Quote:
Originally Posted by travrosty
then what are consignment fees for the seller for?
it used to be that there were no buyer fees, but they figured out they can get away with it, then it was 10 percent, then 15, now 20 and more and more.
they are working for the seller, you have to take pictures, describe the item, put out a catalog, etc. so i understand consignment fees.
just what work do they do for the buyer? there should be no buyer fees. they should be thanking the buyer.
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Travis it is a very simple answer. Undercutting is what caused this example this guy sells for 25% then the next guy goes to 20% to try and steal his clients. Next thing you know we have auctions advertising no commission. I get calls from potential consignors every now and then that not only want one hundred percent of bid price, but also want a cut of the BP. Some auction houses also compare their services to others and feel that if they can charge 22% BP why can't I? I think bidders are already starting to factor these higher buyers premiums when they bid. I think also when you use a higher bp you tend to lose the last second bidding due to calculation.