POLL: Auction Consignors, tell us, who pays for the auctioneers services?

MrEureka

We've already established in another poll that most buyers think that sellers pay for the auctioneer's services. I wonder if that will change when we see the results of this new poll.

MrEureka

Come on, folks. Where are the consignors?

UncleWiggly

It's all crazy. I just went through this with Superior. I had to lower my minimum somewhat because of the buyers premiuim and what the going market price is. If not, there would be a possibility that I'd get stuck with a buy back fee. I'm beginning to think the only way to go is one on one with a dealer.


Jerry

MrEureka

Well, it looks like the majority of consignors believe that it's the buyers that are paying for the auctioneer's services.

Yet, in another thread, auction buyers overwhelmingly believed that sellers are paying for the auctioneer's services.

How do you explain this?

haletj

It is explained by the no reserve concept. If no reserve a coin just sells for whatever it'll sell for, auction co gets %20 and either party can think whatever they want about who it came from.

robertpr

<< <i>Well, it looks like the majority of consignors believe that it's the buyers that are paying for the auctioneer's services.

Yet, in another thread, auction buyers overwhelmingly believed that sellers are paying for the auctioneer's services.

How do you explain this? >>



Both sides are getting screwed and are justifying it by believing the other guy is getting screwed worse.

FatMan

Andy

Put in "I just want to see the results" as an option. Otherwise those of us who have not consigned can not see the results without distorting the info.

haletj

One could choose what they would think if they hypothetically consigned their coins.

roadrunner

No matter how you slice it, the seller pays all the fees, fancy wording and all. As a consignor I actually am pricing my coins at 15% over my reserve or the least that I would take. That does leave room for the house, but places burden on the buyer. It still comes out of my pocket, but at least I don't subject myself to less than what I could sell it for on my own. There's always a risk that you estimated it wrong however.

On my last consignment to Heritage I placed my reserve at the lowest amount I would take for the coin...the same price I could probably get if I walked the bourse floor and quoted the top 3-5 dealers in the country. I would be foolish to get that price less 15%.
Why even bother with the auction house in that case? Again, this considers that you have special coins that are not typically seen on the bourse floor. If you have "product," the auction route is not for you.

roadrunner

RYK

If you have "product," the auction route is not for you.

I have learned this lesson, not exactly the "hard way", but I did leave some money on the table. For what I collect (and occasionally sell), I am better off selling the coin or consigning the coin to a specialty dealer than I am consigning to an auction company.

robertpr

<< <i>No matter how you slice it, the seller pays all the fees, fancy wording and all. As a consignor I actually am pricing my coins at 15% over my reserve or the least that I would take. That does leave room for the house, but places burden on the buyer. It still comes out of my pocket, but at least I don't subject myself to less than what I could sell it for on my own. There's always a risk that you estimated it wrong however.

On my last consignment to Heritage I placed my reserve at the lowest amount I would take for the coin...the same price I could probably get if I walked the bourse floor and quoted the top 3-5 dealers in the country. I would be foolish to get that price less 15%.
Why even bother with the auction house in that case? Again, this considers that you have special coins that are not typically seen on the bourse floor. If you have "product," the auction route is not for you.

roadrunner >>



Roadrunner, out of curiosity did your material meet the reserve price or did it fail to sell?

MrEureka

Could it be that the economic costs of selling at auction sometimes fall on the buyer, sometimes on the seller, and sometimes get shared? For example, the true cost of selling a Krugerrand almost entirely falls on the seller because the auctioneer provides little value. On the other hand, the true cost of selling the Eliasberg Collection was probably paid by buyers, as the auctioneer created value (including "hype") for the consignor that was then converted to buyers' dollars.

kranky

Since I haven't consigned, I can't see the results without voting, which I ought not to do. Where does the poll stand?

MrEureka

Where does the poll stand?

PM sent.

roadrunner

Robert, my total reserves were exceeded. One coin realized over 2X the reserve and the other about 10%. The first coin I would have grossly undersold had I tried shopping it myself. I would have tossed away at least $15,000. The second coin, I could have done just as well myself. And if had a 2nd chance at, I would have left that one out of the mix as I think it was worth another 10-15% more being the finest known for the date/mint.

roadrunner

IrishMike

It depends on how much the coin sells, how badly the consignor wants to sell it etc. Just because a seller arrives at a reserve price doesn't mean its relevant. We've all seen coins sell for prices that surprise us and then they get sold at even higher prices in another auction or they get dumped for losses.