Buyers premium question

[nat]

If there was no buyer's premium the bids on those items would just go up. If an item is worth $X to you, it's worth $X to you, no matter whether the X is split between the seller and the AH, or whether the AH takes all of it.

[glchen]

Auction houses still want to try to maximize as much revenue as possible so that's why they would still charge the BP. Also, it may be confusing to some bidders on which lots have BP and which don't. Finally, for some auctions, it's not only the AH that owns the lots, but also some employees who decide to consign their items. For the employees, it's likely that the AH would still charge them a portion of the BP.

[Exhibitman]

The only reason to have a separate BP rather than just take a cut of the final price is to take advantage of bidders who can't do math or don't remember that there is a BP. Given what I've seen on this site in the past when discussions of AH compensation have come up, the tactic probably works to some degree, because there clearly are some people who do not understand that the price of the item is price + BP and you have to bid accordingly.

Not directed at the OP or other responders here.

[Snapolit1]

Originally Posted by Exhibitman

The only reason to have a separate BP rather than just take a cut of the final price is to take advantage of bidders who can't do math or don't remember that there is a BP. Given what I've seen on this site in the past when discussions of AH compensation have come up, the tactic probably works to some degree, because there clearly are some people who do not understand that the price of the item is price + BP and you have to bid accordingly.

Not directed at the OP or other responders here.

I think for many of us when you get caught up in the chase of really really wanting something it's easy to "forget" about the premium when bidding. I think that's human nature. Probably why most AH's don't show you what the actual purchase price was including premium till you get their bill.

[Peter_Spaeth]

Originally Posted by Snapolit1

I think for many of us when you get caught up in the chase of really really wanting something it's easy to "forget" about the premium when bidding. I think that's human nature. Probably why most AH's don't show you what the actual purchase price was including premium till you get their bill.

I really don't understand this. Every auction house on earth has a substantial buyer's premium. I don't see how anyone could "forget" it.

[Snapolit1]

Originally Posted by Peter_Spaeth

I really don't understand this. Every auction house on earth has a substantial buyer's premium. I don't see how anyone could "forget" it.

I'm not saying I actually forget it . . .hence the word "forget" in quotes . . .but sometimes you can get caught up in the moment and not be running the numbers in your head as clearly as you should. At least I can.

[perezfan]

Regardless of who owns the item, the auction house still has related selling expenses.

The auction software, photographer, description writer, catalogue publisher, and shipping/packaging personnel are all fixed costs that are paid either partially or in-full from the AH's Buying and Selling premiums.

[Peter_Spaeth]

Originally Posted by Snapolit1

I'm not saying I actually forget it . . .hence the word "forget" in quotes . . .but sometimes you can get caught up in the moment and not be running the numbers in your head as clearly as you should. At least I can.

I think you need a new bidding system.

[1952boyntoncollector]

Originally Posted by Snapolit1

I'm not saying I actually forget it . . .hence the word "forget" in quotes . . .but sometimes you can get caught up in the moment and not be running the numbers in your head as clearly as you should. At least I can.

some AH's actually show you what the added BP is on your bid.

Still for a cheap card for 100 bucks..it isnt much

and you would think people paying 1000s of dollars know about the bp....the only secret sometimes that annoys people is the shipping price...

[ls7plus]

Originally Posted by Peter_Spaeth

I really don't understand this. Every auction house on earth has a substantial buyer's premium. I don't see how anyone could "forget" it.

A big +1 there--if you bid in many auctions at all, it becomes habit to factor it in with each and every bid.

Regards,

Larry

[drcy]

That an employee consigns something from his personal collection doesn't equate with the auction house itself making money off it, unless there's a a charge. An ethical auction house may say an employee can consign something, but (for ethical/fairness reasons) there has to be the normal charges-- they don't get an advantage just because they're employees.