CONTRACT AND SELLING

Q: Is the sales contract competitive?

A: Yes. Consigning with RIAC is a partnership, it is our responsibility to obtain the most money for your collectables. We keep our contracts at a simple percentage; we do not work with sliding scales which could work against you. Remember a low commission doesn’t always mean they are the best choice. There are many factors beyond the sales commission. The bottom line is which auction house will get you more money?

Q: Should I be concerned with “hidden type charges”?

A: Yes. Even though “they” may tell you there may be additional charges are figures/amounts given? Rock Island Auction Company does not charge for photography. We do not charge for storage. We do not charge for insurance. We do not charge huge rates on cash advances. As stated above we keep it simple. If you come across a contract that charges for insurance consider this: if the sale grosses $12 million and each consignor is charged - let’s say 1.5% for insurance the auction house is making $180,000 on insurance fees alone (in one auction). We know for a fact that insurance does not cost that much.

Q: Does the auction company specialize in firearms or do they handle a broad spectrum of collectables?

A: Rock Island Auction Company is dedicated to selling firearms and related items such as edged weapons and military artifacts. Selling firearms is our business, our passion, our expertise. We do not have any other distractions.

Q: Does everything that goes to auction sell? What is the history of items not selling at the auction company?

A: This is a very important question to ask. This will truly tell you if the auction house is reaching a large audience and is able to sell what they put up for auction. This is a direct reflection of their marketing ability. It will also tell you if they understand market value. For the past 6 years Rock Island Auction Company has maintained a 97% sell through rate. We routinely sell approximately 2750 lots in an auction and 97% truly sells!!! This translates into only 3 out of every 100 items do not sell. If you check out our closest competitor you will see that this past year they held one auction in which over 33% did not sell!! This translates into for every 3 lots offered for sale only 2 sold or to put that in comparison to RIAC, 33 out of every 100 DID NOT SELL!! Potential buyers want to participate at an auction where they have the highest chance of obtaining what they have set their sights on. At RIAC potential bidders know that this is possible without bidding against huge house numbers that do not represent the market place. With our consistent 97% sell-through rate both buyers and sellers experience a real auction. Why bid at an auction where every third time you hold up your card to bid the lot won’t sell because you are bidding against the house? This deters bidders and items simply will not sell. RIAC has proven the free market is the place to sell. We have established world record sales and understand that auction averaging will result in our seller’s being satisfied.

Q: When selling a large collection or estate how do you choose what to put to auction?

A: Sell your collection all at once through a “firearms” specialty auction house.  Do not sell off pieces one at a time.  The only result in selling individual pieces is someone will get the best pieces cheaper than they would at auction and the rest of the collection will suffer as the good pieces always bring in significant buyers which help the rest of the collection.  This is especially important for estates.  Estates will bring more money sold as a true estate with everything included.  Once the “word” is out that an estate has sold its best items (even rumors) it is hard to recapture the excitement that a true estate generates.

ADVERTISING AND PROMOTION

Q: Question advertising claims that state the auction house is #1 or gets the highest return for your firearms?

A: We have seen it happen right in front of our very own eyes.  Our competitors state in public advertisements that they too are #1 in the industry.  How is this possible? How can we both be #1? We are not afraid to put out figures and do so each auction. We tout our sell-through rate (as above) and can issue numbers on the amount of firearms sold each year. Our competitors don’t because they can’t. 

At RIAC we sell 12,000 - 14,000 firearms per year! Our sales records are as follows: 2004 = $14.6 million, 2005 = nearly $16 million, 2006 = $19 million, 2007 = $28.6 million, 2008 = $31 million, 2009 = $28 million. No other firearms auction company comes close. Rate of return? We can prove serial # to serial # we get more money, simply ask us!

Q: How do I know that the auction will be well promoted?

A: Rock Island Auction Company is the only auction house in the world to advertise with full page ads in the Wall Street Journal, USA Today, Chicago Tribune, the Baltimore Sun, Orlando Sentinel and dozens of industry publications. We also send out a 12 page full-color brochure each Premiere auction to our massive 56,000 plus pre-approved client listing. Our internet presence is far ahead of any other auction company. Check this fact out and you will be impressed. Finally there is our state-of-the-art catalog which is distributed world-wide. It has set industry standards and is proud to have won a Gold Ink Award in the printing industry.

Q: How do I know the auction house will attract bidders?

A: Rock Island Auction Company currently has 55,000+ pre-qualified buyers in our database. Ask for proof of distribution of marketing materials. We know we more than triple our competition in direct mail marketing. We are also aggressive with web traffic soliciting via numerous e-commerce campaigns that will bring your items directly to collectors from all over the world. At our most recent auction we enlisted three LIVE bidding services to promote our auction world wide (Proxibid, iCollector and LiveAuctioneers).

GUNS LAWS EFFECTS ON RESULTS

Q: Gun laws vary from state to state and can prohibit the sale of some firearms.

A: All auction houses can’t obtain the same result for you. Gun laws vary from state to state and various state laws prohibit the sale of some firearms.  An example is California.  The California  laws only allow one gun per month to be purchased by residents. Additionally, in California many guns that are commonly sold elsewhere can’t be sold in California.  Other states also have laws that prohibit or severely restrict the sales of guns.  The overall problem is many auction houses in those states such as California will accept the consignment of guns knowing they will have to be sold to persons outside that state.  The bottom line to you the consignor is your guns for the most part will be sold to dealers in other states.  Traditionally dealers do not pay the highest price as their “inventory” is purchased for resale.  Those who consign to auction realize the highest price when their items are sold to the “end user”, the collector.

COLLECTION PICK-UP

Q: Does the auction company pick up collections?

A: RIAC travels all over the country to pick up collections. We do not charge for pick up of large collections. Also ask if the drivers of the auction company are certified by the Department of Transportation?

Q: How do I know my collection will be safe while on the road?

A: We are insured to handle the most valuable of collections. Plus all our drivers are D.O.T. certified.

INTEGRITY

Q: How do I know if the auction house will live up to its claims?

A: Ask for references, and be sure to call them.

And remember, don’t wait until after the sale to say... “I wish I had known”.