How does one avoiding losing their shirts with auctions houses?

[Aquarian Sports Cards]

Originally Posted by Leon

You picked the lowest percentage to apply my statement to.
When I made it was thinking of a 20% (which is fairly standard) BP....and at that, an AH can make a living, probably without a seller's fee. But again, if there is a ton of work to do or some other extraordinary thing, then a sales fee can be warranted. I am pretty sure I have actually paid a small one before too, now that i think about it....

It wasn't all about your statement, like I said if you listened to everyone's advice you'd wind up at 12.5%. It seems like the attitude towards auction houses is very adversarial and that is disheartening. I'm not trying to "beat" my consignors or my buyers and it's sad to think that they're trying to "beat" me.

Also I think people lose sight of the value of the item's impact on the equation also. Obviously if we're talking $5,000 items 20% is dandy (though again in the auction world at large 30% is more customary) but on a $100 item 20% is pretty cheap, and on a $50 item 20% just doesn't cut it. Basically the items cost the same to sell for the auctioneer, but the difference between $1,000
and $10 is obviously an issue.

Maybe everyone in this thread travels in a higher rent district then a lot of buyers, but we do auctions where the AVERAGE price is around $40. At 20% there'd be no way to keep the doors open, but there are a LOT of guys with interest in this type of auction as evidenced by our 30+ year history. When we do sell more expensive items we adjust rates accordingly. It is not unusual for us to handle complete sets from the 50's that go for up to several thousand, but until we start selling items that AVERAGE in that range 20% total margin just isn't feasible. We have a number of Net54 members who are buyers, I'd love to hear their input!

[Topnotchsy]

Originally Posted by Aquarian Sports Cards

It wasn't all about your statement, like I said if you listened to everyone's advice you'd wind up at 12.5%. It seems like the attitude towards auction houses is very adversarial and that is disheartening. I'm not trying to "beat" my consignors or my buyers and it's sad to think that they're trying to "beat" me.

Also I think people lose sight of the value of the item's impact on the equation also. Obviously if we're talking $5,000 items 20% is dandy (though again in the auction world at large 30% is more customary) but on a $100 item 20% is pretty cheap, and on a $50 item 20% just doesn't cut it. Basically the items cost the same to sell for the auctioneer, but the difference between $1,000
and $10 is obviously an issue.

Maybe everyone in this thread travels in a higher rent district then a lot of buyers, but we do auctions where the AVERAGE price is around $40. At 20% there'd be no way to keep the doors open, but there are a LOT of guys with interest in this type of auction as evidenced by our 30+ year history. When we do sell more expensive items we adjust rates accordingly. It is not unusual for us to handle complete sets from the 50's that go for up to several thousand, but until we start selling items that AVERAGE in that range 20% total margin just isn't feasible. We have a number of Net54 members who are buyers, I'd love to hear their input!

I think it's a world of difference when the items being sold are $40 as opposed to $400 to $4000 because as you point out, there's not a ton of difference in how much work is being done regardless of the price of the item.

I do have to ask though (and I'm asking out of genuine curiosity), on items in that price range, what is the thought process behind working with an auction house over listing them on eBay (or even using a big consignor on eBay)?

[Aquarian Sports Cards]

Originally Posted by Topnotchsy

I think it's a world of difference when the items being sold are $40 as opposed to $400 to $4000 because as you point out, there's not a ton of difference in how much work is being done regardless of the price of the item.

I do have to ask though (and I'm asking out of genuine curiosity), on items in that price range, what is the thought process behind working with an auction house over listing them on eBay (or even using a big consignor on eBay)?

speed and volume I would guess. You get paid within 7 days from end of auction with us, often quicker. we also have a number of consignors who, at our Hershey auction, provide us with well over 100 lots at a time.

Also, thinking more about it, it is items that frankly don't necessarily do great at ebay auction. Lots of raw 50's stars, lots of vintage commons, etc... I would say we do better than ebay on a wide range of low dollar stuff even when taking commission into account. Are buyers definitely appreciate the "luxury" of being able to handle the cards in person before they buy.

[Topnotchsy]

Originally Posted by Aquarian Sports Cards

speed and volume I would guess. You get paid within 7 days from end of auction with us, often quicker. we also have a number of consignors who, at our Hershey auction, provide us with well over 100 lots at a time.

Also, thinking more about it, it is items that frankly don't necessarily do great at ebay auction. Lots of raw 50's stars, lots of vintage commons, etc... I would say we do better than ebay on a wide range of low dollar stuff even when taking commission into account. Are buyers definitely appreciate the "luxury" of being able to handle the cards in person before they buy.

Makes sense, thanks for responding.