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View Full Version : It’s a Matter of Trust - Judge a Tree by its Fruit



ChrisCavalier
12-10-2007, 04:11 PM
In a previous post that commented on GUU’s October Consignment Auction, I found the following statement to be extremely insightful, “Moreover, I felt confident that my "Ceiling" bids were not compromised as on both items I won, I was under my "Ceiling" bids. Does that mean that GUU didn't get top dollar and that the clients should complain? No, just the opposite as the prices achieved were reflective of the true marketplace and in the end that can only benefit all parties to the transaction.”

At the statement suggests, from a consignor’s standpoint, one might argue that GUU could have gotten more money for items in our auction if we pushed bids up to the bidders’ ceiling bids. To be very honest, if you remove the variable of integrity from the equation, that argument seems logical. However, as the statement above also implies, pushing bids up to their “ceiling” amounts would be manipulating the prices and therefore be unethical.

We at Game Used Universe have made it very clear that we are committed to "integrity before profits" and we want everyone doing business with us to know they can trust us. That is why we set up our system so that those monitoring the bids could not even see the ceiling bids. In fact, here are two previous threads where we discussed this point and members provided some of their own comments:

http://www.gameuseduniverse.com/vb_forum/showthread.php?t=11910

http://www.gameuseduniverse.com/vb_forum/showthread.php?t=11911

While we definitely forfeited potential short-term profit for items that did not reach their ceiling bids, we do not believe bidders should have paid more than the market dictated for their items in the auction. That is where the ethics part of the equation comes in. We believe bidders, and consignors, over time will make their own determinations as to whom they feel they can trust with their business, and that will be a very positive thing for GUU. Among other things, we feel more and more bidders will choose GUU because they know they can trust us and this will mean good things for GUU and for our consignors as well.

While I feel confident that the Game Used Universe name is one that collectors have come to trust, I also know that my saying so is not any different from other maybe not-so-trustworthy entities who talk about how honest and ethical they are. That is why I always caution people not to believe me just because of what I say. I tell people to look beyond my words and look at our actions. There is a great teaching that says you can judge a tree by the fruit it bears. A good tree will bear good fruit. I trust that if people look at how Game Used Universe has positively affected the market over the last few years and how we have materially demonstrated our uncompromising commitment to integrity before profits, they will have the evidence they need to know we are more than just ideal words.

Am I saying that GUU is the only trusted entity in the marketplace? Absolutely not. The point I am trying to make is that I believe the collecting community is made up of smart individuals who can make informed decisions about who they want to do business with. I believe there are entities worthy of collectors trust and that collectors can make that decision by looking at the fruits of what those companies produce. In GUU’s case, I believe the efforts we have made to correct many of the problems in the marketplace, as well as the transparency of our policies in running an honest business, are fruits that speak for themselves. I also believe that if collectors make that their criteria going forward, the future looks bright for companies and individuals that have worked to earn collector trust.

Sincerely,
Chris Cavalier

commando
12-10-2007, 04:29 PM
Hopefully everyone understands the basis of a ceiling bid. When a ceiling bid is placed, it is in no way, shape or form permission given by the bidder to automatically pay that price. The purpose of placing a ceiling bid is to specify the maximum amount he is willing to bid if others are bidding on the item. It is not practical for telephone auction houses to continually call prospective bidders (or for a bidder to continually call) over and over again every time a bid changes -- hence, the need for a ceiling bid.

It is no different than placing a $100 bid on an eBay item, and winning the item for $83.50... Neither eBay nor the seller has the right to take your full $100 just because you were willing to pay that much if you had to.

I appreciate the honesty of Chris and his crew, and look forward to the next auction!

grandpahoo
12-10-2007, 04:40 PM
Chris,

I really like the framework within which you're running your auctions, and I think the process you're using is the best I've scene with regard to authentication. The only question / concern I have is whether the business model is workable. Specifically, what is the incentive for consignors to sell their items through GUU when (1) the items will go through a much more rigorous process with regard to authentication here than they would elsewhere, and (2) the items may end up selling for less money because of the way GUU handles ceiling bids? This is a great business model for buyers, but if a consignor can sell an item for more money elsewhere, how are you going to convince them to consign their items with GUU? Ideally, more and more buyers will eventually begin to value the process you're using, and as a result, the items auctioned through GUU will carry a premium. However, that's more of a long-term goal.

