Live Auctioneers 20% Convenience Fee

[Dan_Eastvale]

Was looking at their fees....
20% of the hammer price..???!!!

Convenience fee?
Fee for a comfortable bidding experience?

So a $300 pistol would cost $100 more including shipping..

Dang! Like paying CA DROS and all the other fees.

[Peter W Bush]

Sounds like a standard auction premium like wine, art, equipment auctions..

[Lucky Scott]

Am I doing the math wrong?
20 percent of a $300 pistol would make it a $360.00 pistol.

[morrcarr67]

Am I doing the math wrong?

20 percent of a $300 pistol would make it a $360.00 pistol.

He included $40 for shipping

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[Erion929]

Was looking at their fees....
20% of the hammer price..???!!!

Convenience fee?
Fee for a comfortable bidding experience?

So a $300 pistol would cost $100 more including shipping..

Dang! Like paying CA DROS and all the other fees.

[ACfixer]

This is how it works, in reality the seller is the one paying the commission.

[Dan_Eastvale]

Yeah, I read that has a lot do do with providing a comfortable bidding experience... which would be ridiculous.

[morrcarr67]

This is how it works, in reality the seller is the one paying the commission.

Most "auction houses" get paid on both ends. They get a percent from the seller for listing, marketing and collecting funds from the sale. They also collect from the buyer in the way of a "buyer's premium".

It's a great business model, for the auction house.

[SVT-40]

You think auction houses don't have overhead?

Stop whining. Just figure in the auction fees when making your bid. It's not that hard.

[ACfixer]

Most "auction houses" get paid on both ends. They get a percent from the seller for listing, marketing and collecting funds from the sale. They also collect from the buyer in the way of a "buyer's premium".

It's a great business model, for the auction house.

I know, but in reality the seller pays it all.

If you're bidding on a 1911 or whatever you would normally pay $1,000 for, naturally you'll only bid $900 (buyer's premium is usually 10% IME) in most cases. I say most cases because it's a psychological thing and people do forget themselves in a bidding war on high demand items.

This is why at say a Mecum car auction you'll see your entry level classic cars going for slightly less than you'll see them go for on the street, add another 10% and you're there. But the great thing about them is you get to watch 100 of them roll by and they're all detailed. rather than driving 30 miles to look at one that looks nothing like the pictures.

Generally I never look at any high visibility auction as a place to get something for a bargain, it's just a good place to get something. Be it Ebay, Gunbroker, or a fancy auction house.

[RTE]

Like it to a consignment shop that takes 33%.

In the end, it's your dime...spend it how you like.

[pd5190]

Being an old auction buyer, one time before my teenage years ended up bidding against my dad. That did not set well at home needless to say but it was my money and I was high bidder.
Back to the topic, buyer premiums have become standard at almost all auctions the amounts keep going up and this privately gets under the skin of us old time buyers. You need to also figure in sales tax, etc. so that 300 dollar purchase is rapidly approaching 400 with premium and tax and that is before dros and getting it shipped if your shipping it. OUCH!

[ar15barrels]

Am I doing the math wrong?
20 percent of a $300 pistol would make it a $360.00 pistol.

I think he is adding sales tax as well and then rounding up for simplicity since they add the auctioneers premium BEFORE they tax it.

$300 hammer price.
$60 auctioneers premium
$360
$34.20 Sales tax
$394.20
$5.80 Rounding up for simplicity
$400 total

[nitroxdiver]

[I Swan]

You think auction houses don't have overhead?

Stop whining. Just figure in the auction fees when making your bid. It's not that hard.

Less overhead than a traditional gun shop because they are generally not the ones buying the items put up for sale. But like anything buyer beware and do your research and don't forget to figure in the fees and definitely don't get auction fever.