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Increased premium at REA
So REA increased the buyers premium for its last auction from 20% to 23%. I was wondering if other auction houses are following suit and whether it changes anyone's view about consigning to, or bidding on, REA.
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The last Clean Sweep auction was 22% — up 2% from the last one I bid in a few months back.
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I am sure 25 and 30 percent are not far behind. :eek:
Something has to give. |
IIRC, which I often don't, Heritage was the first of the major sports auction houses to recently increase its BP, from 20% to 22%. I wasn't surprised that REA subsequently raised its BP, but I was quite surprised that REA raised its BP to more than Heritage's, which I think gives Heritage a bit of a competitive advantage. On the other hand, this may enable REA to give consignors of high-value items a bigger slice of the BP.
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17.5% We LOWERED it in 2024. Just saying...
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These wealthy auction house owners are soaking the common collector.
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Greed is one of the seven deadly sins.
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Do I hear 24, 26, 30?
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Just saying. |
We should unionize and take the power from the wealthy auction house owners like Brian and give it back to the people.
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Just saying. |
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I was very impressed with your last auction and was able to snag a much needed beauty.
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Just saying. |
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Winning Bid = $5K, total out the door = $6587.50 + S/H. |
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When is your next Post War auction? :confused: |
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Next up is Non-sports, which will have a pre war component to it. |
Im not for price increases. With the increase in realized prices being so much higher auction houses all got a raise in their 20% cut of a larger pie. Almost all businesses are charging more for services these days as costs are higher on everything especially human resources. I dont know that a 10% increase in fees is unwarranted after sitting at 20% for many years. Scott posting he is down to 17.5% makes the thecollectorconnection.com an attractive auction
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Here's what I don't get about AH price increase rationales: If inflation is up, presumably prices go up on cards. Cards are sold on consignment. If the AH takes 20% of the revenue, and prices are up, the AH's revenues go up too. The 3% seems to me to be just taking a larger piece of the overall pie.
It also seems to me that the auctioneers are matching eBay's price increases to keep about an 8% gap between them rather than reacting to overall costs. It is a little hard to isolate because eBay charges a final value fee and a transaction processing fee on all money including sales tax and shipping fees, but as best as I can figure it, eBay takes around 15% of each sale I make under $7500. That has gone up from 12% or so over the last few years as eBay has raised rates and minimum payment processing fees (which disproportionately impact smaller value lots like mine). Now, that is not to say that eBay and auctioneers are the same. A lot of items that I sell on eBay would be put into bulk lots in an auction, purchased by eBay sellers at wholesale prices, and broken up to be sold at retail for a profit. I try to keep that value by selling on eBay. Some items are better consigned to a specialty auction. Love Of The Game has sold some very esoteric baseball items for me at far more than I would ever have gotten from eBay. Anything I stumble across that I think is really special I will offer to Al before I try to sell it myself. |
The auction houses are increasing their BP's because they can. Once one of them raised BP above 20%, the others felt safe in doing so as well.
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I used REA several years ago to sell a huge chunk of my collection; they were absolute class to work with. However, if I were to bid with them in the future, I will certainly be taking into consideration the higher BP - as everyone should. It's all basic math and buying practices (e.g. shipping & taxes are factored into eBay purchase prices). Ultimately, the key is how you treat your customers. I'm not a huge player in the AH space, but I've had nothing but solid experiences so far with REA and The Collector Connection. With that being said, I certainly appreciate Scott's decision to lower BP's and may be able to participate a bit more in his auctions as a result. |
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People with no sales tax requirements ultimately get a bidding advantage while my area is probably at the worst disadvantage because of the tax rate. . . . . |
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I have been offered 1.05% to 1.10% many times and recently 1.15% of the hammer, thus buyer's premiums are up to 22 and 23%. I still encounter customers at shows who actually pay a 10% - 15% seller's fee where they are receiving 85% - 90% of the hammer.........ouch. |
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To those who do not care or who are too lazy to investigate the terms, they should not complain if they win and are then surprised what the total is that they owe. |
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Scott, dont listen to the hater (who need a hearing aid). You are crushing it, you keep doing you. My only complaint is that you wont let me buy in! Ryan Hotchkiss |
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There’s no question that there are some exciting psychological elements at play when retailers promote a smaller price, even when we know precisely how much to add to the advertised price to get to the actual price. It’s a big part of the reason why retailers do it. |
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How many people on this forum have EVER posted they somehow forgot there was a BP? |
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And forgetting the BP is one thing. Mentally discounting it is another. In other words, tricking ourselves into rationalizing that we’re paying less than we really are, because we allow ourselves to be cajoled into the self delusion that we’re bidding less than we really are. |
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Good Whiskey and post auction regrets have built many great collections. - |
Once again...shout out and thanks to the auction houses that show you what your "real" bid actually will be before confirming it so I don't have to continuously do math as the auction winds down.
MVPs, all of you. |
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