You forgot the 3rd one.

No auction house.


.

With regard to what I said below, I'd be surprised if anyone found empirical evidence that people wind up paying more (all else being held constant i.e. same item etc.) when the auction format includes a BP. That being said, I'm sure it happens - people can get carried away in the moment and as this thread stayed alive it did get me to thinking about another point:

I think the BP is kind of "phony". It seems more genuine to me that the AH should just get a percentage of the final bid. I don't care how simple the math is, why make people do it? I've been in the situation before placing a bid and the BP wasn't shown on the bidding screen, so I had to go search what it was elsewhere on the website before making the bid. It was kind of annoying. And why? Just so the AH can "frame" their model as not charging the seller? There is evidence out there framing i.e. describing 2 equivalent options in different ways can result in people choosing differently. I guess if one AH dropped the BP, other AHs could use it for marketing and say "we don't charge the seller, consign with us." It would be nonsense, but it would probably happen.

It's never been a consideration for me buying or selling, but I would see it as an improvement if the BP went away.

It's not a bad thing for the auction house or the consignor. It's a great thing for them. This discussion is about the BP being bad for the buyer and why the buyer should pay for a service being delivered for free to the consignor. And for some whether the buyer is really paying for that service at all (Spoiler Alert: They are).

Because there is room on "lots" in the AH format. Bidding on lots is naturally lower because of the nature of items that get put together into lots. You're not getting a T206 Wagner in a lot with other cards. So "Lots" are perfect for resale. I will agree that I have made some great purchases on lots of pennants even with the BP factored in. I typically can sell off the excess in the lot and get the one I really wanted in the lot for pretty close to free. I doubt you're buying a single PSA 5 1953 Topps Mantle (or any other single item) at an AH and flipping for a profit on eBay.

It's not a premise:

Most recent PSA 5 1953 Topps Mantle at Heritage:

https://sports.HA.com/itm/baseball/1...ype=share_btn_

Most recent PSA 5 1953 Topps Mantle at Ebay:


http://r.ebay.com/TqUFOY

http://r.ebay.com/3Cu8Ei

http://r.ebay.com/DHs7mR

http://r.ebay.com/CkXc3U

http://r.ebay.com/nKMPi6

http://r.ebay.com/r9bCu1

http://r.ebay.com/PZfZFd

Let me know how much money you would've made on this card.

It's all marketing, guys. No matter how many math examples we run, the fact is that consignors hate hearing about a commission. That's why a high BP is the norm: most AHs will waive the commission for a decent consignment. Just like shipping. REA (hi Brian) doing the free shipping is brilliant because shipping pisses off so many customers. It is a minuscule part of the overall invoice from the AH in most cases but it feels like dirt in your eye, especially when the AH charges for insurance to value and you just know that they have a blanket insurance policy that covers to a set limit regardless of value, so it is a profit center.

Scott B is definitely spot-on about other fields and what AHs charge there. We are lucky that we (consignors) can usually get a no commission deal. Try selling an entertainment item; you are nearly always going to pay 35%+ total because the AHs that deal in those materials do not waive their commissions unless the item is astounding.

As for BP splits, well, if you are offering a $100K card for consignment, you have leverage to get a piece of the BP. Nothing wrong with that.

I am not surprised people use PWCC for some nicer stuff. It gets the eBay customer base of eyeballs, the rate is substantially lower than most AHs charge, and cards to cash is fast as compared to other outlets. I don't know what others experience, but it is very frustrating when I consign an item in January, not see it hit the blocks for months and not get paid for another 30-60 days. Particularly if I have a use for the funds and can't wait half a year or more to get to paid.

Adam, great post - I found the same thing this morning when I did some research = "google searches" - the BP gives AHs the opportunity to split their take into two different accounting items.

Another interesting thing was I did find a couple studies that were a bit surprising - one implying a low BP, less than 5%, doesn't suppress bidder behavior and another that showed a 10% BP compared with no BP had a 9% impact i.e. bidders did not reduce their bids by the full BP, but interestingly they used this as evidence bidders will reduce bids when the BP is present because it was very close to a 1-1 reduction.

A study by Gerding, Rogers, Dash and Jennings at the University of Southampton (UK) titled “Sellers Competing for Buyers in Online Markets: Reserve Prices, Shill Bids, and Auction Fees” states, “Another popular type of auction fee is the buyer’s premium, which is paid by the winner of the auction and is a fraction of the closing price … note that a bidder with a given valuation will correct his/her bid … such that the bid plus the fee … is equal to the bidder’s valuation. Interestingly, since all buyers thus lower their bids, the seller ends up paying the fee even though the fee is originally charged to the buyers.”

the study obviously was written by a bunch of auction house cronies who are very angry

Yeah but thats not Webster's definition of a bid so it can't be true

just got a text from the troll. his shift under the bridge scaring weary travelers ends at 9. he will check in then.

Old man humor. I love it. I feel like I'm being trashed talked to by this guy.

<a href="http://imgbox.com/m3RJe47d" target="_blank"><img src="https://images2.imgbox.com/12/9d/m3RJe47d_o.jpg" alt="image host"/></a>

The University of Southhampton? What's the matter, couldn't find a study from Bangladesh? Don't get me wrong, who better to go to for insight on the bidding habits of Americans in the sports memorabilia market than the Brits...after all they were playing the game back when it was still known as BaseRock.

Amazing they know the thought process of "all bidders". Sounds like a thoughtful study.

The rants of a guy on a chatboard who is a minority of one doubtless are more persuasive.

"mom! the meat loaf! we want it now!"

Tired issue. . . I've posted on it a number of times myself and mostly been told I'm wrong. I think AHs love the BP because it does lead to higher bidding prices. In a perfect world all buyers would religiously include the vig in their bids. They don't. Just like why someone says a meal at a restaurant cost us $100, and not $120 including a tip. People aren't perfect decision making machines. Particularly with regard to a discretionary purchase like a collectible that they are passionate about. But most people here are perfectly rational and analytical in their bidding approach so I may be in the minority.

I've also had more than a few drinks at charity auctions and overbid for crap that I really don't need.

remind me to notify you of my next charity auction :)

...