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Shipping Charge Gouging at Collect Auctions

Just wanted to share a recent experience in dealing with Collect Auctions.

I won a single PSA-slabbed cello pack in their recent auction valued at rough $300. My invoice included total shipping and
insurance charges of $17.91.

Last I checked a small USPS flat rate priority mail box runs $5.15 and $300 of insurance costs about $4 for a total of roughly
$9.15.

Do these guys think we don't understand they are gouging on the S&H? It's not like its a huge amount of money, but it's
just plain wrong for them to blatently profit from S&H.

Charge me $10 and I could care less that it's a few pennies over cost, but charge me NEARLY DOUBLE and its clear that
Collect Auctions is either deliberately gouging or they are extremely inefficient because they use a significantly more expensive
S&H method than it necessary.


Dave

Comments

  • jimradjimrad Posts: 2,777 ✭✭✭
    David,

    While I can understand your frustration, I actually side the other way.
    The shipping is the $9-10 part, but the handling when you have a true business with overhead on the
    other side is worth a few bucks. If an employee is making $14/hour and has to make a label, wrap,
    and pack and tape the box a business has to charge at least 1/2 hour of labor. I never want to pay
    it but I do understand it.
    I probably feel that way since I owned my own business for 20 years and had 25 employees.
    If I didn't make money they wouldn't have jobs.
    Positive transactions with: Bkritz,Bosox1976,Brick,captainthreeputt,cpettimd,craigger,cwazzy,DES1984,Dboneesq,daddymc,Downtown1974,EAsports,EagleEyeKid,fattymacs,gameusedhoop,godblessUSA,goose3,KatsCards,mike22y2k,
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  • otwcardsotwcards Posts: 5,291 ✭✭✭
    I've given in to the fact that AH's will overcharge for S/H and typically consider it a moot point unless the item is lower value. On a purchase of several thousand dollars, an extra $5-10 over the actual shipping expense isn't that big of a deal. I can understand the concern, however, when a lesser item is purchased (say $100) and the S/H equals or exceeds the buyer's premium and ends up adding 40% all-in to the final bid...
  • So you do not beleive they make enough on the 17% buyers premium plus the consignee fees?

    Sounds like a racket to me!
  • grote15grote15 Posts: 29,748 ✭✭✭✭✭
    Shipping for auction houses is always higher than actual cost or what you'll find on ebay, particularly when you win a single card/pack as in this case. I just assume that shipping will be at least $15 for any single item.

    Edit to add: A priority package with insurance up to $300 is $10 if printed from the USPS web site, so I'm not too upset with $17 to ship. Most of these auction houses no longer collect consignment fees from the sellers so they need to make profit in all aspects of the transaction, as jimrad pointed out, so I have no beef with that.


    Collecting 1970s Topps baseball wax, rack and cello packs, as well as PCGS graded Half Cents, Large Cents, Two Cent pieces and Three Cent Silver pieces.
  • ArchaninatorArchaninator Posts: 827 ✭✭✭
    .
  • alnavmanalnavman Posts: 4,129 ✭✭✭
    there are some government auctions out there that if I understand their shipping policy correctly the cost is $12 per item......I obviously do not bid on any of those items......
  • grote15grote15 Posts: 29,748 ✭✭✭✭✭


    << <i>there are some government auctions out there that if I understand their shipping policy correctly the cost is $12 per item......I obviously do not bid on any of those items...... >>



    So if you can purchase an item for say $40 less than you normally would, you wouldn't bid on it because shipping is $12?


