Smart Money Details Economics of Sold-Out Products

"Footage of people lining up around the block...helps generate publicity"

So, now that the Christmas shopping season has come to an end once again, you're off the hook for that Nintendo Wii Fit for another year - or at least until Junior's birthday. Which is a good thing, since you weren't too keen on paying upwards of $300 for the popular gaming system that retails for $89 but is ever in short supply. Better that the spouse wasn't sweet on Amazon's Kindle, the e-book system that is now all the rage - 'cause they were impossible to get.

But why? How can it be that companies that ought to be eager to sell their popular wares during a global recession can't seem to make enough of them? With roots in the scarcity that makes the auction culture function, the answer, according to a Smart Money piece from last week, might be smart strategy:

If you've put off your holiday shopping to the last minute, good luck trying to get your hands on Nintendo's Wii Fit or the Kindle electronic reader from Amazon (AMZN: 51.78, +0.34, +0.66%) at the retail price.

The Wii Fit - a fitness video game for the Wii gaming system - is in such high demand that it's selling for as much as $300 in Amazon's Marketplace, more than three times as much as its retail price of $89.99. Then there's Amazon's Kindle, which is currently sold out. Prices have recently soared as high as $700 on eBay (EBAY: 13.60, -0.05, -0.36%) - almost double the $359 retail price. Those not willing to pay that eBay premium will have to wait 11 to 13 weeks for the device to arrive.

Wondering why in this modern age of high-tech production and inventory management -- when a personalized iPod from Apple (AAPL: 85.81, +0.77, +0.90%) can be shipped directly from the factory to your door in just three to five business days -- it's so hard for some big-name companies to meet demand for hot products they've had on the market for months?

In the case of the Kindle, Amazon says it was blindsided by a surprise October endorsement by Oprah Winfrey that sparked such high demand that the company couldn't keep up.

Meanwhile, Nintendo says it's been in overdrive trying to meet demand for the Wii Fit since May when it first came out. "Remember that this is not simply a matter of pressing more discs," says Denise Kaigler, a spokeswoman for Nintendo of America.

Of course, sometimes it isn't a bad thing for a company when there isn't enough product to go around. You might assume it's good business to sell as many units as possible, but economists we spoke with say scarcity can also do wonders for a company's sales.

Not only does news footage of people lining up around the block when a new shipment of Wii Fits arrives at Best Buy help generate publicity, but it also makes people want that product even more. 'There may be some type of bandwagon effect," says Lawrence White, professor of economics at New York University's Leonard N. Stern School of Business.

And when a shopper knows a product is in short supply, they tend to feel more of an urgency to purchase it immediately when they come across it in a store, says Michael Mazzeo, management and strategy professor at Northwestern's Kellogg School of Management. Such hot demand not only boosts sales, but it also means that the manufacturer doesn't have to resort to discounting in order to clear shelves -- a move most companies have had to make amid slow consumer spending this holiday season.

Below, a look at some notable shortages in recent history:

1981: Japanese cars. In 1981, Japanese automakers agreed to a voluntary export restraint that limited the numbers of vehicles they would sell in the U.S. It made Detroit happy - but wound up also helping to create more demand for the foreign cars. As a result of the scarcity, Japanese automakers were able to raise their prices by 14%, according to a study by the Property and Environment Research Center, a Bozeman, Mont.-based environmental research institute.

1983: Cabbage Patch Kids. Remember those funny little dolls with the squishy faces? During the holiday season of 1983, parents were practically knocking each other down in the hopes of scoring a Cabbage Patch Kid with a birth certificate for their child. Shoppers faced long waiting lists before the craze died down in 1985.

Late 1990s: Beanie Babies. Manufacturer Ty was careful not to flood the market with these plastic pellet-stuffed animals. The company had a well-publicized marketing strategy of only selling what was perceived to be a limited number of each design before retiring them, which helped to maintain the value and popularity of these little critters, says White of the Leonard N. Stern School of Business. The toys soon rose to the level of collectibles and, with the advent of eBay, the product's popularity soared. In online auctions, the bids kept going higher for these hard-to-find dolls.

We're back...and Merry Christmas!

As you may have noticed, we've been away for a few days. Mostly this has nothing whatever to do with the holidays. Blogger, the blogging program we use to produce ATR, was experiencing some sort of Java script problem that simply wouldn't publish our posts. By the time we discovered the problem late on Tuesday, we had to put our trouble-shooting aside to focus on travel and other plans having to do with the Christmas holiday.

By the time the weekend is out we'll have you updated on what you and we missed the past few days. In the meantime, we just didn't want to miss bringing you the most important message we can present at the moment. From our families to you and yours...

Merry Christmas!

Snot listing on eBay update..

Update 12/23/08: After we went to press, eBay spokesperson Nichola Sharpe provided us with the following statement after speaking to eBay policy experts:

There are vast differences between the two listings. The Tonite Show listing mentions nothing about bodily fluids (part of the condition of listing) while [the other] listing has the word "snot" several times throughout the listing (not to mention charity violation, and a mature audience inuendo). The listing is in violation on several levels.

Also, the Tonite Show listing is a one off exception listed with in cooperation with eBay, the Tonite Show and the charity. On occasion eBay will make special exception for extremely unique listings. This collaboration has to be done before the listing goes live to the site. This does not mean that we will allow copycat listings that would normally violate polic

Johansson's Snotty Tissue Sells on eBay

Television talk-show host Jay Leno listed an eBay auction for a used tissue that his guest, actress Scarlett Johansson, had blown her nose into and autographed. But sellers who remembered that talk-show host Jimmy Kimmel and actor William Shatner were prohibited from holding an eBay charity auction for the actor's kidney stone wondered why eBay didn't pull the Leno auction for violating the site's "Human Body Parts and Remains" policy. While eBay prohibits human waste from being sold through its site, it actually featured Leno's charity auction on its front page.

One seller decided to see what would happen if she listed a used tissue. eBay pulled her listing (Item # 330295800106) within hours for violating its Human Body Parts and Remains policy, and warned her that her selling status and privileges were at risk over the policy violation.

So Auction Bytes asked eBay's public relations department why it allowed the Johansson tissue auction to run. eBay spokesperson Nichola Sharpe said, "Our teams have been working closely with the charity listing the official item to ensure it doesn't infringe our policies. I have already checked with our experts a number of times. Not only do they develop and enforce the policy but have confirmed it is not in violation of it."

She did not immediately respond to our follow-up asking whether any eBay seller could list a tissue that they have blown their nose into while having a cold, and why eBay had removed Item # 330295800106 for a near-identical listing of a used tissue from a non-celebrity seller.

After our communication with eBay's public relations department, the seller whose used-tissue auction had been removed received a letter from the company's customer service department stating that the auction had been removed for a VeRO (Intellectual Property) violation, rather than the Human Body Parts policy it had originally cited. "Unless Scarlett Johansson had time to register the rights to snot, it's completely unrelated," the seller quipped to AuctionBytes. "And, just FYI, I never used her name, or Jay Leno's or the Tonight Show's in my listing."

The Johansson tissue auction ended with a bid on Monday evening for $5,300 - the proceeds will go to charity. There were 36 bidders and 83 bids.

I think that we were all curious as to whether the recipient might be in danger of catching the cold if they came in contact with their purchased tissue. An article about the incident on the Leno television program stated that the tissue was "smeared with snot and lipstick." So we contacted the Center for Disease Control (CDC) in Atlanta to find out.

A CDC spokesperson said, "It's unlikely there would still be viable cold virus around, as the usual ones tend not to survive that long once they dry out on surfaces. But there are lots of other pathogens, both viruses and other agents, that would survive for longer periods of time and potentially still be viable. One doesn't know what else may be in the specimen. So we would certainly discourage this type of activity and suggest it isn't a good idea. Viruses don't need help in moving from place to place."

From our familes to all of our Jewish friends and visitors, we wish you a truly Happy Hanukkah!

Snoop Dogg Auctions "Treasured" Garden Shed

Hip Hopper hopes to raise money for youth football program

A reader e-mailed us about this. Sorry we missed it from last week. It is dated 12/16 and the source is the World Entertainment News Network via the PR News Wire:

Rap superstar Snoop Dogg is hoping to raise money for charity by putting his garden shed up for sale. The "Drop it Like It's Hot" hitmaker is selling the treasured outbuilding, where he has written many hit songs, on auction website eBay, with the proceeds going to Snoop's Youth Football League.

He tells E! News, "I've had this shed since the turn of the century. I've beaten over 1,000 people in Madden in it, watched football game tapes, seen the Lakers win championships, and, most of all, written hits in it." And the shed is personally signed by the man himself for the winning bidder, for whom he has this message: "Enjoy it. And let the legend live on, ya dig?!"

ATR has been unable to find the shed on eBay as of this posting, but we'll keep lookin', ya dig?!

EXTRA! Christie's to Reorganize in the New Year

Global recession means dampened demand for art, auctioneer says

The worldwide economic downturn holds no quarter and curries no favor. If it's not stalwart manufacturing concerns such as Detroit's Big Three automakers (and even Toyota, which announced today its first operating loss in 70 years!) its high finance and even big retail feeling the pain. No sector or market is immune, as yesterday's news from Christie's makes clear. The auctioneer announced a reorganization starting next month, saying in an e-mailed statement that the global financial crisis has dampened the demand for art.

Bloomberg has more:

Christie's International will announce a "reorganization" in January, the auction house said yesterday in an e-mailed statement, as the financial crisis continued to dampen demand for art.

