Are the EAC auctions indicative of the profit margins that the BIG auction firms realize on their sa

Longacre · December 3, 2009 2:02AM

I don't have the Penny Wise issue in front of me, but in a recent issue (perhaps a few months ago), the auction firm that runs the annual EAC auction provided a P&L statement. Honestly, I was shocked at how razor thin the profit was overall from the auction. If I recall, the largest cost item was the mailing of the catalogs, and it was a rather sizeable expense, given the size of the EAC membership.

Does anyone know if these profit percentages are indicative of the amounts realized by the big auction houses? If so, now I have a better appreciation regarding how razor thin their overall profits must be on auctions. Does anyone have any comments?

MikeInFL · December 3, 2009 2:18AM

I would imagine that the goals of the non-profit EAC are quite different from the for-profit auction houses, so I wouldn't expect margins to be comparable between the two.

1798CentCollector · December 3, 2009 2:35AM

EAC buyers fees are 10% of the hammer. Buybacks cost 5%. M & G donates the net proceeds of the annual to EAC. I'm also in agreement with Mike's assessment. Putting on the sale is a great service provided to the organization by M & G. There are other ancillary benefits to the auctioneer for conducting the sale

Are the EAC auctions indicative of the profit margins that the BIG auction firms realize on their sa

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