Bidders Premium?

[gtmsportscards]

Does anyone know the consignment rates that the houses typically charge? HA, SCP, Mile High etc. Or who doesnt have a fee?

[gorilla777]

Most of those listed are 10-15%, on average. You can negotiate lower, even to 0% sometimes, but you need to be consigning a certain level or value of items.

[danesei@yahoo.com]

Not only do they charge fees on the final auction price but on the shipping amount as well. I understand the fees on the auction but the shipping irks me. I get a 20% discount on fees for being a top seller but it still ends up being about 10-11% for me when you add in paypal fees.

If you really don't like the fees, eBay does give you the option to accept CC payments through your own merchant account.

Honestly, I don't mind the 3%. It's 50 bps higher than my merchant account, but I'm at least partially protected from chargebacks. What irks me is that they charge 3% on eCheck and instant transfer payments. Those cost Paypal nothing. They should charge 0.5-1% on those, if anything.

[yosef777]

Masiman, just because it is an 'age old' practice doesn't mean it is a fair or legitimate practice and as far as greed goes that is arguable depending on your definition, views on capitalistism, etc.

[Masimen]

Masiman, just because it is an 'age old' practice doesn't mean it is a fair or legitimate practice and as far as greed goes that is arguable depending on your definition, views on capitalistism, etc.

Yosef, In your view what would be a fair commission for a brick and mortar auction house to make? I am just curious as I am not privy to the actual overhead costs of running an auction house. In looking at SCP's website for example, it seems they have 9 full time staff and I know they bring in some part time help for auctions, plus rent, photos, catalog printing and shipping, insurance, security etc.. So assume on average they are making 30-35% of final hammer price. Are you basing your judgement of greed on the fact that 30-35% just seems too high to you or are you actually basing that judgment off some working knowledge of their or another auctions house's business expenses? Again, I am just using SCP as an example.

[danesei@yahoo.com]

Masiman, just because it is an 'age old' practice doesn't mean it is a fair or legitimate practice and as far as greed goes that is arguable depending on your definition, views on capitalistism, etc.

Fair or legitimate? It's not a monopoly. You can consign to whomever you wish, sell it on your own or post it to eBay. Auction house are definitely legitimate businesses with business models that work for them. They can't legally force you to buy or sell through them, so they're fair, as well.

[Mark17]

Fair or legitimate? It's not a monopoly. You can consign to whomever you wish, sell it on your own or post it to eBay. Auction house are definitely legitimate businesses with business models that work for them. They can't legally force you to buy or sell through them, so they're fair, as well.

Well said.

The free market works when it's allowed to. With so many venues to buy and sell, auction houses, to ebay, to craigslist, and the classifieds on this site, setting up your own website, word of mouth, collectors shows, dealers that will buy direct... If you don't like someone's fee structure simply go elsewhere.

And if you're complaining about high fees because you're out to maximize YOUR OWN profits, you end up sounding silly complaining about other people trying to do the same.

[yosef777]

Danesi, I think you missed the point of my comment. I was not calling the auction houses into question (fair or legitimate) only the comment by Masimen, 'age old practice', as fair or legit.
Masimen, I have some knowledge of auction houses and their operating costs as both a consigner and a buyer. While we are all aware of the scandals within the memorabilia world many auctions houses are upfront, honest and looking to promote the hobby in a positive way. IMO, any commission an auction house wants to charge is fine as long as it upfront and open. My issue is when costs are added at every turn along the process via the 'fine print' or 'back door'.
Mark17, see my above comment to Danesi.

[danesei@yahoo.com]

Danesi, I think you missed the point of my comment. I was not calling the auction houses into question (fair or legitimate) only the comment by Masimen, 'age old practice', as fair or legit.

Your statement was in reference to the practices used by auction houses.

Masiman, just because it is an 'age old' practice doesn't mean it is a fair or legitimate practice and as far as greed goes that is arguable depending on your definition, views on capitalistism, etc.

If your intent was to question the legitimacy of the comment, you shouldn't have referenced the practices as being "fair or legitimate."

[gingi79]

I'm happy for the piece of mind a buyers premium paid to an auction house gives me. It assures they researched and authenticated these items beforehand, giving me a certain extra piece of mind in addition to my research. That's how they sold this lecherous fee initially. Thank goodness this hobby has no track record of frauds, liars, cheats and misinformation. Can you imagine if nearly every major auction house had documented examples of, at minimum, shady dealings? Culminating in an FBI probe, arrests at the National and jail terms for auction owners?

Oh, wait....