Selling channels · Collector handbook chapter

Consignment & Agency Selling

Consignment and agency selling sit between selling a collectible yourself and selling it outright to a dealer. The owner retains an economic interest in the final result, while an intermediary supplies some combination of market access, expertise, credibility, presentation, negotiation and transaction administration. In return, the collector gives up part of the proceeds and usually part of the practical control.

The central decision is not simply whether an intermediary can find a buyer. It is whether that intermediary's access, knowledge and reputation are likely to add more value than their fees, restrictions, custody risk and authority remove. A good consignment creates a controlled bridge between an object and the market. A poor one replaces a simple selling problem with a more complicated ownership, payment and recovery problem.

The five-question test

Before accepting any consignment proposal, the collector should be able to answer:

1Who owns and controls the object at every stage?
2Who can commit the seller to a transaction?
3What precise amounts may be deducted?
4Who bears loss, return and buyer-default risk?
5How and when can the object or proceeds be recovered?

Collector scenario

The impressive result that still loses to the dealer offer

A collector receives a $3,000 immediate offer from a specialist dealer. Another business proposes consignment, predicts a $3,800 sale and presents the higher figure as proof that consignment is the better route. The agreement, however, charges 20% commission and $200 in expected expenses.

The judgement

The $3,800 result produces only $2,840 before considering delay, buyer default, return exposure or the collector's time. To beat the $3,000 cash offer, the consignment needs to sell for more than $4,000.

Collector lesson

A consignment should be judged against the seller's realistic net alternative, not against an attractive public-facing price.

1 · Foundations

Consignment, agency and outright sale are not the same arrangement

The labels are often used loosely, but they describe different questions: where the goods are, who owns them and what authority the intermediary has.

Outright dealer sale

The dealer buys the collectible and becomes its owner immediately. The former owner receives a lower but certain price, normally promptly, and has no exposure to the dealer's later profit or loss.

Best understood as certainty and speed exchanged for wholesale pricing.

Consignment

The owner places the object with another party for sale but normally retains title until a valid buyer transaction takes place. The intermediary deducts agreed charges and pays the balance.

Consignment describes the placement of property and the conditional route to sale.

Agency

The owner authorises another person to act on their behalf. An agent can seek or conclude a sale without ever taking physical possession of the object.

Agency describes authority: what the intermediary may say, negotiate, accept and sign.

Consignment often includes agency, but the two should not be treated as synonyms. An object can remain in the owner's home while a broker circulates photographs among buyers. Conversely, a dealer can physically hold an object while having only limited authority to display it and report offers. The distinction affects who contracts with the buyer, whose name appears on the invoice, who makes condition and authenticity statements, who handles complaints, and how tax and consumer obligations may apply.

2 · Selling models

The word consignment hides several different routes to market

A dealer cabinet, a timed auction, a private broker and a collection-disposal service may all be called consignment, yet they create different levels of exposure, control and risk.

Dealer consignment

A specialist dealer displays or advertises the collectible alongside owned stock, using category expertise, customers, premises, websites or event presence to create a sale.

Clarify whether the dealer is visibly acting for the owner or appears to sell as principal.

Auction consignment

An auction house accepts the object into a scheduled sale, catalogues it, sets an estimate, agrees a reserve where applicable, conducts bidding and pays the consignor after deductions and buyer payment.

Public bidding creates upside, but also a fixed timetable and a visible unsold record if the reserve is not met.

Private-sale agency

A broker, dealer or auction house privately approaches known buyers rather than exposing the object to open bidding. The object may remain with the owner until a buyer is found.

Often appropriate where discretion matters, the buyer pool is narrow or a failed public test would harm later negotiations.

Online consignment

The intermediary lists through its website, marketplaces, social channels, live-commerce platforms or mailing lists and manages buyer communication remotely.

The contract should identify platforms, account ownership, platform fees, discount controls, returns and data handling.

Show and convention consignment

A dealer takes the collector's property to fairs, conventions or specialist trade gatherings, providing event access without requiring the owner to attend.

