Quote:
Originally Posted by mordecaibrown
Chris -
I mean no disrespect, but I think you are over simplifying this and not looking at whole picture.
1) Does H&S take a percentage from the consigner? Lets just assume its 10% (as I have no idea if they do and if so, what the percentage would be - simple assumption for illustration purposes).
They bid $600 on it, but it only cost them $540, because they got $60 from consignor. All of a sudden that profit Erick showed earlier just grew from $28 to $88.
2) When HOC bids in a H&S auction, the only possible scenarios is H&S benefits.
Either - they increase the bid amount; therefore, directly increasing the buyers premium. If current bid is $200 (H&S makes $39 - 19.5% buyers premium). If they make a bid of $300 and are outbid by another bidder max bid, the new high bid is $330 (H&S makes $64.35 on buyers premium). They just made $25 by simply making a bid. Do you make $25 (or any money) by making a bid in the auction? This profit amount increases with the value of the item.
OR - they win the item at a discount versus other bidders. If they win an item at $200 and pay the 19.5% buyers premium and receive a consignors fee of 10%, then total cost = $239 - $20 = $219. Also, this assumes that they do pay the buyers premium, if you dont think they do because the two places are owned by the same person - then the savings increase!
When a bidder can only benefit from bidding in an auction thats a conflict of interest.
Any.y K.enne.dy
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Hi Andy,
I'm not sure what you mean by over simplifying or the point that I am over simplifying is, but I agree with everything you are saying. For the record, I am of the opinion that this is a major conflict of interest and I am skeptical as to why HOC would buy those 1952 Topps cards to try and resell as they say.
Maybe I didn't do a good job of explaining how I feel about this, but I think I am seeing the big picture. To me, it is a big conflict of interest and I personally don't buy the two different businesses they are trying to sell to people on the board.
Ahhh, I see you were talking about Chris B
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