Quote:
Originally Posted by jayshum
The assumption being made is that the selling price is the same because the buyer is including the BP being added on when determining what their high bid will be. If that's the case, then the example is correct. Yes, the high bids are different, but what the buyer pays isn't.
If the selling prices are different (which is what happens if the actual high bids are the same), then yes, the consigner will do better with the auction house, but since many people say they include the BP when deciding what their high bid will be, it's more likely that the high bid will be lower if there's a BP added on top of it.
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Thanks for the clarification on your part. I don't disagree with this at all. The original argument made was why would a consignor sell with an auction house as opposed to eBay, with the fees mentioned included 0% for the auction house, and 5% with eBay, yet he claimed the consignor would net more with eBay - which is wrong. That was my whole point. It is irrelevant what the seller pays in the end. IF the high bids are the same in both scenarios, the consignor would net more with the auction house. That's all I was stating.