Buyers Premiums

[slick_mick]

Gents,

I'm just curious as to what you all think of buyer's premiums at auction?

Two of the larger Australian auction houses are now charging a whopping 19-20% premium to buyers!

Does a premium of that size (which IMHO is a blatant ripoff!) put you off bidding in these auctions?

Mick

[Sonofacqms]

I used to buy lots of items at auction, but "buyers premium" has slowed this down somewhat, I rarely attend these days unless it's something I really want. These high premiums have killed the auction option IMO. People only have so much money to spend, hence lower bids.

Rob

[Peter Brydon]

I have stopped selling so many items through auctions not only because of the costs but also because of the time it takes ( from the items being consigned ) to actually get the net proceeds in your bank account.

I have also never really got my head around the purchaser paying for the privilege of being allowed to buy something, mind you I also don't see why the seller is the one to take the hit on Paypal costs either.

P.B.

[rhodesianmilitaria]

Originally Posted by 8thfoot

I have stopped selling so many items through auctions not only because of the costs but also because of the time it takes ( from the items being consigned ) to actually get the net proceeds in your bank account.

I have also never really got my head around the purchaser paying for the privilege of being allowed to buy something, mind you I also don't see why the seller is the one to take the hit on Paypal costs either.

P.B.

Agreed.

[Phil2M]

It would cost me much more, over a year, to pay paypal fees on what I buy rather than on what I sell. For every item I sell, I probably buy 10.

[wright241]

Mick,
Well the auction house has to make some money somehow....... In the UK - in general, thats now a whopping 40% (+ postage and packing profits etc...) of the sale price. Not sure where its going to end as there are hints that it might go up to 25% here - they have to make a living somehow - and they have to keep up with the money that PPI/injury lawyers and fat cat bank fees - which are looming...
Lets all start an auction house - oh, Andy already has.
And there was me 25 years ago thinking that 15% on the buyer and 10% on the seller was bordering on the ridiculous. Never mind VAT and P&P.
David

[Old Smelly]

I believe that some auction houses are already over the 20% mark.
I used to do work for a local auction house, mainly deliveries and collections. They used me quite a bit so I gave them a better rate. One day whilst unloading some antiques one of the owners called me over and asked if I could do anything about my prices, make them even lower as they wanted to give their customers a good service, all this as he was stood next to his new BMW. I don't do work for them anymore

Lee

[barriefield-brian]

Just looked at one here a couple of weeks ago. 17 1/2 % + 8% tax. Maybe not! Cheers Brian

[Coast Watcher]

I just keep the 19-20% in mind when deciding my end bid. Most of the time buyers have a clear idea of how much they want to pay so just build it into the bid.

[slick_mick]

There was a rare Aussie badge I was bidding on in a recent auction - it went for a whopping $3200 (plus premium) and the premium for that would have been around $650!

Crazy!

I think the auction houses might soon have to re-evaluate their fee structures - 20% premium makes ebay look like a bargain!

Mick

[John L]

Originally Posted by Phil2M

It would cost me much more, over a year, to pay paypal fees on what I buy rather than on what I sell. For every item I sell, I probably buy 10.

What am I missing here. I use PayPal all the time to buy and I don't see where I am paying a fee.

John

[slick_mick]

Hi John,

The seller generally pays PAYPAL fees (deducted from the money they receive) unless you use the "gift" option.

Mick

[John L]

Originally Posted by slick_mick

Hi John,

The seller generally pays PAYPAL fees (deducted from the money they receive) unless you use the "gift" option.

Mick

Hi Mick,

That is what I thought, but then there is the talk of paying when buying. Just an over sight I guess

John

Originally Posted by 8thfoot

I have stopped selling so many items through auctions not only because of the costs but also because of the time it takes ( from the items being consigned ) to actually get the net proceeds in your bank account.

I have also never really got my head around the purchaser paying for the privilege of being allowed to buy something, mind you I also don't see why the seller is the one to take the hit on Paypal costs either.

P.B.

Agreed,

The last 2 Bosleys sales have tortured me as a seller, not only is their the 20% premium, there is also insurance per sale and not per items sent.

Bosleys got a load of stuff from me on the proviso it would go into their next postal auction, so far some 7 months later after 2 auctions (1 postal and 1 not) only half my items have being disposed of, I'm currently trying to get the rest of my stuff back from them as I have a lot of money tied up, the next step is the Ombudsman as Bosleys do not answer emails and are very evasive and vague when phoned.

I for one will never ever again sell anything through Bosleys,

As far as buying goes, I wont say never again as that one elusive item might turn up, but as already stated the 20% buyers premium can make things very expensive.

Regards,
M

[Phil2M]

Originally Posted by John L

What am I missing here. I use PayPal all the time to buy and I don't see where I am paying a fee.

John

Hi John,

I was responding to Peter's post about him not seeing why the seller, on ebay, has to pay the PayPal fees. I was trying to say that if it was not the seller then it would be the buyer, therefore on a personal level, it would cost me more if the buyers did have to cough up the fee.