RE: Buyer Fee Auctions

oldtanker

Well-known Member
If I go to a store they never charge me a fee for the work they extra over the price. Same thing I go to a dealer and buy a tractor or car.

So why would you be willing to pay extra for something so they will sell it to you? Not trying to start and argument, just want to know how you justify it in your own mind?

Around here most of the auctioneers charging a buyer's fee are the poorer auctioneer. Not really the guys you would want to sell your stuff.

Rick
 
You just have to consider it when bidding, determine you top bid, including the fee. If you want it bid, otherwise keep your hands in your
pockets! I personalty have very little interest in auctions, but it was a good way to liquidate my parents possessions.
 
all about math; never bother me; i know what the fee is beforehand. most times; its the seller who requests the fee! 99% of all bankruptcy sales around
here have buyers fees. all the dealer car auctions charge both the buyer and seller when a unit sells. quit worrying and just adjust your bidding!
 
FWIW: The only auctioneer around here who charges a buyers premium is an auction house who I went there three weeks in a row waiting for something sell. Finally gave up. He jumps around badly. If things are in certain lots the tables should be arranged accordingly. That and when ever he feels like stopping for the night he does. Doesn't matter if theres twenty tables left. He also got caught pulling bids out of the air. None of the come out to site auctioneers charge a buyers premium. Although many charge a "convenience fee" for credit cards.

Sod Buster
 
Around here, the ones charging the buyer's fees are all of them. They charge it because they can. I don't think we're going to make them suddenly see the light and go back to the old days. Kwitcherbellyachin' and either go to the sale or stay home and be righteously indignant.
 
Its no justifying to it,the auctioneer sets the rules at their auction and I can go or not,no big deal to me if I want to pay 1000$ for something I just bid $900 pretty simple if there is a
10% buyers fee.No one can make me pay any 'extra'. Actually I like auctions with buyers premiums keeps some of the competition at home(LOL)Used to no so much anymore.Do you tip in
places like restaurants? About the same thing.
 
You're gonna pay for it one way or the other. Would you rather it itemized with the option to save money with an alternative, or like you're example box store where it's in the price regardless of how you pay? Folks cry about finding the truth of things and are much happier paying for it unknown... that's what makes no sense to me. These days you can certainly negotiate a better deal on a car if you finance with the dealer compared to paying cash or going with your own bank.
 
What the posters here, including some auctioneers who posted have failed to mention is that the auctioneer is WORKING FOR the SELLER, and their job is to get the most return for the SELLER, not the buyer. All a buyers premium does is shift the mental math to the buyer. Might be some of you out there who go to a sale and say to yourselves "that's coming home with me no matter what it goes for", everybody else has a limit in their mind. If you only want to END UP paying $100 then just stop at $90.
 
I do not understand how someone could be bothered by it. But to each there own. I hope you realize the auctioneer has to get paid off
the top no matter what. His percentage is the same just wether its added to gross sale or subtracted from.
 
That is my theory. Never brag about buying something at an auction as that means you were willing to pay more for that item than everybody there that day.
 
OK guys, I'm not complaining. I myself don't like the buyers premium auctions. I was just interested in what other rational was for thinking they are OK.

I know it's easy to just compensate for that fee in bidding but something in me just resists having to directly pay someone to sell something to me while all the while the salesman trying to get me to pay top dollar. Seems if I have to directly pay someone to help me buy something they should be trying to get me the cheapest price possible, not the highest.

Rick
 
Buyer's fees are pretty common among nearly all the auctioneers here anymore. If the buyer has a limit on an item then he needs to do the math to know where to stop so he does not go oever the limit as a sum. Further, it is not like the olden days where the auctioneer had his finger in a half dozen other things so he can run the auction dirt cheap. The auctioneer has the right to make money just like the machinist, welder, farmer, insurance broker, etc. that are in the auction crowd to buy. Don't get me wrong as I can find plenty of fault with auctioneers as a group but buyer's fees are not one of them. Either go to a sale and work within the system or stay home.
 
I think that is how most folks take it, just have to realize when you bid that the 10% or what ever is added to the price. It is just how the overall thing is divided. Instead of the seller paying the total auctioneers cost you as a buyer are paying part of the cost. If one refused to go to auctions with a buyers premium in these parts you would pretty much be setting at home.
 
Well, look at it like buying lunch. You are free to spend your money any place you choose, and that can depend on vendor, location, service,
price, or food quality/quantity. Buyer is the boss right? Obviously, if they are still charging the extra fee(s), it must be working or
they'd have to back off.
 
OK, let me put this another way:

The auctioneer by agreeing to hold a sale becomes the agent of the seller. They are supposed to try to get the highest price possible for the seller.

When the auctioneer charges a buyer premium they in a sense become the agent of the buyer. They in turn should be trying to get the cheapest price possible for the buyer.

When you bid at such an auction you are, knowing that there is a buyers premium, hiring the auctioneer to act as your agent.

The whole think smacks of dishonesty with a huge conflict of interest to me.

Rick
 
You're overthinking this, Oldtanker. Auctioneer is still working for the seller, because the higher the price, the more the auctioneer gets paid. Now, with buyer's premium, he has even more incentive to get the highest price, because he's getting paid from both ends. I can't envision a situation where an auctioneer would be the buyer's agent, no matter who pays the freight. Buyer is just paying an extra tax, if you want to look at it that way.
 
Do the auctioneers that charge a buyers premium charge the seller the same amount of commision as the auctioneers that do not? I think they do so if that is the case the seller actually looses as for people not comming to the sale. If the auctioneer does not charge the seller and only has a buyers premium then the auctioneer makes the same as the auctioneer that charges seller only for sale so he makes the same. If he charges the seller the same as the non buyers premium auctioneer and then imposes the premium he is doubling his income at the sellers expence. Very few around here have the premium and auctioners that you normally would not go to a sale theh anyway. So is the auctioneer actually double dipping or not? If both charge seller say 20% but then one put on top of that anouther 10% is that double dipping. I have never been to a sale with the premium and the 2 auctioneer groups that I would go to sales do not charge it. If someone else has sale in area and charges it then it is probably not a sale you would want to go to as well.
 
An auction with a buyers premium and sellers premium is merely a tool being used to drum up business.
Somewhere way back when, some auctioneer decided to split the premiums.
Potential sellers saw willing to sell their stuff for 10% vs 20% and thus the auctioneer is jammed up with customers wanting him to do the sale.
And the other auctioneers have to follow suit or go under.

Someday it might be only buyer premiums charged.
The more the premium split shifts to the buyer, there is more incentive for the auctioneer to promote/advertise the sale.
Especially if the auctioneer is not going to get a flat minimum fee to do the sale or any sort of premium from the items sold.
 
Well folks its all about the almighty dollar. MOST auctioneers charge 20 percent to sell so they get so many things to sell. the seller feels like its not worth trying to sell it on there own. if you raise the price to 30 percent then the seller starts getting in the range to quit selling through the auction and sell it there selves, so the auctioneer starts charging a buyers commission. The auctioneer has to have things to sell and they no the breaking point for the seller. Really no different than going to the store and paying taxes except the auctioneer keeps it for his self. One thing to always keep in mind when going to an auction. BUYER BEWARE.
 
From a couple of weeks ago.
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