Some auction questions

[John N Mi]

On another thread it mentioned paying to attend an auction, paying to get a bidders number and a buyers premium. I can understand them wanting to charge me to attend as this would mean that only someone serious about buying something would attend. The paperwork involved in a bidders number does cost something and the fee makes sure that only serious bidders will sign up. Does the bidders premium mean that if I win the bid I then have to pay the auctioneer a TIP for bidding at his auction?
I won"t pay to attend or get a bidders number and I am dead set against paying a premium for winning the bid.
John

 

[Paul from MN]

I will never participate in an auction that has a buyers premium.

I can understand the entry fee at the auction in the other link though. That auction had dozens if not hundreds of collector cars. Nice enough and rare enough to be quite a show. With something like that which could draw a huge crowd of non-bidders I can see why they would charge an entry fee.

The auctions I attend are an entirely different affair. I've been to plenty where I was not there to buy, but got a number just in case and ended up bidding. In those cases the auctioner and the seller benefited more from the fact that I had a bidder number, and I would not have had a number if I had to pay for it. Again the type of auction makes a huge difference, I might buy an old tractor or implement on the spur of the moment because the price seems right, but I doubt that there are many mint 1965 Mustangs sold to folks who did not plan on bidding.

 

[CJ3b_jeep]

I think a buyer's premium is B.S. They are already charging a huge seller's fee. It's just another way to make money. Don't you wish you could sell things that you never had to shell out your money for, and make 18% of the sales price to boot? I would never sell a big ticket item, like my house, via an auction.

 

[Anonymous-0]

The buyer's premium is what the auctioneer would charge the seller for advertising, bookwork, and auctioneering. If the auction is advertised that there is a buyer's premium, it means the seller gets for the item, whatever you bid on it. But you are paying the auctioneer's fee, rather than the seller paying for it.

 

[Mike (WA)]

Don't think so. Every auction house I have talked to, they are still charging a seller's commission, but now have added a buyer's commission as well, to enhance their bottom line. Trouble with boycotting all auctions with buyer's premium is that you won't have many left to go to.

 

[Dave from MN]

Myself, and ALL my friends, will not attend an auction with a buyers premium, we try to make it a practice that when we see a sale bill with one we will call the listed auctioneer and the person having the auction and tell them the "buyers premium" is the reason we are not coming to an auction.

 

[Tradititonal Farmer]

With the buyers premium just quit bidding quicker
and keep in mind how much extra over your bid you are going to have to pay.As far as charging to get into an auction I have been at auctions where there were lots of none bidding spectators that if they had charged a fee to attend would not have been there getting in the way of those bidding.Auctioneers and owners don't own the general public a days free entertainment.

 

[Howard H.]

I'm surprised at how many folks are so mad at "buyers premium".

As far as I know, it often is the seller's choice, whether they want to pay the commission or put some or all of it onto a "buyers premium".

The auctioneer gets paid either way - the only difference is what you call it.

Anyone can quit bidding anytime they want to...

Howard

 

[Sagebrusher]

Guess it all depends on the auctioneer, the sellers and the buyers.
An eighty some year old friend of mine had an auction in Oct, 06. That particular auctioneer ALWAYS charges a "buyers premium" of ten percent. That was in addition to the cut he took of my friend"s proceeds. The auctioneer was making 20 to 30 percent commission (I"d have to ask Joe again for certain) on everything that went across the block.
Have you seen a running "46 Case VAC with trip bucket loader and air worthy tires go for fifty bucks lately? Wish I hadn"t gotten disgusted and left before the equipment was auctioned. Expensive lessons were learned that day. . .
Most of the auctioneers here "bouts (SW Idaho) DON"T charge a "buyers" premium. I avoid the ones that do, let alone if they tried to get a dam admission charge.