Temporary venues magnify inventory, handling, transport, overnight-storage and mixed-stock risks.

Introducer or finder

The intermediary introduces a potential buyer but may not hold the object, describe it publicly, receive payment or conclude the contract.

Define what counts as an introduction, when the fee is earned and how long buyer protection lasts.

Managed or white-glove disposal

A service inventories a collection or estate, divides material by category and value, allocates it to different channels, manages buyers and handles the residue.

The most valuable contribution may be channel allocation, but the intermediary gains substantial influence over bundling, timing and disposal decisions.

3 · Value creation

What a good intermediary can add

Commission is justified only when the intermediary contributes something the owner is unlikely to reproduce as effectively alone.

Buyer access

A specialist may already know the active set-builder, institutional buyer, replacement-stock dealer or collector waiting for a particular rarity. Listing publicly is not the same as reaching the right buyer.

Credibility

Established trading history, inspection facilities, returns handling, payment systems and a reputation for standing behind descriptions can make buyers more confident than they would be with an unknown private seller.

Specialist description

The intermediary may identify an overlooked edition, production variation, replacement component, significant provenance, restoration or attribution issue that materially changes buyer confidence and price.

Presentation

Professional photography, measurements, cataloguing and condition reporting help buyers judge identity, completeness, originality and condition without filling the gaps with suspicion.

Negotiation

An agent can test buyer seriousness, reject speculative offers, manage competing interest and negotiate without the emotional attachment that often affects long-term owners.

Administration

Enquiries, inspections, invoices, payment, packing, customs, shipping, returns and complaints can consume more time than the listing itself, especially when dispersing a collection.

For many collectibles, buyers are not purchasing only the physical object. They are purchasing confidence in identity, condition, completeness, originality, provenance and transaction security. A credible intermediary can increase that confidence without changing the object itself. The added value is therefore not measured by the length of a catalogue entry or the fame of a logo, but by whether the intermediary makes the right buyers more willing and able to transact.

4 · Economics

Headline price, buyer total and seller proceeds are different numbers

The number publicised by the market may bear little resemblance to the amount reaching the consignor's bank account.

The net-return test

Seller's net proceeds

Sale price - commission - taxes on charges - agreed expenses - third-party costs

Suppose a dealer offers $3,000 outright. A consignment charges 20% commission plus $200 expected expenses. To beat the cash offer, the consignment must satisfy:

Sale price x 80% - $200 > $3,000

The required sale price is therefore above $4,000.

A $3,800 consignment result sounds better than a $3,000 dealer offer, but after the stated deductions it produces only $2,840. The useful comparison is not headline price against cash offer; it is net return against net return, adjusted for delay, effort, risk and probability of sale.

Hammer price

The winning auction bid when the auctioneer closes the lot.

Buyer total

The hammer price plus buyer's premium, taxes and possible additional charges.

Seller net

The hammer price less seller commission, expenses, taxes on charges and adjustments.

An object can be described publicly as a $12,600 result because that is the buyer's total, while the owner receives $8,400 after a $10,000 hammer price, seller commission and expenses. Neither figure is necessarily misleading when correctly labelled; the problem arises when a seller uses one figure to predict the other.

Commission structures change incentives

Straight percentage

Simple and transparent, but does not necessarily create a strong reward for achieving more than the expected price.

Sliding scale

Different percentages apply at different price bands, recognising that workload does not always rise in proportion to value.

Performance commission

A base commission applies to an agreed threshold, with a higher share of proceeds above it. The threshold must be credible rather than artificially low.

Fixed or minimum fee

Useful for introductions or high-value objects, but a minimum fee can consume a large share of a low-value sale.

Buyer-funded fee

A buyer premium may reduce the visible seller charge, but it still affects buyer willingness, the headline result and the intermediary's incentives.

Dual commission

Payment by both buyer and seller is not automatically improper, but it creates a conflict that should be disclosed and understood.

Collector scenario

The discount that affects the owner and agent differently

An agent is paid 20% of the sale price and recommends reducing a $10,000 asking price to $9,000 to close a buyer.

