Raped by Heritage

[Sean]

I've made three large (for me) purchases from Auction Houses. REA twice and Heritage once.... and I always knew exactly how much I was going to be paying with each bid. It's not difficult, the AHs tell you how much they charge.

But if you think that a Buyer's Premium is so unfair, stick to eBay.

[Peter_Spaeth]

The buyer's premium is the cut of the auction that goes to the house. It affects the consignor, not the buyer. The higher the premium, the less percentage of the final price the consignor gets. It never ceases to amaze that people do not understand this.

[Jenx34]

Originally Posted by Peter_Spaeth

The buyer's premium is the cut of the auction that goes to the house. It affects the consignor, not the buyer. The higher the premium, the less percentage of the final price the consignor gets. It never ceases to amaze that people do not understand this.

Personally, I wish they would do away with it in terms of bidding. As a bidder I hate having to mentally factor in the buyer's premium before I bid. Heritage shows you the total just below your bid amount. Not all auction houses do. I would just prefer to let my bid be the final price and let them do the math behind the scenes.

But I get why they do it and understand it won't change.

[Peter_Spaeth]

Originally Posted by Jenx34

Personally, I wish they would do away with it in terms of bidding. As a bidder I hate having to mentally factor in the buyer's premium before I bid. Heritage shows you the total just below your bid amount. Not all auction houses do. I would just prefer to let my bid be the final price and let them do the math behind the scenes.

But I get why they do it and understand it won't change.

How hard is it to add 20 percent in your head or with a calculator? Much ado about nothing IMO.

[Jenx34]

Originally Posted by Peter_Spaeth

How hard is it to add 20 percent in your head or with a calculator? Much ado about nothing IMO.

If I am tracking multiple items and constantly looking at one figure then adding 20% and moving on to the next, it can get confusing. Maybe some of us are not as great at math and memory. It's not a big deal. I just wish it wasn't a necessary step personally.

[pgconboy]

Originally Posted by Peter_Spaeth

How hard is it to add 20 percent in your head or with a calculator? Much ado about nothing IMO.

Another wrinkle that is easy to miss is that sales tax is calculated AFTER buyers premium and NOT on the actual bidding price.
This would be an easy way for people to mentally mix up how much they are paying.
Which ends meaning California residents need to add ~30.21% in their head vs. bid price.

[Fballguy]

Originally Posted by Peter_Spaeth

How hard is it to add 20 percent in your head or with a calculator? Much ado about nothing IMO.

The defense of the BP here is mind boggling...How dare anyone infringe upon your right to be ripped off!

[iowadoc77]

Originally Posted by Fballguy

The defense of the BP here is mind boggling...How dare anyone infringe upon your right to be ripped off!

How is it being ripped off if you fully know it is going to happen? If you don’t like, buy somewhere else. Plenty of non BP options out there.

[Fballguy]

Originally Posted by iowadoc77

How is it being ripped off if you fully know it is going to happen? If you don’t like, buy somewhere else. Plenty of non BP options out there.

Do you get this excited when you pay your taxes?

[joshuanip]

Originally Posted by Fballguy

The defense of the BP here is mind boggling...How dare anyone infringe upon your right to be ripped off!

Now the buyers premium is deserved. Auction houses are not a free service. eBay charges the the seller and after the eBay price premium and PayPal cut... what hairs are we splitting.

That said, they come up economically the same and if buyers aren’t factoring in the buyers premium and possible taxes in an auction, then that’s the buyer’s fault!

[Fballguy]

Originally Posted by joshuanip

Now the buyers premium is deserved. Auction houses are not a free service. eBay charges the the seller and after the eBay price premium and PayPal cut... what hairs are we splitting.

That said, they come up economically the same and if buyers aren’t factoring in the buyers premium and possible taxes in an auction, then that’s the buyer’s fault!

Ebay doesn't charge buyers to buy things. I get the difference in overhead costs for an auction house. So I'd sincerely like to know...Is waiving seller's fees at auction houses the norm, or reserved for the special few?

[Paul S]

Originally Posted by Fballguy

The defense of the BP here is mind boggling...How dare anyone infringe upon your right to be ripped off!

I have a right to be ripped off? Constitutional attorneys please explain

[Fballguy]

Originally Posted by Peter_Spaeth

The buyer's premium is the cut of the auction that goes to the house. It affects the consignor, not the buyer. The higher the premium, the less percentage of the final price the consignor gets. It never ceases to amaze that people do not understand this.

Lol...It doesn't affect the buyer the same way sales tax doesn't affect the buyer, right?

[Peter_Spaeth]

Originally Posted by Fballguy

Lol...It doesn't affect the buyer the same way sales tax doesn't affect the buyer, right?

Only if you don't understand it. Otherwise, no, it doesn't, it's just part of the bid calculation. For anyone who understands it, the BP is a matter of indifference -- it could be zero or it could be 50 percent.