William You Where Right [ Charles Curran } - Thanks to Askart.com
I would like to talk about a wonderful opportunity that will happen to you in the future. That opportunity will be when there are more items offered to you than you might want to purchase at a particular time. What do you decide at that those moments and what is the correct decision?
The best way for me to address this problem with you is to share what is going on in my life right now. As you know I have been fortunate enough to move several paintings and other items, such as the sculptures that I sold, but I am still carrying a huge inventory. So how actively should I be pursuing new purchases? That is the question. Often this is answered by the amount of cash that you have on hand but let's assume that isn't a problem in this case.
Over the last several days, I have been presented the chance to buy some extra special paintings, but making the decision to purchase these when I am already choking on the inventory I have should take an extra measure of study before doing it. First let's examine the German painting that I have written about that didn't sell at auction and I believe that there is money to be made with it. So what did I do? First, I had to decide at what price I simply couldn't pass it by. Once this was established, I called the auction house to see if it was for sale after the auction and at what price. The price was just a little more than that magic number where I would throw all caution to the wind and buy it at that moment. But no, I made a counter offer at the price that I felt comfortable with. I have not been given the final answer yet but I do believe it will be positive when the auction house contacts the seller.
At the same time that I was considering the first purchase, I was offered two very large paintings by a New York artist for $22,500. Searching AskART, I found that the last painting by this artist sold at a very well known auction house for over $20,000. Making this story even better, the painting that sold was only 1/2 the size of the ones being offered to me. The subject matter is comparable and the quality is equal. Now you are in a quandary on what to do, right? Well again, what is that magic number where you will have to own them if the seller agrees? The less expensive purchase should have very little effect on your moving forward with your plan for the "Million Dollar Race" but the expensive paintings could put a hold on your progress for a while if you make a mistake. Again, you are at that moment of decision. What to do? If the larger purchase will be over 25% of the capital you're working with, it may be time to partner with the “Daryle Lambert's Antique and Collectible Clubs” Associates program on the paintings or get an outside partner to go in with you on them.
I have been offered two other pieces but I believe that my message to you has been made clear. First, if you already have inventory, be sure that it is wise to expand it now. Second, never commit more than 25% of your working capital to any one item, but if you find that expensive treasure that you must have, spread the risk with others. The more of your working funds that you have committed, the cheaper your price should be for any offers you are making on additional pieces. If you follow these rules you will have a very long and successful career in Antiques and Fine Art.
I hope that in the future we will be able to receive comments on the blog but that doesn't seem to be happening at the present time. I would appreciate if you would send all comment to www.31corp.com until I can solve this problem.