|
#1
|
|||
|
|||
AH Blues
Well, I managed to get through the avalanche of auctions over the last few months and am still nearly solvent. But I just don't under stand the allure of PWCC as a consignor. I initially thought they were primarily a dumping ground for lower condition graded cards, but some of the more recent stuff on Ebay was pretty impressive. Here is my query: Why would a consignor go to PWCC with, say, a PSA5 T206 Cobb Green and pay a scheduled fee when he/she could take it to a national AH and pay nothing?
|
#2
|
||||
|
||||
Quicker $ maybe?
|
#3
|
||||
|
||||
Math
If the same PSA 5 Cobb sells for $20k through PWCC and $20k through an auction house, the consignor will cash a check for north of $18k from PWCC and somewhere around $16.6k from the AH.
|
#4
|
|||
|
|||
This is a good question and the answer lies in the difference in the fees charged by PWCC and whatever the AH you choose. Taking a look at your example, a PSA 5 green Cobb is probably somewhere in the $15-20k range now (i could be off on that, but simplicity lets just use $15k for an example).
PWCC charges 8% commission for any card over $5k. So if the card sells for $15k, the seller will net $13,800 and PWCC gets $1200. Most premier AH's charge around 20% buyers premiums (yes I know there are AH with lower BP and for a card of this price you could probably negotiate some percent of the buyers premium but just trying to keep it simple). In order for the consignor to net the same amount as he would with PWCC, the hammer price before the BP would need to be $13,800. Add the 20% buyers premium and the customer would have to pay $16,560. So that would mean the card would need to sell for $1500 more in the auction house for the consignor to net the same amount. As a consignor you need to ask yourself which is more likely to happen and make your choice which way to go from there.
__________________
Current Wantlist: E92 Nadja - Bescher, Bridwell, Cobb, Donovan, Doolan, Doyle (with bat), Lobert, Mathewson, Miller (fielding), Tinker, Wagner (throwing), Zimmerman E/T Young Backrun - Need E90-1, T216 (all versions) E92 Red Crofts - Anyone especially Barry, Shean, and Evers |
#5
|
||||
|
||||
Consigning Fees
Quote:
On a high dollar item, the consignment fee is ZERO for many, many AH's including the biggies. At most they will charge 5% on items under $1000. Some AH's will even give you an extra few points back!! They need stuff to sell. A Green Cobbie will be a featured item and will draw more bidders who will find other stuff to bid on!
__________________
Frank Evanov |
#6
|
||||
|
||||
Quote:
__________________
My avatar is a sketch by my son who is an art school graduate. Some of his sketches and paintings are at https://www.jamesspaethartwork.com/ He is available to do custom drawings in graphite, charcoal and other media. He also sells some of his works as note cards/greeting cards on Etsy under JamesSpaethArt. Last edited by Peter_Spaeth; 05-20-2018 at 10:12 PM. |
#7
|
||||
|
||||
Quote:
Saying that, a consignor usually wants to find the auction house or consignment shop that they believe will give their items the most visibility, the right buyers, and the auction ending type they believe will bring the highest price for them. There are also other factors such as the service of the AH, the payout speed, and other perks such as cash advances, discounted grading, etc. |
#8
|
||||
|
||||
Apparently what you call it matters more to people than the math, Sam. So in your example the AH consignor isn't paying anything he's just taking in less money.
__________________
My avatar is a sketch by my son who is an art school graduate. Some of his sketches and paintings are at https://www.jamesspaethartwork.com/ He is available to do custom drawings in graphite, charcoal and other media. He also sells some of his works as note cards/greeting cards on Etsy under JamesSpaethArt. |
#9
|
||||
|
||||
From now on I am mandating that I pay a 20% Sellers premium on my consignments and there will be NO buyers premium. Isn't that better now, Peter? The buyers won't be paying any fee now.
__________________
Leon Luckey Last edited by Leon; 05-21-2018 at 05:46 AM. |
#10
|
||||
|
||||
Rob will be thrilled that he won't have to pay a premium.
__________________
My avatar is a sketch by my son who is an art school graduate. Some of his sketches and paintings are at https://www.jamesspaethartwork.com/ He is available to do custom drawings in graphite, charcoal and other media. He also sells some of his works as note cards/greeting cards on Etsy under JamesSpaethArt. |
#11
|
||||
|
||||
Very true, Peter. I also didn't take into account the many folks who want to spend $20K on a PSA 5 Cobb and bid that amount in an auction, only to receive a surprising bill for $24K.
|
#12
|
||||
|
||||
When that happens to me I get really pissed.
