DEFINITIONS & INTERPRETATIONS

The following definitions, interpretations and expressions shall apply to all Contracts, references
and business dealings with BID4U.

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Ramping

means the illegal but deliberate manipulation and elevation of prices in order to unrealistically inflate the price of an object, item article or thing to either increase its sale price or to artificially create a false market trend which distorts the entire market.

Ramping of vehicles is very common at motor vehicle auctions in order to inflate the price of a vehicle.

Example 1.
This usually occurs where dealers consign their own vehicle for auction then drive up the selling price by having another dealer or associate bid on their vehicle.



Ramping to artificially create false market trends and/or distort the entire market is common within the Art industry.

 

Example 2. This generally involves six to eight steps:

   

Step 1. The 'Ramper' (usually a Dealer or Auctioneer, but sometimes a wealthy private buyer) will discretely purchase a quantity of artworks by a well know, popular artist at market value or below market value where they can.  The 'Ramper' can innocently explain the number of artworks they have recently  acquired (though this is rarely know) as amassing an investment collection due to a genuine interest in the artist.
   
 
Step 2.
After amassing a sizable number of artworks, the 'Ramper' will selectively and gradually release approximately 10% to 25% of the collection (depending on the size of the collection) onto the market, usually via auction.
     
Step 3.
The 'Ramper' will then bid on 'their' artwork and re-acquire most of the pieces at substantially inflated prices considerable above current market value.  This creates a strong false market trend and they guarantee success by working in tandem with a collaborator.

'Rampers' will often endeavour to pay more for each successive piece to create a genuine perception that prices are now dramatically rising.
     
Step 4.
Publicity surrounding how the artist's prices have dramatically risen and set new auction records fuels speculation that the paintings are in great demand and represent a sound investment opportunity.  Unfortunately, by simply reporting on the auction results, the media often unwittingly perpetuates the deception.
   
Step 5.

After whipping up public interest into a frenzy, the 'Ramper' will then selectively release around 75% to 80% to all of their artworks back onto the market, which quickly sell at the massively inflated prices. 

More often than not, the 'Ramper' will mix and match the pieces with other pieces from their collection they discretely acquired but withheld from the market.  This serves two purposes:  Firstly, it makes monitoring prices for the average buyer inherently difficult and; secondly, it complicates and hinders any law enforcement agency investigations.

Temped by the huge profits that can be made, the public 'jump on the band wagon' and purchase anything and everything at the massively inflated prices.

     
Step 6.

After disposing of the bulk of their collection, the 'Ramper' then sells and/or re-purchases several  pieces, at greatly reduced prices which starts to fuel speculation that prices have peaked, the bubble has burst and prices indeed are falling. 

To cement the deception and fuel the downward spiral in prices, the 'Ramper' will usually sell one or two pieces back onto the market via auction (usually through their own auction house or that of a collaborator) at a ridiculously low reserve price and endeavour to have it passed in.

     
Step 7.
As adverse publicity panics the market, people and investors, who previously paid exorbitant sums for the pieces, 'cut their losses' and sell their artworks at prices significantly below what they paid. 
     
Step 8. The 'Ramper' then either simply sets about re-acquiring the artworks at the artificially low prices or targets artwork by another artist ripe for ramping, to the detriment of investors, the public and the  entire industry.
     
Note: 1.
'Rampers' have an enormous advantage over the public because they usually have an in-depth knowledge of the artists, prices and industry, and often pay minimal or no consignment fees or buyer's premium (such as where the 'Ramper' is an Auctioneer, auctioning their own paintings), which combined may amount up to 45% of the hammer price.
  2.  Sound market knowledge, extensive auction experience, a thorough understanding of prices as well familiarity with ramping tactics is imperative to avert being deceived.

  

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Realised

means the same as amount realised.

Reasonable Negotiations

means the length, pace, format, location and time spent on negotiations Bid 4 U considers appropriate in the circumstances.

Reasonable Time

means the amount of time from the auction / sale commencement time and date Bid 4 U considers appropriate in the circumstances to spend negotiating a lot or item with the Auctioneer, the seller or their agent.

Referred

means where the highest bid advanced for a lot at auction failed to reach the reserve price on the fall of the hammer and the bid was sufficiently close to the Reserve for the Auctioneer to refer the bid and negotiate the sale with the highest bidder. (Passed In).

Registration Number

means the number the number plate attached to the front and rear of the vehicle. The registration number is issued from the state in which the vehicle is registered.
(Build Date, Build PlateChassis Number, Compliance Date, Compliance PlateVIN)

Required Percentage

means the percentage of the Hammer Price or sale price as outlined in the Terms and Conditions of Sale and calculated on the Client’s Maximum Bid, payable to the Auctioneer or Seller by Bid 4 U within a specified timeframe as a deposit, where Bid 4 U is contracted to make payments on the Client’s behalf.

Reserve / Reserve Price

means the minimum price set by the owner of the lot or item that an Auctioneer, Seller or their agent is authorised or prepared sell a lot or item to the highest bidder for.

Note 1. As a general rule, the reserve price is the lowest price the Seller will accept.
  2.
Auctioneers or Sellers may alter or reduce the reserve price during the course of an auction or sale.
  3.
Often the reserve price is not disclosed to the purchaser, however, at property auctions, the Auctioneer normally declares when the property is ‘On the Market’.

 

Restricted Lot / Item

means a lot or item that is restricted by law from ownership or sale in Australia or which is subject to a caveat, legal dispute, lien, sanction or other legal dispute or process.

Retail Price

means the price a retailer or dealer would ordinarily sell small quantities of goods or merchandise from a fixed location, such as department store or car yard, for direct consumption by the purchaser, and is the wholesale price of the item plus the retailer's costs, expenses and profit margins.

ROPS

is an acronym for Roll-Over Protective Structure.

Roll-over protective structures (ROPS) are a system of life-saving structural members built or retrofitted to agricultural, earthmoving and mining equipment such as skid loaders, tractors and excavators that prevent the operator or driver from being crushed in the event of a roll over.  (FOPS)

Most machinery built after the 1st of January 1981, such as a tractor, must be fitted with ROPS in order to comply with Occupational Health & Safety requirements. 

 

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These definitions and interpretations may be subject to review and change from time to time

 


 

*MTA Member Bidding Service DL: 18363*