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#1
11-28-2006, 12:41 PM
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What is the rationale behind a buyer's premium on an auction
Posted By: barrysloate
Adam- I've thought about the same thing, and ebay proves you can do business without a premium. I guess psychologically it helps an auction house to offer a low or neglible fee to the consignor, but in the end the same means can be accomplished without it. For me, I guess it is just the pack mentality. Others do it so I just follow suit. That said, I will leave the 15% buyer's premium in place. But I agree if you think a lot is worth $1000, you should just bid in the $800-900 range and stop there, and the same final price will be realized as if there were no fee and you went to $1000. 
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