consignment fees

[sealmark2]

Thanks guys (or gals as the case may be). I like the steak analogy but I just paid $75 for a steak and lobster dinner so I guess why am I asking about consignment fees ?

More responses to come I suspect.

Sealmark

[Bobsbats]

I've paid 20% on items i've consigned, I have also paid 0%. Some auction houses are being aggressive with obtaining consignments, so they lower the buyers fee. Good luck with your consignments

[notfast]

Originally Posted by Bobsbats

I've paid 20% on items i've consigned, I have also paid 0%. Some auction houses are being aggressive with obtaining consignments, so they lower the buyers fee. Good luck with your consignments

I just floated a possibly 6 figure card to Goldin and was told 0% and no % of the buyers premium.

I know 6 figure isn’t crazy anymore, I guess, but you’d think they would give up some portion of the BP…

[jcmtiger]

Originally Posted by notfast

I just floated a possibly 6 figure card to Goldin and was told 0% and no % of the buyers premium.

I know 6 figure isn’t crazy anymore, I guess, but you’d think they would give up some portion of the BP…

I think you are doing ok.

[jcmtiger]

Originally Posted by notfast

I just floated a possibly 6 figure card to Goldin and was told 0% and no % of the buyers premium.

I know 6 figure isn’t crazy anymore, I guess, but you’d think they would give up some portion of the BP…

I think you are doing ok. 7 figures would get you some portion of the BP.

[NATCARD]

I think with the fact there are a bunch 5+ major auction houses all pulling in top $$ for items now that a negative rate (part of the buyers premium) on a valuable card (to be determined what is valuable) can be negotiated. I do not see why an auction house would not give up some of their 21% to 25%+ buyers premium to get the best items they can away from another auction house. Jeff W

[Aquarian Sports Cards]

Originally Posted by NATCARD

I think with the fact there are a bunch 5+ major auction houses all pulling in top $$ for items now that a negative rate (part of the buyers premium) on a valuable card (to be determined what is valuable) can be negotiated. I do not see why an auction house would not give up some of their 21% to 25%+ buyers premium to get the best items they can away from another auction house. Jeff W

I don't disagree with your sentiment on the absolute top tier, and of course that term is relative to each auction company. My top tier is a helluva lot lower than REA's for instance.

That being said a couple questions. Who's charging 21 - 25%? I thought most were at 20%.

2nd, and I beat this dead horse a LOT. Name a business that people expect to be able to run on a smaller gross margin than an auction company?

There are some people who think that there should never be any commission and often a piece of the BP should be given away. At 20% BP if you charged no commission ever I don't know how a company could stay in business, and that's before you start giving away the BP. Auction companies aren't some license to print easy money as your assorted Crazy Uncles and others have found out over the years. How many fly-by-night companies have come and gone? There's a reason for that, and it's not because they made so much money in a couple auctions that they retired.

[butchie_t]

You as a consignor, always have the option to shop.

A consignment fee is simply the cost of doing business. Part of the process frankly.

TANSTAAFL - I learned this in college.

Cheers,

Butch

[timzcardz]

Originally Posted by Aquarian Sports Cards

2nd, and I beat this dead horse a LOT. Name a business that people expect to be able to run on a smaller gross margin than an auction company?

I'll take a crack at this.

I believe (not certain) that car dealerships fall in the 15-18% range.

Realtors, 6%.



P.S. When you say "auction company" I assume that you mean a company that auctions goods owned by others, rather than one that has purchased goods and auctions them themselves where they do have capital tied up in the inventory itself.