Auction House Buyer's Premiums

[kailes2872]

When I consigned with Heritage a few years ago, my rep told me "most people don't take the BP into consideration". In that instance, I had to pay 10% on my end plus the impact of the BP. I doubt I will go that route again because I don't think I get enough incremental eyes on it to break even at a 30% vig.

Where I struggle the most with is, even though I know and calculate the BP, the bid increments along with the BP usually cause me to overpay. I needed a '54 Bowman Ted Williams last year in a PSA 5. Peter had one on the board that was beautiful but it was sold before I got to it. Ebay had dried up for some reason - as there are usually 3-4 mid grade going at any time. As a result I bid at a mid-level AH with a 20% BP. In extended, my 1000 bid ($1200) felt steep but it was a pretty nice example. It was outbid with $1100 as the next one. I had to go $1200 to win it $1440. I knew it was $1440. It was clear. I am sure if I waited another month, I would find one here or on Ebay for $1000-$1200 delivered. But, to my error ad impatience, I was singularly focused on that hole in my collection and to the delight of consigners everywhere, I bit my bottom lip, hit the bid now button one more time and gave a PSA 6 price for a PSA 5 card.

If that card would have been on Ebay, I would have been just as eager to get it, but I wouldn't have been at $100 increments (120 including BP) and I might have been able to save in a 2 person war.