Do dealers pay the same auction "juice" that I do?

claychaser · October 28, 2008 2:25PM

Do any of the big time dealers ever get a negotiated break on the 15% juice that the auction houses charge to buy coins?

Topdollarpaid · October 28, 2008 2:42PM

A dealers job is to bid up the item and drop out just before the collector is done bidding.

So instead of the collector getting a 400.00 coin for 250.00 he ends up getting the coin for 650.00.

Just kidding of course.

rhedden · October 28, 2008 2:51PM

Just kidding of course.

About what- the part where the dealer drops out and the collector wins the coin? When I attend auctions, the dealers usually win the items and then put them out on their table at 2X Trends the next day!

RYK · October 28, 2008 2:53PM

Everyone pays the juice. Where the dealers get the break is in consigning. The unconnected, inexperienced collector or heir gets 95% hammer. The connected person/dealer may get up to 107% (or more) of hammer, though low 100's are more typical.

WTCG · October 28, 2008 2:55PM

The buyers' premium, or "juice" is the same percentage amount for everybody without exceptions.

claychaser · October 29, 2008 2:58AM

Thanks guys, looks like a pretty concrete answer to my question. What other business has this level of a buying playing field - if the collector is as knowlegable as the dealer?

Any other comments?

Coxe · October 29, 2008 3:09AM

RYK explained it correctly. Auction houses couldn't legally give any particular bidders or classes of bidders a break on the buyer fees. Seller fees are OTOH open to negotiation. A typical small-time or newbie consignment will pay 5% of the hammer. A high quality consignment might get the full hammer plus half of the buyer fee. Certain lots, to get them into the catalogue, might get special treatment beyond all of that. Possibilities are endless in the negotiations.