Earlier in the month, Christie's said it was reviewing its strategic plans because of economic weakness and the results at its autumn auctions. Selling rates -- and prices -- have also dropped at Sotheby's and Bonhams's pre-Christmas events in London, with Sotheby's announcing job cuts.

Christie's has already consolidated its London-based wine and book departments, as well as closing its modern- and sporting-gun section. These measures resulted in five employees leaving the company.

"We do anticipate a reorganization to be announced sometime in January. We have no further details to share at this time," said the statement.

When approached by Bloomberg News, the auction house would not comment on speculation in yesterday's ft.com/alphaville blog that owner Francois Pinault was considering selling the company. Pinault's holding company, Artemis SA, bought Christie's in May 1998 for $1.2 billion.

An Artemis spokeswoman, who declined to be identified, didn't immediately respond to emails and a telephone message about the company's plans for Christie's.

Although Christie's achieved a record 16.4 million pounds ($24.4 million) with fees for a blue diamond in December, selling rates at mainstream art auctions continue to fall.

Private Collecting

Christie's Dec. 12 sale of 20th-century British art, the mainstay of U.K. private art collecting, ended with 57 percent of the lots successful. The below-estimate total of 4.1 million pounds with fees was less than half the 9.4 million pounds achieved at the equivalent auction last year. Then, 81 percent of the lots were sold.

"The auctioneers are nervous. You can see it in their faces," Offer Waterman, who deals in 20th-century British art, said in a telephone interview.

"Anything second-rate is falling away dramatically," said London-based Waterman. "Trade buying has wilted. The good things are still selling, but people don’t want to risk good things at an auction if 50 percent is going to fail."

Sotheby's Dec. 9 auctions of marine paintings and Victorian & Edwardian art could only find buyers for 39 percent and 49 percent of the material.

Bonhams Sale

Two days later, Bonhams held a 56-lot auction of Impressionist and modern art in London that it forecast to fetch more than 3 million pounds. Only 23 percent of the works sold, raising a total of more than 600,000 pounds ($928,000) with fees.

"The failure rates are very high," said London-based dealer David Mason. "If you have something to sell at the moment, you have a problem."

Mason, a specialist in 19th-paintings, said he expected auction houses to announce job cuts in 2009.

"As soon as the art market becomes difficult, the auction houses are always the first to make redundancies. It’s not a matter of 'if,' it's 'when,'" said Mason.

On Dec. 4 Sotheby's said that its board approved a "restructuring plan" that will reduce the company's staff levels and other costs by $7 million in 2009. As yet, the New York-based auction house has not said when details of the plan will be announced.

Cost-Cutting

When approached by Bloomberg News, London-based Bonhams, which last year had worldwide sales of $600 million, would not confirm or deny that it was considering its own cost cuts.

By contrast, New York and London's other main auctioneer of contemporary art and design, Phillips de Pury & Company, has said that it may be expanding its workforce.

"As part of the company's yearly review in addition to increased growth expectations, Phillips de Pury & Company will be analyzing existing staff positions and looking to hire in those areas that are expected to develop," the company said in an e-mailed statement on Dec. 16. "We are not announcing any major cuts in staff."

The Moscow-based luxury retail company Mercury Group said on Oct. 6 that it had acquired a controlling stake in Phillips. Mercury owns the TSUM department store in downtown Moscow and the Barvikha Luxury Village in a Moscow suburb.

LiveAuctioneers Makes its Debut

Company Unveils Tiered, Customizable Fee Structure for Auction House Clients

In advance of next weeks official shuttering of eBay Live Auctions, LiveAuctioneers today debuted its live online auction platform. An official press release tells the story:

LiveAuctioneers LLC (www.liveauctioneers.com) announced today the completion and launch of its independent online-bidding platform in advance of the discontinuation of eBay's (Nasdaq:EBAY) Live Auctions service on December 31, 2008. Fully illustrated catalogs are currently available for preview and pre-sale bids are being accepted for auctions commencing January 1, 2009.

As part of the platform launch, the company unveiled its industry leading, credit based fee structure, allowing auction house clients to customize their account according to auction size, frequency and sales volume. The three tiered system offers a choice between Gold, Platinum and Platinum Plus level service and support, as well as a sliding rate scale in each category providing discounted rates according to the number of individual auction credits purchased.

Working in conjunction with over 760 auction houses worldwide and utilizing a database of more than 3 million active buyers, LiveAuctioneers serves as a highly efficient, one-stop resource for both buyers and sellers. By accessing the site, bidders gain instant access to tens of thousands of pieces of fine art, antiques and collectibles at any given time via easy to navigate online auction catalogs and a user-friendly live bidding applet. Rounding out the offering is LiveAuctioneers' various news and informational resources, including its recent launch of Auction Central News, the foremost resource for news and specialist information within the global antiques, fine art and auction sector; free access to over 5 million auction results illustrated by 60 million images; automated sales alerts; a weekly LiveAuctioneers e-newsletter; and more.

"For the past six years, we have worked tirelessly with our various clients in order to deliver products and services that maximize their live online sales experience while ensuring a rich and hassle free environment for consumers to express their passion for fine art, antiques and collectibles," stated LiveAuctioneers' CEO Julian Ellison. "To-date, the response to the new auction platform has been extraordinary and we do believe that January 1 will mark the beginning of a new era in the evolution and growth of the online auction marketplace."

Big Bucks at Auction for Inebriated John Lennon Recording

"Six minutes, 16 seconds, and John singing very drunk"

The last month has been an interesing time for Beatles buffs. Three weeks ago, the payroll document of an "E. Rigby" - believed to be the same person whose grave inspired Paul McCartney to write "Eleanor Rigby" - sold at auction for $177,000. Earlier that same week, the fifth copy of the Fab Four's so-called "White" album, autographed by the entire group, fetched over $31,000 at auction. Now, an item if Beatleana we'd classify as more esoteric has made auction news. CNN reported today under the headline "Drunk Lennon Recording Grabs $30k at Auction":

Maybe it wasn't John Lennon's best musical effort, but a tape of an apparently inebriated Lennon warbling a cover of Lloyd Price's "Just Because" brought a sobering $30,000 at auction Sunday in Los Angeles.

Bonhams and Butterfields auction house spokeswoman Margaret Barrett said Lennon had apparently had one too many when he got behind the mic in the 1973 recording session.

"It was six minutes, 16 seconds, and John singing very drunk and with John ad-libbing his own lyrics into the song -- so it's actually a fun song to listen to," Barrett said.

Described in the auction catalogue as "One standard orange-colored cassette tape with audio of Lennon in fall of 1973 singing the Lloyd Price song 'Just Because,' " the never-before-heard-in-public cassette was given to the former owner personally by Lennon, the auction house said.

That former owner was not identified, nor was Sunday's buyer -- for whom another Fab Four classic -- "Money" -- now might have new meaning.

eBay Makes Change to Ivory Policy

At start of new year, ivory sale banned with exceptions

In Friday, eBay announced a change to its policy on the sale of ivory. Brian Burke of the auctioneer's Policy Team announced that all ivory sales will be banned, with two exceptions:

1) Pianos with ivory keys will be permitted.
2) Wood furniture with ivory inlays will be permitted as long as the item was created before 1900.

The ban is an extension of the company's Animals & Wildlife Products Policy.

Among the penalties that eBay may assess to violators are: listing cancellation, limits on account privileges, account suspension, forfeit of eBay fees on cancelled listings and loss of PowerSeller status.

(Pictured: From Flickr, a man stands amid a pile of confiscated ivory. Is a necklace really worh an elephant's life? eBay wants no part of this. Kudos to them.)

Are Online "Penny" Auctions a Form of Gambling?

Gambling expert in U.K. wants investigation

Are web-based "penny" auctions - in which merhcandise can, as the name implies, be had for cheap - a form of gambling? Sites like MadBid.com offer British buyers the chance to score valuable items at a fraction of their normal price - making the whole process a kind of lottery, right? The whole story as it appeared on the BBC web site today:

Online "penny auction" sites are similar to lotteries and should be regulated in the same way, according to a gambling expert.

Penny auctions have gained popularity over the last few months and now have hundreds of thousands of users.

The sites auction new items, often for a fraction of their retail price, and bidders pay up to 1.50 pounds for each bid.

Professor Mark Griffiths of Nottingham Trent University believes the Gambling Commission "should look into this."

"I think bidding on penny auction sites is akin to a gambling-like experience," Professor Griffiths said.

"Obviously, when people are bidding again and again and again and they don't actually win the item in the end, that's very much like gambling." I did not expect to get the Mini when I started bidding

However, Juha Koski from online auction site Madbid.com disagrees:

"We have two experts who have given us their opinion on this.

"This is definitely a game of skill and would not form under any circumstances under the definition of gambling."

Happy winner

Successful bidders can win anything from a television to a car or a cash sum, for a fraction of its real cost.

Sandeep Anantharaman is one bidder who has won in style. He bid less than seven pounds for a new Mini. Not surprisingly, he is delighted:

"I did not expect to get the Mini when I started bidding. But once I got the message from the auction site telling me I'd won, I couldn't believe it. "

Penny auction sites have grown quickly and now have hundreds of thousands of users.

Concern

Unlike eBay, where you can bid for free, users have to pay between 40 pence and 1.50 pounds to place a bid. Bids automatically rise by 1p at a time, and some people make repeated bids.

