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Old 11-29-2006, 04:23 PM
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Default What is the rationale behind a buyer's premium on an auction

Posted By: Trevor Hocking

Well I would first like to say that the timing of the Mastro 2.5% BP hike was out of line and I would have been a little frustrated myself if I had consigned before this auction and was not notified about it. But to get back on topic here. I think that auction companies like Mastro and Huggins and Scott are a needed entity is this hobby and have always been one. If it wasn't for these companies we would never have the opportunity to bid on items that we have been trying to find or never knew existed. I also have an idea what it takes to run a auction company and I think that is taken for granted A LOT. I have spoke with many auction companies in the past regarding there fees. When I was given the tour and the needed day to day expenses it all made seance to me. I know 20%-30% sounds like a lot but most of the time a good auction company will get you that back and more for using their services. Granted some items are better sold in other venues like Ebay or retail but frankly most of use do not have the time or want to put fourth the effort to sell items that way. I think that if an auction company would put out a quarterly report to show it's cost vs profit most people would be surprised at how much of that % the auction companies are left with for salaries and profit in the end. I would guess a lot lower than perceived. I for one like the idea of a variety of auction companies to choose from and the slight difference in BP's and SP's. I think that we can see from the responses given by the leaders of these companies on this board, how much they do think about this hobby and how interested they are in making it far for everyone. Remember most of these people are hobbiest just like you and are usually accessible via a phone call. I would try to talk with them over the phone about your issues before you start to speculate and make gossip here.

Just my 2¢

Trevor Hocking

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