Teletrade to raise buyers fees

smallchange · July 1, 2008 1:43AM

I just went to the Teletrade web site and I got a message that they are raising their buyers fee from 12% to 15% beginning July 2, 2008. I guess it had to happen as most others are at 15% but not much notice. Oh they did say they will extend the 12% fee to me until September for being a loyal customer. I wonder if this will give pause to people looking to buy or even for those sellers knowing that the buyer will have to adjust his bid to compensate for the higher fees.

Small change.

blu62vette · July 1, 2008 1:46AM

Add on California taxes and I have to remember about 23-24% more than my bid plus shipping. The bids look like a deal......but have to remember the total costs.

Silverstate · July 1, 2008 1:51AM

<< Add on California taxes and I have to remember about 23-24% more than my bid plus shipping. The bids look like a deal......but have to remember the total costs. >>

Make sure bids total more than $ 1000 and you will not have to pay CA Sales Tax.
Of course, only CA residents need to even worry about the CA sales tax.

19Lyds · July 1, 2008 2:02AM

I get snagged on those damn taxes and fee's every friggin time!

I guess I just gotta quit bidding on $9 dollar IKE's!

Connecticoin · July 1, 2008 2:08AM

It used to be 10% not too long ago.

Why use Teletade over Heritage now?

Rupert305 · July 1, 2008 2:16AM

All the coins I purchase from them are in the $10 to $125 range. I forget about adding the sales tax in my bid a few times, and get gouged and the end of the auction.

I stopped using them for that reason, although they do have some of the best customer service.

Wolf359 · July 1, 2008 2:22AM

Smart move in a down economy.

ziggy29 · July 1, 2008 2:22AM

<< I just went to the Teletrade web site and I got a message that they are raising their buyers fee from 12% to 15% beginning July 2, 2008. I guess it had to happen as most others are at 15% but not much notice. Oh they did say they will extend the 12% fee to me until September for being a loyal customer. I wonder if this will give pause to people looking to buy or even for those sellers knowing that the buyer will have to adjust his bid to compensate for the higher fees. >>

They just went from 10% to 12% not long ago.

I wonder if they'll blame fuel prices like everyone else.

dbcoin · July 1, 2008 3:03AM

They also now offer a rewards program

TT rewards

pennyannie · July 1, 2008 3:03AM

Corporate greed. Postage did not go up that much. Maybe they figured coins will start selling for less and to make up the difference they added 3 percent.

ziggy29 · July 1, 2008 3:17AM

<< They also now offer a rewards program

TT rewards >>

Smoke and mirrors intended to distract us from the fee increase, IMO. Looks like the "rewards" are a pittance compared to the fee increase.

yellowjacket · July 1, 2008 3:50AM

The house gets 20% any way you look at it. Heritage has 5% seller's fee and 15% buyer's fee. Teletrade broke it down 8% and 12%. Now if you are saying that TT is going to 5%/15% like other auction houses, then NBD. But if TT is 8% and 15%, they may be losing this loyal customer.

Garrow

nencoin · July 1, 2008 4:03AM

<< Oh they did say they will extend the 12% fee to me until September for being a loyal customer. >>

Is that even legal (charging some bidders 12% and some 15%)?

Connecticoin · July 1, 2008 4:48AM

<< The house gets 20% any way you look at it. Heritage has 5% seller's fee and 15% buyer's fee. Teletrade broke it down 8% and 12%. Now if you are saying that TT is going to 5%/15% like other auction houses, then NBD. But if TT is 8% and 15%, they may be losing this loyal customer.

Garrow >>

Crap, I did not know they gouged 8% out of sellers as well (thought it was 5%)! If they keep the 8%, that's a 23% nut to cover!! What makes TT worth ponying up 3% more than Hertiage?

MisterBungle · July 1, 2008 5:44AM

Buyer's fee percentage shouldn't make
any difference at all to a buyer.

If you figure the amount you are willing
to pay for a coin or coins on Teletrade
including the buyer's fee and make your
bids accordingly, then the lots you win
will cost you no more than you wanted
to pay, no matter what the fees are.

If you want a coin at $100, and the fees
are $10, then you bid $90 for it.

If you want the coin at $100, and the
fees are $90, then you bid $10.

