a local auction company is uesing buyers premium, i drop him a line told him to take me off his mailing list as i wont attend his sales. he clams that 90 percent of all auction are buyers permium. any though this auction company is in western ky harris auction. so how many are buys permium .
- Thread starter ben brown
- Start date
Brian Jasper co. Ia
Well-known Member
I'd say it's more no buyer's premium than sales that do. I'd say their full of B.S. I wouldn't go either.
Bill in IN
Member
there"s a couple around here that do but they may reconsider as I hear their attendance is dropping-
Anonymous-0
Well-known Member
A good auctioneer will make plenty of money on every sale without a buyer's premium. If they have to hire folks to organize and help, that may be how they can justify such a fee, but all the small auctioneers in our area do just fine. One of them is a young guy, and he will actually call the whole sale by himself. That probably will change as he gets older. LOL. Less overhead, no need for a premium.
Anonymous-0
Well-known Member
Tell him, "OK, Fine! I'll go to the other 10%"
Quite a few are using buyers premiums, but no where close to 90%. That's bogus.
Quite a few are using buyers premiums, but no where close to 90%. That's bogus.
Hey Ben,
All you have to do is tell them James R don't charge one at any of his auctions!!
Herron had a sign up at there sale last week that they were going to have a 5% premium, there was enough people walking back to the trucks that Honest Mike got on the loud speaker and said that they had changed their mind and were not going to charge it. They charged a premium one time at a sale at the sellers request, did not turn out good for them and as far as I know they never did it again.
I have never paid a premium at a James R, Kurtz (both of'm) Gibson, Riden, West KY auction, or any of the other sales I have been too the last 10 years.
Good luck and tell Harris that 90% of the country ain't West KY and when James R goes to charge'n you will go back to their sales!!!!
Good luck!
Dave
All you have to do is tell them James R don't charge one at any of his auctions!!
Herron had a sign up at there sale last week that they were going to have a 5% premium, there was enough people walking back to the trucks that Honest Mike got on the loud speaker and said that they had changed their mind and were not going to charge it. They charged a premium one time at a sale at the sellers request, did not turn out good for them and as far as I know they never did it again.
I have never paid a premium at a James R, Kurtz (both of'm) Gibson, Riden, West KY auction, or any of the other sales I have been too the last 10 years.
Good luck and tell Harris that 90% of the country ain't West KY and when James R goes to charge'n you will go back to their sales!!!!
Good luck!
Dave
Its all strictly a MATTER OF FREE CHOICE and supply and demand. Now if most refused to attend such auctions that would bring them to their knees and it would stop, but if enough fools are willing to pay a buyers premium then its what the traffic will bear. Sounds like a good time for new young auctioneers breaking into the business to begin WITH NO PREMIUMS and see what happens and best wishes to those that do, be sure and invite me.
Id say its more like 90% THAT DO NOT around here. Heck they can charge 50% cuz 50% of zero is still zero,,,,,,,,,,,,
John T
Id say its more like 90% THAT DO NOT around here. Heck they can charge 50% cuz 50% of zero is still zero,,,,,,,,,,,,
John T
Mathias NY
Well-known Member
Most every auction I visit has a buyers premium of 10% on items under $1000. I doesn't bother me at all, I just factor that in when I decide how high I am going to bid. For example if I want the item for $100, I'll stop bidding at $90. For items I want/need I'm usually willing to go past my upper limit by more than 10% anyway. For items I don't want, I don't bother bidding.
I do wish more people would protest the BP by boycotting the auction. If enough people do that, the prices will start to come down for those of us who don't care. The whole thing seems kind of petty to me...
I do wish more people would protest the BP by boycotting the auction. If enough people do that, the prices will start to come down for those of us who don't care. The whole thing seems kind of petty to me...
Seems like any auction I go to the buyers are allready paying premium prices ! stuff goes pretty high at them.
I don't attend many auctions and for sure stay away from those adding extra buying fees ! The seller is allready paying fees to cover everything and also paying for the advertising too.
I don't attend many auctions and for sure stay away from those adding extra buying fees ! The seller is allready paying fees to cover everything and also paying for the advertising too.
The only buyers premium Auction Companies charge around here is if you pay with a Credit Card.
Several years ago a big auction company moved into the area and started having yearly equipment consignment sales.
First year they did pretty good. They charged you 10% sellers fee, 5% buyers fee, 2% buy back fee, and they also charged you a 2% no sale fee based upon your set reservce price if the item didnt sell. Also if you were goin to pay by check it had to be a certified check or you had to have a letter from the bank stating you had the funds to cover up to such and such amount. They lasted one more sale and they havent been back since.
