Are Auction Reps Moving from 5% to 2.5%?

Coinosaurus

Given the latest Stack's move, can I expect a reduction in the standard auction representation fee?

Split the difference to 3.75% maybe?

WTCG

Sellers fees are always negotiable.

Justacommeman

I've always have paid 3 to 5%.

Mark Feld and I have actually fought over this issue. I didn't feel he was charging me enough. MJ

mrpotatoheadd

<< <i>Given the latest Stack's move, can I expect a reduction in the standard auction representation fee? >>

Why would one expect that?

Pistareen

I do a fair bit of 5% representation business.

Considering the time allotted to it, I consider it a loss leader to help build relationships with customers. After phone calls, emails, viewing lots, packing a package, etc, making $50 on a $1000 item doesn't exactly make financial sense. Sure, if everyone was buying $10K or $20K items it would be great, but I would guess my average representation invoice is probably in the $1-2K range. Many are less. I have sent representation invoices out for under $10 - a loser as soon as I write the first email or lick the stamp.

To answer the OP's question, I have no plans to reduce my fee.

RichieURich

What Pistareen said. Not a huge profit in it at the current levels. And, if you use this service and don't win the lot, many auction reps won't charge you a dime.

It's also relevant to note that one of the most useful things an auction rep does is to recommend you stay away from a below-average coin. If the coin is a real dog, you could lose half your investment as soon as you "win" the lot. Most auction reps won't charge you for this either.

TomB

Agree with Pistareen and RichieURich, which is generally a good spot to be, in that the time allotted and expertise given is not often compensated at a high level. Additionally, I also do not charge for lots that are not won by the client. Oddly, clients have given me the same argument that MJ and Mark Feld have engaged in, where they believe my service is more valuable than the agreed upon compensation especially when I nudge them away from bad coins or a poor fit.

Justacommeman

<< <i>Agree with Pistareen and RichieURich, which is generally a good spot to be, in that the time allotted and expertise given is not often compensated at a high level. Additionally, I also do not charge for lots that are not won by the client. Oddly, clients have given me the same argument that MJ and Mark Feld have engaged in, where they believe my service is more valuable than the agreed upon compensation especially when I nudge them away from bad coins or a poor fit. >>



If I depended on you and Mark Feld to acquire coins for me via auction I would have a box of 5. The Fussy Pants Boys.

Seriously, as pointed out the best reason to use auction representation is to keep you off of lesser coins as mentioned. Auctions are used as dumping ground. Mark just kept me off of a coin I REALLY wanted in Stack's in the $10,000 range. He didn't feel it was all there. I'm grateful.

MJ

2ndCharter

And, in return, if your bid is too low and fails to win the lot, can the rep still charge you a fee for his time and effort?

halfcentman

<< <i>I do a fair bit of 5% representation business.

Considering the time allotted to it, I consider it a loss leader to help build relationships with customers. After phone calls, emails, viewing lots, packing a package, etc, making $50 on a $1000 item doesn't exactly make financial sense. Sure, if everyone was buying $10K or $20K items it would be great, but I would guess my average representation invoice is probably in the $1-2K range. Many are less. I have sent representation invoices out for under $10 - a loser as soon as I write the first email or lick the stamp.

To answer the OP's question, I have no plans to reduce my fee. >>



Paying a 5% representation fee is in a word - a bargain.

When Lisa were purchasing Half Cents, we used the late Don Valenziano. His opinions and actual floor representation were invaluable since both give you a tactical edge over non-floor bidders.

agentjim007

If I had to pay someone $1K-$2K to look at coins for me I would jump on a plane.

crypto79

<< <i>If I had to pay someone $1K-$2K to look at coins for me I would jump on a plane. >>



X2

Pistareen

<< <i>If I had to pay someone $1K-$2K to look at coins for me I would jump on a plane. >>



I think you missed my point. When I say my average representation invoice is $1-2K, I mean that was the amount of the winning bids.

A $2K invoice nets me $100.

PerryHall

<< <i>Given the latest Stack's move, can I expect a reduction in the standard auction representation fee? >>



Of course not. Why should you? Perhaps the hotel and restaurants should give you a discount because Stacks raised their fees.

ColonialCoinUnion

<< <i>

<< <i>Given the latest Stack's move, can I expect a reduction in the standard auction representation fee? >>



Of course not. Why should you? Perhaps the hotel and restaurants should give you a discount because Stacks raised their fees. >>



Don't forget airlines and taxis!