The judgement

The agent's income falls by $200, while the owner's gross share falls by $800 before other costs. The price reduction may still be commercially correct, but the parties do not experience the concession equally.

Collector lesson

Discount authority should be designed around an agreed minimum net or a clear approval range, not assumed alignment of interests.

5 · Price control

Reserve, minimum gross and minimum net protect different things

A seller needs to know whether the instruction limits the public price, the accepted offer or the amount remaining after deductions.

Minimum gross price

The agent cannot sell below a stated headline price. The owner can still receive less than expected if commission and expenses are extensive.

Minimum net return

The seller must receive at least a specified amount after defined deductions. This is often the clearest instruction where costs are variable.

Approval required

The intermediary may seek and negotiate offers but cannot accept one without specific owner approval. Control is stronger, but speed and closing ability may be reduced.

Estimates and asking prices are also not promises. They may be evidence-based predictions, marketing devices, negotiation anchors or optimistic figures used to secure the consignment. The collector should ask whether the recommendation rests on comparable completed sales, active buyer enquiries, asking prices, specialist intuition or a deliberate positioning strategy. An unrealistic high figure can leave an object stale and publicly overexposed just as effectively as a low figure can sacrifice value.

6 · Authority

Define what the intermediary may do without asking again

Broad phrases such as 'full discretion' or 'all steps necessary to market the property' can be commercially convenient, but they should be translated into practical powers before signing.

Possible powers requiring an explicit decision

Advertise and describe the object

Disclose or conceal the owner's identity

Allow inspection or testing

Obtain expert opinions

Negotiate and discount

Accept an offer

Sign a contract or issue an invoice

Receive buyer funds

Release the object

Arrange export or sub-agency

Accept a return or partial refund

Repair, resell or settle a complaint

Exclusive agency

One intermediary has sole authority for a defined period. Marketing commitment may improve, but the object is tied up and commission may remain due even where the owner finds the buyer.

Sole agency

Sometimes allows the owner to sell personally while preventing appointment of another agent. The wording, not the label, determines the actual right.

Non-exclusive agency

Multiple routes widen exposure but can create duplicate listings, inconsistent prices, buyer confusion and disputes over who earned commission.

Distinctive collectibles are often recognised when several intermediaries advertise the same object. Instead of creating urgency, duplicated listings can reveal seller pressure and weaken confidence. A non-exclusive strategy therefore requires coordinated pricing, description and buyer-introduction records rather than simply appointing more people.

The tail or protection period

A tail clause preserves commission where the object is sold after the agency ends to a buyer introduced by the intermediary. The principle is reasonable, but the clause should define the period, the evidence of introduction, whether buyers must be named in writing, whether related people or companies count and how competing agents are handled.

An undefined tail can create double-commission exposure long after the original arrangement appears to have ended.

7 · Custody

Ownership language is not enough: the specific object must remain traceable

Once an intermediary receives the property, documentary discipline becomes part of preservation, insurance, security and financial recovery.

The agreement should state that delivery transfers possession rather than ownership; that the intermediary cannot pledge the object, use it as security or move it beyond authorised locations; and that unsold property must be returned under defined conditions. These statements matter most when the intermediary suffers theft, fire, administrative failure or insolvency.

The property schedule should identify

•Unique reference and precise description
•Maker, model, edition, variant and serial number
•Dimensions, inscriptions, marks and labels
•Component count, accessories, packaging and inserts
•Certificates, provenance records and related documents
•Known defects, restoration and prior alterations
•Condition at delivery, photographs and date received
•Agreed value, reserve or minimum-net instruction

Condition handover should show

•All sides and fragile areas
•Existing scratches, chips, tears and staining
•Seals, hinges, clasps, labels and stickers
•Packaging condition and loose components
•Previous repairs, replacements and restoration
•Who may open, test, wear, mount or power the item
•Whether sealed packaging or graded holders may be opened
•Who is authorised to pack and transport the object

Collector scenario

The boxed collectible recorded only as 'complete'

A rare boxed toy is handed to a dealer with the receipt description 'complete boxed example'. Months later, the outer box, internal tray and paperwork return, but a small promotional insert is missing. The dealer says it was never present.

