Goldin auction record breaking prices

[LarryWalkerFan]

Re: Goldin auction record breaking prices

It's not as simple as you make it out to be.

First off, the consignment fees are different for different items, I believe. If you have, for example, Babe Ruth's 714th or 60th HR from 1927, your consignment fee might even be negative.

So, let's say we take your example of 10 jerseys with a hammer of $1k ea.

$10k total hammer
15% consignment fee (which includes $50 jersey authentication fee per item)
Net: $8,500

You're then asking for $1,500 in credit applicable to the current auction, in return for a guarantee that you will spend your entire $8,500 in the current auction plus the $1,500 "coupon."

Scenario 1:

You win $10k in items.
Consigned share: -$8,500
Consignor credit: -$1,500
Buyer Premium: +$2,000
Net owed to Goldin: $2,000
Net loss by Goldin: $500 in authentication fees that were encumbered in the consignment

Scenario 2:

You win $7,500 in items.
Consigned share: -$8,500
Consignor credit: $0 (void if not used in current auction, per hypothetical proposed consignment agreement)
Buyer Premium: +$1,500
Net owed to Goldin: $1,500
Credit applicable to future Goldin Auction hammer prices: $1,000

In scenario 1, Goldin loses $1,000 in revenue and absorbs the $500 in authentication fees in return for $500 increase in hammer prices on the items you bid on over the underbidder.

The $500 difference amounts to $75 in consignor fees (at 15%) and $100 in buyer's premium.

Net loss to Goldin: $1,325.

In scenario 2, Goldin receives the $1,500 in consignor fees they would have received anyway (by you forfeiting them), and they're allowed to hold on to your excess $1,000 until you win in a future auction. Since, you said you like money, let's assume you spend that $1,000 in the very next auction.

The $50 difference between you and the underbidder amounts to $7.50 (again, at 15%) in consignor fees and $10 in buyer's premium. The time value aspect of the $1,000 works out to $2.12 of interest over three months at 0.85%.

Net gain to Goldin: $19.62.

Essentially, that's the proposition you're making.

As for your alternative solution of keeping your 10 jerseys in the closet, that's fine as well. Now, your jerseys' value will need to keep pace with inflation in aggregate, since the consignment fees aren't likely to go down any time soon. Then, when you pass those jerseys on to your wife or kids, they'll likely get offers at 65-cents on the dollar (assuming they aren't outright scammed or throw them away) or maybe half that in a fire sale.

So, by refusing to surrender $1,500 in consignment fees, your estate loses $3,500-$7k 20 years from now instead of $1,500 today.

It's a pretty simple concept...

I am not willing to consign my items at a fee of 20%, so I keep my 10 jerseys in my closet.

or...

Ken waives the consignment fee for my items and I send 10 jerseys into the auction, let's say at value of $1,000 per jersey. The 10 jerseys hammer for $10,000 and Ken collects 20% in buyer's premiums and I in turn have $10,000 in auction credit to spend.

Last time I checked, $2,000 is greater than $0, and I haven't even analyzed the additional buyers premium revenue because I have agreed to spend my $10,000 in the current/future auction.

What is so difficult to understand?

[LarryWalkerFan]

Re: Goldin auction record breaking prices

its 20%
22.5% is only with credit card fee

Ken, is the fee also waived on Debit card transactions?

[Preece1]

Re: Goldin auction record breaking prices

Hi Folks,

I am new here, but have always been a fan of fame used jerseys. But I am a rookie. Why did the Namath jersey go so low in the last Goldin auction?

Best, Patrick

[KGoldin]

Re: Goldin auction record breaking prices

Interesting dialog...Why go with eBay vs an auction house? Also, Goldin started their auction house with a 10% buyers premium..10 PERCENT!!! And, it has walked up to the top range at 22.5%...at the end of the day, the bottom line price of the buyer can be sliced and diced...all depends on how much of the total the auction house(or any other platform) gets...

its 20%
22.5% is only with credit card fee

[seanbaseball]

Re: Goldin auction record breaking prices

Interesting dialog...Why go with eBay vs an auction house? Also, Goldin started their auction house with a 10% buyers premium..10 PERCENT!!! And, it has walked up to the top range at 22.5%...at the end of the day, the bottom line price of the buyer can be sliced and diced...all depends on how much of the total the auction house(or any other platform) gets...

I go with ebay for cheaper smaller items that arent worth sending in for me or for Goldin to have to photograph and do a write up on. Makes sense for me and them. I have about 30 items in Goldins next regular auction so I use them quite a bit, exclusively for better items actually.
Premium is really 20% if you pay on time and with check or wire i believe. No doubt the auction house makes more off 20% than 10%, but it seems all the big houses are at 20%. Guess it has become a norm. Of course id like all expenses for buyer and seller to be lower, just like id like my health insurance to go up less than 15% per year! Im sure the auction houses have expenses that go up every year that they wish were lower. Printing alone for these catalogs has to cost a fortune. In the end I guess people use the houses when they believe the cost is worth it for what they get back. To each their own.

[truvalue123]

Re: Goldin auction record breaking prices

Interesting dialog...Why go with eBay vs an auction house? Also, Goldin started their auction house with a 10% buyers premium..10 PERCENT!!! And, it has walked up to the top range at 22.5%...at the end of the day, the bottom line price of the buyer can be sliced and diced...all depends on how much of the total the auction house(or any other platform) gets...

