auction fees and the damage done

[Aquarian Sports Cards]

Originally Posted by Casey2296

I should have prefaced my comment to not include the big AH's like Heritage that auctions everything under the sun. My comment was more for the medium to smaller auction houses. I see how hard these guys work every auction, I also know that 20% margin before expenses in any business is pretty skinny, and they don't always make 20% on the premier offerings. There are AH owners on this sub smarter than me so maybe they can comment on the economics.

Our average Gross margin is 28% that's BP and commission (which isn't fixed) combined. I'm not starving, but I'm not driving a Ferrari either.

That 28% -

has to cover rent and utilities, salaries, advertising, the auction software costs, travel and show fees, etc.

Yes if your average sale is making millions 28% is killing it. In another thread someone mentioned Real Estate Agents and Car Dealers as companies that operate on thinner margins, but what is their average transaction? Our average transaction is a little over $100 and that $30 we get out of that has to go a long way in a lot of directions!

[Orioles1954]

If you think BPs are high in the states then try doing business overseas. The record auctions I participate in commonly run anywhere from 27-30%!