JO Auctions

[ivo610]

Looks like the rumors are true, JO Sports is doing auctions now. Glad to see it. Nice items lined up for the first auction, with a little bit of all the major teams they deal with.

Thoughts?

[Allaboutsports]

Yeah i seen that as well. I think it is a great idea, and a great thing for the customers to finally get the jerseys they want and the right price. I think this will be very good for JO Sports and the many sports collectors out there cause JO Sports has the BEST stuff available.

[DaBears54]

Yeah I got that email from JO last night and immediately signed up for the auction. I love the idea of JO selling their jerseys in a auction setting.

The only question I have is why the 15% buyers fee? I don't think JO is contracting the jerseys out to Mears or Grey Flannel or some other auction site like that just to run the auctions are they? Those independent sites charge a buyers fee as their cut of the profit between seller and buyer. What's the purpose of JO needing an extra 15% if they're the seller and owner of the auction site?

[Mattapan03]

Yeah I got that email from JO last night and immediately signed up for the auction. I love the idea of JO selling their jerseys in a auction setting.

The only question I have is why the 15% buyers fee? I don't think JO is contracting the jerseys out to Mears or Grey Flannel or some other auction site like that just to run the auctions are they? Those independent sites charge a buyers fee as their cut of the profit between seller and buyer. What's the purpose of JO needing an extra 15% if they're the seller and owner of the auction site?

Good question?

[Allaboutsports]

i spoke with Robert on this question and his response was all auctions charge a buyers fee, and all auctions charge a consignment fee, so there is 2 separate fees. Some buyer and consignment fees are up to 18% i was told. Hope this helps you guys out

[DaBears54]

i spoke with Robert on this question and his response was all auctions charge a buyers fee, and all auctions charge a consignment fee, so there is 2 separate fees. Some buyer and consignment fees are up to 18% i was told. Hope this helps you guys out

Yeah, but these fees only make sense when the auctioneer is a 3rd party. All these 3rd party auction sites out there (like Ebay, Mears, Grey Flannel, etc.) don't own the products being sold so they must charge a fee for income. NFL Auctions owns the products they sell and they don't need an extra fee. What gives? From what I see, JO is the seller and the auctioneer. The final price of the auction + the fee all go to JO.

[BU54CB]

Yeah, but these fees only make sense when the auctioneer is a 3rd party. All these 3rd party auction sites out there (like Ebay, Mears, Grey Flannel, etc.) don't own the products being sold so they must charge a fee for income. NFL Auctions owns the products they sell and they don't need an extra fee. What gives? From what I see, JO is the seller and the auctioneer. The final price of the auction + the fee all go to JO.

All good points, I'd be interested to know the reason for the extra fee as well.

[TriplexXxSports]

...The only question I have is why the 15% buyers fee?

Simple - you run the risk of letting the general public (or let me put it this way - the average collectors that most of us are) set the common price for jerseys.

When you take the risk of your product selling for better than 40% below what your retail price is, you need to make profit as best you can. Hence the 15% juice.

If 1 jersey gets 1 bit at the minimum, plus the juice, they still profit. Not as much as if the jersey sold at their retail, but profit non the less.

I'm not so sure the auction is a good idea. I can see 80% of their stock selling at far less than their asking prices, therefore putting the leverage in the hands of the bidders/buyers (which from a business stand point, may not be the best idea).

If you are going to give your buyers that much leverage, you may as well just drop your asking prices back to a common market setting, and save the hassle of the auction...

[34swtns]

Couldn't have said it better, Matt.

Lower prices equals more sales thus killing the need for any sort of "auction".

[legaleagle92481]

JO is smart to do this it responds to all the pricing criticisms by letting the customers set the price. My prediction is most items will sell close to what JO offers them for everyday, the interest is that high. Also the BP is necessary to cover their expenses. Even for items they own (they also apparently have consignments) they have expenses related to maintaining the auction, such as the website and the employees who monitor it, etc. Steiner also charges a BP in their auctions. Its standard practice unless your Ebay.