The judgement

Both parties relied on a conclusion rather than an inventory. 'Complete' did not identify the object, packaging, instructions, promotional material and loose accessories separately.

Collector lesson

Custody records should enumerate components. They should not use market shorthand as a substitute for evidence.

8 · Risk allocation

Insurance, liability and the owner's existing policy are different protections

A reputable business taking custody does not prove that every event, location or value is covered.

Questions the agreement should answer

•When does the intermediary's responsibility begin?

•Who bears risk during collection and return transport?

•Is protection insurance, legal liability or a contractual damage arrangement?

•What value basis applies: market, reserve, estimate or agreed value?

•Are theft, accidental damage, water, fire and disappearance included?

•Are fairs, studios, third-party storage and vehicles covered?

•Is depreciation following repair recognised?

•Who makes the claim and supplies evidence?

•What excess applies and who pays it?

•Does the collector's own insurer need to be notified?

A business may charge a damage, liability or risk fee without arranging conventional object insurance. Equally, an intermediary can carry insurance but remain contractually liable only in limited circumstances. The collector should understand the interaction rather than accepting a single reassuring word.

Transport adds legal and material complications

The agreement should allocate packing, delivery to the agent, return if unsold, delivery to the buyer, customs declarations, export licences, border charges, insurance and claims. Particular caution is required for wildlife-derived material, cultural property, weapons and militaria, hazardous or radioactive items, alcohol, archaeological material, batteries and pressurised containers. Acceptance by an agent does not prove that every proposed route or destination is lawful.

9 · Description and disclosure

The intermediary must know what is fact, opinion, uncertainty and owner-supplied information

A sale becomes fragile when uncertainty is strengthened into certainty merely because stronger wording might improve the result.

The consignor should disclose

•Authenticity doubts and disputed attribution
•Replaced parts, repairs, recolouring or trimming
•Cleaning, restored packaging and reproduction accessories
•Uncertain ownership or provenance
•Previous rejection by an authenticator
•Prior failed auction listings or buyer disputes

The intermediary should clarify

•Whether it repeats the owner's account or gives its own opinion
•Whether authenticity is guaranteed or qualified
•Which third-party certificate or expert is relied upon
•What condition language and warranties are offered
•Who approves catalogue changes before publication
•How complaints about description will be assessed

Qualified language carries market meaning

Phrases such as "possibly", "attributed to", "believed to be", "associated with" and "from the collection of" are not decorative alternatives. They communicate different levels and types of evidence. The owner should not permit an intermediary to remove a qualification unless new evidence genuinely supports the stronger claim.

10 · The buyer-facing transaction

Who is the seller to the buyer?

The intermediary may act openly for a named owner, for an unnamed owner, in its own name while acting economically for the owner, or as principal after buying the object.

This structure affects invoice wording, warranties, consumer obligations, tax, enforcement and who receives a legal complaint. A private owner should not assume that selling through a trader preserves all the characteristics of a private-person sale. The actual representations and roles matter.

Returns and disputes should allocate decisions and costs

Who decides?

•Whether the object was materially misdescribed
•Whether a return or partial refund is justified
•Whether repair, authentication or legal action is appropriate
•Whether the object may be resold after a failed transaction

Who bears the cost?

•Outward and return shipping
•Lost commission and processing fees
•Authentication, repair and legal expenses
•Exchange-rate differences and damage during return

11 · Payment

Sold does not necessarily mean payable

A collector should distinguish sale date, invoice date, buyer-payment date, cleared-funds date and seller-payment date.

Sale agreed

Buyer invoiced

Funds received

Conditions clear

Seller paid

The payment clause should explain when the buyer must pay, whether the intermediary must receive cleared funds first, how soon the seller is paid afterwards, whether the period runs from sale or buyer payment, which currency applies, who bears conversion costs and what happens if the buyer defaults. Unless payment is guaranteed, the consignor may continue to bear buyer-credit risk after a sale is announced.