    Collecting 1970s Topps baseball wax, rack and cello packs, as well as PCGS graded Half Cents, Large Cents, Two Cent pieces and Three Cent Silver pieces.
  • alnavmanalnavman Posts: 4,129 ✭✭✭


    << <i>

    << <i>there are some government auctions out there that if I understand their shipping policy correctly the cost is $12 per item......I obviously do not bid on any of those items...... >>



    So if you can purchase an item for say $40 less than you normally would, you wouldn't bid on it because shipping is $12? >>



    if they had, for instance a Michael Jordan RC and I was able to purchase it for a reasonable price I would pay the $12 shipping. My intent was to say that the postage they charge is/was $12 PER ITEM, so if you purchased multiple items you paid the price, one item $12, two items $24, ......in fact my quote was out of date, I went to Live Auctioneers after posting my first response and noticed that the cost is now $19.95 for a lot of items....now I may be misreading the auctions but was just commenting on pricing that I thought was out of the ordinary. and by the way the government auctions I've seen listed on Live Auctioneers are usually for items that are not Michael Jordan RC pricing.....commons and lower priced items for the most part.........
  • alnavmanalnavman Posts: 4,129 ✭✭✭
    let me clarify further my response, I did not mean to imply that all Live Auctioneers auctions charge the higher prices, just certain ones.....I've had great success with several of the auction houses that list there for reasonable shipping and handling charges......

    al.
  • never mind
  • Collect Auctions does gouge IMO. I was completely lied to regarding shipping charges. Here is what happened, a year or so ago I win a 50 card lot for $30.

    I get an invoice for the item that included $9.15 for shipping and $3 for insurance! I sent an email asking about the charges and was told they are automatically calculated based on Fed Ex charges, so I asked about the $3 charge for insurance since it doesn't cost that much to insure. I was told they use a third party insurance company and everyone pays the same amount of $3 for insurance whether their item is $10 or $10,000. I basically said I wasn't paying $12.15 to ship $30 cards and they lowered it down to $6.

    Fast forward a year later, I win a 80 card lot for around $300. I was charged $9.50 for shipping and $6 for insurance. Knowing what I was told last time, I sent an email asking if the insurance charge was correct and how insurance charges are determined. I was told this time it is based on value and that even USPS would charge $5. I then asked if they have always charged based on value and was told yes.

    So the first time when they charged me $3 for insurance on a $30 package they said everybody pays the same, then on the $300 package it is determined by value. I didn't say anything, but I really didn't appreciate him lying to me and will not buy from them again. So yes, IMO they do gouge on shipping and will try to get away with whatever they can get away with and then lie to try and justify their gouging.

    I guess I am a little old school when it comes to business. I believe you should be honest with your customers and treat them the way you would want to be treated and by doing this along with good service and a good product, your business will grow and be around for a long time. Sadly most people these days don't feel the same way.

    The good thing is, when a business flat out lies to you and makes you feel like they are trying to get over on you, you can take your business elsewhere, and that is what I chose to do.


  • << <i>Collect Auctions does gouge IMO. I was completely lied to regarding shipping charges. Here is what happened, a year or so ago I win a 50 card lot for $30.

    I get an invoice for the item that included $9.15 for shipping and $3 for insurance! I sent an email asking about the charges and was told they are automatically calculated based on Fed Ex charges, so I asked about the $3 charge for insurance since it doesn't cost that much to insure. I was told they use a third party insurance company and everyone pays the same amount of $3 for insurance whether their item is $10 or $10,000. I basically said I wasn't paying $12.15 to ship $30 cards and they lowered it down to $6.

    Fast forward a year later, I win a 80 card lot for around $300. I was charged $9.50 for shipping and $6 for insurance. Knowing what I was told last time, I sent an email asking if the insurance charge was correct and how insurance charges are determined. I was told this time it is based on value and that even USPS would charge $5. I then asked if they have always charged based on value and was told yes.

    So the first time when they charged me $3 for insurance on a $30 package they said everybody pays the same, then on the $300 package it is determined by value. I didn't say anything, but I really didn't appreciate him lying to me and will not buy from them again. So yes, IMO they do gouge on shipping and will try to get away with whatever they can get away with and then lie to try and justify their gouging.

