Posted By:
Jay MillerI think you guys are missing the point on this issue, which I think is not a trivial one. Consignment fees that are negotiated do not affect any bidders. They simply affect the distribution of profits between the auction house and the consignor. If seller A pays a 10% consignment fee and seller B pays no consignment fee that does not impact the bidding process at all. On the other hand, if one buyer has to pay for items before he or she gets them and another buyer can postpone paying until he or she sells the item them the bidding process has been tainted. The bidder who has to pay right away is bidding for the item. The bidder who can postpone payment is essentially bidding for the item plus a loan to finance inventory. The inclusion of the second type of bidder eliminates the possiblity of items selling below retail, ie no bargains here.