Several years ago a big auction company moved into the area and started having yearly equipment consignment sales.
First year they did pretty good. They charged you 10% sellers fee, 5% buyers fee, 2% buy back fee, and they also charged you a 2% no sale fee based upon your set reservce price if the item didnt sell. Also if you were goin to pay by check it had to be a certified check or you had to have a letter from the bank stating you had the funds to cover up to such and such amount. They lasted one more sale and they havent been back since.
Stephen in SoKY
Member
It has become the norm here in Bowling Green. Theres still 2 I know of that don't, but all others (8-10) do charge a 10% BP. The farm equipment consignment sales certainly do.
I see it quite a bit. I assume they are charging the buyer instead of the seller's premium. Better not be charging both anyway. I suppose they could split their auction fee between the seller and buyer.
In the end it probably benefits the sellers. Makes it easier for seller to list with them and they probably get more money even if buyers factor it into their bid cause some probably don't and especially on the little stuff under $20.
6 of one, half a dozen of another. Big ticket items is another story.
I factor it into my bid. Just like shipping on ebay. But for the small stuff, like the box of crud for a dollar, I don't so it benefits the seller.
In the end it probably benefits the sellers. Makes it easier for seller to list with them and they probably get more money even if buyers factor it into their bid cause some probably don't and especially on the little stuff under $20.
6 of one, half a dozen of another. Big ticket items is another story.
I factor it into my bid. Just like shipping on ebay. But for the small stuff, like the box of crud for a dollar, I don't so it benefits the seller.
TX Spencer
New User
If the auctioneer has to charge the buyers a premium to make ends meet it seems like he is not working hard enough for the seller, who hired him,to make the commission. I go to a few auctions in north central Texas and none of them charge a buyers premium
OldFarmTractor
Member
I attend a couple weekly auctions. The early in the week one charges the buyer 7% for cash, 10% for check. Seller premium is 20%
The later in the week one is 10% buyer with a 3% addition for credit card and 20% for seller. That gives the auctioneer up to a 33% profit on sales. Throw in sales tax and it gets worse and worse.
What some auctioneers like is for you to buy it today and sell some of it tomorrow. That gives them up to 66% of the buying price.
The later in the week one is 10% buyer with a 3% addition for credit card and 20% for seller. That gives the auctioneer up to a 33% profit on sales. Throw in sales tax and it gets worse and worse.
What some auctioneers like is for you to buy it today and sell some of it tomorrow. That gives them up to 66% of the buying price.
Anonymous-0
Well-known Member
Only a couple around charge buyer's preimium that I know. If I see that they charge a premium I stay away unless there selling something I can't live without. Haven't paid it yet.
Anonymous-0
Well-known Member
Here in western SD, I have only seen of one auction company that has did much of the "buyer's premium" BS. I have never attended one of the sales that had a buyer's premium. Suppose I better not say "I never will", because never is a long time!! As for the "work" that the auctioneer does, of the auctions I have helped with, it amounts to very little. I have helped get ready for two of my uncles sales. My brother and I did 90% of the work getting ready for one of them with the other 10% help from other relatives. The other uncle's sale was an estate, so we had help from other relatives as well. We helped a neighbor get his things ready for a sale also. NO HELP FROM AUCTIONEERS. The only thing they did was get inventory maybe a month or two before the sale, advertising and showed up the day of the sale.
Watch out. If they are charging a buyer's and seller's premium and getting 33%, then maybe it's time for me to go off on a rant. That's too much money. I've already seen enough from lazy auctioneers who won't set things up right and advertise everything.
One of my pet peeves is lumping 5 36" pipe wrenches in a box, 5 hammers in a box, 5 shovels together, etc. The lazy ones won't sell them one for money or one at a time or winner gets his pick at the price and then the next highest bidder gets a pick at the winning price or they start the auction over on the rest. Otherwise you have buy all of them to get one and usually there are 5 guys that would like to buy one. You can stand their and make side deals with people, but the auctioneer ought to be doing that. Sometimes there are some real gems in the bottom of a box and the auctioneer won't point it out. Then you have your cheater bidders who get there early and put the stuff they want in a box and cover up something expensive. Or the auctioneer shuts off bidding quickly for his buddy but if I'm holding high bid, he'll spend ten minutes trying to cajole someone else to bid another dollar.
