Posted By:
Joe_G.This may promote more sales directly between sellers and buyers. The middle man's cut seems awful substantial. Assuming a 15% consigners fee + a 20% buyers fee, let's work through an example of a $1000 hammer price.
Consignor/Seller receives $850
Buyer pays $1200
So Auction House keeps $350
The auction house receives over 40% of what the consignor/seller receives (350/850 = 41.2%). Just seems excessive even after factoring in the auction houses expenses.
Will I still bid, yes, will this factor into my bidding, yes. Aren't most auction houses still closer to 10-15% buyer fee?
Best Regards,
Joe Gonsowski