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20% Buyer Premium . Why would you consign ?
I’m wondering why anyone would place a consignment with an auctioneer that has a 20 % buyer premium.
I just sent close to 30 gold pieces to Great Collections this past week. I feel their 10 % buyer premium is a comfortable rate . I get more money from my consignments and buyers aren’t getting gouged.
If you consign at those places you are leaving a lot of money on the table.
I just sent close to 30 gold pieces to Great Collections this past week. I feel their 10 % buyer premium is a comfortable rate . I get more money from my consignments and buyers aren’t getting gouged.
If you consign at those places you are leaving a lot of money on the table.
Most buyers think about that 20% and bid less in order to still get the item at a reasonable price when you add the BP.
The seller is really getting reamed by those high BP fees.
What are you guys comfortable with paying as a buyer and how do you feel as a seller???
I know personally I will get out of the game if 20 % became the norm across the board. As paying 20% BP is coming out of the money I could be getting for my items .
Thoughts ??
What are you guys comfortable with paying as a buyer and how do you feel as a seller???
I know personally I will get out of the game if 20 % became the norm across the board. As paying 20% BP is coming out of the money I could be getting for my items .
Thoughts ??
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Comments
As a seller, the net amount received (ex-110% of hammer) can often be negotiated.
Ultimately, the buyer's premium and the seller's commission rate don't matter nearly as much as what you, as a consignor net for your coins. Some sellers that offer lower commission rates don't typically achieve high enough prices to make their lower rates worthwhile.
I must say I have a lot of respect for you, your accomplishments and contributions to Numismatics.
I’ve bought and sold many coins over the last few years and I’ve compared past sales data from those that I could . No matter how I slice it , I still come out ahead as a seller, in my case using Great Collections . ( And they pay lightening fast compared to some others )
I started this thread not to pump up GC nor make disparaging remarks about others . But merely because the math doesn’t make sense. At 20% you’ll pretty much be upside down everytime as a seller.
That’s why I was wondering how fellow hobbyist and collectors felt about it .
And respectfully less interested in those that have a vested interest in that 20%
Unless of course they would take the time to educate us or back up statements with real numbers .
Best Regards
vincent
Every player in the game has their angle to work whether auctioneer, dealer on bourse, or investor liquidating their material. It’s the seller decision decide which option execute based on type of material, etc: Auction House, Bourse at Show , Shop Dealer, EBay Store / Auc.
I believe that a great choice (GC) Vincent on those gold coins. They have been really bidding high there in this market. I bid there occasionally (if not eBay) and those should do really well. Not trashing other Auc houses just try keep it simple using one. Plus was very strong Teletrader back in the day. Ian does a really super job.
I must say I have a lot of respect for you, your accomplishments and contributions to Numismatics.
I’ve bought and sold many coins over the last few years and I’ve compared past sales data from those that I could . No matter how I slice it , I still come out ahead as a seller, in my case using Great Collections . ( And they pay lightening fast compared to some others )
I started this thread not to pump up GC nor make disparaging remarks about others . But merely because the math doesn’t make sense. At 20% you’ll pretty much be upside down everytime as a seller.
That’s why I was wondering how fellow hobbyist and collectors felt about it .
And respectfully less interested in those that have a vested interest in that 20%
Unless of course they would take the time to educate us or back up statements with real numbers .
Best Regards
vincent
Since you've had first-hand selling experiences, as long as you've researched competing prices realized and are confident that you're netting more the way you're doing things, I'm sure not going to suggest you make a change.
My original point stands however - what counts is what you net. And my observations are based on having been a consignor when I had my own business, as well as on working with consignors, now.
Most GC offerings are not of the same caliber as those mentioned above.
Lower value coins sell near guide so you are correct, buyers figure that in their offering price. There is no way to compare high end coins that normally exceed guide. There is no way to look back and guess if the Fairmont gold would have set World Record after World record at a GC auction on a Sunday night.
You have made your mind up about GC and it sounds like you are happy. That is all that should matter for you. Maybe your 30 coins would have set records at one of the places mentioned above (if CAC stickered of course).
AND Like @Vincent.Savage said, they pay really fast.
But in talking about buyer's fees. We put considerable thought into this prior to launching 11 years ago (almost to the day). I didn't want to come out with a teaser rate, and keep changing the fee structure. Despite keeping it at 10% for 11 years, we're still asked regularly when we're going to stop with the teaser rate. We have no plans to increase our buyer's fee. Our business scales well, and we're rewarded by an increase in business, not by raising our fees.
And btw - we know that bidders are willing to stretch on coins - and bid higher knowing that the auction house isn't getting 20% of it.
- Ian
I wonder how many of the consignments come from estates where the family took an attorneys advice to use those others . And I suspect actual coin collectors hobbyist that are actively involved go to GC.
* As far as the 1% John mentions , I don’t see it. They’d rather get an extra 10% out of their high dollar items. And plenty of collectors with deep pockets search and bid at GC all the time !!
The 20% sellers fee is a norm-its much worse outside of coins. In the end, its really not the 20% you should be concerned with, its the % YOU get. You think a million dollar coin pays a 20% fee? Today a big coin like that gets a 115% rate. You have to talk to your auction co when consigning.
If you've got a couple of hundred grand to sell per year, paying 10% is too much.
I wonder how many of the consignments come from estates where the family took an attorneys advice to use those others . And I suspect actual coin collectors hobbyist that are actively involved go to GC.
* As far as the 1% John mentions , I don’t see it. They’d rather get an extra 10% out of their high dollar items. And plenty of collectors with deep pockets search and bid at GC all the time !!
The idea that GC "regularly" sells six and seven figure coins is erroneous. That would not be Ian's statement, and you do him a disservice by promoting for him what he may or may not intend to deliver.
Forgetting Heritage's lion's share of the overall auction market, I wouldn't be surprised if Stacks sold more six-figure coins last week than GC did all last year. Maneuvering on behalf of a over-exposed million-dollar rarity is a one-off, not a track record.
These comments are not intended as negatives about GC. I'm noting the lack of proportionality in another observer's statement of positives. Using the VIP (Million Dollar annual sales) commission matrix at both HA and Stacks has informed me others can get much the same with less volume.
You VIPs, you......always mit the big woids.....
Big words ?????