One of my pet peeves is lumping 5 36" pipe wrenches in a box, 5 hammers in a box, 5 shovels together, etc. The lazy ones won't sell them one for money or one at a time or winner gets his pick at the price and then the next highest bidder gets a pick at the winning price or they start the auction over on the rest. Otherwise you have buy all of them to get one and usually there are 5 guys that would like to buy one. You can stand their and make side deals with people, but the auctioneer ought to be doing that. Sometimes there are some real gems in the bottom of a box and the auctioneer won't point it out. Then you have your cheater bidders who get there early and put the stuff they want in a box and cover up something expensive. Or the auctioneer shuts off bidding quickly for his buddy but if I'm holding high bid, he'll spend ten minutes trying to cajole someone else to bid another dollar.
I would say that more have a buyers premium now than don't. I don't know if it's 90%, but it's up there.
One of the smaller local sales I go to doesn't. The big industrial outfits do.
Ritchie Bros do on items under 2500 dollars. It doesn't seem to hurt their attendance or their selling prices either.
BP's are something I find annoying, but at the end of the day I can still figure out what I'm paying when I'm bidding and bid accordingly. Mabey if more stoped and though about their bids they wouldn't bid so high...
Again, fo me, it's just an annoyance. I'm still only going to pay what I'm going to pay, and that's it.
What seems to work for RB's is this: They have no reserve. Everything is AS IS, WHERE IS. You inspect it before you bid.
They don't allow buybacks. They WILL BAR YOU if they catch you buying it back or having a friend bid it back for you... and they'll bar the friend too. Then they call the law to get some charges going on you. They're very serious about the integrity of their sales.... perhaps why they're so busy and why they get such high prices.
Rod
One of the smaller local sales I go to doesn't. The big industrial outfits do.
Ritchie Bros do on items under 2500 dollars. It doesn't seem to hurt their attendance or their selling prices either.
BP's are something I find annoying, but at the end of the day I can still figure out what I'm paying when I'm bidding and bid accordingly. Mabey if more stoped and though about their bids they wouldn't bid so high...
Again, fo me, it's just an annoyance. I'm still only going to pay what I'm going to pay, and that's it.
What seems to work for RB's is this: They have no reserve. Everything is AS IS, WHERE IS. You inspect it before you bid.
They don't allow buybacks. They WILL BAR YOU if they catch you buying it back or having a friend bid it back for you... and they'll bar the friend too. Then they call the law to get some charges going on you. They're very serious about the integrity of their sales.... perhaps why they're so busy and why they get such high prices.
Rod
Not many auction companies around here, and they apparently have coffee together once in awhile- or at least often enough for them to have ALL decided to have a buyers fee. So not much choice around here. You can pi$$ and moan all you want, they don't care- they're the only game(s) in town.
Anonymous-0
Well-known Member
An auctioneer is supposed to be the agent of the SELLER, to wit, he is trying to get the highest bid for the seller, his employer. To charge a buyers fee is to try to serve 2 masters, if a real estate agent or lawyer were to do this, they would be expelled from their professions. The only sales I go to are those without the thievery fee, like Nevin Tasto's auctions in MD, Sam Walters in DE, and Owenby's in Va. If any of them start putting the thievery fee on me, then I guess I'll be going elsewhere!
formerly ny bill
Well-known Member
in south central ny, the real estate and household auctions generally all have 10% buyer's penalty. farm auctions- not many do. the auctioneers that don't charge a buyer's penalty have it in BIG LETTERS in their ads.
lust for rust
Member
Around here in NE Kansas, I would say it is about 20-30 percent. I don't go to them unless there is something I really can't find elsewhere. I just adjust my bid to reflect the 10 percent.
Kevin Bismark
Member
I have to agree with you, I will NOT go to any auction that has a buyer's premium at all, no way, will not happen, went to look at a 560 diesel last fall on an auction, and found out when I went there the day before it was a buyer's premium auction, told the guy that walked me to the tractor that I wish he would have told me that on the phone, and that I would not bid, but told him before I left what I would have bid up to, looked online and it sold for half of what I would have gone, was in pretty good shape to, new rubber all around, 3 point, about 500 hours on rebuilt engine, tin was almost perfect, nice tractor, I think there are a lot of people that will not go to an auction with a buyer's premium, I know I won't..
Bill in Colo
Member
- Location
- Rio Blanco County, Co
Enought competition between auctioneers in the mountain west to keep buyers premium at bay. I've only seen it at construction or firearms auctions. Don't know if I've ever seen anyone pay with a credit card,bank letter are used if your not on the previous buyers list occasionly.
Ben Grimes
Member
Here in Minnesota, some auctioneers have 5 to 10% buyers premium. Now at auctions, we have to pay the sales tax on "taxable items".
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