No difference.

Buyers fees really only hurt the seller.

~

pennyannie · July 1, 2008 6:08AM

Misterbungle- I agree, but some bidders forget the fee's when they bid.

TT can charge you less if they feel like. Just like Heritage can give some sellers 105 percent of hammer. No law says they can not do it. Now if they go over on just you, ???

Coxe · July 1, 2008 6:18AM

<< It used to be 10% not too long ago.

Why use Teletade over Heritage now? >>

And it was 8% for gold coins!

I think this is a backwards move. If the market slows down, even if because quality consignments drop precipitously, everyone is going to need to start lowering their fees.

The one thing I like about eBay is that the fees are all concentrated at the seller. It would be nice to move the juice 100% that way and let those details all be part of the the consignment negotiations. Buyers' fees just slop everything up in the auctions.

BECOKA · July 1, 2008 6:20AM

<< Corporate greed. Postage did not go up that much. Maybe they figured coins will start selling for less and to make up the difference they added 3 percent. >>

Does not matter what postage is, they charge you separate + handling is mixed in. So, Buyer fee, tax and shipping need to be considered.

GFourDriver · July 1, 2008 6:26AM

<<<Oh they did say they will extend the 12% fee to me until September for being a loyal customer>>>

But did you notice that they also said that your gold points will be .5 per $1? They will go up to 1 pt. per $1 after Sept. 30.

barbershopper · July 1, 2008 6:52AM

All kinds of businesses begin with lower prices than their competitors as a drawing card.
Gas stations, fast foods, auction houses, you name it.
Once they establish themselves with a large clientele, you can be sure that their prices
will rise to the same or nearly the same as the competetion.
They know many or most of their loyal customers will remain with them.
My response to this practice is to tuck this knowledge away in some tiny recess of my brain
and never spend any more of my money with them.
Even the larger ones who advertise on TV or newspapers and make claims about their products & services
which are hidden in the fine print and shown on the tube for 2 seconds or so allow me to
judge their tactics as hiding what they don't want you to know fall into the same category
and receive the same response from me.
If enough of us would follow this practice, maybe things would change.
I told my wife when ebay went public with their stock offering there would be changes made
so they could keep their investors happy. I was right.
I now do business with them only when there is no alternative.

seateddime · July 1, 2008 7:17AM

post those codes

seateddime · July 1, 2008 7:19AM

<< 

<< They also now offer a rewards program

TT rewards >>

Smoke and mirrors intended to distract us from the fee increase, IMO. Looks like the "rewards" are a pittance compared to the fee increase. >>

Heritage already sent me a redbook and $100 off sellers fees - oh wait that was free for all

JZrarities · July 1, 2008 9:26AM

I cut way back on Teletrade bidding because of the hidden reserves and coins disappearing only to return because they were unsold.

I sent some coins to be auctioned by them - Never Again.

Well, GOSH.
Raise your fees...I'll leave completely.

Cya Teletrade.

BAJJERFAN · July 1, 2008 9:40AM

<< Buyer's fee percentage shouldn't make
any difference at all to a buyer.

If you figure the amount you are willing
to pay for a coin or coins on Teletrade
including the buyer's fee and make your
bids accordingly, then the lots you win
will cost you no more than you wanted
to pay, no matter what the fees are.

If you want a coin at $100, and the fees
are $10, then you bid $90 for it.

If you want the coin at $100, and the
fees are $90, then you bid $10.

No difference.

Buyers fees really only hurt the seller.~ >>

Great idea in theory, but how reliable is it in practice?

as for commish...........

Sold Coins - Price Realized Fee
$2,001 or more 4%
$750 to $2,000 6%
$6 to $749 8% ($5 minimum)

leothelyon · July 1, 2008 9:50AM

<< 

<< The house gets 20% any way you look at it. Heritage has 5% seller's fee and 15% buyer's fee. Teletrade broke it down 8% and 12%. Now if you are saying that TT is going to 5%/15% like other auction houses, then NBD. But if TT is 8% and 15%, they may be losing this loyal customer.

Garrow >>

Crap, I did not know they gouged 8% out of sellers as well (thought it was 5%)! If they keep the 8%, that's a 23% nut to cover!! What makes TT worth ponying up 3% more than Hertiage? >>

They have better pictures, much better!