Tony Northcott of the Trading Standards Institute believes some people may spend more than they realise on bids.

"My concern about these online penny auction sites is that people will bid for goods and not realise at the end of the day they may spend quite a large amount of money," he said.

The Gambling Commission said it could not comment on individual sites and was not convinced that penny auctions amounted to gambling.

However, it added that it would keep a close eye on developments in this area.

Buyers Investing in Antiques & Collectibles in Down Economy

Survey: "Consumers continue to collect these tangible and coveted finds"

Earlier this week, dmg (all lowercase) world media announced results of a survey that shows consumers are continuing to purchase antiques, including furniture, paintings, jewelry, and collectibles as investment opportunities at its shows during this struggling economy.

According to the National Retail Federation 2008 Holiday Consumer Intentions and Actions Survey, consumers are shopping in similar gift categories this year as they did last year. This means that more than 19 percent of respondents said they will be buying jewelry as a gift, keeping jewelry as one of the more popular gift items this year.

During this difficult economic climate, many individuals are investing in tangible items, including antique furniture, art, sculptures, jewelry and other collectibles rather than the stock market. Some of the popular items available at The Original Miami Beach Antique Show, going on Jan. 22 - 26, 2009, include rare and unusual historical art collections and antiques from around the world such as 18th - 19th and (20th) century furniture; original paintings and works of art spanning more than three centuries; fine American and European silver; highly sought 19th and 20th century art glass such as Tiffany, Lalique, Galle and many others; as well as world-renowned porcelain such as Meissen and KPM.

Consumers continue to collect these tangible and coveted finds

"Our clients have confirmed to us that individuals are continuing to purchase antiques, sculptures, art and jewelry as investments," said Andrea Canady, show director with dmg world media. "We're featuring these true treasures all in one location at The Original Miami Beach Antique Show., where consumers can view, touch and purchase these invaluable items." The Original Miami Beach Antique Show is set for January 22 - 26, 2009, at the Miami Beach Convention Center in Miami Beach, Fla. For show information visit www.dmgantiqueshows.com.

The Original Miami Beach Antique Show is just one of more than 300 trade exhibitions, consumer shows and fairs that dmg world media produces every year in the United States, the United Kingdom and France. The company also publishes more than 45 magazines, newspapers, directories, and market reports. dmg world media is a wholly-owned subsidiary of the Daily Mail and General Trust plc (DMGT), one of the largest media companies in the United Kingdom.

Amazon Tops eBay as Most-Visited Online Retailer

Amazon overtakes eBay as most-visited retail site, Nielsen says

From Nielsen Online via Internet Retailer:

Culminating a long stretch in which the two companies' traffic numbers have been heading in opposite directions, Amazon.com passed eBay.com in November as the most popular retail destination on the Internet, according to Nielsen Online.

Amazon.com, No. 1 in the Internet Retailer Top 500 Guide, attracted 57.7 million unique visitors last month, up 8% from last year, while eBay's audience of 55.4 million was 6% lower than during November 2007.

Here are the top 15 retail web sites in November, with unique visitors in millions this year and last and the percentage change.

Amazon, 57,682, 53,630, 8%
eBay, 55,438, 59,041, -6%
Wal-Mart, 39,420, 35,003, 13%
Target, 35,902, 34,611, 4%
Best Buy, 22,138, 22,736, -3%
Sears, 19,541, 17,805, 10%
Dell, 17,058, 18,918, -10%
JCPenney, 16,933, 15,929, 6%
Circuit City, 16,609, 19,135, -13%
Netflix, 13,538, 11,954, 13%
Kohl's, 13,257, 10,516, 26%
ToysRUs, 13,041, 13,726, -5%
The Home Depot, 12,169, 10,608, 15%
Overstock.com, 11,812, 18,419, -36%
Kmart, 11,713, 8,693, 35%

Unique visitors count only once each shopper who came to a site, no matter how many times the shopper visited. This is a custom list compiled by Internet Retailer of the top e-commerce sites in this category based on Nielsen Online data.

The top 10 online consumer goods advertisers in November, with impressions in thousands and share of impressions, according to Nielsen Online, were:

Avon Products Inc., 960,976, 9.7%
General Mills Inc., 681,068, 6.9%
iQ Derma, 609,441, 6.2%
The Procter & Gamble Co., 406,775, 4.1%
Unilever, 373,875, 3.8%
Nestle USA Inc., 234,484, 2.4%
Hasbro Inc., 222,223, 2.2%
Dermitage, 216,861, 2.2%
Sears Holding Corp., 209,111, 2.1%
FRS Company, 209,105, 2.1%

The news today is not uniformly wonderful for Amazon, as both it and eBay took hits from Wall Streeters, in our next story...

eBay and Amazon Stock Downgraded Yet Again

Brokerage firm lowers stock to "market perform"

A posting on the Schaeffers Research web site reports yet another rough ride for eBay and Amazon stock. Jocelynn Drake writes that the retailers' stocks were downgraded today from "out perform" to "market perform" by Bernstein Research. The brokerage firm stated that there was a greater risk of the companies cutting their outlook and under-performing given the weak economy.

Analyst Jeffrey Lindsay said in a note to clients that rising unemployment, continued home foreclosures that further tighten consumer discretionary spending, coupled with lower-than-expected overseas growth and margin erosion, will hurt both Amazon and eBay in 2009.

Last Wednesday we brought you the views of another Wall Streeter, Stifel Nicolaus, who made a downgrade of eBay stock from "buy" to "hold." That report, also from Schaffers, made this prescient advisory:

"There is still room for additional downgrades to plague the shares" (of eBay).

With each such hit from analysts, a CNN Money report, via Fortune last Friday, opining that eBay shares are a bargain, seems to be coming more true. At a time when Detroit is running out of hard currency, the CNN report notes that eBay has $3.3 billion in cash on hand.

Clearly, Bernstein isn't impressed:

"Analyst Jeffrey Lindsay said in a note to clients that rising unemployment, continued home foreclosures that further tighten consumer discretionary spending, coupled with lower-than-expected overseas growth and margin erosion, will hurt both Amazon and eBay in 2009.

"Online auctioneer eBay faces added problems such as slower-than-expected improvements in active user metrics, a reduced outlook for operating margins, and weakness in the auto market, Lindsay said.

The shares of EBAY dropped more than 1.4% this afternoon following the downgrade, pulling back to support at their rising 10-day moving average. This short-term trendline has guided the security steadily higher since November 24."

So, are you buying, selling or holding eBay shares? Your comments and opinions are appreciated.

For Doll Collectors, Chrissa-mas is Coming New Year's Day

There's an Innovative Rollout for American Girl's '09 Doll of the Year

For doll collectors, New Year's Day 2009 is also Chrissa-mas Day. That's the day that Chrissa, American Girl's 2009 Doll of the Year, makes her official debut. More on this was reported in USA Today Thursday:

Christmas comes late for Chrissa, American Girl's 2009 Doll of the Year, to be unveiled in stores on New Year's Day. In a first for the Mattel-owned collectible doll company, Chrissa's release coincides with a three-book series, HBO movie An American Girl: Chrissa Stands Strong (Jan. 5, 7:15 p.m. ET/PT), and a DVD release Jan. 6.

It also marks the first Girl film based on a contemporary doll instead of a historical figure. Her story? The moppet is a swimmer who has a twin brother. But she's also suffering "relational aggression," says Girl president Ellen Brothers. "She moves to a new state, enters a new school, and as soon as she joins the fourth-grade class, she's a victim of bullying," she says. "One-fourth of girls today in school deal with it. It's a good way to get the message out there." Martha Coolidge directed the film, which stars Sammi Hanratty (Pushing Daisies).

The timing of dolls, books and movies is aimed at moving more traffic to American Girl's website and seven stores, even after the holidays. "We think it's the fastest way to use as many platforms as possible to get Chrissa introduced," says HBO Home Entertainment chief Henry McGee.

(Photo from American Girl)

"Spirit" Star's Snotty Tissue for Sale on eBay

Scarlett Johansson auctions rag for charity

We've all heard and read stories of celebrities acting snotty. Now comes word of a star turning her snottiness into a boon for charity. From UPI:

A tissue used by cold-suffering U.S. film star Scarlett Johansson is being sold on eBay to raise money for charity, NBC announced.

Johansson blew her nose in the tissue while promoting her new movie "The Spirit" on "The Tonight Show with Jay Leno" Wednesday.

Johansson explained she caught the cold from Samuel L. Jackson, her co-star in the film, and joked that the mild illness had special value since it was the convergence of two big stars.

The tissue was placed on eBay and all proceeds of the sale will benefit the charity of Johansson's choice, USA Harvest, NBC said.

As of 9:15 pm PST Thursday, 67 people had placed bids on the used tissue and the price was up to $2,205. The auction is to end Monday.

A Little Bear of an Auction

Original "Pooh" illustrations net big honey...that is, uh, money

From Canada's CBC News comes word of an auction fit for Pooh Corner:

While some might favour Pablo Picasso, Andy Warhol or perhaps Damian Hirst, it seems the work of original Winnie the Pooh illustrator E.H. Shepard is also highly coveted by collectors.

A series of original illustrations by the British Shepard, and other Pooh paraphernalia, sold for nearly $2.3 million Cdn at auction in London, England, on Wednesday.

One of his most iconic Pooh images - titled "He went on tracking, and Piglet...ran after him" - fetched about $206,000. Sotheby's officials had given the work a pre-sale estimate of between $72,00-$108,000.