[seanbaseball]

Re: Goldin auction record breaking prices

I too am a business owner. I do know that maximizing revenue is not done by cutting fees to appeal to one potential consignor, or maybe a few. No doubt there is a sweet spot for revenue/profit for auction houses. I doubt u nor I know that math specific to auction houses and or Goldin auctions. Im sure more people would buy items if there wasnt a 20% premium but how do u decided how low to go. I suspect fixed expenses determine this.
No doubt u are expressing an opinion or idea and whats great is that people can disagree. Makes the world great. When u open your no consignor fee auction house let me know, but I will expect the same advertising, promotion, customer service etc of course. Good luck.

[TwinLakesPark]

Re: Goldin auction record breaking prices

I imagine there is more complicated math here than u represented. For instance Ken could just waive all buyer and seller fees and I bet he would have an amazing amount of listings but then be broke.

That would be a bad business decision.

There is a cost to running an auction house way above what any of us imagine. Business is expensive.

There are costs in every business, what makes an auction house any different? If you are an business owner (which I am) and you are not constantly thinking of maximizing revenue and reducing expenses, you are destined for failure.

Most people dont keep jerseys in their closet because they dont want to pay a consignor fee. If they are jerseys u dont want wouldnt some % of 100% be better than the zero $0 u are currently getting for them.

I like my money, so no, some % of 100% is not better. 100% is better.

If u dont like auction houses making money or u think they charge too much then u could always not use them?

Look man, I merely proposed a trade concept based on Reaganomics rather than a cash out. I don't want to get clipped 45% selling and buying in the same auction, but 22.5% is somewhat attractive to me for trading.

[seanbaseball]

Re: Goldin auction record breaking prices

It's a pretty simple concept...

I am not willing to consign my items at a fee of 20%, so I keep my 10 jerseys in my closet.

or...

Ken waives the consignment fee for my items and I send 10 jerseys into the auction, let's say at value of $1,000 per jersey. The 10 jerseys hammer for $10,000 and Ken collects 20% in buyer's premiums and I in turn have $10,000 in auction credit to spend.

Last time I checked, $2,000 is greater than $0, and I haven't even analyzed the additional buyers premium revenue because I have agreed to spend my $10,000 in the current/future auction.

What is so difficult to understand?

LOL. I can understand math. I have consistently found that Goldin can get me a much higher % for my stuff than i can on my own even after their %.
I imagine there is more complicated math here than u represented. For instance Ken could just waive all buyer and seller fees and I bet he would have an amazing amount of listings but then be broke. There is a cost to running an auction house way above what any of us imagine. Business is expensive. Most people dont keep jerseys in their closet because they dont want to pay a consignor fee. If they are jerseys u dont want wouldnt some % of 100% be better than the zero $0 u are currently getting for them. And no one is going to pay u 100% of any auction comp on your jerseys as buyers realize u can rarely get that price without an auction house. If u dont like auction houses making money or u think they charge too much then u could always not use them? The same reason I am boycotting my local Bentley dealership. LOL

[truvalue123]

Re: Goldin auction record breaking prices

With the explanation it is understandable...but, I'd hazard a guess that most of the consignors are already bidders as well, and, the auction house doesn't have to give up the sellers money to entice them to consign more...The issue you would have is why wouldn't those that are already consigning and buying convert to your proposal? If so, the business model for the auction house suffers...
It is interesting, though, as a new consignor incentive..but, you still have the legalese of what happens if the consignor doesn't spend the credit? How , or when do they get it back?

[TwinLakesPark]

Re: Goldin auction record breaking prices

It's a pretty simple concept...

I am not willing to consign my items at a fee of 20%, so I keep my 10 jerseys in my closet.

or...

Ken waives the consignment fee for my items and I send 10 jerseys into the auction, let's say at value of $1,000 per jersey. The 10 jerseys hammer for $10,000 and Ken collects 20% in buyer's premiums and I in turn have $10,000 in auction credit to spend.

Last time I checked, $2,000 is greater than $0, and I haven't even analyzed the additional buyers premium revenue because I have agreed to spend my $10,000 in the current/future auction.

What is so difficult to understand?

[seanbaseball]

Re: Goldin auction record breaking prices

What would be the point in waiving the consignment fee for Ken or any auction house? They would then bring in less revenue and even if that made the consignor bid a little more on items the auction house would only get a % of that "overbid" back as the majority goes to the consignor of that item. Sounds like a lose and lose more for an auction house.

But to argue the other side if Ken were to hand me free money each auction I would gladly bid more How bout it Ken?

[truvalue123]

Re: Goldin auction record breaking prices

I didn't read that items were undervalued...
Would you explain how waiving a consignment fee for an auction credit would be a benefit to the auction overall besides forcing the selling to try to overbid to ensure they don't lose the credit(which may happen with the GUU night bidding),,,when you get a statement from the auction house, the proceeds of a sale offset the expense of a winning bid , anyway...
If I had a credit in lieu of a cash payout, and, I didn't spend it, I would not be happy...

[TwinLakesPark]

Re: Goldin auction record breaking prices

Just to mimic what was said earlier, I feel like there were some great buys in the auction with some under valued items.

Just an idea to throw out there Ken/Chris, what if you were to waive the consignment fee on item(s) in exchange for an auction credit? I would think this would increase your consignments and therefore increase the collected buyer premiums.

Thanks again guys.

[ChrisCavalier]

Re: Goldin auction record breaking prices

The auction was good for buyers also. As always, a great auction. I finally got a Swoboda game used 1966-67 bat, MEARS A-9 for, are you ready-(show of hands who's into numbers?)-$444.04. I Sh@% you not.

I hope you added a .40 tip when you made the payment