Leo

BAJJERFAN · July 1, 2008 10:15AM

Got the same message when logging in; good thing I'll be running out of funds soon.

At least one more target in my sights for now.

MisterBungle · July 1, 2008 10:26AM

> "Great idea in theory, but how reliable is it in practice?"
-----

For me personally, it's really reliable in practice.

I will be bidding 3% less on coins at Teletrade
because I always figure in the juice before I bid.

Always!!

The end result may be that I don't win as many
coins, but the ones I do win will be at the same
price as before the increase.

Like I said before, it's really the seller who gets
hit by a increase in the buyer's premium, not
the buyer.

Or, at least, not this buyer.

~

Coxe · July 1, 2008 10:35AM

Thought their consigned lots FRI, SUN and MON were anemic. With all due respect to their great staff whom I genuinely like, I suspect they are ready to drop off the precipice shortly now.

Notice how Heritage is also highlighting the internet-only sales lately with their no-reserve under $100 special. Battle lines are being drawn.

BAJJERFAN · July 1, 2008 10:40AM

<< > "Great idea in theory, but how reliable is it in practice?"
-----

For me personally, it's really reliable in practice.

I will be bidding 3% less on coins at Teletrade
because I always figure in the juice before I bid.

Always!!

The end result may be that I don't win as many
coins, but the ones I do win will be at the same
price as before the increase.

Like I said before, it's really the seller who gets
hit by a increase in the buyer's premium, not
the buyer.

Or, at least, not this buyer.

~ >>

Understood; so what sets your I will pay this target price? GS bid? GS ask? Somewhere in between?

wondercoin · July 1, 2008 11:23AM

I discovered the 3% increase this afternoon. Am I "happy" about it - of course not, especially as a seller. But, it appears nearly 50% of the fee increase will go towards the special "points" program for buyers (when you take into account the double point promotions they intend to run, etc.). Throw on top of that the massive advertising they have been doing lately and, well, I can't say TT is simply "running off" with the added commissions. They believe all of this will lead to stronger bid levels and, frankly, they may be right. Teletrade sold (5) $100,000 coins last week in a single auction. I believe they set a record for sales last month in the history of the company. Bottom line - if they deliver for me stronger bid levels (even a single increment higher on most coins can mean 5% higher prices realized for the seller), the 3% hike will be a non-event IMHO. That said - there are some coins where the 3% hike might really have an impact on a seller's ability to offer certain coins out on their auction site -bullion type coins in MS69 grade come to mind where every 1% can really matter. So, we will see how it all goes.

Wondercoin

pennyannie · July 1, 2008 12:25PM

Wondercoin- You bought the V-nickel 1 month early. You could have waited for the frequent flyer miles.

wondercoin · July 1, 2008 1:57PM

Pennnyannie - Good point. I think I will "beg" Ian for $25,000 points!! He can only say "no" - right? LOL.

Wondercoin

SaorAlba · July 1, 2008 9:07PM

Several of the British Auction houses have gone to 22% commissions lately. Then tack on a 17% VAT

etexmike · July 1, 2008 10:13PM

<< They just went from 10% to 12% not long ago.

I wonder if they'll blame fuel prices like everyone else. >>

Ain't it the truth.

Mike

Connecticoin · July 1, 2008 10:17PM

<< I discovered the 3% increase this afternoon. Am I "happy" about it - of course not, especially as a seller. But, it appears nearly 50% of the fee increase will go towards the special "points" program for buyers (when you take into account the double point promotions they intend to run, etc.). Throw on top of that the massive advertising they have been doing lately and, well, I can't say TT is simply "running off" with the added commissions. They believe all of this will lead to stronger bid levels and, frankly, they may be right. Teletrade sold (5) $100,000 coins last week in a single auction. I believe they set a record for sales last month in the history of the company. Bottom line - if they deliver for me stronger bid levels (even a single increment higher on most coins can mean 5% higher prices realized for the seller), the 3% hike will be a non-event IMHO. That said - there are some coins where the 3% hike might really have an impact on a seller's ability to offer certain coins out on their auction site -bullion type coins in MS69 grade come to mind where every 1% can really matter. So, we will see how it all goes.