The sale also represented a new record high for the sale of a drawing by Shepard, who also created the illustrations for Kenneth Grahame's The Wind in the Willows. The illustrator died in 1976.

Another familiar image entitled "Bump, bump, bump — going up the stairs," which depicts Christopher Robin ascending a staircase dragging along his beloved bear by a leg, sold for $176,000, also surpassing pre-sale estimates.

The hammer also fell on lots that included limited edition Pooh books and tomes signed by author AA Milne.

The sale demonstrated the public's affection for the drawings, said a "thrilled" Philip Errington, Sotheby's specialist in children's books and original illustrations.

"The interest from around the world in these superb drawings, and the highly competitive bidding from many buyers, has demonstrated the worldwide appeal of Winnie the Pooh," he added, according to Agence France-Presse.

In November 2000, the Pavilion Gallery Museum in Winnipeg — with support from several levels of government as well as private individuals — bought Shepard's only known oil painting of Pooh at a London auction for $274,000.

(Photo: "He went on tracking, and Piglet...ran after him," sold for about $206,000 Cdn. on Wednesday. Matt Dunham/Associated Press)

Time Not Right for Bonhams' Watch and Clock Auction

A quarter of goods offered failed to sell

From Bloomberg today:

Bonhams, the U.K. auctioneer of fine art, failed to sell a quarter of the timepieces in a London watch auction yesterday as the financial crisis saps demand for luxury goods.

The auctioneer raised $1.6 million in the Bond Street sale, the company said in an e-mailed statement today. That was 74 percent of the amount aimed for.

The results may signal demand for high-end watches is wavering after having been more resilient than demand for other luxury products recently. Christie's International in November met its goal for a watch auction that raised 17.9 million Swiss francs ($26 million), while a jewelry sale by the auction house the same week failed to sell half the lots.

Exports of Swiss watches wholesaling for 3,000 francs or more declined in November for the first month in at least two years, the Federation of the Swiss Watch Industry said today.

Still, the top 10 lots sold in Bonhams' auction met or exceeded estimates. They included an 18th-century Patek Philippe that shows the phase of the moon for 93,600 pounds and a 1966 "Paul Newman" Rolex for 30,000 pounds.

Bonhams said it also sold a pocket watch for 3,600 pounds that belonged to Corsican revolutionary Pasquale Paoli, who betrayed Napoleon to help the British.

Jury Gives No Go to Auction of Mary Pickford's Oscars

Panel rules that heirs must give AMPAS first chance to buy them back...for cheap!

Our postings today focus on show biz. We've got a record-setting Hollywood memorabilia sale, Norma Jean's last pics, and song rights for auction. Now comes word from the Los Angeles Times today on why a silent screen star's heirs must give the motion picture academy the right to buy her Oscars for a song:

And the Oscar for best Hollywood courtroom drama goes to . . . the Academy of Motion Picture Arts and Sciences.

The golden statuette was awarded Monday by a Los Angeles Superior Court jury, which ruled that if Mary Pickford's heirs want to sell it, they have to offer it to academy officials for $10 instead of auctioning it off for as much as $800,000.

Academy leaders took a Rancho Mirage woman, her daughter and a cousin to court after the women announced plans to sell the Oscar presented in 1930 to the silent-movie star known as "America's sweetheart" and donate the proceeds to charity.
Marian Stahl, daughter Kim Boyer and Boyer's cousin Virginia Casey are disposing of Pickford's estate, which at one time filled the legendary Beverly Hills estate known as Pickfair.

Along with the best actress Oscar for 1929's silent melodrama "Coquette," the estate also includes an honorary Oscar bestowed upon her in 1976 and a third Oscar, the Jean Hersholt Humanitarian Award, presented to actor-bandleader Buddy Rogers in 1986.

Rogers married Pickford in 1937 after her divorce from actor Douglas Fairbanks. After Pickford's death in 1979, Rogers married Beverly Rogers. He died in 1999 and she died in 2007, leaving the estate to Stahl, who is her sister, Boyer and Casey.

Jealously guarding the Oscar trademark, the film academy has since 1951 required recipients to sign an agreement giving the group the right of first refusal to buy back any unwanted Oscar for the token price of $10 (though that amount was later reduced to $1).

That has made pre-1951 Oscars a hot commodity. The best picture statuette for 1939's "Gone With the Wind" was purchased for $1.54 million nine years ago by Michael Jackson. The best picture Oscar for 1941's "How Green Was My Valley" sold for $95,000 four years ago.

Because Pickford signed the agreement when her honorary Oscar was presented to her and because she was a founder of the academy who remained a member until her death, academy officials contend that the 1930 Oscar was grandfathered into the rule on right of first refusal.

During an occasionally theatrical two-week downtown trial, an unidentified pair of 1930s-era Oscars were displayed to jurors, and a recent Pickfair estate auction catalog displaying hundreds of Pickford movie memorabilia items was brought to court.

The heirs sought to prove that the signature on the academy's 1975 honorary Oscar agreement was not Pickford's, who they suggested was too infirm to have signed it. The academy argued that she had her personal secretary, the late Esther Helm, sign her name for her.

Jurors only deliberated about an hour Monday before returning with their academy award on an 11-1 vote. Judge Joseph Kalin is expected to hear further arguments next Monday on equitable and legal issues not ruled on by the jury.

"We're arguing that the receipt is an unenforceable agreement. The case is not over yet," said Mark Passin, a lawyer for the heirs.

"The academy has tried to bury us in this litigation. The academy spent hundreds of thousands of dollars so the charities specified in Beverly Rogers' will won't receive any money. My clients are very upset. They pretty much spent their entire inheritance to fight the academy."

Passin said Boyle had offered to donate the Oscar to the academy if the group would help find academy members willing to donate its worth to the Buddy Rogers Youth Symphony in the Coachella Valley. The 1930 Pickford statuette could have sold for $500,000 to $800,000 on the open market, he said.

David Quinto, a lawyer for the academy, said the organization on principle would never ask a member to donate money for the benefit of a third party attempting to flaunt current rules and sell an old Oscar.

"Every other heir out there would be saying, 'What do you gimme for it?' " when disposing of a deceased Oscar winner's property, he said.

Prior to the trial, the academy offered to make a direct charitable contribution of $50,000 if the heirs turned over Pickford's 1930 statuette. Later, they increased the offer to $200,000 "only because Mary Pickford was a founder" of the academy, Quinto said Monday.

Word of the ruling was greeted glumly in the Coachella Valley.

"It's a shame money intended to help children has been squandered," said Eric Frankson, a La Quinta musician involved with violin lessons for 332 students through the Buddy Rogers Youth Symphony.

Outside the courtroom, the melodrama continued, with Quinto suggesting the heirs would have spent proceeds from any statuette sale to cover their attorney costs.

Not so, countered Passin.

All three Oscars from the Pickford-Rogers estate will permanently remain with the heirs, Passin said. Or maybe not. Quinto asserted that the academy is entitled to buy Pickford's pair for a total of $20.

Passin shot back: "There was absolutely no ruling to that effect."

As with every good courtroom drama, the plot thickens.

(Photo: AFP/File/Don Emmert)

At eBay, Media Category Fee Structure & Shipping Incentives Extended

Five-cent insertion fee structure extended through end of March '09

eBay announced today that it is extending the five-cent insertion fee structure for fixed-price listings in the Media category through March 31 of next year. Media sellers who list with pre-filled item information - a requirement of the program - will also receive a free "Subtitle" upgrade for Fixed Price and Auction-style listings through March 31, 2009, whether or not they offer free shipping.

For PowerSellers who list with free shipping, eBay will extend the double Final Value fee discounts for Fixed Price and Auction-style listings through that same end-of-March '09 period. All sellers get a free Subtitle upgrade on Auction-style and Fixed Price items when offering free shipping, through March 31, 2009.

Now You Can Own a Financial Stake in Your Favorite Song

From Tech Journal South comes this fascinating piece:

CARY, NC - So you always wanted to be in the pop music business? SongVest, an online auction site, lets music fans bid for a percent of songwriter ownership in tunes such as the Monkees' "Last Train to Clarksville," or the theme to the TV soap opera, "Days of Our Lives."

Sean Peace, founder and CEO, a tech-savvy computer expert with grew up in Henderson, NC, just 45 minutes north of Raleigh. He attended UNC Wilmington as well as UNC Chapel Hill, where he majored in economics. Upon graduation, Peace started three technology companies, one of which helped integrate technology into classrooms via wireless networks and connected teachers with common educational tools.

Peace tells TechJournal South the idea for SongVest evolved after he had a conversation with Tia Sillers, a former teacher at the University of North Carolina at Chapel Hill. He met Sillers while he was a student there and she harbored dreams of becoming a songwriter, which she later fulfilled. They reconnected talked about the music business.

"She mentioned that at some point when she retired she would sell her catalog," says Peace. A songwriter's catalog packages the royalty interest in all of an artist's work for sale to investors. Buying the Beatles' song catalog kept pop star Michael Jackson financially afloat for years and he once called it "the best investment I ever made."

"People buy catalogs based on a financial multiple of how much it made over the last several years," Peace explains, "paying 10 or 20 times the royalty stream."

Light bulb!

"It occurred to me that by selling a whole catalog, songwriters missed two options and were not optimizing their revenue streams," says Peace. "First, why sell the whole catalog? Sell just one song to someone who really wants to own it as memorabilia with an associated revenue stream.