__________________
My avatar is a sketch by my son who is an art school graduate. Some of his sketches and paintings are at https://www.jamesspaethartwork.com/ He is available to do custom drawings in graphite, charcoal and other media. He also sells some of his works as note cards/greeting cards on Etsy under JamesSpaethArt. |
#13
|
||||
|
||||
Quote:
There's that question again that nobody wants to answer.
__________________
R0b G0u13t |
#14
|
||||
|
||||
Still waiting to hear your answer Peter.
If it's all the same money...Why do we need a buyer's premium at all?
__________________
R0b G0u13t |
#15
|
||||
|
||||
Quote:
Why don't you explain to us why you, knowing a premium is going to be added to your bid and presumably taking that into account like the overwhelming majority of people, care what convention is used for the AH's cut?
__________________
My avatar is a sketch by my son who is an art school graduate. Some of his sketches and paintings are at https://www.jamesspaethartwork.com/ He is available to do custom drawings in graphite, charcoal and other media. He also sells some of his works as note cards/greeting cards on Etsy under JamesSpaethArt. Last edited by Peter_Spaeth; 05-21-2018 at 11:13 AM. |
#16
|
||||
|
||||
Some auction houses now show the BP right in the dropdown when you make the bid which I think is a nice feature.
For the question of why to go with an eBay consigner, I don't think there is any question that it's because you get to keep more of the total amount the buyer pays. For a graded card from a popular set, the eBay route makes a lot of sense to me. For an item that's more of a niche collectable, I think it makes sense to go with the AH, with the hope they will be able to get the right eyeballs on it. Thinking of myself, I don't even bother to keep eBay searches on programs etc. stuff that I know rarely gets auctioned off on eBay - my graded card searches on the other hand turn up hits almost every day. |
#17
|
|||
|
|||
if i am correctly following the logic of at least one person, he would rather buy a card on the BST or eBay for $1,000 -- with no evil buyer's premium to deal with -- than get the same card for an $800 bid from an auction house, because it means the total price actually would be $960 with the BP?
|
#18
|
||||
|
||||
Quote:
While the BP does suppress bidding. I don't think it's close to a dollar for dollar match....and the discrepancy there is borne by the buyer...not the seller. And therefore it's not the same. It's additional. Except for you and a few of your cronies. Who abide by the 20% off rule when determining your high bid...every time...without fail.
__________________
R0b G0u13t Last edited by Fballguy; 05-21-2018 at 12:53 PM. |
#19
|
|||
|
|||
Comic gold!!!
|
#20
|
|||
|
|||
I have a question I have been meaning to ask on this board and relates to the topic of this conversation. If I wanted to consign a high-priced item(s) with one of the big auction houses such as REA, Heritage, etc., do I:
a) pay a consignment fee PLUS the buyer's premium of, say, 20%, b) a consignment fee ONLY, c) ONLY the buyer's premium of, say, 20%. Also, I have seen references to the big auction houses waiving or reducing fees for larger priced items. Are they waiving or reducing the consignment fee, the buyer's premium, and/or both? Also, is there an approximate dollar threshold that the AH's consider when determining whether to waive or reduce the fees? I would appreciate any feedback that people could provide. |
#21
|
||||
|
||||
Quote:
|
#22
|
|||
|
|||
While I can't answer for the "big auction houses", I can tell you that when anyone consigns with my auction (Brockelman Auctions), they pay no consignment fees of any kind, the buyers pay a low 12 1/2% premium.
Scott |
#23
|
|||
|
|||
Quote:
Last edited by Orioles1954; 05-21-2018 at 01:25 PM. |
#24
|
||||
|
||||
You can't make this stuff up. No one would believe you. LOL
__________________
Leon Luckey |
#25
|
|||
|
|||
Quote:
Auction houses can always adjust your sellers fee for a specific item or consignor. This doesn't create an unfair bidding platform as it shouldn't give you an advantage in bidding on items. It would only put more money in your pocket for the items you consigned. This is one way they can entice a consignor. Most AH's today start with a 0% sellers fee. I know I would have to have a really good reason to consign something with a seller's premium. For high demand, high value items, you can negotiate that fee/item placement/etc and even sometime get a negative sellers fee (a portion of the buyer's premium). As far as when they will waive it or reduce it, that's all up to the individual AH. Some advertise discounts for certain items, some keep it more private. Best bet is to call the AH that you're interested in and see what they will do. DJ
__________________
Current Wantlist: E92 Nadja - Bescher, Bridwell, Cobb, Donovan, Doolan, Doyle (with bat), Lobert, Mathewson, Miller (fielding), Tinker, Wagner (throwing), Zimmerman E/T Young Backrun - Need E90-1, T216 (all versions) E92 Red Crofts - Anyone especially Barry, Shean, and Evers |
#26
|
||||
|
||||
Looney logic if I have ever heard it.
