Highest Buyer's Premium?

Zoins

What's the highest buyer's premium for a semi-major auction? I've seen 28% and was wondering how high they get?

keyman64

That is crazy! I had seen 22% or so and I thought that was....wow.


Just gotta stick with Great Collections at 10% or for the seldom seen items,
I guess you do what you have to do and go to Heritage and Stacks and their 17.5%.

Hydrant

I've given up on the whole auction thing. Whether it's 10% or 17% I'm tired of it. Also, if your lucky like me and live in the socialist paradise known as California, tack on another 10% for sales tax. When shipping is added in it gets even more ridiculous. My advice......work with a good dealer.

Kyle

Most of the coin auctions in Canada have a buyers premium around 18% plus sales tax at 13% in Ontario (31% total).

Sales tax is charged on the buyers premium as well, so a $100 coin would end up costing you $133.34 + Shipping (Generally $15+).

This is why I stick to eBay for most of my purchases.

roadrunner

It's irrelevant for 95-98% of all bidders as they know how to divide what they're willing to pay for a coin by the stated "buyer's fee." It really doesn't matter if you divide by 1, 1.1, 1.2, 1.3, or whatever. You still bid the correct amount for what you are willing to pay. The consignor negotiates their total fees based on hammer. So that is essentially where the buyer's fee gets rung out.

$1,000 FMV coin. 17.5% buyer's fee. Bid $850.

$1,000 FMV coin. 22.5% buyer's fee. Bid $815 (or more likely $825).

$1,000 FMV coin. 27.5% buyer's fee. Bid $785 (or more likely $775).

You'll pay the same price in all 3 instances. For the bidder it is a simple math exercise. For the consignor it's just a negotiation before the sale.

And in the year 2525.....if coin collecting is still alive...........the buyer's fee is 99%!

$1,000 FMV coin. 99% buyer's fee. Bid $500. It's just math. Who knows. Someday the add on fees will be so high we'll be bidding $1 on a coin worth $1,000....and paying $999 in "fees." It all comes out in the wash.

If you don't like paying sales tax, run your love of coins like a business and file a schedule C each year. Get a sales tax use permit. You won't pay anything more than shipping fees. Just make sure you meet all the requirements for running a schedule C business (making a profit 3 out of 5 years, etc.). I've watched these fees over the past 20 years and whether as buyer or seller I've seen no effect on my net prices regardless of seller's fees and buyer's fees. You net about the same as a seller and pay the same FMV as a buyer. The rest is smoke and mirrors.

Hydrant

Thanks for the info, Roadrunner. Never realized the possibilities. I already file under a business. Maybe I'll jump back into the auction scene. It is fun after all. Thanks!

BillJones

Heritage charges 25% on their political items auctions plus the 7% sales tax. It has pretty well killed that end of their auctions for me.

You can say what you want about bidders lowering their bids because of the buyers' fees, but it's looking more and more like a lot of bidders are ignoring them. Buying anything at auction at a fair price is becoming impossible for me.

I spotted a coin I need in an upcoming auction. I won't say what it is now, but if it sells for twice the "Coin Facts" price, l'll post it and talk about it. It is well below the finest graded. It does not have a CAC sticker, and it is not in a PCGS rattle holder. It is not in a PCGS green label holder.

I feel like I am getting shilled, and I am tired of it.

BustHalfBrian

Saw 25% in an ebay live auction a couple of weeks ago. Anything over 20% I try to avoid, unless it's something I "can't live without".

Constantine

I simply bid what I feel is the right price for a lot. In other words I completely factor in the buyer's premium. So essentially it is up to the auction house and the consignor to figure out the rest.

pennyannie

While I know how to back out the bidding preminum, it seems more and more do not. When you are looking at a 1000 dollar coin or 2000 dollar or whatever what is another 10 percent?? I me I will walk but a lot will not.

I have walked away more times than I can count over 25 bucks, 25 bucks!! on 1000 dollar plus coins and guns..

25 percent is the highest prem. I have dealt with.

lasvegasteddy

<<< could understand a buyers premium if no sellers fees were being chagred

it makes me think of the tea dumped in boston's harbor

Boosibri

What Roadrunner said

Overdate

I don't participate in any venue that charges me money for the privilege of being a customer.

Bochiman

Saying that the fees aren't relevant, as a buyer, if you know what you are doing and are aware of them, if you include taxes, is a bit disingenuous as not everyone pays the same uniform tax rate. So, some are always at an advantage when taxes come into play.
My bid for that $1000 "guide" priced coin may be $800 due to buyer's premium raising it to $1000 all-in for my wallet, while someone else may also face a tax and, to come out to the same $1000, only be willing to BID $750. So, my bid of $800 would win.

I could see this bumping bids a bit as some folks would become a bit disappointed over and over, which could easily raise prices for what everyone pays.

All that said, I know auction houses are where all the big coins go, and I have purchased a few (very few) items from HA (and none from SB or some of the others) as I don't believe in the fees that they charge currently. Too easy for some to forget them and bid a "normal" amount...and so one is paying up more than they should, or not getting the coins.

hickoryridge

<< <i>Heritage charges 25% on their political items auctions plus the 7% sales tax. It has pretty killed that end of their auctions for me.

You can say what you want about bidders lowering their bids because of the buyers' fees, but it's looking more and more like a lot of bidders are ignoring them. Buying anything at auction at a fair price is becoming impossible for me.

I spotted a coin I need in an upcoming auction. I won't say what it is now, but if it sells for twice the "Coin Facts" price, l'll post it and talk about it. It is well below the finest graded. It does not have a CAC sticker, and it is not in a PCGS rattle holder. It is not in a PCGS green label holder.

I feel like I am getting shilled, and I am tired of it. >>



+1

oih82w8

<< <i>Heritage charges 25% on their political items auctions... >>



I found out the hard way on "other" auctions through Heritage. I was playing around on a charity auction and messed around a won something and the 25% buyers fee was like....WHAT!?!? Fortunately it was only a little over a hundred dollars, and then there was the coordination through an outside shipper (it was a matted/framed autograph montage) which would have cost me another $50. I just happen to be near Dallas and picked it up in person...really, you cant miss the building...although there is some construction going on.

The buyer fees are beginning to turn me off, but I incorporate it into my high bid.