New Online Auction - Private Collection

[Rez Exelon]

I'm kind of mystified on all the BP discussion. 15% is relatively cheap for a BP in an online auction. Most auction houses that I follow are about that rate, and tax gets taxed on (hehehe) as well. If you check out many many of the auction houses on proxibid and similar sites are 23% and even higher. Rock Island (my favorite) is around 18% IIRC.

 

[elwoodtrix]

Somebody bump this on the 13th

 

[16colt]

I'm kind of mystified on all the BP discussion. 15% is relatively cheap for a BP in an online auction. Most auction houses that I follow are about that rate, and tax gets taxed on (hehehe) as well. If you check out many many of the auction houses on proxibid and similar sites are 23% and even higher. Rock Island (my favorite) is around 18% IIRC.

I’m not saying they don’t exist, just don’t understand it. Ebay doesn’t have a buyer’s premium, neither does Gunbroker (at least not that I am aware of). I am sure they charge a healthy commission to use their sites though.
I’ve been to many farm sales, estate sales, etc and I have never paid a “buyer’s premium”.
Just trying to understand how they work and why they do exist.

 

[Catt57]

I’m not saying they don’t exist, just don’t understand it. Ebay doesn’t have a buyer’s premium, neither does Gunbroker (at least not that I am aware of). I am sure they charge a healthy commission to use their sites though.
I’ve been to many farm sales, estate sales, etc and I have never paid a “buyer’s premium”.
Just trying to understand how they work and why they do exist.

I agree. Pretty sure they are counting on the bidders forgetting about the fee and therfore they make more profit. IMHO it should be the sellers that shoulder the burden of the auction fees but somehow the auction companies figured out how to play both sides. As long as buyers put up with it nothing will change.

 

[Rez Exelon]

I’m not saying they don’t exist, just don’t understand it. Ebay doesn’t have a buyer’s premium, neither does Gunbroker (at least not that I am aware of). I am sure they charge a healthy commission to use their sites though.
I’ve been to many farm sales, estate sales, etc and I have never paid a “buyer’s premium”.
Just trying to understand how they work and why they do exist.

eBay charges an approximately 15% to the seller. Buyer never sees it but most eBay seller price accordingly. And eBay charges taxes as well.

 

[red dirt shootist]

I took part in an online auction a little while back, put on by the biggest auction co. in town. I won a few things and when I went to pick them up I met the wife of the owner of the shop. The owner had passed. I asked her if she was happy with the way it all went. She said the she was ok with what they got for the machinery, but that auctioneer wanted 30% to sell the real estate, she said no. She hired a realtor that sold the shop and property for 6% in one day. Most of these auctioneers charge the seller 20-30%+ expenses, then charge the buyer 10-15% "buyers premium" + sales tax. You can still get some good deals, just keep track of all the fees. And if you ever hire an auction co, be very, very, very careful.

 

[turkeyrun]

Wow.
15% buyers premium along w/ 9.5% sales tax.
Yikes.

That's pretty standard for an auction. You just gotta keep it in mind when you're bidding. I've got some good deals in these online auctions!

Auctions I have participated in, BP was 6%.

15%, I'm out


Adding sales tax is BS, too. Auction is a PRIVATE SALE. But, Ceasar will collect what Ceasar has declared is due.

 

[Okie4570]

You folks realize that auction services are in business to make money correct? It's not a free service. No different than any other business, like them use them, don't like them use someone else or go without lol.

 

[16colt]

You folks realize that auction services are in business to make money correct? It's not a free service. No different than any other business, like them use them, don't like them use someone else or go without lol.

Yes, I understand that auction services are a business trying to make money yet no one has explained this “buyer’s premium”. Still makes no sense to me.

Example:
I purchased a used gun from Cabela’s a few years ago. I paid the asking price shown on the gun along with tax - no buyer’s premium.
Did Cabela’s make money on this sale? You bet they did. I imagine the original owner of the gun got paid less than 70% of what Cabela’s sold the gun to me for.
Same thing with several farm actions I have gone to and made purchases at. Again, I paid for the items I purchased at the price the item was sold to me at the auction. Taxes were added to that price (taxes aren’t added if you have a farm tax number).

Back to the auction in this discussion. It just seems like “double dipping” to me.
Auction house charges a commission to the seller and then another fee on the buyer.

Questions:
1) When do “buyer’s premiums” come into affect? Is this a random thing or is there a set of rules out there somewhere defining just when to add? Like I mentioned in a previous post, I’ve made purchases through Ebay, Gunbroker, farm actions, and estate auctions - never paid a buyer’s premium.
2) Are you taxed on the buyer’s premium itself? If I pay $100 for the item w/ a 15% BP, am I taxed on $100 or $115.
3) Should we all start adding a “buyer’s premium” to any guns we have listed here on OSA?
…question 3 -

 

[leemozoid]

There's a new online auction open today through Aug. 13 at HeardAuction.HiBid.com. Do yourself a favor and check out this impressive collection. Whether or not you decide to bid (which you'd be crazy not to) - this is a fascinating collection. All from one owner.

Why do you charge buyer's premiums on top of the commissions the sellers are already paying? Seems to me online auctions are just another way to rip off buyers with exorbitant unearned fees. I for one decline to participate.