords -- sometimes they won't even have outlets
available. At these auctions, the only chance you have to
see if a game works is when the people running the auction
power it up just before sale.
The second most important thing to bring is a flashlight.
This will enable you to examine the games for signs of water
damage, rough handling, pirated boards, poorly-performed
conversions, banged-up control panels, and so on. Most
warehouses are poorly lit, so a small flashlight can be
invaluable when determining the condition of a machine.
The third most important thing to bring is cash. At most
auctions, there will be a "bidding deposit" (usually around
$200 or so) which you must have in order to get a bidder
number. This is only a deposit, so rest assured you'll get
it back at the end of the auction, even if you don't buy
anything. If you do buy something, the deposit will be
credited toward your purchase. Some auctions will permit the
use of credit cards, provided you pay a surcharge of around
5% for the privilege. As this is by no means guaranteed at
any given, cash is still the preferred way to go.
You should also bring some food. Depending on the number of
lots offered, the bidding can take quite a while - sometimes
several hours. Make sure you're equipped to spend a long
time standing in a crowded warehouse...
Bring a pen and paper. Usually there'll be a piece of paper
listing all the lots for sale, but you'll want space to
write down phone numbers of people you meet, descriptions
and notes about some of the games you're interested in, and
the winning bid for each game.
Writing down the winning bid isn't just for your benefit,
it's for our benefit too. Trust us, if you go to an auction,
the r.g.v.a. readership would *love* to hear about it, and
they'd also love to see a listing of winning bids. It'll
help all of us keep an eye on the state of the market across
the country.
Above all else, make sure you've got appropriate
transportation. See the next question for more details.
Q: What was that about transportation?
A: Okay, remember in that last question when we said that the
most important item to bring was an extension cord?
We lied-- The *MOST* important thing is transportation.
Transportation determines *EVERYTHING* about how you deal
with an auction. The more space you have, the more you can
buy. If you can swing it, always try to have more space than
you need.
When the auction is over, everybody who has bought something
has a fixed amount of time to get their stuff off the
premises (sometimes they have a day, other times they have
to get it off by the end of the auction or a few hours after
the end of the auction).
The closer you are to the auction, the better. The question
of whether or not you are "close" to the auction can be
rephrased as "Do you have enough time between when you buy
your last machine and when you have to remove it from the
premises to go home and pick up a trailer to drag the stuff
home?"
The advantage of being "close" is that you can get a trailer
of the appropriate size for your purchase, and if you
haven't bought anything, then you save yourself the rental
charges and the time for the extra trip. If you're at an
auction several hours away from home, however, you'll have
to rent the trailer in advance, and you'll only be able to
buy games for which you have space.
By and far, a trailer is the cheapest form of transportation,
although pickup trucks and vans will do if you're just
starting out and don't plan to buy much. A trailer costs
roughly $20 to rent and $300 to buy, and is probably the
most valuable item a video game collector can own.
Whatever mode of transportation you're using, make very sure
that your games are well-secured. Video games are extremely
heavy creatures, and the last thing you want is 200 pounds
of extra wood, glass, and metal plowing its way through the
windshield (passing through the back of your head en route)
should you have to slam on the brakes. Also remember that
the extra mass of the games can affect the handling of your
vehicle; if you're driving in winter weather conditions, be
extremely careful on sharp turns and allow extra distance
when stopping.
Q: Why is everything sold "as-is"?
A: The main reason auctions are held is to get rid of older
equipment. If the equipment doesn't work, the operator who
originally sold the equipment doesn't want to have to deal
with it again - EVER!
On the other hand, most of the games at an auction will
work, and because of the preview period, you'll probably
have an opportunity to examine the games beforehand to
determine any repairs that need to be made.
This is why the preview period exists. You wouldn't want to
buy something and bring it home, only to find that it's a
gutted hulk with the wrong parts in it. Use the preview
period to your advantage; that's what it's there for.
Even if there is no preview period, most games will be
powered up at least once before the bidding (by the
auctioneer's people) in order to demonstrate that there's
something worth buying in the cabinet.
Q: I'm only after parts. Should I go?
A: Probably not, although you may meet with other collectors
who may prove to be valuable contacts in the future.
Auctions rarely have boards, monitors or control panels for
sale. These are usually obtained through other channels
such as operators, parts houses and other collectors.
The "everything must work" principle combines with the
"as-is" principle to explain why boards and monitors are
rarely found at auctions. With the exception of JAMMA-based
boards (which are very easy to test in any JAMMA-compatible
cabinet), it is extremely time-consuming to test a wide
variety of boards. Since an auction is an attempt to sell a
large quantity of merchandise in a short period of time, it
follows that boards and monitors will not be found at
auctions. The returns simply do not justify the time it
would take to auction them off.
Q: When should I arrive at the auction?
A: This depends on your strategy.
If you're looking for a specific machine (like most
beginning collectors), it pays to arrive early and
completely go over the machine(s) that you will be bidding
on. If the specific machine you want isn't there, then you
can go home with only an hour or two of the day wasted. If
the specific machine *IS* there, then you power it up and
make sure that you really want it. If there are multiples of
the machine you want, you have time to play all of them.