When was the last time a fee was "surprised on you" mid auction? Otherwise, unless you can't read the rules, there are no surprises. Most collectors figure out how to add the 20% to their bid BEFORE the AH does it for them once the lot is closed to bids. Adding 20% (or whatever the BP is) is not that easy I guess....for some. I have bid in hundreds if not thousands of AH auctions and haven't been surprised by the BP yet. Quote:
__________________
Leon Luckey |
#27
|
|||
|
|||
Quote:
Last edited by Orioles1954; 05-21-2018 at 01:39 PM. |
#28
|
||||
|
||||
Quote:
|
#29
|
||||
|
||||
Quote:
And somebody points to you and says, "It's his" And you say, "What's mine?" and somebody else says, "Well, what is?" And you say, "Oh my God, am I here all alone?" But something is happening and you don't know what it is Do you, Mr. Jones?
__________________
My avatar is a sketch by my son who is an art school graduate. Some of his sketches and paintings are at https://www.jamesspaethartwork.com/ He is available to do custom drawings in graphite, charcoal and other media. He also sells some of his works as note cards/greeting cards on Etsy under JamesSpaethArt. |
#30
|
||||
|
||||
Perfect. Then you bid up to the amount where you will spend $1000 with whatever fee(s) included. Problem solved. I think you are making it more difficult than it needs to be. A lot of us say to ourselves "I am not going over xx amount" then we deduct the fee pecentage and that is what we bid (assuming we are also understanding there are usually shipping charges to be thrown in too). If you can spend a $1000 then just bid up to $800......then add the Buyers Premium, which is usually 20% to your $800 bid, and that is $960, which leaves $40 for shipping.
__________________
Leon Luckey Last edited by Leon; 05-21-2018 at 02:49 PM. |
#31
|
||||
|
||||
Quote:
__________________
My avatar is a sketch by my son who is an art school graduate. Some of his sketches and paintings are at https://www.jamesspaethartwork.com/ He is available to do custom drawings in graphite, charcoal and other media. He also sells some of his works as note cards/greeting cards on Etsy under JamesSpaethArt. |
#32
|
||||
|
||||
Yeah, I think I am arguing with myself. Back to doing some chores ....
__________________
Leon Luckey |
#33
|
||||
|
||||
Quote:
__________________
R0b G0u13t |
#34
|
||||
|
||||
Quote:
__________________
R0b G0u13t |
#35
|
||||
|
||||
Imagine the obvious response -- change humor to -----.
__________________
My avatar is a sketch by my son who is an art school graduate. Some of his sketches and paintings are at https://www.jamesspaethartwork.com/ He is available to do custom drawings in graphite, charcoal and other media. He also sells some of his works as note cards/greeting cards on Etsy under JamesSpaethArt. |
#36
|
|||
|
|||
apparently. after CMIZ5290, you’re the smartest guy in the room.
Last edited by RedsFan1941; 05-21-2018 at 03:54 PM. |
#37
|
||||
|
||||
And there it is. "A lot" Not all...as some assume. At least Leon is being realistic.
A lot probably do...especially those on this forum. And just as true...a lot probably don't. They bid to win and then endure the BP afterwards. I think some of you have conformed your logic to fit in with the old school auction rules. "This is the way it is, so how can I rationalize it in a way that makes it more palatable?". Funny...I looked up the definition of bid. It's the offer of a certain price for something. Didn't see anything in there about multiplying by 1.2 to get to that price. Quote:
__________________
R0b G0u13t |
#38
|
||||
|
||||
This is actually an interesting academic question. Economics 101 would certainly tell you its completely irrational to behave differently because in one case the amount you pay is what you bid (plus shipping) and in the other case the amount you pay is what you bid + 20% + shipping. The rational thing to do is make the calculation of adding the BP and behave (bid) the same way in both cases (i.e. reduce your bid because you know you will be hit with a BP at checkout). Someone would need to do a study to see if people actually behave according to the theory or whether the fact that that 20% in not included in their bid induces them to pay more as if they are willing to momentarily forget they will be charged the 20% later. It's entirely possible, and also the reason I believe some auction houses want you to have to do the math in your head (or not do it), rather than show you the BP when you place your bid. I think its something called the framing effect where people view options that are really the same as different depending on how they are stated.
One minor point is because the bid increments are wider for AHs than eBay, sometimes I have to make a decision whether I want to go under or over my target - something I never really have to do on eBay where the bid increments are very narrow. Last edited by TanksAndSpartans; 05-21-2018 at 04:26 PM. |
#39
|
||||
|
||||
Let’s say you have a new home with a smallish garage and a full size car.
