Buyer's Premium

[slick4591]

I'll start this by saying I don't attend many auctions. An equipment one occasionally and a miscellaneous one a little more. Livestock auctions the least. I've notice a trend of tacking on a 10% fee to the buyer while still charging the owner a commission. I'm involved in a conversation on FB about this and we've had a couple auction company owners pretty well say "too bad so sad for you", deal with it.

I got caught up in an auction a while back where I was in a hurry and didn't read the fine print about their buyer's premium and had to pay it. Hated to, but it was my fault. I've since stopped going to any that double dip and charge the buyer extra to buy something. Just wanted to kick it around a bit because I'm figuring the livestock auctions will be coming soon.

 

[jedstivers]

I discount my highest bid by the amount it will be.
I also only go to one that has that if there's something I really want at it.
I don't like them and support them the least I can.

 

[callmefence]

There's a ton of auctions around here. Some going to a buyer's fee the better ones not. Like Jed said you just gotta do the math.
Fwiw..a IRS seizure auction will always have a buyer's premium.

 

[slick4591]

snip...
Fwiw..a IRS seizure auction will always have a buyer's premium.

Now that's something I didn't know, but I've never been to one either.

Funny thing, but one of the auctioneers got pretty raunchy in the thread when someone said it was just a way for them to make extra money and not do any extra work. Admins deleted the thread after the reply. I happen to agree with the guy that made that statement.

 

[wbvs58]

We have the same thing here some have it some don't. We also have a goods and service tax of 10% that the government gets. It is hard to get in your head to allow for it especially when close to your limit and you think I'll do one more bid.

It is definitely a ploy to extract more money from buyers, a certain number of people will be ignorant of it and others in the heat of battle the mind switches to the figure the auctioneer is spruiking and you put in that extra bid over what you had intended.

Ken

 

[Dave]

The auction near my old place had a 10% fee on things $500 and under. One time I bought something that I was getting the bid for $500. I told the auctioneer that I had bid $501. He took the bid at $501 but I don't think he was real happy about it.

 

[jedstivers]

The reason for it here is the seller doesn't want to pay the Commision so it's passed on to the buyer.
Both aren't paying.
I didn't know about the IRS auction either but have never been to one.
I'm sure they do that because they want 100% of whatever they can get.

 

[Supa Dexta]

The latest scam in auctions. And I hate that its spreading.