 

[Anonymous-0]

I went to a Auction school a few years ago.For what I don't know now.I have not used it.Anyway,the topic of buyers premium was a hot topic.They really pushed it.If you think that if they are only charging a buyers premium and nothing to the seller,you are mistaken.Why would you give up 10% they kept saying.Charge the seller 20% and the buyer10%.And,anyone that thinks they will bid 10% below what they would otherwise will soon forget about the buyers premiun.
I don't go to many auctions,and I go to none that have a buyers permium.

 

[Shovelman]

I refuse to attend any auction that charges a buyer"s premium. Luckily, the best (and incidentally, one of the most successful) auctioneers in our area refuses to penalize his buyers with such nonsense.

He states on his website:

"NO BUYER"S PREMIUM MAXIMIZES SELLER PROFITS
Most auctioneers charge a premium to both buyer and seller. Auctioneer Phil Jacquier, Inc. is unique in not imposing a buyer"s premium. While this results in a slightly higher seller"s fee, the end result is historically higher bid prices and profits for the seller. Buyer"s come to auctions to buy, but having to add premiums to their bids as they keep pace with the rapid action can cause them to hesitate or even stop bidding. With no buyer"s premiums to distract and intimidate, they are free to continue bidding to the very highest levels."

This guy has a heck of a following and packs every auction. There are some deals to be had at his auctions, but generally he gets top buck for what he sells.

 

[Mike M]

Stuff goes too high at auctions anyhow and you really can't check it out good.
I stay away from most of them anyhow.

 

[havvey]

its not just auctions its all events seem to charge some entry fee. Stopped at a local gun show man at door said $10 I said ok and walked away its getting ridiculous.

 

[Eric SEI]

Just checked the Dearborn County Register, 9 auctions listed, none of them mentioned a buyers premium or entrance fee.

I've never seen an auction around here that charged a buyers premium. I really can't imagine an estate auction here charging an admission fee. Too many people don't know if they will buy anything to be willing to pay admission,

 

[paul]

The auctioneer is representing the seller.

So, the seller can pay the fees.

Many have gone to a buyer's premium - the seller thinks is getting a deal, because the auction does not cost him much.....

But, a lot of people will not attend a buyers premium auction, and most who do bid less....

So, it is false savings.

If you are going to have an auction, think about it. You want to pay the auctioneer - so he does represent you. You want as many people to show up as possible - so you don't want any fees or costs to the curious. Many items get bought, or bid up, by the 'just curious.'

Think about it.

--->Paul

 

[Anonymous-0]

I couldn't believe it when Ritchie Bros. added a buyers premium on anything under $2500. Their auctions sell millions of dollars worth at each auction. If they tried to add the buyers premium to the big ticket items, I think a lot of buyers would be extremely ticked off. Ritchie Bros. is not hurting at all as most sale sites are all brand new multi-million dollar facilities. I think I heard that the one up here in Nisku (Edmonton) was around $10,000,000. I can believe it. I've been there. Most auctions have a buyers premium. Too bad they couldn't be charged with price fixing. That's what it is in a way. Dave

 

[Spook]

Friend of mine had an auction a couple of years ago. The auctioneer charged hime $3000 for advertising, for access to his "customers". Then he got his 10% commision on top of that, plus the buyer's premium, 10%. It was a small auction, the auctioneer might have got as much cash as the owner. Another local auctioneer got arrested for fraud a few years back. Told somebody he had sold a tractor at a consignment sale he ran. Turned out he had just kept it, thought the old man wouldn't catch on, but his kids did. He got convicted, but he is still in business. So much for self policing professions.

 

[Anonymous-0]

A couple of auction comments. 1) Never brag about something you bought at auction. It is just admitting that you paid more for something than anyone else was willing to pay. 2)Stand at the back of the crowd-it keeps you from bidding against a 'phantom' bidder.

And I like someone else here mentioned-always call the seller of auctions with bidders premiums and tell them why you won't be there.

 

[steelfronts]

Everyone should know the more people at an auction the better. Buyer premiums and admission charges make buyers mad and they wont go to the sale. that hurts the seller more than any savings he may gain. the only one who wins is the auctioneer. The only time I can see these charges justified is if it is a small sale with a small gross.