You are bidding to park the car in the garage. You estimate where the center of the garage is on the back wall of the garage. You aim correctly and end up scratching the right side of the vehicle, which then must be repaired. You are surprised at the cost of placing your bid to park the car and incurring the parker’s Premium. When completed, you pick up the car and bring it home. It needs to be parked in the garage. Do you follow the exact same process to park the car and repeat getting the same result necessitating another visit to the body shop or do you make an adjustment to your aiming point and move it the required distance to the left, which results in the car not being scratched on the right side. On the third day do you repeat the unsuccessful process of the first day or the successful process of the second day? If you answer the former, I cannot help you. If you answer the latter, congratulations. You have learned the impact of the buyer’s premium on your bid to park the car. Being surprised by an auction house invoice, due to naïveté, not reading the rules, or whatever, could conceivably happen once to anyone. But if you are continually “surprised” by invoices, you either need a smaller car, better reading glasses, or a home without a garage. You might also consider a membership in the Audubon Society as an alternative hobby. Hope this helps.
__________________
FRANK:BUR:KETT - RAUCOUS SPORTS CARD FORUM MEMBER AND MONSTER NUMBER FATHER. GOOD FOR THE HOBBY AND THE FORUM WITH A VAULT IN AN UNDISCLOSED LOCATION FILLED WITH NON-FUNGIBLES 274/1000 Monster Number Nearly*1000* successful B/S/T transactions completed from 2012 to 2024. Over 680 sales with satisfied Board members served. If you want fries with your order, just speak up. Thank you all. Now nearly PQ. |
#40
|
||||
|
||||
Auction houses charge a buyers premium, eBay does not. If you want to bid on anything, auction or eBay, read the damn rules and know what your getting/how it works (and that includes shipping). What is up with people bitching about rules that are clearly stated for all the world to read?? You don’t like the rules, don’t like the shipping, don’t like when or how an auction ends.... don’t participate!
And for the record, if you bid on an auction and don’t read the rules to know you are paying a buyers premium, then F-you, you are an idiot and you deserve whatever unhappiness your stupidity or irresponsibility got you. |
#41
|
||||
|
||||
Quote:
__________________
My avatar is a sketch by my son who is an art school graduate. Some of his sketches and paintings are at https://www.jamesspaethartwork.com/ He is available to do custom drawings in graphite, charcoal and other media. He also sells some of his works as note cards/greeting cards on Etsy under JamesSpaethArt. |
#42
|
||||
|
||||
I saw that too, expect back then it was XX percent
Last edited by Rhotchkiss; 05-21-2018 at 05:46 PM. |
#43
|
||||
|
||||
Yeah emptors have been getting whacked throughout history.
__________________
My avatar is a sketch by my son who is an art school graduate. Some of his sketches and paintings are at https://www.jamesspaethartwork.com/ He is available to do custom drawings in graphite, charcoal and other media. He also sells some of his works as note cards/greeting cards on Etsy under JamesSpaethArt. |
#44
|
||||
|
||||
Quote:
__________________
R0b G0u13t |
#45
|
||||
|
||||
Quote:
By the way...The crotchety-meter is off the charts on this post. Love the ones who come in hot with instant anger.
__________________
R0b G0u13t |
#46
|
||||
|
||||
And I think the one's on here defending it date back to ancient Rome too.
__________________
R0b G0u13t |
#47
|
||||
|
||||
This thread has me laughing my butt off. On a serious note, if PWCC is only charging 8%, how are they making money? Doesn’t eBay charge them about 10% after their sale? What am I missing here?
|
#48
|
||||
|
||||
I'm sure because they sell in large quantities, they've negotiated a deal with eBay to pay a much smaller fee.
|
#49
|
||||
|
||||
Once again, the small guy gets screwed. Oh well, life goes on.
|
#50
|
||||
|
||||
The small guy is fine and makes money on ebay. The big guy gets some benefits. No doubt PWCC gets a great ebay rate and they should. It's called business.
__________________
Leon Luckey |
Thread Tools | |
Display Modes | |
|
|
Similar Threads | ||||
Thread | Thread Starter | Forum | Replies | Last Post |
PSA blues | theshleps | Autograph Forum- Primarily Sports | 18 | 02-17-2017 03:29 PM |
sniping blues | darwinbulldog | Net54baseball Vintage (WWII & Older) Baseball Cards & New Member Introductions | 19 | 07-15-2016 06:17 AM |
authentication blues | theshleps | Autograph Forum- Primarily Sports | 13 | 02-13-2015 12:10 PM |
Cry me the Blues- T205? | Leon | Net54baseball Vintage (WWII & Older) Baseball Cards & New Member Introductions | 18 | 12-16-2012 05:34 PM |
I got the Grading Blues... | Archive | Net54baseball Vintage (WWII & Older) Baseball Cards & New Member Introductions | 9 | 11-19-2006 09:10 PM |