Shrinking Buyers Premium ?

[Snapolit1]

Wouldn't it potentially make economic sense to have the buyers premium shrink as an item rises in price? For example, the 22% buyers premium is lowered to 15% on items over $100k and to 10% on items that go over $250k and further reduced as items go up the ladder? It seems a shrinking buyers premiums would have the effect of keeping more bidders in the game longer and lead to more bids. At least theoretically I guess.

The calculus from the point of view of the AH would be the reducing buyers premium (it's vig, as we say in on the steeet) would have to be offset by the higher sale price x reduced commission to make it worthwhile.

Maybe wouldn't work. Wonder if it has ever been tried in any large sports auctions?

I got a C in Eco 101 so maybe I'm missing something real obvious.

[Casey2296]

It makes all the sense in the world, I'd push my bids higher in that case. Problem is, the AH probably gave part of my premium to get the consignment on cards that reach that threshold.

[puckpaul]

I think the buyers can figure it out what they are paying and lower buyers premiums would lead to the same prices, just less for the auction house. Now in many cases that buyers premium is split with the seller on major cards, so not sure what a change here would do at all.

[Peter_Spaeth]

I could not care less what the buyer's premium is. Whatever it is, I just net it out of the total price I am willing to pay. In other words, if the most I want to pay for a card is say 1K, I don't care at all if you call 800 the bid and 200 the premium, or 900 the bid and 100 the premium. Why should I? I don't understand the continued misconceptions around it.

[Vintageclout]

Originally Posted by Peter_Spaeth

I could not care less what the buyer's premium is. Whatever it is, I just net it out of the total price I am willing to pay. I don't understand the continued misconceptions around it.

Thank you Peter…..you bid accordingly to the buyers premium. Case closed!

[1952boyntoncollector]

Originally Posted by Vintageclout

Thank you Peter…..you bid accordingly to the buyers premium. Case closed!

plus i would think the people bidding 100k are VERY aware of the premium and other costs versus the guy biddign 23 dollars on a topps heritage auto

[robertsmithnocure]

Originally Posted by Peter_Spaeth

I could not care less what the buyer's premium is. Whatever it is, I just net it out of the total price I am willing to pay. In other words, if the most I want to pay for a card is say 1K, I don't care at all if you call 800 the bid and 200 the premium, or 900 the bid and 100 the premium. Why should I? I don't understand the continued misconceptions around it.

My thoughts exactly. Decide what you are willing to pay and figure out your bid taking the buyer’s fee and whatever other fees into consideration. Why complicate matters with a sliding scale?

[nwobhm]

Originally Posted by Snapolit1

…I got a C in Eco 101 so maybe I'm missing something real obvious.

On one side…. New money $100,000+ bidders aren’t thinking about buyers premiums.

On the other side of it….. Why do you believe all buyers are paying the same premiums? Old money negotiates these things before bidding.

[mrreality68]

The reality is AH are businesses and they do not want to give up there profits so they will not drop prices unless they are forced to by lack of demand to drive more sales/profit

We as buyers just buy at the price we are willing to pay (including the BP)

And the same as seller for what we are willing to sell at to net our price.

[rjackson44]

I could care less

[Snapolit1]

If everyone uses perfect logic in buying items, knows exactly what they will spend and factors all the costs etc into every purchase decision, why do sellers still take full page ads in the newspaper every day yelling about car deals and discounts in real estate transactions?

[Snapolit1]

If I have 100,000 to bid on a particular card, I will end up with a higher bid if the buyers premium is lower. It may not affect me, but it's better for the seller to have a higher sale price, no?