auction today

Mike(NEOhio)

Well-known Member
Location
Newbury, Ohio
It was an injection molding and fabricating shop. Machine tools, compressors etc. in Chardon, Oh. I didn't go but it's the first time I've seen a 20% buyers premium. OUCH. Never could figure why it's a buyer's premium. The buyer pays it but who gets it? Should be seller's premium.
 
I don't go to buyer premium sales. They get a commission from the sale. I'm not paying extra for you to sell something to me.

Rick
 
(quoted from post at 15:53:31 11/14/17) I don't go to buyer premium sales. They get a commission from the sale. I'm not paying extra for you to sell something to me.

Rick

I don't either...the only purpose I can see is to confuse buyers. We have one auctioneer that has different rates for different price ranges...that is even worse. If you get near the price break it would be better to bid more and pay less :?
 
(quoted from post at 15:53:31 11/14/17) I don't go to buyer premium sales. They get a commission from the sale. I'm not paying extra for you to sell something to me.

Rick
I have been to some (probably all) that charge the buyer and seller!
 
That's like the local sale barn, if you take a load of good square bales there, the owners buy it, then charge you a commission to sell it.
 
I always understood that a buyer"s premium meant that the seller was not willing to pay for the auction services, so the buyer pays it. Seller would receive what the lot sold for.
 
(quoted from post at 17:24:09 11/14/17) I always understood that a buyer"s premium meant that the seller was not willing to pay for the auction services, so the buyer pays it. Seller would receive what the lot sold for.

One over east of me a bit gets 20% from the seller and a 5% charge from the buyer. I called to find out what their commission was when they put a flyer for an auction that had some interesting stuff. When I learned her was getting 25% total I didn't go. Several others the area are doing the same thing.

Rick
 
I aint agonna pay for the privilege to spend my money. Any auctioneer that isn't good enough to sell your sale is not worth having. A good auctioneer will take your sale and will earn his keep by doing a well run sale. If the sale is not worth enough ,a good auction company will turn it down.
 
That's how I feel too. If I can't sell it myself than I have to be willing to pay someone to do that on my behalf. If I'm willing to bid on an item I shouldn't have to pay the auctioneer for the privilege of buying at their sale. I'm not sure id he comfortable selling through that type of auction if I know the bidders will be held back from bidding top dollar because of buyers premium.
 
That is just not so in this part of the country. You go to the auction knowing that if you BID 10 dollars it is going to cost you 11. Simple as that. Now granted the dumb guy that does not account for the bid premium may out bid you but when he goes to pay he will get a quick lesson in what he has spent. Pretty much the norm now day around here auction company is getting paid more or so they can advertise more. When one goes to looking for auctioneers as a seller you just have to make a decision on who is going to get me the most money for what I am selling. If I made the statement I wont go to auctions where there is a buyers premium I sure would have less auctions to attend. There is no argument that the auctioneer is getting paid more but one just has to remember the cost of bidding.
 
I love buyers premiums and people that won't go to BP sales,a lot less competition for me.I went to one of those sales a few weeks ago bought 3 tractors cheap.And what do I care who gets the money and how they split it up? They can't make me pay more than I want to pay.The state charges a buyers premium(sales tax) on most everything.Ya'll boycott that too?
 
I understand what your saying for sure,it's a fairly new thing in this part of the world. There was an estate sale in New Brunswick a few months ago. There was at least 20 nice antique tractors sold many restored some rare some not. It was well advertised but the prices seemed pretty low. There was 20% buyers premium at that one. I guess bottom line it's easy to do the math as your bidding and if your a seller and want everything gone and paid for in one day you'll have to take what you get and accept the outcome.
 
The main auction company in this area never charges a buyer's premium and as a result has become the main go to one when selling farm equipment. My view is let the seller and auction co. work out their deal but leave us buyers out of it. No, the state does not get sales tax from those who charge the premium. The idea is simply to charge what they figure the market will bear.
 
Never seems to matter at the auctions I go to: any item I am interested in always goes for retail+10% or more...
 
(quoted from post at 04:21:44 11/15/17) The main auction company in this area never charges a buyer's premium and as a result has become the main go to one when selling farm equipment. My view is let the seller and auction co. work out their deal but leave us buyers out of it. No, the state does not get sales tax from those who charge the premium. The idea is simply to charge what they figure the market will bear.

That's the interesting thing here. The (as I call em) "ash and trash" auction companies here are the ones charging a buyers premium while the good ones don't. If I'm looking for a project I get on Craig's list. If I want something decent to start with I go to one of the good auctioneer's auctions. I don't care how anyone else justifies paying a buyers premium I myself refuse to do it as a matter of principal. Guess some of us set out principals and they just are not for sale just to get a cheaper price......

Rick
 
Don't see where it really makes a difference,Auctioneer gets a cut whichever way you call it. Kinda like "FREE" shipping!!!!!!!!
 
We have an auctioneer family here in central NY who's family has been it for years. At the beginning of the auction his little speech says they have been in business since 1911. They have never had a buyers premium and never will have as long as he is running the show. I tell him he will get to sell it all again when he has my auction.
 
(quoted from post at 04:21:44 11/15/17) The main auction company in this area never charges a buyer's premium and as a result has become the main go to one when selling farm equipment. My view is let the seller and auction co. work out their deal but leave us buyers out of it. No, the state does not get sales tax from those who charge the premium. The idea is simply to charge what they figure the market will bear.

Around here unless it is an auction on a farm, they will collect sales tax unless you can show an exempt form. The local consignment auction charges a buyers fee, but refunds if paid by cash or check. The catch is they charge sales tax on the full amount, then just refund the buyers fee...might not be that much, but it all adds up and goes in his pocket. Shady???
 

the ones i've seen that charge a buyers premium charge the seller too.

the consignment ones are the highest rates.

double dipping.. i guess they'll get away with it until people stop going. free market so someone will always show up but it will cost them. long run its robbing peter paying paul or pay me now or pay for it later.
 

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