Wine Auctions-Bargain or Bust?

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Wine Auctions-Bargain or Bust? - 3/15/2008 8:00:02 AM

cgrimes

Posts: 895
Joined: 10/8/2007
From: Massachusetts
Status: offline

I'm interested in hearing what others have to say about this subject:

Last night I participated in the Skinner Spring Wine Auction in Boston (couldn't make it so left four absentee bids). I bid on small lots as do not have the means to purchase by the case. Of course all of my bids failed sometimes for a price twice my bid. When placing my bids I did lots of research for each both on CT, various other websites, and local retailers. I have heard auctions are a good place to buy older wines but after my second auction, I'm not so sure. Here's one example. Pontet-Canet '00--my top bid for 4 bottles was $225 (+ 21% fee to total approx. $270). This was based on general prices on CT and the fact that a local retailer sells it for $70/bottle. The total price won for those for bottles was $486 or approx $122/bottle. Why would I pay more than retail (or even retail price) for wine at an auction? Why would anyone overpay retail for wine? I could understand if it were DRC or another prize wine which really has only relative retail value to begin with but Pontet-Canet?

I can only draw 3 conclusions:
1) Restaurants purchase many of the lots and overpaying a little has little meaning when you are going to resell something for 100% profit.
2) There is an overabundance of wealthy collectors who do not bother to do their research and are willing to pay whatever they think is a relative bargan regardless of reality.
3) People bid based on sentimentality or get caught up in the moment.

I'll keep trying, but I feel we small-time collectors, lovers of wine seem to be at a serious disadvantage. I'll not succumb, though, as I hate to overpay for wine.

Post #: 1

RE: Wine Auctions-Bargain or Bust? - 3/15/2008 8:29:59 AM

JohnNezlek

Posts: 208
Joined: 12/14/2006
From: Gloucester, Virginia
Status: offline

Dear Colleagues,

I too have been puzzled by the fact that wines are sometimes/frequently/whatever sold at auction at prices above simple, basic, retail. I doubt that restaurants really contribute to this (particularly for small lots). I suspect that individuals get caught up in the moment and/or they have not done their homework. My recommendation is to continue to submit bids that you think are reasonable. Eventually you will get a few hits -- at least this has been my experience.

Good luck,

John

(in reply to cgrimes)

Post #: 2

RE: Wine Auctions-Bargain or Bust? - 3/15/2008 9:25:30 AM

apes

Posts: 165
Joined: 1/29/2008
From: CT
Status: offline

Been to a few auctions of all types, never a wine auction. I would say that people get caught up in the moment and lose all sense of reality. I bot 4 bottles of Pontet canet a couple of weeks ago, 69.99 per.

(in reply to JohnNezlek)

Post #: 3

RE: Wine Auctions-Bargain or Bust? - 3/15/2008 2:33:58 PM

cgrimes

Posts: 895
Joined: 10/8/2007
From: Massachusetts
Status: offline

And I would add that $70 is a fair price for this good quality wine in a good year, not $123. Congrats--you got a good deal. Are there any more left?

(in reply to apes)

Post #: 4

RE: Wine Auctions-Bargain or Bust? - 3/15/2008 4:27:07 PM

ParkHill

Posts: 124
Joined: 6/27/2007
From: Denver, CO
Status: offline

It is hard to get a good deal at auction on cult or highly-rated wines. Hype and high-ratings pull in both knowledgable and inexperienced bidders. So target decent, but not big-name wines.

Knowledge about good producers or good years, can lead to better deals. For example, look for 1996 Barolos and Barbarescos in the $70 range rather than $200. Because that is such a good year, it may not matter if the wine is well-rated or if the producer is that well-known, you're still likely to get a good wine. In this example, you are also probably filling in your 2007-2015 drinking window, instead of chasing 2015 - 2025. It also helps to know that collectors prefer Barolo over Barbaresco, so if you look to Barbaresco you are less likely to be going head-to-head with a well-heeled collector or wannabe collector.

At Winebid.com I've had better luck during holidaty weekends, and on weeks where they don't have many cult wines in your category.

On the other hand, I've had bad luck with package deals, like vertical six-packs, as they throw in some dogs knowing you are paying attention to the big names.

(in reply to cgrimes)

Post #: 5

RE: Wine Auctions-Bargain or Bust? - 3/15/2008 5:25:42 PM

cgrimes

Posts: 895
Joined: 10/8/2007
From: Massachusetts
Status: offline

I've never considered Pontet-Canet, for example, a cult or hyped wine. I agree with you in principle but scanning the auction results I saw overpriced final sales of nearly everything, even village level Burgundies from the '80s. I just felt like there were lots of people with money to burn who simply wanted to bring home wine. Another example of one of my bids was '89 Vieux Donjon--a nice wine. I bid $175 (2 bottles) and it sold for a total price of nearly $300. For Vieux Donjon--$150/bottle--has the world gone mad??

(in reply to ParkHill)

Post #: 6