I'm not trying to be Captain Buzzkill - I just like what you're doing and want to see you guys succeed.

ChrisCavalier
12-10-2007, 06:21 PM
I really like the framework within which you're running your auctions, and I think the process you're using is the best I've scene with regard to authentication. The only question / concern I have is whether the business model is workable. Specifically, what is the incentive for consignors to sell their items through GUU when (1) the items will go through a much more rigorous process with regard to authentication here than they would elsewhere, and (2) the items may end up selling for less money because of the way GUU handles ceiling bids? This is a great business model for buyers, but if a consignor can sell an item for more money elsewhere, how are you going to convince them to consign their items with GUU? Ideally, more and more buyers will eventually begin to value the process you're using, and as a result, the items auctioned through GUU will carry a premium. However, that's more of a long-term goal.
Hello Justin,

Thank you very much for your post. You are correct, our goal is to create a marketplace where collectors can make informed decisions regarding the legitimacy of items of interest. We also understand that this will eliminate many items from being offered through GUU. The reason I say that is, with both our preliminary evaluations as well as the ability for collectors to ask questions and have those questions answered by our collective community, it will be nearly impossible for suspect and questionable items to make it through our system without being identified.

So what does that mean? We believe it will translate into a community of buyers who are interested in getting items that they believe are truly legitimate and not necessarily interested in trying to get an item for the lowest price. Although we have had only one auction, I think we are seeing that play out already. For example, the John Elway jersey in our auction closed at $19,976 with the premium. You can find Elway jerseys all day long for a fraction of that price in many other places. However, as the buyer of the jersey told us, he wanted a truly legitimate jersey and this was the first one he felt really comfortable buying. There were also a number of other items in our auction that achieved higher prices than comparable items in other auctions and, again, this was just our first auction.

Personally, I think there is a trend where collectors are becoming more and more discriminate regarding the items they purchase. Interestingly, if you look at the adaption curve, we have probably still not reached the stage where the 'masses' fall in. However, there are enough buyers out there who are doing their research and not accepting just any opinion that an item is legitimate. And, those adopting a process where they spend more time evaluating items will only increase as things like our model become more recognized by the market.

Notably, I think the people that are taking the time to research their items are the ones who are going to be rewarded going forward. That is, the people thinking they are getting "deals" when they buy items today at low prices through certain venues are going to be in for a rude awakening if they ever try to offer those items to the market say two to three years from now. In my opinion, the marketplace two to three years out will be much more educated and items that are being sold today will not find anywhere near the buyers in the future.

The bottom line is, we obviously agree that our model is a superior one in terms of helping collectors identify whether or not items are truly legitimate. We also believe that GUU will continue to attract buyers because we are proving ourselves trustworthy (by our fruits) along with the fact that collectors have all the tools they need on GUU to help them make informed decisions about the items they purchase. Judging from the numerous people who have already contacted us about wanting to consign in our next auction, I think the collecting community is already starting to recognize that as well.

Sincerely,
Chris

grandpahoo
12-10-2007, 08:10 PM
I definitely hope you're right. For what it's worth, I can tell you that I'll always be interested in purchasing items through your auctions, which is something I can't say for any other auction site out there.

34swtns
12-11-2007, 08:55 AM
Yeah, I've said before that it's "funny" how every item I've ever won throught the major auction houses was won only after my ceiling bid was achieved and never less than that. Seriously.....NEVER.

I apreciate your commitment to honesty and integrity and would hope that your future auctions are such a success that other auctions have to take notice and adjust their policies accordingly. I'm also still checking my backyard every day for the unicorn than I'm sure will be along any minute.

Continued success, Chris.
You do things the way they SHOULD be done.;)

allstarsplus
12-11-2007, 09:44 AM
I bid on several items, but didn't win anything. My only issue was tracking by bids/outbids. Is there a "My Bids" summary page on the auction site?

If not, that would be helpful.

Thanks. Andrew