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Thread: Bidders Premium?
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05-12-2014, 05:36 PM #1
Bidders Premium?
Excuse my ignorance, but I've never bid on anything from an auction house. Why is there a Bidders Premium? I win an auction for $1,500 and have to pay and additional Bidders Premium of $200+? What for?
Regards, Tony
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~I'm sorry, I can't hear you....my World Series Ring is making too much NOISE! - Alex Rodriguez~
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05-12-2014, 05:53 PM #2
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05-12-2014, 05:54 PM #3
Re: Bidders Premium?
Essentially, between the seller's premium and/or buyer's premium, this is how the auctioneers make their money.
eBay does a similar thing if you've ever sold thru there, they only charge the seller though, so if you're only buying you might not notice.
If you read the auction rules before bidding, it helps to do the math to figure out the premiums beforehand as they vary from house to house.
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05-12-2014, 06:24 PM #4
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Re: Bidders Premium?
The bidders premium is there so that the auction house makes money, that is their form of making money, they auction off thousands to millions of items and they each have a buyer's premium..
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05-12-2014, 06:31 PM #5
Re: Bidders Premium?
Sellers premium I understand. Buyers premium I don't! Thanks for taking time to respond!!
Regards, Tony
[SIGPIC][/SIGPIC]
~I'm sorry, I can't hear you....my World Series Ring is making too much NOISE! - Alex Rodriguez~
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05-12-2014, 07:47 PM #6
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05-13-2014, 08:21 PM #7
Re: Bidders Premium?
Tony, I've always felt they charge a buyers premium so that they are able to attract more consignments. The Attraction there is that the seller gets exactly what the item sold for, and the action house makes their money off of the buyer. They figure if you wanted the item bad enough to bid on it you will pay the premium
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05-13-2014, 10:28 PM #8
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05-13-2014, 11:30 PM #9
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05-14-2014, 03:20 PM #10