Who gets the buyer's premium?

[Bosox Blair]

The auction house gets it. The "usual" model (if there is such a thing) is that the auction house takes from both ends. The consignor also usually pays a consignment fee. (I think this is more what FUBAR was talking about - some auction houses will waive or reduce the consignment fees on desireable items to get them inserted in their auction.)

On the buyer's premium end, some auction houses will offer a lower-percentage BP to a buyer on a high-dollar item.

For baseball card auction houses I think the BP goes from about 12.5% up to about 19.5% (most are at the higher end of that range), but I don't bid with all of them, so others may know better than I do.

Cheers,
Blair

[joeadcock]

I agree with above. Buyer's premimum goes to Auction house. Consigner pays an amt also for Auction house to present card for auction.
Leon(with B&L) would be able to add to this.

A strong auction house would do well. Example if they make 1 million in sales, they could be getting up to 150,000 to 200,000 from buyers premium and another 100 to 150,000 from consignment fees. Of course minus expenses for advertising, mailing, catalog production, etc.

Frank

[sb1]

We at B & L charge no sellers premium and only a 12 1/2% buyers premium. We do this to put as much money in the sellers pocket as possible. Obiviously by charging no sellers fee it puts more more in the consignors pocket, but also by keeping the buyers premium low, it allows the bidders to go one or two more increments and still be within their budget.

So in other words the seller is receiving 87 1/2% of the total sales price, much better than you will do on ebay after paying final value fees and paypal fees to them. AND, we have done all the work!

Scott and Leon

[perezfan]

The Catalogue Auctions have to charge higher fees (on both ends), largely due to the costs of producing the Catalogues. The related costs are quite expensive and time consuming for their employees. Production, printing, photography, layout, man-hours, and postage costs for mailing the Catalogues out to thousands of prospective clients, etc.

That's where a significant portion of the money goes...

[Leon]

Originally Posted by perezfan

The Catalogue Auctions have to charge higher fees (on both ends), largely due to the costs of producing the Catalogues. The related costs are quite expensive and time consuming for their employees. Production, printing, photography, layout, man-hours, and postage costs for mailing the Catalogues out to thousands of prospective clients, etc.

That's where a significant portion of the money goes...

yes and no....catalogs cost about $10,000 for 1000 or so....as a balllpark rule...add another 5k for shipping and you have 15k......make it 25k to be as safe as possible. So on a million dollar sale, with no sellers fee and a 19% buyer fee, there is $190,000 gross profit. The math is pretty easy. Don't get me wrong.....auctions aren't as easy as some would think and there are tons of issues and work to be done. Catalogs are mainly so the consignors can see their stuff in print. And of course it's true I love my catalogs too, as a buyer....but they aren't that necessary, really. Just my opinion and others will disagree and have their right to disagree. It's ok....

btw, as the price of the catalog goes up, with the amount of items and pages, so do the revenues....

[oldjudge]

Scott and Leon are the best. Leon will even come to your house and wash and wax your car for a nice consignment.

[Leon]

Originally Posted by oldjudge

Scott and Leon are the best. Leon will even come to your house and wash and wax your car for a nice consignment.

Hey Jay,
I will absolutely wash and wax cars for consignments. I have done more for less, and under worse conditions, so that would be a piece of cake.

I am already looking forward to getting together with you, Richard and Scott again at the next National. Those are 4-5 of my favorite days of the year.

[oldjudge]

Me too, buddy

[glenv]

The buyer pays 12.5% more, but the seller gets $100 of every $112.5 (100/112.5). So the seller actually gets 88.889% of the final sale - even better than 87.5%.