So How does the Heritage Consignment work?

jabba · May 8, 2006 12:39PM

Say a coin you put up for Consignment pulls in $1000. How much of that would you get and how long does it take them to pay?
Thanks,
David

yellowjacket · May 8, 2006 12:46PM

On a $1000 coin, they charge the buyer 15% juice, so he pays the house $1150. The house usually charges the consignor 5%, so you "pay" $50. Your take is $950.

When looking at auction results, the pricing always includes the buyer's fee. To find out what the coin brings for the seller, deduct approximately 20%.

Now you know why Heritage lives in that big shiney buiding in Dallas.

YJ

DickyBetz · May 8, 2006 12:49PM

Heritage is a ripoff, IMO.

WTCG · May 8, 2006 1:05PM

<< Heritage is a ripoff, IMO. >>

If Heritage is a ripoff, then which auction companies are not?

yellowjacket...explained it well in a basic way. You get paid about 45 days after the auction.

kalch23 · May 8, 2006 1:11PM

I wonder how much you need to have to sell in order to be able to negotiate down their high fees.

WTCG · May 8, 2006 1:15PM

<< I wonder how much you need to have to sell in order to be able to negotiate down their high fees. >>

Often times it isn't how much you consign, but rather who you know in the company who'll agree to granting you the better terms. Generally a consignment worth at least $100,000 will get you the best possible terms.

numonebuyer · May 8, 2006 1:39PM

I have never used any of the auction houses, but do you all believe you actually receive more for the coin selling through them? For example if you had a coin that sells through one of them for $1000 and it costs you $50 to sell it, but you would have only been able to sell it on your own for $900 then it is a good deal.

WTCG · May 8, 2006 2:27PM

<< I have never used any of the auction houses, but do you all believe you actually receive more for the coin selling through them? For example if you had a coin that sells through one of them for $1000 and it costs you $50 to sell it, but you would have only been able to sell it on your own for $900 then it is a good deal. >>

There are many coins that can sell faster and for as much money if they are sold directly instead of being part of an auction. However, there are plenty of coins in auctions that can realize multiples of what they would sell for in a direct sale.

Coxe · May 8, 2006 2:44PM

<< I wonder how much you need to have to sell in order to be able to negotiate down their high fees. >>

This is business. If they want it and you might walk across the street and they know it, you have some negotiating leverage. Otherwise you have the 5% with it customarily waived for coins you have purchased through them as long as you provide documentation ot that effect and it is in the contract. A lot with Heritage depends on the placement of your coins. If you get into Signature sales or (better) Platinum Night, you will get nice exposire and good lot descriptions. If, however, yours end up in continuous internet auctions.....no descriptions, unreliable eyeball counts, and no sight-seen inspections by strong buyers.

ColonialCoinUnion · May 8, 2006 8:20PM

<< Heritage is a ripoff, IMO. >>

In return for the fees they earn, Hertiage exposes auction coins to perhaps the largest pool of potential bidders available anywhere, and has show the capacity to generate prices realized that are in some cases extra-ordinarily high for items that would almost certainly sell for less elsewhere.

This is why people consign coins to them.

Veep · May 8, 2006 10:40PM

Heritage has done a good job for me several times. At January's FUN sale, they auctioned about 45 lots for me. A couple made the Platinum Night, most made the Signature sale, and a few were Internet Only. Each venue was appropriate for the coin. Each venue was effective. In total, the results were at the very top of my expectations.

Commissions are pretty much as already stated. Sellers are charged up to 5%, but with the right volume, you can get a 0% rate or even hammer price plus a couple of points. Use your best negotiating skills to get your best deal. The auction marketplace is very competitive right now and they want your business. Of course, your leverage lies in having attention getting coins that will add cache to their sale. Without that, you'll get less favorable terms.

As for administration, marketing, exposure, and payment, everything has been very professional. I've been quite pleased and will definitely use them again when I determine that an auction is the correct venue.

MikeKing · May 8, 2006 10:44PM

I've had nothing but headache with Heritage and will never consign to them again. It's like dealing with rug dealers and used car dealers. I've consigned to them many times, and it has never gone smoothly. The most I ever consigned in one sitting was about 40K in coins, and I had to battle with them and change the person I had to deal with. On at least two occasions I had to email the CEO to get results. Awful.
I later consigned to ANR. It was heaven. It's like going from a Honda dealer to an Infiniti dealer (Infiniti has like multiple awards for consumer friendliness).

yellowjacket · May 9, 2006 12:11AM

I have consigned with Hertitage previously and was moderately please with the results. As a whole, some coins do better than others; however, it all seems to average out.

I was disappointed that they seemed to sit on my Washington Quarter consignment for two months. They appologized and gave me a 2.5% consignment fee.

Always remember about auctions: The buyer takes into consideration the 15% fee when making the bid. This depresses the final hammer price. That's why I say that it is the seller that really absorbs the full 20%.

YJ

bushmaster8 · May 9, 2006 12:32AM

So can a small time consignor specify which venue his coins will be placed in (Signature vs. Continuous Internet)? or are you at Heritages mercy?

Cladiator · May 9, 2006 12:39AM

<< You get paid about 45 days after the auction. >>

That's fricken ridiculous.

WTCG · May 9, 2006 3:29AM

<< 

<< You get paid about 45 days after the auction. >>

That's fricken ridiculous. >>

That's not terribly ridiculous since most dealers don't pay for their lots until 40 days after the sale. Some buyers have an outstanding balance with Heritage of over $2 million! Considering the cash advances that are paid to consignors, the cost of marketing involved and time of payment, the 45 day cycle is not a bad idea for the auction companies. Some auctions such as Teletrade and the Heritage internet auctions settle with their consignors in less than 45 days.

ER · May 9, 2006 3:41AM

<< So can a small time consignor specify which venue his coins will be placed in (Signature vs. Continuous Internet)? or are you at Heritages mercy? >>

You can ask, but, in the end, you are at their mercy.

ER · May 9, 2006 3:43AM

<< 

<< You get paid about 45 days after the auction. >>

That's fricken ridiculous. >>

Consign to Russ, he'll send you the check real quick. That's a fact.

Cladiator · May 9, 2006 3:45AM

<< 

<< 

<< You get paid about 45 days after the auction. >>

That's fricken ridiculous. >>

Consign to Russ, he'll send you the check real quick. That's a fact. >>

I'm sure he will but I've had more than enough success consigning to myself

So How does the Heritage Consignment work?

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