"Second, why even sell a whole song when you can sell a percentage of the song." That even allows the songwriter to retain a portion of royalty stream, in case it ever ends up in a film score or other major revenue producing use, Peace says.

This is the first time buyers can get memorabilia with an attached revenue stream, which can range from nothing or a nickel to tens of thousands of dollars a year.

Those who purchase their share of song royalties receive a personalized plaque denoting their new status as song co-owner, along with a one-of-a-kind, RIAA-certified gold or platinum album award, handwritten lyrics, and other collectible items.

The company, founded three years ago and active the last two, raised about $270,000 from a friends and family round. It is looking for from $500,000 to $750,000 to build momentum and bring on more fulltime help at the 3-person firm.

Peace says that while the company would work with venture capitalists, those in the know say it needs angel backers. "We would like to find angels with an affinity for the music industry, who would invest to become a part of this industry business model change," he says.

Peace notes that while the concept has not yet received wide acceptance in the music industry, many are keeping an eye on the firm's current auction of several Monkee's songs. It could produce a new and lucrative income stream for songwriters and publishers.

The company held its first auction last year, selling two songs by the heavy metal band Stryper for $12,500 each.

"We act like a normal auction house," says Peace. "We take a buyer and seller commission and a percentage of the royalties associated." The royalty payments flow through SongVest. The firm's commissions are tiered, with larger commissions on smaller sales. Sellers pay from 10-15 percent, buyers from 15-25 percent.

The company taps into fan enthusiasm even for unsigned, untouring artists. It auctioned a 25 percent share in an unsigned artist's song for $2,500 recently.

In the future, Peace says SongVest will add Web 2.0 features such as a page dedicated to specific songs, "with a mashup of pictures of the band, discussion of the song or band, everything connected to it," says Peace.

He also sees a large potential market in auctioning pieces of the many "B-sides," songs that were never hits, but that many individual music lovers might buy into.

"A lot of folks like songs that have been on an album but never on a single," he says. "One of my favorite songs, 'Aluminum' by the Bare Naked Ladies, has never even been cut as a single. I think that's a huge market for songwriters and artists."

Profiles in History Auction Nets Nearly $8 Million!

Auctioneer breaks Christie's record for sales

Profiles in History says it has sold a world record-setting $7.8 million worth of Hollywood memorabilia in a four-day auction marathon, according to the UPI.

The event broke the record of $7.1 million in sales set by Christie's during its 2006 "Star Trek" sale.

As we told you last week, among the 500 items Profiles sold Dec. 11, the first day of its auction marathon, were Mark Hamill's Luke Skywalker light saber from "Star Wars," which went for $240,000; an original "C-3PO" droid helmet worn by Anthony Daniels in "Return of the Jedi," which sold for $120,000; a full-sized animatronic "Joe" from "Mighty Joe Young," which sold for $96,000; a British first edition copy of the novel "You Only Live Twice" inscribed by author Ian Fleming to the inspiration for his James Bond character, which went for $84,000; a custom-built German staff car from "Raiders of the Lost Ark," which sold for $72,000 and Marlon Brando's complete signature "Jor-El" costume from "Superman: The Movie," which went for $72,000.

The dealer also auctioned off costumes, movie posters, scripts, portraits, movie stills, lobby cards, fan magazines, press books and other miscellaneous items during a three-day liquidation of the inventory of Collectors Book Store in Hollywood last weekend.

"In this troubled economy, collectors recognize the potential and the opportunity to invest in tangible assets such as Hollywood memorabilia, which have historically proven to be safe long-term investments," Joe Maddalena, president and chief executive officer of Profiles in History, said in a statement Tuesday.

And speaking of Hollywood memorabilia, check out this next story (below):

Vogue Shots of Marylin Monroe Fetch Almost $150K at Christie's

Price reveals that late actress is still an icon

From the Associated Press:

A collection of photographs of Marilyn Monroe taken for Vogue magazine the year she died has been auctioned in New York for nearly $150,000.

A spokeswoman for Christie's auction house says the 36 photos taken by Bert Stern sold for $146,500 on Tuesday. The pre-sale estimate was $100,000 to $150,000.

Christie's says the photos from a 1962 shoot were the last professional images taken of Monroe before she died that year of a drug overdose. They ran in Vogue instead as a memorial.

They're among more than 100 Monroe images being offered for sale at Christie's. The sale continues Wednesday.

Also at Christie's Tuesday, four Helmut Newton photographs, titled "They're Coming, Paris (Naked and Dressed)," sold for $662,500.

The buyers were anonymous.

(Pictured: In this photo released by Christie's auction house, Marilyn Monroe poses for photographer Bert Stern in 1962. The photo is entitled "The Last Sitting.")

You Call THAT a Christmas Tree?

Paris auction sells designer holiday trees to benefit AIDS charity

A review of our latest analytics shows France to be the #1 source of our foreign audience. With this in mind, we just couldn't resist bringing you this piece about a very unusual auction that just took place in Paris. (Be apprised that our blogging program does not faithfully re-create all of the accents and symbols of the French language, so some of those will be missing from our presentation.)

From the International Herald Tribune:

The fashion world gathered around 44 designer Christmas trees at the annual "Les Sapins de Noel des Createurs" charity auction in Paris last week.

From Louis Vuitton's golden metal cone forged out of hundreds of LV emblems to Stella McCartney's eco-friendly tiers of cardboard disks and Jerome Dreyfuss's stripped metal umbrellas stacked one on top the other and adorned with multicolored plastic bags, the "trees" came in all shapes, sizes and styles.

It was the first time that top name artists in the world of design had contributed to the auction. Designs by Norman Foster (which netted 8,500 euros, or about $11,000), India Mahdavi (8,000 euros) and Jacques Rougerie (5,100 euros) were among the big bids. But it was the white column of circling shapes from Zaha Hadid that was the top seller of the night at 46,000 euros. For art dealers and collectors at the event, it was a rare opportunity to acquire pieces by artists at a fraction of the price of their other work.

A total of 101,000 euros was raised for the Sol En Si charity organization that helps children and families living with AIDS. The fashion journalist Marie-Christiane Marek, who started the charity auction 13 years ago, said that the money would be used to create a residence in Togo for children orphaned by the disease. But as the total started to climb, more than tripling the sum raised last year, the charity will be able to build much more than originally planned.

No live Christmas tree was used in any of the designs, making all of the "trees" sustainable luxuries. Perhaps their only drawback is that they just might outshine all the presents tucked below their branches.

(Pictured: Zaha Hadid's white column Christmas tree that sold for 46,000 euros.)

ODDLY ENOUGH: eBay Pulls Auction of Man's Soul

From UPI comes this one:

The Internet site eBay has canceled a British man's auction for his soul.

Dante Knoxx, 24, had offered the "used" item for a starting bid of $37,600 or a "Buy it now" price of just more than $1 million, The Daily Mail reported Monday.

The site canceled the listing Monday with two hours to go before the auction's end, said Knoxx, adding he had "a lot of interest but no actual bidders, which is a real shame."

The listing apparently violated an eBay policy against "selling anything that is not physical," said Knoxx, a musician from Bournemouth who said he was fed up with his life and lacked creative jobs.

The eBay listing included a legal contract entitling the new soul's owner to a percentage of Knoxx's income for the rest of his life with a guaranteed minimum of $1,500 per year.

(If you can think of a great punchline for this story, lay it on us. The winner gets, well...none of us will tender our soul willingly but you'll get your name in bold type here. Go for it.)

When We're Not Re-Gifting, We're Selling

Nearly half of us re-give or re-sell unwanted holiday presents

A growing number of consumers are turning to the Internet to dispose of gifts they don't want, according to a survey sponsored by eBay Inc. that we found here.

According to the story, eBay said more than four in five (83 percent) of those it asked said they receive unwanted items and almost half (46 percent) of those adults re-sell or give the unwanted gift to someone else as a gift.

Of those who have sold their gifts online in the past, more than half (54 percent) of U.S. adults plan to do so again this year, compared to 45 percent last year.

eBay found differences in what people said they would re-sell and what they would re-gift.

The most popular items adults who took the survey said they would re-gift include wine, champagne or spirits (21 percent); trinkets or collectibles (21 percent); beauty or bath products (21 percent); DVDs, CDs or books (16 percent); electronics/appliances (14 percent); and fruitcake (14 percent).

The most popular items adults re-sell online include personal electronics (12 percent); DVDs, CDs or books (11 percent); home technology (10 percent); event tickets (10 percent); trinkets or collectibles (8 percent); and sporting or fitness equipment (6 percent).

eBay said the survey was conducted online by Harris Interactive between Nov. 11 and Nov. 13 among 2,033 U.S. adults age 18 and older, of whom 1,013 have re-gifted and 210 have resold gifts online.

Study Finds That eBay Shoppers Often Over Pay

Length of auction is key to getting a bargain

From Canada.com , via the Canwest News Service, comes word of new research that found that eBay customers often over pay for their purchases:

Shoppers looking for last-minute Christmas deals should avoid eBay unless they can keep their emotions in check, new research on the shopping value of online auctions suggests.

Despite their intention to scope out good deals, a survey of over 900 online auction shoppers found that the longer an auction runs, the more likely people overpay for an item.

"Auction participants have a feeling of attachment to auction items when bidding duration gets long. This attachment intensifies the desire to win the auction, which leads to overbidding and overpaying of the auction items," according to the study, published in the upcoming edition of the Journal of Retailing and Consumer Services.

eBay, the largest online auction site, boasts 84 million active users worldwide. Last year, the total value of sold items was nearly $74 billion.

