REA increasing their BP and making other changes

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06-14-2025, 12:22 PM

Musashi

Brian R

member

Join Date: Apr 2023

Posts: 94

Quote:

Originally Posted by bandrus1

Can somebody explain to me the reasoning behind adding a BP vs taking a total amount of a final hammer price?

Is there a known psychology that people will bid higher with BP's vs total price

It actually has nothing to do with the bids or bidders, and is about consignors. Consignors expect to pay little or no commission on high end items, and at the top of the market, expect a piece of the buyer premium as well. Buyer premium is how auctions maintain their profit margin while competing aggressively for high end consignments.

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