Auction House Profits

[insidethewrapper]

Is this the way it works for the Auction Houses ? Assume 10% consignment fee and 20% buyers fee.
Item sells at $ 1000. Total to buyer would be $ 1200.
Buyer pays $ 1200, Seller (consigner ) gets $ 900 and Auction House gets $ 300 in this example.
Thanks , just want to know if I got this right.

[drc]

That would appear to be correct, except it doesn't take into consideration the auction house's costs. The $300 wouldn't be their profit.

[Leon]

Originally Posted by drc

That would appear to be correct, except it doesn't take into consideration the auction house's costs. The $300 wouldn't be their profit.

It would be their gross profit (sale price - cost of goods). Take out all expenses and you would have net profit or net loss.

Also, most/many times it's more likely a 0% seller's premium and 17.5% -20% buyer's premium, with the house getting the buyers premium as their only profit. Any way you slice it the seller is still paying...whether it's on the front or back end, because the buyer's and/or seller's premiums always come from the sale itself.