Canada is in on the action in a big way, eBay Canada reported in its 2008 census.

Last year, Canadians spent more than $45,000 a day on outerwear. Throughout the year, we bought and sold more than $7 million worth of NHL rookie cards. Parents and kids coughed up more than $500,000 for Webkinz and $600,000 for Barbie dolls.

These online auction shoppers aren't always getting a deal, said lead author Min-Ying Lee of the University of Kentucky.

"Many auction shoppers do not recognize their compulsive behaviour or attachment to auctions. Rather, they believe that they are very rational and economic shoppers because they do their best to save their money. But in reality, it is hard to say that they really save money. Usually they spend far more than they expected," she said in an interview.

The findings showed that utilitarian and hedonic value equally influenced preferences toward online auctions, which contradicts the conclusion of an earlier study that found utilitarian value was a far stronger predictor than hedonic value.

A shopping trip has hedonic value if it is a joy or feels like an escape, when compared to a useful trip.

The "competitive nature of auction increases excitement and arousal in shopping, which is different from online shopping with a fixed price. Because searching and bidding processes create attachment to a selected item, hedonic value plays a role as much as utilitarian value does in online auctions," the study found.

Avid eBay buyer Randy Demoe of Emeryville, near Windsor, Ont., has all but abandoned traditional retail shopping in favour of the online auction house. With 10 years of experience under his belt, he's learned to avoid overpaying for items.

He said he doesn't get swept up in the emotion of any auction, and always calculates shipping surcharges and taxes before making a purchase.

"It's a lesson learned. You end up spending too much money buying something through eBay. You realize what went wrong and then you try and avoid those," said Demoe, who over the years, has made large purchases on eBay, including a classic car and an eight-metre travel trailer.

Pawnbrokers Taking 'Everything That Can Be Sold on eBay' as Collateral

Even in Beverly Hills, lenders of last resort are thriving

We found found yet another story this Sunday focusing on businesses that are thriving in the midst of, (in fact, because of) the recession. Just a few posts down from this you'll read a CNN Money Report on how and why auctioneers are thriving at the moment (with that post appended by a companion story). Now from Reuters comes a report on pawnbrokers who find that bad times mean good business for them. Even in Beverly Hills, times are tough.

So what kinda stuff are these lenders of last resort taking in? "Everything that can be sold on eBay."

Motorhomes and cars, power tools to jewelry, guns and more.

"Banks aren't lending so people are coming here for short-term loans against collateral like diamonds, watches and other jewelry," said Jordan Tabach-Bank, CEO of Beverly Loan Co, self-described "pawnbroker to the stars."

"I do see my share of actors, writers, producers and directors," he said, but also cited more visits from white-collar professionals and especially business owners struggling to meet payroll obligations.

"We still do the five-, six-figure loans to Beverly Hills socialites who want to get plastic surgery, but never have we seen so many people in desperate need of funds to finance business enterprises," he added.

MORTGAGE BROKERS AT PAWNBROKERS

There are as many as 15,000 pawnbrokers across the United States. As the U.S. recession deepens, pawnbrokers -- long seen as a lender of last resort -- are noting a rise in business.

No national body keeps statistics for the sector, but proprietors across the spectrum say they are thriving as home foreclosures spiral and bank credit remains scarce.

"Business is good," Mo Money owner Eric Baker said. The store, which makes loans on anything from a motor home to guns to lawnmowers and jewelry, says turnover is up by around 20 percent over a year ago on a broader range of clients.

"You are seeing some bigger stuff, you're seeing some people you probably wouldn't have seen," he said.

ATR wonders what the pawn business would be like if more of those who needed some cash were more eBay savvy, or at least felt more at home in the online DIY environment? Food for thought.

E-Commerce Sales Growth Slows Some Week After Cyber Monday

Holiday spending at same level vs. last season

ComScore (Nasdaq: SCOR), a leader in measuring the digital world, today reported its tracking of holiday season retail e-commerce spending for the first 42 days of the November-December 2008 holiday season. For the holiday season through December 12,$19.44 billion has been spent online, essentially the same level compared to the corresponding days last year. For the twelve days beginning with December 1 (Cyber Monday), the kick-off to the heaviest part of the online shopping season, sales totaled $8.26 billion, up 3 percent versus year ago. However, the most recent work week (December 8-12) saw e-commerce sales decline by a marginal 1 percent, although December 9 emerged as the highest online spending day on record.

"After a very strong first week of December, e-commerce sales growth slowed somewhat during the most recent week," said comScore chairman Gian Fulgoni. "However, the week still managed to see a few particularly strong spending days, with sales of $887 million on Tuesday, December 9 surpassing Green Monday last year (December 10, 2007) as the heaviest online spending day on record.

"With Christmas now fast approaching, look for online retailers to continue to offer enticing last-minute deals, including discounts on expedited shipping, to spur a final wave of spending. In fact, some retailers are even willing to offer free shipping as late as December 18 this year with a guarantee that the shipment will arrive by Christmas Eve. It will be interesting to see the impact that this offer has in terms of pulling additional spending from retail stores to the online channel."

Twin Bros. Up for Auction To Aid Sister

Girl with MD wants to raise money so she can give back

From Austin, Texas' News 8:

Rob and Ryan Walters will do just about anything for their little sister Kristin.

You'd think singing a little Celine Dion might be the extent of it, but that was just the beginning.

"I have a lot of time to think being in a wheelchair," Kristin said.

She has muscular dystrophy.

She's not able to babysit, or mow the yard like other kids might do to earn a little extra cash for Christmas presents. But, she wants to give, so she got a little creative with how to earn that cash.

Although one of the brothers was reluctant at first, both agreed to the Craigslist date in order to help their sister raise money for Christmas gifts.

"So I called my brother Rob who lives in Nevada and said, 'What would you think of the idea if we sold a date with you and Ryan,'" she said.

Yes, for one night with her twin brothers, Kristin set up a site on Craigslist to auction them off.

The brothers said the date is not too much to ask.

"I'd do anything for my little sister," Rob said. "A date to get her a little bit of money is definitely not too much to ask."

Ryan took a bit more convincing.

"I agreed to it," he said. "Reluctantly, but I agreed to it."

Kristin said she's just looking for some nice girls to take out her brothers so she can have a chance to give a little back to the people who have given her so much.

"It's the whole spirit of Christmas is to give and receive, but the giving part is what's so great," she said.

Kristin's idea for the date includes dinner at a nice restaurant, drinks and transportation. The auction was supposed to end Sunday, but the deadline has been extended.

If you or someone you know would like to bid on a date with the Walters twins, check out their Craigslist post by clicking here.

Bids close Friday, Dec. 19.

(Pictured: Kristin Walters flanked by her generous brothers from their Craiglist ad.)

CNN: Bad Economy 'Silver Lining' for Auctioneers

For bargain hunters & auctioneers, hard times are sending a lot of business their way.

While the recession is a giant cloud hanging above American businesses and consumers, there are still winners in the losing economy. Among them are auctioneers and their bargain-hunting bidders. So proclaimed CNN Money on Friday.

In a piece titled "Auctions Win Big in a Losing Economy," the benefits to the various stakeholders who make up the auction space were outlined. To Wit:

The buyers -

For shoppers, the auction is like walking into a post-Holiday sale where prices are discounted by 70% or more. (To find auctions in your neighborhood go to the auction calendar at auctioneers.org.)

The seller -

"I feel I've been blessed by helping out the people in need that are looking to liquidate their inventory," said Herb Mauthner, owner of Mountain Auctioneers, Inc.

Mauthner moves hard-to-sell merchandise and helps companies close stores and even go out of business.

"We have definitely had a large increase in sales, and we have been contacted numerous times by various businesses that are looking for a way out," he said.

The liquidator -

Not so happy is Fabrics & Fabrics owner Joseph Smiri who is resigned to auctioning his inventory at below cost because business dried up in the past five months.

"You're going to lose a lot of money here," acknowledged Smiri. "Definitely, but you know, if you stay in the business and the business is not there, you're going to lose more."

The entire piece is worth a read.

For ANOTHER take on this, check out a piece titled "Auctions Thrive in Wake of Bad Economy" from Albuquerque's KOAT.com. The kicker reads "Shopper's Thrifty Budget's Satisfied." Another story worth your attention.

Let the Scalping Begin! Obama Inaugural Ticket Ban Law Fails

The Washington Post is reporting that legislation that would have banned the re-sale of tickets for the presidential inauguration of Barrack Obama next month has failed:

Sen. Dianne Feinstein's legislation that would make the resale of inauguration tickets a federal crime died in the Senate last night when an effort to gain unanimous support for the measure failed, officials said.

Feinstein (D-Calif.), chair of the Joint Congressional Committee on Inaugural Ceremonies, had hoped to ban the sale of the 240,000 tickets to President-elect Barack Obama's swearing-in ceremony. Those tickets are being distributed free by congressional offices; Feinstein and others grew concerned by reports of tickets being offered on eBay and StubHub for thousands of dollars.

The legislation was supposed to be "hotlined" through the Senate, meaning it would be approved by unanimous consent. But several senators raised technical objections to the wording of the legislation and time ran out before the issues could be worked out, said Howard Gantman, staff director for the Senate Committee on Rules and Administration.

"The fear was how it impacted other things, not directly related to the sale for profit of inaugural tickets," Gantman said.

