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  #1  
Old 09-13-2009, 02:05 PM
Rich Klein Rich Klein is offline
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Default Hidden problem #3 for auction houses

I don't really want to set this up as a pure poll. But; since we're having this discussion about auction house(s). I really wanted to set this up and get opinions one way or the other from everyone

When it comes to getting cards graded from a consignor. Here are four options (if you add a fifth; I'll edit this post) for the auction house. Answer the question this way; if YOU were running the auction house and if it were YOUR dollars in play; what would YOU do.

1) Absorb any or all costs relating to grading/authentication

2) Charge the consignor exactly what you are charged for grading/authentication

3) Charge the consignor what you are charged for grading/Authentication and add 15 percent to cover your shipping; your employee's time for getting material ready; and other costs involved in getting an item graded/authenticated.

4) Refuse any item which is not already graded/Authenticated

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Rich
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  #2  
Old 09-13-2009, 02:17 PM
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I vote #1

Usally an auction house will have the consignors cards slabbed since they can bring in
more $. With that said, it should be absorbed.
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  #3  
Old 09-13-2009, 02:39 PM
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I vote #3 since they are in business to at least cover expenses. The consignnor should have known to have it graded before consigning it.

dh
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  #4  
Old 09-13-2009, 02:46 PM
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I think my answer will vary depending upon the value of the cards.

If I consign a raw, T206 Wagner, then the auction house should probably be willing to cover that grading fee.

If I consign a raw, 1968 Topps set, but want it graded, that should be on me.

Where to draw the line? Who knows and who cares? But (big but), it should be clearly spelled out up front what the costs will be and who should pay it.
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  #5  
Old 09-13-2009, 02:52 PM
barrysloate barrysloate is offline
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I'm with Jim, and I think it's a negotiable issue. If someone consigns 200 cards to me, and 190 are graded and 10 are raw, I am happy to provide a service for my consignor and get his raw cards graded at my expense.

But if most or all of his cards are raw, then I will discuss it with him and we would need to come up with a workable plan. There are grading fees that are well worth it to the seller, and fees that would cut too deep into the seller's profits.

This is an issue that cannot be generalized. Each situation has to be evaluated.
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  #6  
Old 09-13-2009, 05:28 PM
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I go with #2.... unless the consigner is a repeat customer, a well established hobbyist or if the item is a very high dollar amount item, then in that case I think it would be in the best interest of the auction house to absorb the costs. Anyone who consigns cards, should be told by the auction house that the item would bring significantly more money graded, and that it would cost "X".. I don't think a consigner would complain if being told about the cost upfront.
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  #7  
Old 09-13-2009, 05:36 PM
Rob D. Rob D. is offline
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I bet auction houses deal all the time with clueless consignors who want the house to pick up the tab on slabbing a group of beat-up T206 or Goudey commons. Sure, the consignor wants them graded, because it might mean a few extra bucks — at no cost to him.

But auction houses, especially smaller ones, have to draw the line somewhere.

Last edited by Rob D.; 09-13-2009 at 05:37 PM.
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  #8  
Old 09-13-2009, 05:45 PM
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Quote:
Originally Posted by Rob D. View Post
I bet auction houses deal all the time with clueless consignors who want the house to pick up the tab on slabbing a group of beat-up T206 or Goudey commons. Sure, the consignor wants them graded, because it might mean a few extra bucks — at no cost to him.

But auction houses, especially smaller ones, have to draw the line somewhere.
So, that's another vote for "Agrees with Jim"?


Edited to add:
By the way, my son's back at college, so I'm home all day with my wife and 16 year old daughter. If I can get someone on a message board to agree with me on anything, I'm way ahead.

Last edited by Jim VB; 09-13-2009 at 05:48 PM.
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  #9  
Old 09-13-2009, 06:03 PM
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Case by case basis, with consignor fully informed about options.
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  #10  
Old 09-13-2009, 06:29 PM
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If I was consigning to an auction, I would have no problem with being charged the actual grading fee, plus postage. The consigner should however, be able to negotiate a lower or "no" fee, depending on the individual case. After all, once the card(s) is/are graded, the auction company will undoubtedly see a higher profit simply due to increased bidding.

