POLL: Buyer's Premiums

MrEureka

I wonder how much the buyers premium really matters.

ziggy29

I mostly adjust my bid. Above a certain level, I think it's just a ripoff (like the 22.5% stated recently) and I won't bid on those out of principle.

What I think is funny is how the auction houses have shifted away from seller's fees to "buyer's premiums." For buyers who do their homework and factor in the premium, the bids are lower and the net to the seller is the same anyway.

roadrunner

Actually, the net to the seller is somewhat less than it used to be imo.

There have been a few times where I had inadvertently forgot to subtract the 15% and overpaid on lots. This usually happened when I didn't place a price on a lot and then felt it was going too cheap and just got caught up in the bidding. If we stayed with the 10% it was an easy math exercise. Now with the 15% it takes a little more ciphering in one's head.

roadrunner

MrEureka

Auctioneers will tell you that they need a BP to be competitive when soliciting consignments. Too many unsophisticated sellers are overly impressed when they are offered a zero-commission contract. They don't stop to think that it's just a numbers game.

The full story is a bit different. BP's do affect total prices realized because some bidders don't lower their bids to completely adjust for the BP. In other words, if your underbidder is one of the people that chose the first or third answer in the poll, the BP really did come out of your pocket.

ColonialCoinUnion

I'm prepared to pay a certain amount, in total, for a coin.

If 85% of that number is called 'hammer price' and 15% is called 'buyer's premium' thats fine. If 80% is hammer, and 20% is buyer's premium, that fine too.

BigE

I think they should deduct the cost of printing their auction catalog they send to you from your total bids if you notify them before production for a certain auction-------------------BigE(they should send out a 25.00 certificate instead)

jcping

Just like selling a real estate, seller pays all commission.

For coins, it is seller to contract an auction house to sell his/her coins. To me, "the BP is really coming out of the consignor's pocket."

LindeDad

Lets see we have the PCGS price guide minus 50%. Teletrade bid minus 15%. And how much was shipping. Maybe I'll pay what's left if I really want the coin.
Or maybe I'll get it by sniping a auction on eBay.

BAJJERFAN

<< <i>For coins, it is seller to contract an auction house to sell his/her coins. To me, "the BP is really coming out of the consignor's pocket." >>



The seller or consignor gets the hammer price less any negotiated commission while the auction house gets the buyer's premium plus any negotiated commission. So if a coin sells on Heritage for the same overall price that a dealer would pay then the seller took it in the shorts. If you need a certain minimum from your coin then set a reserve just like you would on eBay. I would guess that some sellers use an auction house just because they don't want the hassle of doing it themselves, sorta like some folks tradin in a car; the few hundred extra they save don't matter.

lathmach

I don't like paying a buyers premium at an auction.
I stopped going to some auctions for machinery because of it.
It's too easy to screw up and overpay for something.

Ray

granddad

I absolutely figure it in, and if the auction company has too high of a BP, I won't even bid out of principle.

mozeppa

coinguy1

When there is a 15% buyer's premium, I simply decide what my total maximum bid will be and multiply that amount by .87 to come up with my bid.

MrEureka

find anyone who disagrees with me....and he's an auctioneer!

Couldn't it just be that buyers and sellers allow the auctioneer to take a cut - whatever you call it - because the auctioneer provides a valuable service to both parties?

BTW, yes, my company runs auctions.

foodude

I figure the BP into my bid- for me the bottom line is how much is the coin with all the costs figured in. It was easier to calculate when the BP was 10% (as it was several years ago).

flaminio

Always figure all costs when making a coin purchase. The math isn't that hard -- first, determine the max you're willing to pay for the coin (that's the hard part). Then, subtract all the various add-on expenses -- shipping, handling, insurance, taxes, and yes -- buyers' premiums. The result becomes your bid. On an eBay-style auction, enter this amount with as little time remaining as possible, and let the chips fall where they may.

BigE

Perhaps we would not have any coin shops or shows or dealers if these premiums did not exist-------BigE

ttown

It's a scam just like an auction. Some people think they are getting a heck of a deal but once they add it the buyers cost it's a wash in most cases. If you don't figure it in your stupid or hung on the coin. I bid more on auctions that are more biased on the seller and his cost vs. the buyer and paying the sellers cost. It's why I don't bid on the big auctions houses it's in their favor and why sellers sign with them, theirs a sucker born every second...............taxes, shipping, additional cost are a bid factor IMO.

I buy stuff all the time on sellers that want 10 buck to ship and 3 or 4 bucks to insure and they always seem to be the bargains I can usually buy these items with shipping cheaper than the same item costs outright without shipping. I think most people plan on the total cost of an item and I love thoses on Ebay loving to screw the public not wanting to take a chance and choose to go about it without a reserve.

It’s like the member that brought the proof sets for a whole lot of shipping and still got a h*** of a

mercurynut

I always reduce my bid to account for the BP. No reason it should come out of my pocket because I am willing to buy a coin. Its like an unwanted tax!

Bikingnut

I adjust my bid, unless I really like the coin.

MrEureka

No reason it should come out of my pocket because I am willing to buy a coin. Its like an unwanted tax!

MercuryNut - Do you feel the same way when you are presented with a dinner check? After all, why should the restaurant charge you for preparation and service just because you are willing to buy food?

nwcs

It affects my bidding because I don't bid on any item that requires I pay a premium.

haletj

Anyone get that add to consign to Heritage... tells you why consigning is better than selling to a dealer...lists 6 coins and 6 bids from each and totals what each dealer would pay and what you get... and CONVENIENTLY doesn't include the fact the dealers pay %15 BP and would actually bid %15 lower and you would actually get less than if you sold to a dealer outright according to Heritage's own numbers!