Dealers Auction Question -

richardshipp

Maybe I'm a little slow but I am wondering something about the various "Dealers Auctions".

I can understand an auction company charging for and receiving a "buyers premium" when auctioning off someone elses coins. They have to make money somehow.

I don't understand why a dealer selling their own coins at their own auction would feel its ok to charge a buyers premium. Can someone help this me understand this?

thisnamztaken

I don't mean this faceticiously, but it's probably just plain ol' greed, enabled and encouraged by a dulled or seared conscience in regards to ethical conduct and standards.

Julian

Most intelligent buyers factor in the buyers fee to their bid.

There is no reason that an auction house cannot include their own coins in the auction, as well, knowing the above.

The buyers fee is just part of the selling price.

seemyauction

How much does it cost to put on an auction?

If you spend 1000 bucks to have the event

you have to sell 10,000 at 10% just to break even, if you want to make money you have to go over the 10,000 mark.
General rule is the bigger the auction the bigger you have to advertise.

10,000 with 200 lots thats an average of 50 bucks a lot.....can you come up with 200 coins that will sell for at least 50 bucks each? keep in mind that you have to pay less than 50 bucks each for them.....its not easy to make money in the auction business, one bad auction can cost you 1000's of dollars.


AL

richardshipp

I'm not talking about B&M auctions. I am referring to a Dealer having an auction on their website; auctioning off their own coins. Of course any buyer will "factor in" the cost including a "buyers fee" if there is one. My question is why is there one in the first place? Why not just set the starting price at what they want, or under if they want to generate action on some pieces?

Yes a buyer should be "intelligent" enough to factor it in; but IMO I think a Dealer holding an auction on their own website selling their own coins should be "intelligent" enough to know that it seems ridiculous.

AUandAG

I don't care if the only coin left to complete my collection was only available in an auction. I would not
pay "juice" to buy the coin. It's my opinion that the sellers that participate in selling their goods are the
ones that should be paying the people they hire to do the auction. I, personally, will never participate in
this gun to my ribs. Nope, not me and I'm sure that there are others that believe the way I do. To me
that is an optional way to sell your coins and sellers need to realize that they are the ones that need to
pay all the fees required to sell their product. If the cost's are too high then they are either not buying
correctly, not holding long enough or just should find another way to sell.
Oh my,
bob
edited to say: Yes it's greed and I'm not particpating

Pandavab

<< <i>Maybe I'm a little slow but I am wondering something about the various "Dealers Auctions".

I can understand an auction company charging for and receiving a "buyers premium" when auctioning off someone elses coins. They have to make money somehow.

I don't understand why a dealer selling their own coins at their own auction would feel its ok to charge a buyers premium. Can someone help this me understand this? >>



If the dealer is selling other people's coins on consignment and his own coins, it is probably easier to just list all of them with a buyer's fee. Otherwise, people might get confused and think there is a buyer's fee on the dealer's items and bid lower than they would have. It's easier for the dealer, and less confusing for the public, to keep the entire auction either with or without a buyer's fee.

Now, if a dealer is auctioning only his own items and still charges a buyer's fee, then I'd go with pure greed. While smart buyers will obviously factor in the additional fee into their bid, many people can't do math very well or, to put it bluntly, aren't very smart.