Buyer default

The intermediary may be allowed to cancel, pursue the buyer, retain a deposit, charge interest, resell, accept a lower settlement or return the object. The owner should know whether the agent is obliged to pursue, who funds enforcement, who controls settlement and what happens to any deposit.

A reported sale can reverse without producing proceeds. The agreement should make that possibility visible before the object is consigned.

12 · Failure and exit

Unsold, withdrawn and stale objects need an agreed route home

A strong proposal explains not only how the object will sell, but what will happen when it does not.

After an unsold result

Options include immediate return, automatic relisting, continued private marketing, transfer to another venue, a consented price reduction, dealer purchase or clearance.

Open-ended authority to reduce price because time has passed should be resisted.

Withdrawal by the owner

Agreements may recover research, photography, catalogue, transport and marketing costs or charge commission as though a sale occurred.

Understand the scale of the obligation before publication makes withdrawal commercially expensive.

For recognisable, rare or high-value collectibles, a failed public auction can become part of the object's market history. Buyers may infer an unrealistic reserve, weak demand, condition concerns or a motivated seller. Those inferences may be wrong, but they still influence later negotiation. This is one reason to consider private agency where the buyer pool is narrow and a failed public test would cause disproportionate harm.

13 · Conflicts

Aligned interests should be demonstrated, not assumed

The intermediary may prefer a quick transaction while the owner prefers the highest price, or may have relationships and financial interests on both sides of the sale.

Evidence

The proposal emphasises a high expected selling price but gives no itemised net calculation.

Meaning

The intermediary may be discussing the market-facing figure rather than the amount the owner will receive after commission, tax on charges and expenses.

Collector risk

The consignment can appear superior to a dealer offer while producing less cash after deductions.

Evidence

The agreement grants broad discretion to market, discount and conclude a sale.

Meaning

The agent may be able to make binding decisions without fresh owner approval, even where the practical effect is not obvious from the sales conversation.

Collector risk

The owner may lose control over price, buyer, venue, disclosure, return settlement or later resale.

Evidence

The object is accepted without a signed inventory and condition photographs.

Meaning

Possession has moved, but identity, completeness and pre-existing condition have not been independently fixed at handover.

Collector risk

Loss, substitution, missing accessories and damage become harder to prove, insure and recover.

Evidence

The intermediary says the item is 'insured' but cannot explain value, period, exclusions or claims procedure.

Meaning

The business may have liability arrangements, a damage fee or limited cover rather than comprehensive object insurance.

Collector risk

A reputable name can create false confidence while transport, fairs, unattended vehicles or mysterious disappearance remain excluded.

Evidence

Payment is described as due after sale, but the contract makes it conditional on buyer funds.

Meaning

The intermediary may report a sale before the buyer has paid, fraud checks have cleared, return rights have expired or export conditions have been satisfied.

Collector risk

The collector continues to bear timing and buyer-credit risk after believing the transaction is complete.

Evidence

The intermediary receives fees from both seller and buyer.

Meaning

Dual remuneration may affect price presentation, negotiation behaviour and the intermediary's apparent neutrality.

Collector risk

Undisclosed incentives can favour speed, a preferred buyer or a transaction structure that is not optimal for the owner.

Conflicts requiring disclosure or control

Representing both buyer and seller

Owning a competing object

Earning both buyer-side and seller-side fees

Directing the item to a favoured client

Recommending an associated restorer or authenticator

Buying the object personally or through a related party

Using the seller's risk to test demand before making a dealer offer

Prioritising higher-value consignments after accepting the object

Passing the item to an undisclosed sub-agent

Collector scenario

Consign first, buy later

A dealer proposes marketing a collectible at a high price, reducing it gradually, and buying it personally if the campaign fails.

The judgement

The arrangement can be convenient, but it lets the dealer test demand at the owner's risk, learn the owner's minimum and potentially acquire a now-stale object at a lower figure.

Collector lesson

Separate the agency phase from any later dealer offer, including fresh valuation, expense treatment and the owner's unrestricted right to seek alternatives.

