Am I the only one clueless about Heritage's commissions?

lava

As I understand it, if Heritage agrees to sell your coin at auction, it sets a target price, and they keep everything in excess of the target price, plus a percentage of the amount below the target. I thought this sounded very complicated, so I asked for their special tape on auctions. I was AMAZED that at no time did Heritage ever bother to take the time in its self-promoting video to explain its fee schedule.

Does anybody understand how it works?

Any opinions on whether it is fair?

Boom

I've never had them auction anything for me but when I asked Mr. Marino, via email, about their % from sellers, he replied 5%.

So far as any of the rest of the particulars, I don't have a clue. I know the fee we pay as buyers is pretty damn high- 15% plus shipping. Man, they make it coming and going on items that do not even belong to them! Where is the sense in that?

How stupid does this make all us customers? I wish I could make 20% plus shipping and handling peddling stuff that doesn't even belong to me!

Think about it....they've made all this money and don't even own a coin!....Well, most of the time anyway.

Elcontador

A lot of this stuff is negotiable, depending on how much in value they are selling for you, etc., etc. Whenever someone asks you to sign a contract, read the fine print first, then the rest of it. Then get your questions answered. Only then, if everything is understood and you don't have any more quetions, THEN you can sign the contract.

Placid

Never heard of that Lava. Only thing I ever heard is a 5% fee of the hammer price or less depending on the value.

100proof1957

reserve or "target" price is the least you will sell it for,they dont keep anything over that.
they charge you 5% of the hammer for selling it
they charge the buyer 15% of the hammer for buying it
if it doesnt meet the reserve it does not sell and im sure another fee applies

wayneherndon

They will charge you a percent of the sales price. It will vary depending on the value of the item(s) and the reasonableness of your reserve, if any. If you have a valuable coin(s) and work through your dealer (rather than direct with Heritage), you can typically reduce the fee to zero and sometimes even get some of the fee the buyer pays in addition to the hammer price. If you set a reserve and the coin does not sell, you'll pay a buy back fee.

WH

puff

<< <i>They will charge you a percent of the sales price. It will vary depending on the value of the item(s) and the reasonableness of your reserve, if any. If you have a valuable coin(s) and work through your dealer (rather than direct with Heritage), you can typically reduce the fee to zero and sometimes even get some of the fee the buyer pays in addition to the hammer price. If you set a reserve and the coin does not sell, you'll pay a buy back fee.

WH >>

UncleWiggly

I couldn't figure it out either. So, I called Scotsman and sent them what I wanted to Auction.

Jerry

4thStooge

Keep in mind that Heritage bids on virtually all unreserved and many reserved items for their own interests and can bump their margins considerably if they win those items.

MFH

Heritage also charges 10% of the reserve if the coin does not sell. It happen to me with three lots that didn't hit my reserve in the Jan, 2004 FUN sale.

tmot99

Yes, I have felt that their fees are high. However, consider all of their costs. They employ a lot of people to deal with all of the coins, comics, and other stuff they sell. They transport all of the coins under security to major shows, rent a hall, hold the auctions, provide the auction catalogs, print and mail them to all of us. They tend to get higher prices than bringing it to your local dealer to sell and offer it nationwide via internet in order to try to get maximium dollar. They are also a business making a profit.

Remember, you can always bring your items to your local dealer and sell for 10-20% below bid and be done with it.

FYI, I have not sold anything through Heritage, but am thinking about it.

Barry

I've never used a major auction house. I was considering it a few years ago when I had several 1874-CC dimes to sell (value 2-15K). Instead, I used Ebay. Two I sold on Ebay and the third I made a deal off Ebay after the buyer saw the listing. As long as the coins are certified, and not mega-dollar coins, I think it's a very cost-effective alternative. For all the crap on there, and all the Ebay bashing that goes on, there are still good coins to be had. It's just a matter of taking the time to filter through all the garbage to find what you want.

lloydmincy

Low end clients for the auction houses is 5% charge to the seller, 15% to the buyer, and 10% is lot reserve does not hit. Larger portfolios, the consignor may even get some of the 15% charged to the seller. Larger clients do not typically get charged if the reserve is not reached. The auction houses spend a lot of time, money, marketing your coin. If you have $20,000 worth to sell, vs. $2,000,000, well, do you not assume maybe the million lot seller shops around for the best deal???