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

[Pat R]

Originally Posted by luciobar1980

So I get it, you have to think about the Buyer's Premium and take it into account and bid accordingly. But what is the actual point? The only possible motive I can come up with is that's a psychological tactic by the auction house to make you feel like you're paying less than you actually are, or even worse, hoping for ignorance on the part of the buyer.

Sorry if this has been discussed.

Originally Posted by Fballguy

For some reason this conversation always goes down an unintended rabbit hole. The OP never mentioned it being deceptive.

I'd love to see the conversation stay on point for once and explain why Hunt can survive on 17.5,% while Heritage needs 20% (I guess they haven't figured out how to capitalize on economies of scale?) and Huggins 23%? Maybe if it didn't feel so arbitrary, people wouldn't bring this up so much.

Maybe it's just me but it seems like that's what he was insinuating in his post.

[nolemmings]

Originally Posted by Pat R

Maybe it's just me but it seems like that's what he was insinuating in his post.

It's not just you. I also didn't see the OP raise any question as to why one AH charged a higher BP than another, so it seems it is that question which strays from the original point. As for that question, I am not certain why an AH would have to explain why it charges a particular BP, and I do not see where they are limited to a % that they need to "survive".

[Fballguy]

Originally Posted by nolemmings

It's not just you. I also didn't see the OP raise any question as to why one AH charged a higher BP than another, so it seems it is that question which strays from the original point. As for that question, I am not certain why an AH would have to explain why it charges a particular BP, and I do not see where they are limited to a % that they need to "survive".

Which AH do you own? And please don't say none because that would be embarrassing.

[RCMcKenzie]

It's called a service industry. Yes, you could pick up food and cook it, or you could go to dinner which is more expensive, or pay even more money to have it delivered.

Hotel advertises $149.99 per night. No one expects the bill not to be $237.54 or whatever.

Gone are the days of me hawking my own junk on eBay and doing all the legwork, and still getting $84 for a $100 sale, and grousing around about shipping and on and on.

[nolemmings]

Originally Posted by Fballguy

Which AH do you own? And please don't say none because that would be embarrassing.

Non-sequitur. Then again, not surprising.

[sb1]

Originally Posted by Fballguy

Which AH do you own? And please don't say none because that would be embarrassing.

www.brockelmanauctions.com

appreciate the free advertising

[BRoberts]

Something I think is telling when people post about their talks with AHs regarding consignments is how they describe those consignments. Almost always on 54, that reference is in dollars.

"I had a $75,000 consignment ... "

I think intelligent consignors realize it's not just about estimated value but also the specifics of the item. A single $75K card is not that same as a 660-card partially graded set or a collection of 100 vintage photos valued at $75K.

I think many people disregard the time, money and effort that go in to selling sets and lots of memorabilia as "the cost of doing business" and that the AH should just absorb those extra costs. It's probably a reason many of those people have never successfully run a business.

Much easier and satisfying to describe the AHs as greedy pigs.

[raulus]

Originally Posted by Pat R

Maybe it's just me but it seems like that's what he was insinuating in his post.

Call me crazy, but it kind of seems like we're quibbling over semantics, and maybe intent. Not that semantics and intent aren't important!

But the bottom line is that the juice is there, it's a quirk of history and somewhat unique to the auction business, and if you want to go there, you can assert with some confidence that there's arguably some beneficial psychological and marketplace aspects to the practice that conveys a nonzero benefit to the auction house, and helps to further perpetuate the practice.

And I suppose some want to ascribe insalubrious, even malicious intent behind those assertions. But to my mind, those assertions are really not intended to be anything more than a benign recognition that the auction houses are savvy operators, who are operating within standard business practices for their industry. And bully for them!

I believe the old saying is, "If you can't beat 'em, join 'em!" I'm sure if any of us were to open our own AH to get a piece of this sweet, sweet action, we would probably choose to use the same format...