14 · Selecting the intermediary

Reputation matters, but operational competence protects the object and the proceeds

A charismatic expert may be an excellent market voice and a poor custodian, administrator or payer.

Category competence

•Has sold the exact type of collectible
•Understands variants and completeness
•Recognises restoration and reproduction
•Can explain the active buyer pool

Relevant results

•Completed sales rather than ambitious listings
•Recent and genuinely comparable examples
•Clear distinction between hammer, buyer total and seller net
•Evidence of unsold rates and channel performance

Operational competence

•Inventory, security and storage controls
•Photography, enquiry and payment procedures
•Returns, shipping and record keeping
•Financial stability and client-money discipline

Reputation and accountability

•Collector-group feedback and trade references
•Consistent payment history
•Written terms, address and identifiable legal entity
•A credible process for complaints and property return

The intermediary should answer four practical questions

Who is the likely buyer?

Not necessarily a name, but a credible buyer type and market.

Why is this the right channel?

The answer should connect the object's qualities with the venue and sales method.

What will the seller actually receive?

The calculation should include likely deductions and the basis of each one.

What happens if the plan fails?

Higher

The collection is large, the enquiries burdensome or the estate needs controlled dispersal.

Judgement

Administrative relief can be a legitimate economic benefit, but it should be valued consciously rather than hidden inside commission.

Consignment tends to work well when

✓The object has meaningful value and uncertain price potential
✓Specialist description or presentation can improve confidence
✓The intermediary has demonstrable buyer access
✓The seller can tolerate delay and uncertainty
✓Physical inspection or professional transaction handling matters
✓The owner wants more upside than a dealer cash offer provides

Consignment may be a poor choice when

×Handling costs are high relative to value
×An outright offer is close to the likely consignment net
×The seller needs prompt certainty
×The intermediary lacks category expertise or buyer access
×The object is fragile, restricted or difficult to insure
×The public record of failure would be damaging

16 · Practical workflow

A controlled consignment from proposal to proceeds

The sequence matters because the collector's negotiating power and quality of evidence usually decline once the object has moved or been published.

Test the route before the sales pitch

Ask who the likely buyer is, why this venue fits the object, what the expected net return is and what happens if the plan fails.

Do not hand over an object simply because the intermediary is enthusiastic about it.

Verify the intermediary

Confirm the legal business identity, address, category competence, relevant sold results, references, operational controls, financial stability and written terms.

Social prominence and expertise do not prove safe custody or reliable payment.

Calculate the economics

Model seller commission, VAT or tax on charges, transport, insurance or liability fees, photography, storage, authentication, platform costs and unsold or withdrawal fees.

Compare net cash outcomes, not an agent's headline sale price with a dealer's cash offer.

Define authority and limits

Set the asking price, reserve or minimum net, discount discretion, acceptance authority, exclusivity, tail period, sub-agency rules and approval thresholds for costs.

The seller's bargaining power is greatest before the item is collected, photographed or published.

Fix identity, completeness and condition

Create a signed property schedule with unique references, components, packaging, certificates, defects, restoration and photographs taken immediately before or at transfer.

'Complete' is not adequate custody documentation for boxed or multi-part collectibles.

Confirm custody and risk

Establish when responsibility begins, where the object may travel, how it is segregated, the value and scope of cover, and the return process if unsold or the intermediary fails.

Title remaining with the consignor is valuable only when the specific property can still be identified and recovered.

Monitor material changes

Keep written records of price changes, reserve reductions, venue changes, new expenses, offers, sub-agents, object movements and altered sale dates.

Confirm important telephone decisions in writing while the facts are still fresh.

Reconcile the outcome

Obtain an itemised post-sale statement showing the sale basis, every deduction, tax, adjustment, currency conversion, net proceeds and payment date.

A single unexplained 'net due' figure is not an adequate accounting for a consigned object.

17 · Documentation

The consignment file should explain the entire transaction without relying on memory

A disciplined record protects ownership, condition, instructions, financial reconciliation and later provenance.