Wondercoin >>

I am skeptical this will result in stronger bids. There are too many "rewards" programs out there, and I think we are at the point where all of them are a PITA to keep track of. If I were a consignor, I would rather have the 3%.

BAJJERFAN · July 1, 2008 10:26PM

<< 

<< I discovered the 3% increase this afternoon. Am I "happy" about it - of course not, especially as a seller. But, it appears nearly 50% of the fee increase will go towards the special "points" program for buyers (when you take into account the double point promotions they intend to run, etc.). Throw on top of that the massive advertising they have been doing lately and, well, I can't say TT is simply "running off" with the added commissions. They believe all of this will lead to stronger bid levels and, frankly, they may be right. Teletrade sold (5) $100,000 coins last week in a single auction. I believe they set a record for sales last month in the history of the company. Bottom line - if they deliver for me stronger bid levels (even a single increment higher on most coins can mean 5% higher prices realized for the seller), the 3% hike will be a non-event IMHO. That said - there are some coins where the 3% hike might really have an impact on a seller's ability to offer certain coins out on their auction site -bullion type coins in MS69 grade come to mind where every 1% can really matter. So, we will see how it all goes.

Wondercoin >>

I am skeptical this will result in stronger bids. There are too many "rewards" programs out there, and I think we are at the point where all of them are a PITA to keep track of. If I were a consignor, I would rather have the 3%. >>

Does the preferred customer delay till sept affect you only as a buyer or if you consign before then will the buyer of your coins pay 12% or 15%?

Longacre · July 1, 2008 10:39PM

The beginning of the end, my friends.

lope208 · July 1, 2008 10:43PM

Alright guys, as someone who hasn't bid with TT and Heritage before, how much does the seller actually make?
Will this 3% increase come directly at the expense of the seller? Put another way, if people bid 3% less because
of the increased juice, this hurts the seller right?

LincolnCentMan · July 1, 2008 11:16PM

But if you spend a hundred grand with them, you can get a free oz of gold.

-David

georgiacop50 · July 1, 2008 11:41PM

<< All kinds of businesses begin with lower prices than their competitors as a drawing card.
... Once they establish themselves with a large clientele.... >>

Teletrade has been around for many years, so I don't see any validity to this.

ziggy29 · July 1, 2008 11:55PM

<< But if you spend a hundred grand with them, you can get a free oz of gold.

>>

Of course, you could do the same with a 1% cash-back credit card!

rgl1345 · July 2, 2008 12:33AM

Its so you can have the privilege of buying from them. Soon the grocery stores will also rip you off....you buy a loaf of bread then you have to pay 15% and sales tax to get out of the store. BS

wondercoin · July 2, 2008 2:22AM

"<< But if you spend a hundred grand with them, you can get a free oz of gold. >>

Of course, you could do the same with a 1% cash-back credit card!"

Yes, then the buyer ends up with 2 free ozs of gold per hundred grand spent - right? Plus, I am informed that buyers will have opportunities for double points here and there over at Teletrade. I am a big fan of "points" - I personally do silly things to get them myself.

Look - the bottom line is results. Teletrade will need to deliver results to its consignors. I personally sell "tons" of coins at near break even, or even a percent or two loss per coin. I have no great interest in losing an additional 3% per coin above that. If that starts to happen, I won't be able to auction certain coins I have been auctioning. It's that simple.

Wondercoin

smallchange · July 2, 2008 2:55PM

I guess it won't matter for people who buy coins in the 50 dollar and under range as their minimum will still be 8.00.

Oh by the way, if nothing else, I am excited that a post of mine actually made it past 2 pages. Not to shabby for a new guy. Thanks for all the replies.

Small change

Cameonut · July 3, 2008 3:38AM

Well, once again TT heads in the wrong direction.
My purchases at TT have gone down steadily over the years as they have raised fees.
I stopped selling at TT because of their high seller fees.

So I will just bid less - about 5% less - to cover myself on the fee increase. The downward spiral will continue.

And the rewards program is really a POS. Seems like a 1% rebate to appease us on the 3% increase. HA!
I get more than that on my Discover Card rewards program. I pay all TT purchases with Discover - I get a check instead of a silly Redbook.

Teletrade to raise buyers fees

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