REA increasing their BP and making other changes

[bnorth]

Originally Posted by Huysmans

The buyer's premium isn't SUBTRACTED from the winning bid, it's ADDED.
So, if the bid total is $5,000.00 at auction end, the buyer's premium of 23% is ADDED to this total, not SUBTRACTED as in your example. So the buyer would pay a total of $6,150.00 as I previously mentioned.

The consignor - if paying no fees as was the original example given - receives $5000.00, which was the total of bidding at auction end.

Think about it logically, if the winning bid at the end of the auction is $5,000.00, and the consignor pays 0% commission, how could he possible end up with $4,000.00, as in the example of the original poster. 0 is 0 no?? not 20% ??

So again, the buyer's premium is ADDED to the final hammer price, it is not taken from it.

I get how it works. Take my example and actually do the math. My example shows the buyer paying the exact $5k total for their purchase in both examples. OK my math is actually a few pennies off because in my example the buyer at the AH really only paid $4999.95 for the card the consignor will receive $4065 for.

Seriously please show me the math when the real total selling price the buyer pays is $5K.

[Huysmans]

Originally Posted by bnorth

I get how it works. Take my example and actually do the math. My example shows the buyer paying the exact $5k total for their purchase in both examples. OK my math is actually a few pennies off because in my example the buyer at the AH really only paid $4999.95 for the card the consignor will receive $4065 for.

Seriously please show me the math when the real total selling price the buyer pays is $5K.

Yes, your example shows the BUYERS paying the same price. So what?? What the seller gets is in relation to the FINAL HIGH BID, not what the buyer's FINAL price is. Again, the buyer's commission price is ADDED to the HIGH BID with an auction house.

Seriously Ben, you're combining the winning bid with the buyer's fee as opposed to basing what the consignor gets which is based on the winning bid amount. The winning bid amount determines what the consignor gets, the buyer's fees are ADDITIONAL to that.