Coinosaurus

<< <i>

<< <i>Given the latest Stack's move, can I expect a reduction in the standard auction representation fee? >>



Of course not. Why should you? Perhaps the hotel and restaurants should give you a discount because Stacks raised their fees. >>



Sounds good to me, where do I sign up

au58

<< <i>If I depended on you and Mark Feld to acquire coins for me via auction I would have a box of 5. The Fussy Pants Boys. >>



Good one.

MrEureka

Given the latest Stack's move, can I expect a reduction in the standard auction representation fee?

I think you've asked the wrong question. The right question is, if bidders don't squawk at higher buyer's premiums, shouldn't auction reps take that as a sign that they can also get away with charging higher fees?

Bayard1908

<< <i>I do a fair bit of 5% representation business.

Considering the time allotted to it, I consider it a loss leader to help build relationships with customers. After phone calls, emails, viewing lots, packing a package, etc, making $50 on a $1000 item doesn't exactly make financial sense. Sure, if everyone was buying $10K or $20K items it would be great, but I would guess my average representation invoice is probably in the $1-2K range. Many are less. I have sent representation invoices out for under $10 - a loser as soon as I write the first email or lick the stamp.

To answer the OP's question, I have no plans to reduce my fee. >>



Good lord, I'd be embarrassed to ask a grown man to evaluate and bid on a coin for 5% of $1000. I've never used auction representation, but, falsely presumed it was not available for coins below the $5K to $10K range.

Coinosaurus

<< <i>Given the latest Stack's move, can I expect a reduction in the standard auction representation fee?

I think you've asked the wrong question. The right question is, if bidders don't squawk at higher buyer's premiums, shouldn't auction reps take that as a sign that they can also get away with charging higher fees? >>



Well in Pistareen's case, I do think a minimum fee ($50??) is in order. Doesn't Heritage have a minimum comission of $15 or so, to cover some of the per lot overhead?

LindeDad

<< <i>Good lord, I'd be embarrassed to ask a grown man to evaluate and bid on a coin for 5% of $1000. I've never used auction representation, but, falsely presumed it was not available for coins below the $5K to $10K range. >>



I always thought us peons had to fend for ourselves.

TomB

Some of the replies are a little surprising to me, so I will add details that not only cover how I offer this service, but may also be consistent with how the service is offered by others who have either posted in this thread or who have been mentioned in the thread.

I will closely inspect and take notes on those auction lots that clients ask me to evaluate. That information is then given to my clients in the form of an email, phone call or any other method agreed upon prior to the auction. The client may then choose to bid on these and other lots for him/herself and have those lots delivered to their own physical location or I will bid on those lots and pick up the winning lots at the show. The fee is 5% of the total sales price for those lots won and there is no fee for those lots that I tell my clients to avoid or for those lots where the placed bid is not the winning bid. There has historically been no lower limit on lot value for me to perform this service. Given how demanding I am with respect to the surface, color and overall look of a coin, I tell my clients to avoid the great majority of lots that I evaluate. An example would be a recent show where I looked at a half dozen lots, took notes, called the client and told him that only a single coin was satisfactory after in-hand inspection. The six lots closed from $400 to $6,000 and the lot he won closed at $600 so I made $30 for the entire service. In my opinion, that is a great bargain for those clients who use such a service from someone like me.

pennyannie

If I depended on you and Mark Feld to acquire coins for me via auction I would have a box of 5. The Fussy Pants Boys.

Seriously, as pointed out the best reason to use auction representation is to keep you off of lesser coins as mentioned. Auctions are used as dumping ground. Mark just kept me off of a coin I REALLY wanted in Stack's in the $10,000 range. He didn't feel it was all there. I'm grateful.

MJ >>



I was told that coin was all there. I guess i should have paid a higher fee

PonyExpress8

Also maybe not pointed out is that those of us who do auction representation usually are at the show or previewing lots for several coins. So it is an additional service where we may offset part of the cost of being there in the first place. Like those others such as Rich and Tom, I charge only if the lot is won, otherwise it's nada to the client.

There are also a lot of things when bidding you can do to improve the chances of winning a lot and in some cases the 5% can wind up being 0 to the customer using these techniques.

Without seeing a coin in hand you just can't make a complete judgement on it. You can't rotate the coin under a camera and get the true view of what you see 3 dimensionally with you eye. Auctions offer great opportunities but there also a lot of coins there which show up again and again at auction seeking a home that aren't all that nice.

I'm also disappointed to see the buyer fee go up 2.5%. There are other things both large auction houses could do to enhance their fee income aside from raising buyer fees. Some of which they may have tried and others I know they haven't. The steady increase in fees will have a detrimental effect over time. Look at the decline in eBay as they continued to raise their fees as a great example. I don't pretend to know the statistics but I would suspect eBay has half the coin business it used too a few years back.