The Senate has moved into a pro-forma session, during which it is difficult to get legislation approved. For now, it appears it remains legal to resell tickets.

Gantman noted that Feinstein was able to secure voluntary agreements from ebay and StubHub not to sell inauguration tickets.

$120K for a Chrysler?

On eBay, Obama's 2005 sedan said to still be under warranty

At a time when America's Big Three automakers are struggling to stay afloat, word that the product of their factories is in high demand would have to qualify as good news. So it is with the Chrysler 300, specificially the 2005 model that was once driven by the future president of the Unites States.

Anyone interested in the car can find it here on eBay Motors.

According to Information Week:

Barrack Obama traded the luxury sports sedan in for a Ford Escape hybrid before being nominated by the Democratic Party. The car, with a Hemi V8 engine, gets 15 to 25 miles per gallon, depending on traffic and speeds. It is equipped with GPS, heated seats, cruise control, dual-zone air conditioning, and a sunroof. It has a gray leather interior and chrome hubcaps.

Tim O'Boyle, who manages a restaurant just outside Chicago, is selling the car. He said he bought it before a dealer told him Obama had previously owned it. Obama's old car had just 19,000 miles on it when O'Boyle purchased it. It now has 20,891 miles on it and is still under warranty, according to the eBay listing.

O'Boyle has received over 20 bids, with $119,999 being the highest by Friday afternoon. The car has its own separate web site, which promises more information about Obama's old car, which O'Boyle dubbed the "notorious 300C." The car gained notoriety as a bit of a political misstep after Obama called for Detroit to become more environmentally sensitive but people noticed that his own car got poor mileage.

Obama's new SUV gets better gas mileage, but it may not get much use since presidents and first ladies traditionally don't drive themselves around.

Entrepreneur Turns Silent Auctions Into Game of Strategy

From Houston's Memorial Examiner:

Nonprofits hosting their fundraising galas typically face silent auction bidders who are easily distracted. Bidders wander. They mingle. They bid haphazardly and half-heartedly while socializing and networking at events. And, they often forget to check back at the bid sheets to up their antes on offered items. (But that doesn't bother them too much since they dislike the long line to pay at check-out.)

That's why entrepreneur and "dynamic pricing" consultant Stuart Maudlin of Silent Auction Services has stepped in. A game theorist and auction strategist, Maudlin has noticed how the traditional silent auction format "leaves money on the table."

Intrigued by the possibilities of a higher yield for charities, he developed a program of services for organizations that rely on their auction income.

His idea is to turn silent auctions into more of a game for guests, he said. That changes the energy level, which changes the guest experience, which changes the bottom line.

Suddenly, a bidder's "charity" budget becomes his "game" budget, Maudlin said. It becomes entertainment, not just philanthropy.

At the core of Maudlin's auction services is shifting - and "managing" - bidders' behavior.

"When we're finished with them, it's never about the item," he said, flashing a knowing grin.

In developing his system, Maudlin looked at more than a dozen bidding behaviors. Citing concepts like "social dynamics," "behavioral economics" and "error recovery issues," he charted the game theory that goes into managing silent auction bid outcomes.

"I can almost set the dials," he said, smiling once again.

His recently launched company's services are designed to keep bidders thinking about, engaged in and committed to auction items so they become "must-haves."

That's why Maudlin wants bidders to know exactly when they've been outbid. And he wants the check-out experience to be efficient and seamless.

While there are subtle differences in the how his company displays bid items and accrues bids, it's the small pager-like device bidders issued at check-in that's a tip-off there's a game's afoot.

The pager notifies a bidder if he or she has been outbid on an item. (This means that a bidder might be mid-conversation when he learns he is 1, a loser and 2, cheap, Maudlin said.) The pager summons a bidder's head back into the game and his or her wallet.

"The competitive part it really important," he said.

Maudlin has been developing and testing his silent auction services since 2005. He launched the company earlier this fall after gaining Emma Moon as a partner. Moon was banquet director at Brennan's.

Their fees, based on level of auction service, are typically more than covered by the increased yield, he said, claiming an average increase of nearly 30 percent over a previous year's event.

"It pays for itself," he said.

Actually, it makes money, said nonprofit client Becky McCullough, director of the marrow donor program at Gulf Coast Blood Center. "There were big jumps" in the bidding, she said.

The non-profit's annual gala has employed Maudlin's program three times and earned enough to continue to use the service, she said, calling Maudlin "well-versed in the art of auction."

Silent Auction Services is Maudlin's latest start-up, having founded and sold two technology companies. A consultant on management strategies, he has also been a lecturer at University of Houston's Bauer College of Business, University of Houston's Global Energy Management Institute and Rice University's Jones Graduate School of Management. He has also been active with the Houston Technology Center and Houston MIT Enterprise Forum.

Despite having cultivated a bit of professional distance as a silent auction "observer," Maudlin admitted that sometimes he is not immune to the call of an item if the opportunity is favorable.

Wright Chair Sits While Authorities Decide Ownership

Was chair stolen from S.C. Johnson HQ?

On Wednesday we brought you word that authorities in Racine, WI were investigating whether a chair listed on eBay as a Frank Lloyd Wright creation had been stolen from the Wright-designed headquarters of S.C. Johnson & Son Inc.

Yesterday, the Journal Times of Racine reported that the chair in question "is still at a Chicago auction house, while police try to determine whether or not it was stolen from the company."

More from the paper:

Richard Wright, owner of the Wright Auction House, 1440 W. Hubbard St., said Friday that he is waiting for further information from Racine police.

"We take this matter very seriously. The chair is going to be held here, until we determine clear title to the chair," Wright said. "We are cooperating fully with the authorities."

He has no doubt about the authenticity of the chair, but says that does not mean it was stolen from the company.

"Obviously it was made for the Johnson company in about 1937. These are well documented chairs," he said. "It is important to know that just because a piece from the Johnson building is put on the auction block, it is being painted as, defacto, it would be stolen. To me that's not the case."

Wright says he has worked in the auction industry for more than 20 years. He has owned the gallery since 2000. The gallery is named after him, not to imply any connection to Frank Lloyd Wright, he said.

He said Friday morning that he is waiting to hear from the police.

"We are just waiting to resolve the title of the chair. We have no desire to traffic in stolen goods," he said. "If Johnson Wax proves good title to the chair, then they get the chair. We're absolutely not fighting this."

Sgt. Bernie Kupper, spokesman for the Racine Police Department said Friday that police are waiting for the company to complete an internal review of its furniture assets. Kelly M. Semrau, spokeswoman for SC Johnson, said the audit should be completed early next week.

Celebrity Lunchbox Auction Kicks Off for NYC Food Bank

Tony Bennett, members of REM among those with contributions

Lunchboxes are tres collectible. An Aladdin metal lunchbox featuring the Beatles from 1965 could fetch hundred of dollars. Indeed, music stars seem to be a favorite among lunchbox collectors. So the celebrity lunchbox auction just underway in New York City is a logical extension. Instead of being designed to feature music stars, these are designed BY them. Crooner Tony Bennett and the members of rock's REM are among those who have contributed designs for this season's Celebrity Lunchbox Auction to benefit the NYC Food Bank.

More from Gothamist.com:

The third annual Lunchbox Auction to raise money for the Food Bank for New York City kicked off last night with a celebrity fundraiser at Milk Studios in the Meatpacking District. Also benefiting The Lunchbox Fund of South Africa, the auction features over 77 lunchboxes custom designed by celebrities (and/or their handlers). Among the more eye catching boxes were avant-garde Chicago chef Grant Achatz's abstract deconstruction of a lunchbox, Tony Bennett's painting of a happy pooch (see below), and Michael Stipe's three lunchboxes with bronze cassettes and a camera embedded in molds of chocolate, salt and jello.

Stipe was on hand to help auction off the jello lunchbox last night, and promised to help the winner dig out the cassette tapes with his own hands. (The hands that made Murmur!) After a prolonged bidding war, chef Mario Batali won out with a bid of $20,000. Batali then helped auction off a lunchbox full of black truffles provided by chef David Chang. Raising one truffle up to his nose, he inhaled deeply and told the crowd, "If you could smell what I'm smelling you would never go to a whore house again." The lunchbox also came with a private dinner to be prepared by Chang in the winner's home; bidding peaked at $9,000. The other lunchboxes are being auctioned off online; you can place your bids until midnight on December 18th.

According to their website, Food Bank for New York City "provides food for 1.3 million New Yorkers through its network of more than 1,000 emergency and community food programs throughout the five boroughs - including soup kitchens, food pantries, shelters, low-income daycare centers, Kids Cafes and senior, youth and rehabilitation centers... The Lunchbox Fund of South Africa provides impoverished children in the township schools of Soweto often their only meal of the day. Many of these children are AIDS orphans who are caring for their siblings, and whose performance at school is diminished without food. Receiving food encourages these children to stay in school and obtain their education."

(Pictured: Lunchbox designed by Mike Mills of REM; photo by Katie Sokoler/Gothamist)

ODDLY ENOUGH: Granny Gavels Seat in Front of TV

"It's the perfect seat," she says

From the United Press International:

A British grandmother said she has auctioned off the best seat in front of her TV for the day after Christmas.

Bev Stewart said she wanted to avoid family squabbles when her 25-member clan comes to visit for Boxing Day, so she auctioned the best seat in front of the TV to family members and guests on eBay, The Daily Telegraph reported Friday.