Intermediary identity and competence

□Legal business name, trading name and physical address
□Named contact and clear ownership or management details
□Evidence of sales in the same collecting field
□Technically credible descriptions and relevant sold results
□Trade references or feedback from previous consignors
□A clear explanation of the likely buyer and route to market

Commercial terms

□Commission basis, minimum fee and any buyer-side remuneration
□Every permitted expense and the point at which approval is required
□Reserve, asking price or minimum-net instruction
□Discount authority and treatment of offers
□Exclusivity, duration, renewal and tail period
□Withdrawal, unsold, storage and return charges

Custody and protection

□Signed inventory and condition photographs
□Storage location, movement controls and segregation from owned stock
□Transport responsibility and packing arrangements
□Insurance or liability basis, insured value, exclusions and excess
□Permission for fairs, studios, third-party storage or sub-agents
□Return procedure following termination, failure or insolvency

Sale and payment

□Who contracts with the buyer and whose name appears on the invoice
□Who may accept an offer, receive funds and release the object
□How authenticity, condition and provenance statements are approved
□Who handles returns, partial refunds and buyer complaints
□Whether payment to the seller is guaranteed or depends on buyer funds
□Payment timetable, currency, exchange costs and final statement format

Agreement coverage at a glance

Area	What must be clear
Parties	Legal identities, addresses and contact details
Property	Detailed schedule, photographs, components and documents
Ownership	Title remains with the consignor until a valid sale
Authority	What the intermediary may advertise, negotiate, accept and sign
Channel	Auction, private sale, retail, online, event or multiple routes
Price control	Asking price, reserve, minimum gross or minimum net
Commission	Percentage, basis, thresholds, minimums and dual remuneration
Expenses	Permitted deductions, caps and approval points
Custody	Storage, movement, segregation, sub-agency and return
Risk	Insurance or liability period, value, exclusions and claims
Marketing	Specific activity, image use, confidentiality and publicity
Disclosure	Authenticity, attribution, condition, restoration and provenance
Buyer issues	Default, returns, refunds, disputes and resale authority
Seller payment	Trigger, deadline, currency, deductions and statement
Unsold property	Relisting, price reduction, storage, transfer and return
Exit	Withdrawal, termination, tail period, insolvency and dispute process

Retain after handover

□Signed agreement and property schedule

□Pre-handover and receipt photographs

□Transport and insurance evidence

□Correspondence and written instructions

□Price, reserve and expense approvals

□Published listings and marketing links

□Offers, buyer issues and return records

□Post-sale statement, invoice and payment evidence

□Return documentation for unsold property

18 · Warning signs

Convenience should not require the collector to surrender basic evidence or control

One warning sign may have an innocent explanation. Several together suggest that the apparent service may conceal custody, financial or reputational risk.

Refusal to provide written terms or identify the legal business

Vague, changing or orally described commission and deductions

No signed inventory, receipt or condition record

No clear explanation of custody, storage or insurance

Pressure to hand over immediately or before terms are agreed

Guaranteed prices unsupported by comparable evidence or a named route

Permission to deduct unspecified expenses or use unexplained sub-agents

Indefinite exclusivity or unlimited authority to reduce price

Payment delays that are unusually long or dependent on unrelated sales

Pressure to conceal defects, strengthen uncertain attribution or invent provenance

Unclear separation between seller funds and ordinary business cash

Reluctance or delay when asked how an unsold object will be returned

Must resolve before handover

•Legal identity of the intermediary
•Signed inventory and condition record
•Ownership, authority, price floor and commission
•Custody, insurance or liability and return rights
•Payment trigger and deadline

Should negotiate before publication

•Expense caps and approval thresholds
•Marketing commitments and image rights
•Exclusivity, discount discretion and tail period
•Sub-agency and third-party platform permissions
•Unsold, withdrawal and storage charges

Monitor during the consignment

•Location, venue and sale-date changes
•Offers, reserve adjustments and discount approvals
•New costs, repairs, testing or authentication
•Buyer payment, return exposure and settlement status
•Final statement and recovery of property or proceeds

19 · Myth and reality

Common assumptions that weaken collector judgement

Myth

A prestigious intermediary will automatically achieve the highest result.

