Quote:
Originally Posted by Exhibitman
you are nearly always going to pay 35%+ total because the AHs that deal in those materials do not waive their commissions unless the item is astounding.
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Adam, great post - I found the same thing this morning when I did some research = "google searches" - the BP gives AHs the opportunity to split their take into two different accounting items.
Another interesting thing was I did find a couple studies that were a bit surprising - one implying a low BP, less than 5%, doesn't suppress bidder behavior and another that showed a 10% BP compared with no BP had a 9% impact i.e. bidders did not reduce their bids by the full BP, but interestingly they used this as evidence bidders will reduce bids when the BP is present because it was very close to a 1-1 reduction.