What is the point of the "Buyer's Premium"?

[raulus]

Originally Posted by Aquarian Sports Cards

It's literally just moving the money we collect from one party to another. Doesn't seem any rational way to deny it.

Exactly!

For those who aren’t fans, I think the bigger issue is that we want to pay less for our items. And the premium means that we’re paying more, not less. It’s less about the premium and more just complaining that we have to pay so much period, and the premium happens to be a convenient scapegoat.

And I guess those who defend it want to think the best of their fellow men, their motives and approach to conducting business. And I certainly applaud their approach.

My own feeling is I’ve given up caring. It’s there, and it’s there for a reason, some of which are benign, some less so, and the only way around it is to opt out of bidding in these auctions altogether. Since all of the nicest stuff ends up in these auctions, that’s a fairly poor option. I’m not convinced that ascribing pejorative motives to the auction houses helps me to feel any better about it, although maybe there’s some cathartic effect to expressing a disdain for it in general.

[Johnny630]

I've noticed over the years that card shows are becoming less and less filled with Nrmt or Better Cards. Those all go to auction houses. If they are at shows they're asking auction house prices those of which do not sell at the shows. Several dealer friends of mine told me last year that tried selling their higher-end stuff at shows to no avail. Sent to a major auction house, REA, and did better than 25% over their asking price at shows, it's a big divergence. Big money and big egos show up at MA's !!

[puckpaul]

Well, i just shopped around to sell some minor art pieces (mom cleaning out our old house) and it’s a whole different game there…27.5% buyers premium and 10% sellers commission (this can be reduced with some negotiation AND a big enough amount of material which isn’t small). So, the card AHs seem cheap now!

[Aquarian Sports Cards]

Originally Posted by puckpaul

Well, i just shopped around to sell some minor art pieces (mom cleaning out our old house) and it’s a whole different game there…27.5% buyers premium and 10% sellers commission (this can be reduced with some negotiation AND a big enough amount of material which isn’t small). So, the card AHs seem cheap now!

You don't even want to look at general estate rates. often 40% plus 15% AND they sock you with assorted fees, labor, transportation, photography, advertising etc... Even when I was in auction school I couldn't figure out why you would have to add fees on top of your rates. Again it's a shell game.

[puckpaul]

Originally Posted by Aquarian Sports Cards

You don't even want to look at general estate rates. often 40% plus 15% AND they sock you with assorted fees, labor, transportation, photography, advertising etc... Even when I was in auction school I couldn't figure out why you would have to add fees on top of your rates. Again it's a shell game.

Yeah, they “waived” the $50/piece photography and listing fees and other fees. I did tell them i did a lot of sports memorabilia auctions and getting 40% of the value seemed awfully high to me.

[Snapolit1]

As explained on the board a gazillion times, most AHs will waive a sellers commission for a decent piece. So they have to make their nut somewhere. And that’s called the buyers commission. I know a bunch of good dudes who run AHs, and none of them are running not for profit charities.

Allowing the AH to get a piece of the selling price also serves a smart economic function of incentivizing them to promote. If it was just “hey, pay me $200 if I sell your item, we’ll that wouldn’t get the juices flowing from the promotional side of things.

[Exhibitman]

My wife has an expression for it (which she may have taken from someone else): scam culture. Most people in this country are constantly on the grift, always looking for an advantage, and the more unfair the better.

[puckpaul]

Originally Posted by Snapolit1

As explained on the board a gazillion times, most AHs will waive a sellers commission for a decent piece. So they have to make their nut somewhere. And that’s called the buyers commission. I know a bunch of good dudes who run AHs, and none of them are running not for profit charities.

Allowing the AH to get a piece of the selling price also serves a smart economic function of incentivizing them to promote. If it was just “hey, pay me $200 if I sell your item, we’ll that wouldn’t get the juices flowing from the promotional side of things.

I dont think anyone believes the AHs shouldn’t charge for what they do. Of course they need to! It’s always a question of how much and are you getting what you pay for as a consignor. I have been very happy as a consignor thus far, notwithstanding that an auction is always somewhat risky for any one item at any time. If it’s a big enough item you can use an AH that allows a reserve (like on that Mantle card described above, which is just one anecdote and I dont think represents the whole experience).

[Snowman]

Originally Posted by Johnny630

I've noticed over the years that card shows are becoming less and less filled with Nrmt or Better Cards. Those all go to auction houses. If they are at shows they're asking auction house prices those of which do not sell at the shows. Several dealer friends of mine told me last year that tried selling their higher-end stuff at shows to no avail. Sent to a major auction house, REA, and did better than 25% over their asking price at shows, it's a big divergence. Big money and big egos show up at MA's !!

This is certainly true for cards that are easy to find otherwise, but for extremely high-demand key cards that are dead-centered with superior eye appeal, and thus very difficult to find, sellers can often ask pretty much whatever they want, within reason, and they'll find a buyer.