Reality

Brand recognition does not guarantee that a particular object will receive specialist attention, targeted marketing or a suitable sale. Category competence and the proposed route matter more than prestige alone.

Myth

The stated commission is the total cost.

Reality

Photography, research, insurance or liability charges, transport, platform fees, storage, authentication, VAT on services, withdrawal and unsold charges can materially change the result.

Myth

The owner stays in control because the object is still theirs.

Reality

Ownership and practical control are different. Broad authority can let an agent negotiate, discount, conclude a sale, settle a complaint or move the object without new approval.

Myth

A reported sale means the seller can now expect immediate payment.

Reality

Payment may remain conditional on cleared buyer funds, fraud review, inspection, return periods, delivery or export approval.

Myth

A failed auction proves the collectible was overvalued or defective.

Reality

Failure may reflect timing, venue, absent bidders, weak marketing or reserve strategy, but the public result can still influence later buyer behaviour.

Myth

Consigned property is safe from a dealer's financial problems because title never transferred.

Reality

Legal title helps, but recovery also depends on accurate records, physical identification, segregation and the ability to trace the exact object if the business closes.

20 · Collections and estates

Large dispersals require channel allocation, not one-size-fits-all selling

When hundreds or thousands of objects are involved, the intermediary's most important skill may be deciding what should not be sold through the same route.

A collection may need division into

•Exceptional individual lots
•Specialist groups and coherent sets
•Ordinary saleable items
•Bulk lots and duplicates
•Incomplete or low-value residue
•Archival and documentary material

Estate safeguards should include

•Verified authority to consign
•Independent inventory and separation of estate property
•Clear approval rights and regular reporting
•Audit trail for every disposal
•Written treatment of unsold residue
•Preservation of provenance and collection records

A competent agent should not force an entire collection through the channel that is most convenient for the business. The objective is to preserve value, context and accountability across different classes of material, including the less glamorous residue where losses and undocumented disposal often occur.

Specialist threshold

When legal, tax or insurance advice becomes proportionate

Routine low-value consignments can often be managed through clear written terms and disciplined records. Specialist advice becomes increasingly proportionate where the object, transaction or authority structure creates consequences that cannot safely be judged from market custom alone.

•High-value or irreplaceable property
•Cross-border sale, export controls or restricted materials
•An intermediary acting in its own name or for both parties
•Unclear VAT, margin-scheme or trading-status treatment
•Complex authenticity, title or provenance disputes
•Estate property, multiple beneficiaries or fiduciary duties
•Long exclusivity, onerous withdrawal terms or broad discretion
•Uncertain insurance, client-money handling or insolvency exposure

Conclusion

The quality of the bridge matters more than the confidence of the pitch

Consignment works when interests are sufficiently aligned but roles remain distinct. The owner contributes the property, its history, truthful disclosure and authority to sell. The intermediary contributes access, expertise, credibility, labour and transaction infrastructure. Failure usually begins when one party assumes the other is carrying a risk that was never allocated in writing.

The strongest consignment proposals do not rely on optimism. They make ownership, authority, deductions, custody, failure and payment visible before the object moves. A good agent does more than find a buyer. They create a controlled path from collection to market while preserving the collector's ability to understand, approve and recover what matters.

Key takeaways

✓Consignment is not a sale to the intermediary: the collector normally retains ownership until a buyer completes a valid purchase.
✓Agency concerns the intermediary's authority. Physical custody and legal authority should be defined separately.
✓The correct economic comparison is between net outcomes after deductions, time, risk and payment uncertainty.
✓A minimum net return can protect the seller more clearly than a minimum headline price.
✓Identity, completeness and condition should be fixed in a signed inventory before custody changes.
✓Insurance, legal liability and the collector's own policy are separate protections and must not be assumed to overlap.
✓The owner should know who contracts with the buyer, who handles complaints and when a reported sale becomes payable.
✓A strong intermediary can add real value, but the proposal is incomplete until failure, withdrawal, default and return are also explained.

Continue learning

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