Decide for yourself what condition the machines are in and
what you'd be willing to pay for each of them.
Generally, if there are multiple instances of a given
machine and the price is important to you, the second or
third machine from the last will be the cheapest.
If you're looking to buy a lot of machines at a really good
price, arrive late. By arriving late, you ensure that the
crowd has thinned a bit (you have less competition and the
prices are lower). Usually the oldest games are left for
last, so by arriving late, collectors of older games can
avoid having to wait around until the newer (higher-priced)
games are sold.
Also, by the end of the auction, the auctioneer is tired and
won't be trying to squeeze every last penny out of the
crowd. Simply put, the cheap, old games that will sell for
less are most likely to be found at the end of an auction.
If you're on a budget (or just like old games), why go early?
Q: What kinds of games are generally available at auctions?
A: There will be at most a handful of recent games (i.e. less
than two years old) because the newer games are still making
money hand-over-fist for their operators, and the operators
will be loathe to auction off their best money-makers. There
will be a few older games (pre-1985), but as most of these
have already worked their way through multiple conversions,
so don't expect to find them every time.
As of this writing (early 1993), you can expect to find the
following distribution of games:
- New games (post-1990) ----------- 5%
- Middle-aged games (1985-1990) --- 75%
- Old games (pre-1985) ------------ 20%
Of the "old games", only half of them can usually be
considered "classics", so don't be surprised if you go to an
auction and find yourself interested in only three or four
games.
The reason for this distribution is that games from the 1985-
1990 era can still make money in arcades, but they're far
enough past their prime that their original owners are now
looking to free up space for newer and better moneymakers.
Q: What factors determine the price of games at an auction?
A: The price of a given game is determined by the type of
people bidding on the game as well as the rarity of the game
in question.
If the crowd at the auction is composed largely of big
operators who don't think they can make money from your
favorite game, then the price will be lower than the
average.
If the crowd is composed of home consumers -- people who
love the game and don't know its real value -- then the
price may go upwards of twice the game's market value.
If the crowd is composed of people who know the value of
your favourite game (i.e. medium-sized operators and
serious collectors), then you'll see your game going at
market value.
The more rare the game in question is, the higher a price it
will demand. Expect especially high prices for old, rare
games at auctions where the proportion of home consumers and
beginning collectors is high. Expect astoundingly cheap
prices for old, common games at auctions with a high
proportion of distributors in the crowd -- you may be the
only person present who doesn't already own the game!
Q: How rare is my favorite game?
A: Here are a few rules of thumb that you can use to determine
whether or not your favorite game is rare:
- If several instances of your game are at an auction,
chances are it isn't very rare.
- If your game had a huge production run, it probably isn't
rare.
- The older your game is, the more rare it is likely to be.
Anything from the early 1980s, for instance, is likely to
be quite rare.
For example, if you're interested in black-and-white
vector games, the following paragraph may illustrate what
we're getting at.
On one hand, the games haven't been in arcades for a long
time and are practically worthless to operators, so
they'll tend to be rare. On the other hand, Asteroids had
a huge production run, and there are still a lot of games
out there. If you see an Asteroids machine at an auction,
you'd know not to bid very high because the game is
relatively common. It'll show up at another auction
sometime soon. (the authors of this FAQ, for instance,
have seen dozens of these machines in warehouses across
the country). On the third hand, Asteroids Deluxe had a
fairly small production run and was never as popular as
the original game, so you should probably take advantage
of the opportunity to buy as soon as it arises.
Q: I'm in a fierce battle for my favourite game, and the prices
are getting pretty steep! HELP!
A: Bidding wars are bad news.
Remember, if you need a rationalization to avoid bidding on
a given game, or you want to console yourself after losing a
bid, remember that there are other auctions, any one of
which might also have your game in it. Moreover, you still
have your money, so you can now bid on something else in the
auction...
Q: Why are the prices so cheap?
A: The reason that the prices are so cheap for "old" games is
that the operators can't make any money on them. This is why
(provided you're at an "honest" auction) the prices are by
far the cheapest you'll see as a beginning collector or as a
person who wants a specific machine.
We highly recommend this as a way to pick up your first
machine.
Q: Anything else I should know?
A: If you've never been to one, go to one and sit through the
whole thing. It's good experience, and you don't have to
buy anything.
For the most part everything works and will work when you
get it home, but there are no guarantees. Everything is sold
"as-is", and all sales are final. This is why it is
important to play-test anything you intend to buy, if at all
possible.
If a game won't power up, it will be sold at the end of the
auction as "broken" (or "was working an hour ago") and will
go for next to nothing.
Prices will vary from region to region, and even within
regions depending on the auctioneer. For the most part,
however, "old" games will sell for between $50 and $250,
depending on its age, condition, the number of instances of
the game present, and whether or not it was sold at the
start or end of the auction.
Living in California seems to add about $50-$100 to the
prices, and some people report that "classic" games are
often harder to find in the California area.
Cocktail tables will add $100 to the price of the machine,
since so many people in the crowd can easily take home a
cocktail table.
|
