Buyer's premium on auctions

Comments

• Options

  gemtone65 Posts: 963 ✭✭✭

  September 26, 2002 6:09AM

  A buyer's charge might discourage a potential consignor from selling their coins through that particular auction house. This is the case because the buyer's fee is, paradoxically, designed to strengthen the auction house's ability to negotiate a commission with the seller. However, for the buyer, it shouldn't really matter, as long as all the competitors are well informed about the fee. In that case, say a buyer is willing to pay B for a specific lot without any buyer's fee. If the fee, expressed as a fraction is f (e.g., for a 20% fee, f = 0.2), then simply revise your bid to B* where B* is the product of B and the ratio 1/(1+f).

  0
• Options

  DrawTwo Posts: 85

  September 26, 2002 7:50AM

  I'd rather just go look for another coin. Or round it off and just multiply my amount by .8.

  Home brew is best - Never drink alone

  0