"There is always arguing over who gets it, it's the perfect seat. It is straight in front of the TV and has got the coffee table at the side for you to rest your drink on and the TV remote, so everybody wants to sit there," Stewart said.

Stewart said her daughter-in-law, Alexis Stewart, and her 11-month-old son, Mark, had the winning bid with $20.18.

Is eBay's Biggest Bargain its Stock?

Analyst Calls eBay Shares "Classic Growth Stock at a Value Price"

As reported on CNN Money:

NEW YORK (Fortune) -- Back in 2000, shares of eBay, best known for its online auctions, hit a price-to-earnings ratio of 2,700, and were the darlings of growth investors everywhere. These days the company's shares have a new valuation about 1/300th of its old peak - its P/E is a lowly 9 based on next year's earnings - and a decidedly different fanbase. Grantham Mayo's Jeremy Grantham, Mason Hawkins of the Longleaf Partners Fund and Ariel Capital's John Rogers all have long-term track records for picking stocks that outperform the market, and all three have recently been buying eBay shares for their clients' portfolios. "This is a classic growth stock at a value price," says Ariel's chief investment officer Charlie Bobrinskoy.

eBay's shares have a compelling value story. Here's the math: At a recent price of $14, the company has a market cap of $18.5 billion. On top of its well-known auction site, eBay (EBAY, Fortune 500) also owns PayPal, the largest processor of Internet transactions, and Skype, which charges customers a cut rate to make their phone calls over the Internet. These two businesses generate $600 million in cash a year. Attach a multiple of 20 (Amazon (AMZN, Fortune 500), eBay's closest competitor, trades at 32 times its cashflow) and PayPal and Skype alone are worth $12 billion. "PayPal is an excellent business in its own right," says Sanford C. Bernstein analyst Jeffrey Lindsay.

What's more, eBay has $3.3 billion in cash on its balance sheet. And eBay also owns a number of smaller businesses such as StubHub, which allows people to buy and sell concert and sports tickets. Add it all up and investors who buy eBay's shares today are nearly getting the company's best-known business for free.

eBay's namesake business has had its issues. But the online retailer still has 49 million visitors a month - about a million more than Amazon - and generates $1 billion in cashflow a year. What's more, items sold on eBay are generally lower priced than the same items on Amazon or at Wal-Mart (WMT, Fortune 500) - probably a good thing in this economy.

New management has been addressing many of the Web site's long-time customer complaints. In the past year, the company has pledged that PayPal would refund money from fraudulent transactions, expanded its customer service efforts, and changed its fee structure to encourage sellers to list their items with a "Buy It Now" option for buyers who don't like auctions.

Some investors worry about eBay's recent purchase of Bill Me Later. But the online lender has had half the losses of other credit card companies, and it generates higher fees per transaction then either PayPal or eBay. The acquisition won't contribute to eBay's bottom line in the next few years, but down the road, especially after the credit crunch is over, those higher fees should boost eBay's profit margins, which are already far higher than Amazon's. "This is a $30 stock," says money manager Nick Calamos. "It's extremely cheap."

So, advisors with a long view are recommending eBay. And, as we report below, the site retains a strangle-hold on web searches by shoppers. Yet the buzz from sellers is that the bloom is off the rose, with many defecting, along with bargain shoppers, to other sites (as we reported last month). Where are you in all of this? Bullish on eBay? Maybe you like the company from an investment angle but prefer to shop elsewhere. After all, the stock is down for a reason, right? Maybe you browse eBay and buy elsewhere. Maybe you LOVE eBay. If so, are you buying or selling? Share your thoughts.

eBay is Once Again Web Search Term

"Webkinz" is the most-searched-for product

The term "ebay" was searched nearly 14.7 million times in October, with "walmart" coming in a distant second at 4.4 million and "amazon" third at 2.8 million. (All terms spelled in all lower case form.)

These were the top retailer names searched last month according to data provided to Internet Retailer from Nielsen Online's MegaView Search Custom Data. The MegaView Search data is based on tallies from 58 representative search engines.

When it came to retail products, the term "webkinz" - web-connected stuffed animals -was searched nearly 2.9 million times. Owing to the month for which the survey report, October, "halloween costumes" came in second at 2.4 million and "games" came in third at 1.4 million.

This is the fourth month in a row both "ebay" and "webkinz" topped the charts.

Following are the top 10 retailer and product searches for October, according to Nielsen Online:

Top 10 retailer searches
1) ebay, 14,677,000
2) walmart, 4,409,000
3) amazon, 2,812,000
4) target, 2,749,000
5) home depot, 2,602,000
6) lowes, 1,782,000
7) best buy, 1,678,000
8) netflix, 1,470,000
9) sears, 1,450,000
10) costco, 1,225,000

Top 10 product searches
1) webkinz, 2,857,000
2) halloween costumes, 2,415,000
3) games, 1,410,000
4) music, 876,000
5) dress up games, 693,000
6) dish network, 670,000
7) blackberry storm, 650,000
8) direct tv, 621,000
9) wii, 479,000
10) shoes, 429,000

Star Wars Light Saber Shines at Auction!

From Yahoo!:

Luke Skywalker's light saber has been on Star Wars fans' Christmas lists for more than 30 years.

Yesterday, one fan spent $240,000 to get the real thing: the prop that Mark Hamill used in the first two movies in the original "Star Wars" trilogy.

The light saber highlighted several Hollywood memorabilia sold at an auction in Los Angeles by Profiles in History. The auction house said it sold about $3.5 million in memorabilia.

The droid helmet worn by Anthony Daniels to play C-3PO sold for $120,000, and the costume Marlon Brando wore in the "Superman" movie went for $72,000.

The first British edition of "You Only Live Twice" inscribed by Ian Fleming sold for $84,000. Roald Dahl's handwritten screenplay for the film of the same title sold for $96,000.

Here's an itemized list of some of the more notable from Profiles in History:

- $120,000 Star Wars Episode VI: Return of the Jedi original "C-3PO" droid helmet
worn by Anthony Daniels
- $96,000 Second Draft Original Handwritten Manuscript of You Only Live Twice Signed
by Roald Dahl
- $96,000 Full-Sized Animatronic "Joe" From Mighty Joe Young
- $90,000 Signature "Wolverine" black leather battlesuit from X-Men
- $84,000 First British Edition of You Only Live Twice Inscribed By Ian Fleming To
The Real James Bond
- $78,000 Original 82-inch diameter hero "United Planets Cruiser C-57D" flying
saucer filming miniature from Forbidden Planet
- $72,000 Custom-built "1937 Mercedes" German staff car from Raiders of the Lost Ark
- $72,000 Marlon Brando complete signature "Jor-El" costume from Superman: The Movie
- $66,000 Original screen-used "Santa Jack" stop-motion puppet, dog "Zero" puppet,
skeleton Reindeer puppet and Jack's prop trashcan with presents from A Nightmare
Before Christmas
- $39,000 Jim Carrey complete signature "Riddler" costume from Batman Forever
- $39,000 Original Harry Potter Art By Thomas Taylor For The Back Cover of Harry
Potter And The Philosopher's Stone
- $21,600 Greta Garbo portrait by Clarence Sinclair Bull from Inspiration
- $19,200 Screen-Used Animatronic "Gizmo" Puppet from Gremlins 2: The New Batch

Note: All prices include a Buyer's Premium.

(Photo from Profies in History via AP/Yahoo!)

Judge Throws Book at "Khaki Bandit"

Man gets max for selling stolen laptops on eBay

A 34-year-old Miami man known as the "Khaki Bandit" has been sentenced to 10 years in a federal prison for stealing about 100 laptops from businesses in Naples to California and selling them on eBay, reports the Naples News.

The term, imposed Wednesday, was the maximum U.S. District Judge James Moody could have imposed on Eric Brandon Almly. The judge also ordered him to serve three years of supervised release after his release and to forfeit $154,214.41, the amount of the stolen goods. Sentencing reports recommended eight years.

"The judge threw the book at him," said Assistant U.S. Attorney Thomas Palermo, who prosecuted the case against Almly, who used 15 names, including some stolen identities.

Almly pleaded guilty in June to interstate transportation of stolen property. He was represented by Assistant Federal Public Defender Howard C. Anderson.

Court papers show Almly stole laptops across the country between January 2002 and April 2007, often loitering until closing hours and walking into businesses - usually corporate headquarters - and taking laptops to sell on eBay under about two dozen identities. He wore khaki pants and a white shirt and pretended to be an employee.

In Naples, he stole three computers, an external hard-drive and a power cord from Health Management Associates on Pelican Bay Boulevard on March 27, 2007; one Dell stolen from HMA was recovered at his Miami Beach apartment.

Sentencing papers show Almly used seven email accounts and had wracked up 42 cases in seven states and still has pending charges. Task forces were set up to find him. When investigators got close, records show, he'd move. He even taunted one investigator who caught him pretending to be an ebay investigator. Records show that when she confronted him, he told her he was "the master at this game" and she'd never catch him.

Some computers he stole were equipped with Computrace, the equivalent of a car's Lojak device, and they were recovered in Kansas, Arizona and Washington.

Headquarters and businesses he hit in Florida include Outback Steakhouse's headquarters in Tampa; FedEx, Burger King's headquarters, and Lennar Corp., all in Miami; and World Fuel Services in Doral.

The case was investigated by the U.S. Secret Service, U.S. Department of Defense, Defense Criminal Investigative Service, Tampa Police, Miami-Dade Police, and other departments in Arizona and California.