Now this was a cogent reply. The problem with the first paragraph is it's based on the faulty notion that the high bid is the high bid regardless of BP or not. No doubt some take it into account when bidding. Just as undoubtedly others do not.
Can't really argue with a lot in the second paragraph except to say you're contradicting what Peter and others are saying that it's just semantics...unless you're implying the consignors are too dumb to know the difference.
And when talking about business plans...This sounds like a very antiquated one. With the internet, Amazon, eBay, etc...I think that once the dinosaurs of this hobby...the ones who accept the status quo just because it's all they've ever known...become extinct...this business plan will be a hard sell to the next generation.
Quote:
Originally Posted by x2drich2000
Regarding who pays the AH fee. Mathematically, it doesn't matter. Either the buyer pays it in the form of a buyer's premium or the consignor pays it in the form of a seller premium. The total amount the the buyer pays should never be different. The auction house needs to net $x per $y in sales in order to stay in business.
The big difference is the AH needs to solicit consignments. Without consignors the auction house will not survive. Psychologically, it is a lot easier to convince someone to consign something with zero fees then it is to tell them they will pay 10 or 20%, especially if another auction house is offering zero fees. Losing consignors to try to change a process everyone else follows does not seem like a smart business plan to me.
DJ
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