    I guess I am a little old school when it comes to business. I believe you should be honest with your customers and treat them the way you would want to be treated and by doing this along with good service and a good product, your business will grow and be around for a long time. Sadly most people these days don't feel the same way.

    The good thing is, when a business flat out lies to you and makes you feel like they are trying to get over on you, you can take your business elsewhere, and that is what I chose to do. >>



    Your right, if we think we have been wronged, we have the option to take our business elsewhere! And another good thing is that we have the right to post it in the forum! image
  • grote15grote15 Posts: 29,748 ✭✭✭✭✭


    << <i>

    << <i>Collect Auctions does gouge IMO. I was completely lied to regarding shipping charges. Here is what happened, a year or so ago I win a 50 card lot for $30.

    I get an invoice for the item that included $9.15 for shipping and $3 for insurance! I sent an email asking about the charges and was told they are automatically calculated based on Fed Ex charges, so I asked about the $3 charge for insurance since it doesn't cost that much to insure. I was told they use a third party insurance company and everyone pays the same amount of $3 for insurance whether their item is $10 or $10,000. I basically said I wasn't paying $12.15 to ship $30 cards and they lowered it down to $6.

    Fast forward a year later, I win a 80 card lot for around $300. I was charged $9.50 for shipping and $6 for insurance. Knowing what I was told last time, I sent an email asking if the insurance charge was correct and how insurance charges are determined. I was told this time it is based on value and that even USPS would charge $5. I then asked if they have always charged based on value and was told yes.

    So the first time when they charged me $3 for insurance on a $30 package they said everybody pays the same, then on the $300 package it is determined by value. I didn't say anything, but I really didn't appreciate him lying to me and will not buy from them again. So yes, IMO they do gouge on shipping and will try to get away with whatever they can get away with and then lie to try and justify their gouging.

    I guess I am a little old school when it comes to business. I believe you should be honest with your customers and treat them the way you would want to be treated and by doing this along with good service and a good product, your business will grow and be around for a long time. Sadly most people these days don't feel the same way.

    The good thing is, when a business flat out lies to you and makes you feel like they are trying to get over on you, you can take your business elsewhere, and that is what I chose to do. >>



    Your right, if we think we have been wronged, we have the option to take our business elsewhere! And another good thing is that we have the right to post it in the forum! image >>



    I third that idea...fewer bidders to compete with then, LOL..


    Collecting 1970s Topps baseball wax, rack and cello packs, as well as PCGS graded Half Cents, Large Cents, Two Cent pieces and Three Cent Silver pieces.
  • otwcardsotwcards Posts: 5,291 ✭✭✭


    << <i>So you do not beleive they make enough on the 17% buyers premium plus the consignee fees?

    Sounds like a racket to me! >>



    It isn't about whether the house makes enough with the BP. My point was simple. If you wish to make another case about profit allowance and what you consider acceptable, that is your option. That wasn't my point nor is it a topic that I fell is worthy of discussing. If you don't like the terms or vig, don't bid...
  • I had the same problem with another auction house. I won 27 cards for $60 and was charged $13 for shipping. On their next auction there was another small lot for $30 but I didn't throw down a bid because I didn't want to pay the $13 in shipping.


  • << <i>I've given in to the fact that AH's will overcharge for S/H and typically consider it a moot point unless the item is lower value >>



    The economic effect is the same whether the card cost $5 or $5 000. Adding $10 sees your assets decrease by $10 regardless of what the actual item cost


  • << <i>

    << <i>So you do not beleive they make enough on the 17% buyers premium plus the consignee fees?

    Sounds like a racket to me! >>



    It isn't about whether the house makes enough with the BP. My point was simple. If you wish to make another case about profit allowance and what you consider acceptable, that is your option. That wasn't my point nor is it a topic that I fell is worthy of discussing. If you don't like the terms or vig, don't bid... >>



    Sorry Scott, but my comment was not aimed at what you said. In fact, I completely agree with what you said. When I had written mine, I had not even seen yours yet. Take it easy tiger!!!image
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