What is the point of the "Buyer's Premium"?

[hcv123]

Originally Posted by Aquarian Sports Cards

Would seem to beg the question why didn't you pick said Mantle up at auction? If we're giving away cards at rates you can profit on, take advantage of us!

1) I did not see the card in hand and was sent some less appealing angles by the owner. In this case I would have wanted to see the card in hand prior to purchase (another advantage to hand to hand transactions) - good quality auction scans notwithstanding.

2) There is a negative psychology in play as well which didn't occur to me till giving thought to your question - why ISN'T the card being bid higher!? Did I miss something that others have seen? This would be a mute point if I had the card in hand.

3) As mentioned I will buy "the right" cards at 80% of FMV. Had the guy offered me the Mantle at 87,500 in a private transaction there is a good chance I would have pulled the trigger. The next bid would have put me over 80%. I need a margin to earn a living as well.

4) That all said, as you well know, as your auction is one of them - I place hundreds of bids in a year in various auctions and have done quite well with the things I have purchased. Once things get past my 80% threshold (INCLUDING buyers premium) I have no further incentive to bid.

I want to be clear in case it came off otherwise - I believe auctions are a valuable part of the hobby and there are some guys (yourself included) that run above board top notch houses. I simply don't believe an auction format is the best place for interested sellers to sell most cards. I also understand perfectly an auctions need to "get paid" and earn a living somewhere (buyers or sellers side). It does feel a bit deceptive to me (and as mentioned I have heard it too many times directly from the sellers) when a house tells an "unsuspecting" seller that it "doesn't cost them anything because that is simply not true - the fact that they don't charge them anything doesn't equate to zero cost!

Thanks for the question.