Quote:
Originally Posted by Bugsy
If the auction house is buying lots from their own auctions, they are getting a 20% discount compared to the rest of the bidders. Now my analogy of taking $5 from one pocket and putting it into the other is a bit oversimplified because they theoretically pay a tax on that 20% bp, but I'm sure the amount they end up paying depends on how they keep their books. Either way, they are receiving a substantial discount the rest of their bidders are not getting. This is another ethical issue to consider.
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The last time we had this discussion (regarding a different large auction house), they explained that, as two separate companies, they paid the buyers premium if their 'sister' company bid on auctions. If that's the case with Heritage, then they aren't getting a 20% discount. But I don't know - waiting for someone to chime in.