Quote:
Originally Posted by NATCARD
I think with the fact there are a bunch 5+ major auction houses all pulling in top $$ for items now that a negative rate (part of the buyers premium) on a valuable card (to be determined what is valuable) can be negotiated. I do not see why an auction house would not give up some of their 21% to 25%+ buyers premium to get the best items they can away from another auction house. Jeff W
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I don't disagree with your sentiment on the absolute top tier, and of course that term is relative to each auction company. My top tier is a helluva lot lower than REA's for instance.
That being said a couple questions. Who's charging 21 - 25%? I thought most were at 20%.
2nd, and I beat this dead horse a LOT. Name a business that people expect to be able to run on a smaller gross margin than an auction company?
There are some people who think that there should never be any commission and often a piece of the BP should be given away. At 20% BP if you charged no commission ever I don't know how a company could stay in business, and that's before you start giving away the BP. Auction companies aren't some license to print easy money as your assorted Crazy Uncles and others have found out over the years. How many fly-by-night companies have come and gone? There's a reason for that, and it's not because they made so much money in a couple auctions that they retired.