As for being charged a fee for the auction company employee's time and effort in getting the cards ready and packaged for shipment to the TPG, isn't that really the same thing, or at least very similar to what they already do with any other item being consigned (preparing the item for auction)? Maybe not as far as packaging and having USPS/UPS/FedEx come by to pick it up (at least at that point...they do that though when sending the item to the winning bidder), but I see very little difference between the two; and certainly not enough for the auction company to charge the consigner for it.


Steve
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  #11  
Old 09-13-2009, 06:41 PM
Rob D. Rob D. is offline
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Quote:
Originally Posted by Jim VB View Post
So, that's another vote for "Agrees with Jim"?


Edited to add:
By the way, my son's back at college, so I'm home all day with my wife and 16 year old daughter. If I can get someone on a message board to agree with me on anything, I'm way ahead.
Did I agree with you, Jim? I didn't know. I rarely read your posts.

Last edited by Rob D.; 09-13-2009 at 06:41 PM.
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  #12  
Old 09-13-2009, 08:02 PM
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Quote:
Originally Posted by Rob D. View Post
Did I agree with you, Jim? I didn't know. I rarely read your posts.
Probably for the best given your relative reading comprehension skills.
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  #13  
Old 09-13-2009, 08:45 PM
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Quote:
Originally Posted by Rich Klein View Post
1) Absorb any or all costs relating to grading/authentication
The only reason I believe they should absorb the cost is because they should sell the lot as submitted. If the consignor sent them in raw, then that is the way they should be sold. If the auction house clearly believes that the consignor is leaving considerable money on the table, then a call or e-mail explaining that the cards will be graded and the cost will be deducted from the net, if the consignor agrees he/she may see an overall financial benefit.

If the auction house believes that they may be trimmed or ??? state that in the desciption (or grade at consignors cost if they are having trouble reaching a conclusion as to the possible trimming, etc.)
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  #14  
Old 09-14-2009, 06:57 AM
Rob D. Rob D. is offline
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Quote:
Originally Posted by Jim VB View Post
Probably for the best given your relative reading comprehension skills.
What's that supposed to mean?
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  #15  
Old 09-14-2009, 07:30 AM
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Quote:
Originally Posted by Rob D. View Post
What's that supposed to mean?
Start here.
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  #16  
Old 09-14-2009, 08:16 AM
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Quote:
By the way, my son's back at college, so I'm home all day with my wife and 16 year old daughter. If I can get someone on a message board to agree with me on anything, I'm way ahead.
I agree with Jim.

I'm not sure what I'm agreeing to, but there's a greater purpose here.

-Al
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  #17  
Old 09-14-2009, 10:57 AM
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Default Not that it was my decision . . .

but at Collect.Com Auctions, cards that are consigned already graded are charged a 0% consignment fee.

On raw cards, the auction staff determines which cards need (for purposes of authentication/grading) slabbing or would do better in terms of bids if offered slabbed, and we pay the certification fee. Likewise, we pay for all autograph authentications.
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  #18  
Old 09-14-2009, 11:59 AM
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Quote:
Originally Posted by barrysloate View Post
I'm with Jim, and I think it's a negotiable issue. If someone consigns 200 cards to me, and 190 are graded and 10 are raw, I am happy to provide a service for my consignor and get his raw cards graded at my expense.

But if most or all of his cards are raw, then I will discuss it with him and we would need to come up with a workable plan. There are grading fees that are well worth it to the seller, and fees that would cut too deep into the seller's profits.

This is an issue that cannot be generalized. Each situation has to be evaluated.
I agree with this. You can't generalize this issue as it can go both ways. If the card is a $100 raw card and graded it's worth $125.....then the consignor should pay only actual grading fees. If the consignor doesn't then the fee does take over half the gross profit of the sale. The cutoff would need to be when the value rises enough to offset the fee. An auction house charging for their time or making this a profit center is interesting.....stupid (imo), but interesting....
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