Quote:
Originally Posted by pawpawdiv9
Correct me if wrong. But the consignor gets the final bid amount/hammer price
The buyer pays that plus the BP (buyer premium)
Scenario: If the buyer places a 500$ bid, then you get 500$
Now if the BV of it is 500$, then buyers would take the BP into consideration into their bids henceforth, their max would be near 420$ (BP would be 84$) and also consider the S/H plus taxes, which could make that even lower.
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The way most auction houses work is there is a BP (typically 20%) that the Buyers pay and a co-signment fee that the seller pays (or actually comes out of the final sales price)...which typically ranges from 5%-20% depending on what the item is and how much money the AH thinks they can make off of it.
So for instance...I want to sell an item and lets say it goes for $1,000. Well, when you consign it to the AH, you agree on a fee, lets say 5% in this case. So, if the hammer drops on final bid at $1,000...I get 95% of that so $950. THe buyer of that lot pays the $1,000 + 20% BP, so they are paying $1,200 for that item. The AH makes $250 in that case.