auction premiums

steve terplak · Apr 2, 2011

was at a general auction today...1 tractor there...tools, cars, some heavy equipt....
had a 13% buyer's premium for cash/check (w/ bank note)
16% for credit card
on top...there is a consignment fee as well
50% items $1-$10
35% items $11-100
25% items $101-500
20% items 501-999
15% items $1001-5000
10$ items $5001+

over the first 200 lots...he sold $60,000 on items that cost between 1,000 and 5,000
probably sold $175,000 in those first 200 lots

still had 600 lots to go...

must have been a good day for him...i understand there is a lot that goes into running such an affair and i do not begrudge him for what he charges...i am just posting because i am suprised at how high the consignment fee is...on top of the buyer's premium...naively i thought most people charged one or the other...

makes me thankful for our local tractor guy who has no buyers premium and does an 8-10% consigners fee...

Ray · Apr 2, 2011

Some charge sales tax on top of that.

Anonymous-0 · Apr 2, 2011

I am old enuf to recall when auction comm was 3 percent. Now it averages 20% going to 30%. Often the minumim commision is 10 dollars. This is so outrageous,,,,, beyond any reason,,,, but the govt will not help you. Only the customers can rebel. Now. Do not accept this robbery.
A sales commission of 5% is fair, but a buyers premium is never OK.

Kentb of SWMO · Apr 2, 2011

If sale has a buyer premium, I DO NOT ATTEND.

Kent

Anonymous-0 · Apr 2, 2011

way out of line ,,that sun-da gun will have an airplane in a month ,,just to get around ,,, if auctioneers ever got thatdamhi in lousville area ,, we will just yard sale

Anonymous-0 · Apr 2, 2011

I am surprised that people attend these type of auctions where the buyer has to pay the cost of the agents expenses.
like kentb of SWMO I boycott these type.AND everyone else should also.Give the message..

BCnT · Apr 3, 2011

i quit going...one farm auction i went to had an entrance fee...i told em exactly where they could stick it too...i wasnt alone...line of trucks pulling out was longer than line going in.

TGIN · Apr 3, 2011

Around here [S.E.IN.] the only buyer premiums I have seen is one guy charges 3% for credit cards . They would cut there crowd in half if they started charging . Thats to much math in your head in a hurry under presure for most folks me included !!

evilboweivel · Apr 3, 2011

way high
sold my tractor yesterday at a farm auction for 7%
no buyers premium or entrance fee

Ron

tlak · Apr 3, 2011

Looks like by the time you pay the premiums you might as well go buy new.
A $10 item if you pay by check costs you $16.30. Was there a buyers premium for cash?

IOWA NORTHEAST · Apr 3, 2011

You can double the impact by everyone calling the gready auctioneers and ask for their services. When they mention their BP, simply say no thanks, can you suggest a auctioneer that does not charge the BP?

You can do the same thing by calling on a item for sale. No thanks, I was unaware of the BP, and now I am not interested. Do you have a similar item on a future auction where you will not charge the BP?

Goose · Apr 3, 2011

I was asked by a local auctioneer not to attend any more of his auctions. I'm happy to comply.

I bought a pickup and found the odometer was inop. Plus the drivers door had been replaced and they'd written the bill of sale with the VIN that was on the door instead of the right one that was on the cowl. That didn't upset me, but I told the auctioneer about it and told him the pickup should have been sold TMU. (True Miles Unknown).

He told me, "After all, it's just an old worn our pickup".

I said, "Well excuse me!. I'm not an auctioneer making the big bucks where I can afford to buy all new vehicles every year".

That's when it got a bit ugly, particularly since it was his wife that made the mistake on the VIN.

JOCCO · Apr 3, 2011

Get a group together and bid things up then walk they did that here one time and it was a bad day for the auctioneer!!

Anonymous-0 · Apr 3, 2011

I do not attend the ones with the buyer's penalty. I did go to one, once, where the auctioneer wanted me to leave my license with his crew, as security. I said that I would feel much more secure, ridin back home!

Greenday · Apr 3, 2011

I dont attend auctions with premiums and if everyone else would stop going to them you would see premiums go away!

toadady · Apr 3, 2011

my uncle sold his hobby farm last summer, i was in the bidding for his tractor, the auctioner's father-in-law outbid me, that was OK , but what really burnt my uncle and i is this,

the auctioner gave his little speach even before the auction began about everything beeing a "as is" no warranty,

the tractor was a Kubota, shifting from high to low range was stiff, had been that way for YEARS, the seat and a whole bunch of stuff had to come off to even look at what was needed to fix,

after all was done and uncle was waiting for the check the auctioneer calls saying how the high/low shifter was out of adjustment and they took it to the dealer to fix and it cost almost $300. to fix, then he held that out of uncle's check! duno what all was said, but needless to say the auctioneer got a earfull from uncle,

and now the auctioneer is a county comminisher,scary stuff

farmer boy · Apr 3, 2011

One of the auctioneers in this area charges 10% on items in the building. Smaller items are in the building(tools,and misc.) while bigger stuff is outside, with only a sellers comission. I"ve only been there a few times and just take that into account. If I want to spend $10 on it, I"ll bid $9.

Mike (WA) · Apr 3, 2011

Nobody likes buyer's premium, but its strictly a matter of competition. In the bigger farming areas, you may be able to get away with boycotting it. But there's only one left around here, so if you boycot him, you don't go to any auctions. I go to consignment auctions at the Woodburn, OR auction yard, same deal.

Tlak's example below- $10 item, pay by credit card. Buyer pays $11.60. Seller ends up with 5 bucks, auctioneer gets $6.60. But what's your alternative?

Brian Jasper co. Ia · Apr 3, 2011

Add my name to the won't attend a buyer's premium sale...

400Dtractorman · Apr 3, 2011

I never go to buyer premium auctions. Also you have to watch to no sale fee. I put a 66 oliver in one last year and didn't ask and was charged 75.00 no sale where I found out that most sales in the area charge 25.00. Won't be going back to that sale again.

CJ3b_jeep · Apr 5, 2011

The ones around here are usually 3% buyer's premium, waved for cash or check. So they're just trying to recoup their credit cost. I went to one a few weeks ago that was 10% for cash, 15% for credit. I pretty much told the auctioneer off. He was from Cleveland and he said that's the way it is up there. I told him down here it's different. If all of the farm auctions charged 10%, no one would go. Auctions are expensive to run, but how would you like to sell stuff for an 18% or higher commission.

mkirsch · Apr 5, 2011

Cut the poor auctioneers some slack fellas!

There aren't near as many auctions to go around anymore, and they have to maintain the standard of living to which they have become accustomed.

Seriously, that's why they started charging buyer's premiums and running up the commission fees.

When I was a kid there were 2-3 farm auctions in the area every week from February through mid-April. Now we're lucky to see 2-3 farm auctions in a season!

Auctioneering is a great gig. When the work dries up, you can charge more for your services, do less work, and it doesn't hurt the bottom line one bit.

59 971 · Apr 6, 2011

A scam that I have run into is the online bidder(that may or may not exist) that puts in a minium bid. An example is I went to an auction that was selling old cars. After I arrived they informed us that an online bidder had made a bid of $200 each on all cars. Sounds like a reserve to me. These days I find out ahead of time if there will be online bidding also, if yes I don't go.

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