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#1
01-16-2008, 10:40 AM
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REA consignments
Posted By: Corey R. Shanus
Good question. If I had to venture a guess I would say that when the system started the philosphy was -- "if they're willing to pay it, we're willing to take it." There were undoubtedly a lot fewer auction houses than there are today and therefore much fewer competitive pressures. They probably made a persuasive pitch to both buyer and seller how they were providing services to each and therefore should receive compensation from each. Flash forward to today. While the philosphy remains the same, the problem is they (the consignors) are not willing to pay it. There are just too many auction houses now vying for their consignments. So the system has readjusted toward higher BPs and lower SPs. 
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