How does one avoiding losing their shirts with auctions houses?

[Topnotchsy]

Edit: To make sure it's clear, I am not trying to bash the auction houses. I appreciate the service they provide. I just think I may be missing something here...

I'm somewhat new to this, so any pointers and advice would be greatly appreciated.

Over the last few years I've been buying items through some of the major auction houses. Many of the items I expect to keep for a long time, but recently I consigned a few items that were not central to my collection.

While I was thankfully able to cover the price I paid, this was what it looked like:

This was the numbers when I won the item:

Price $2,500.00
Buyer's Premium $487.50
Tax: 8.375%
Shipping: $22.05
Total $3,259.75

When I sold the item:

Price: $3,750
Buyer's Premium: $938
Tax: ?
Shipping: ?
Total: $4,688

What I netted:
Price: $3,750
Commission: $375 (10%)
Net: $3,375


I have never done this before but it was a little crazy seeing that too basically break even, the seller had to pay over $1400 more than I paid for the item (and that's without knowing if they paid sales tax or if what they paid for shipping.

I'm new at this and assume that there are ways to make this less extreme and was hoping for any pointers that people may have? Did I overpay/Should I have negotiated further with the auction house regarding the commission?

Thanks!

[bobbyw8469]

The commission is usually zero, but I do understand some auction houses charge 10%.....some charge more.....but you can choose not to consign with them....

That's tough that it went up that much and you still broke even.

[jb217676]

Nothing beats a good old fashioned private sale!

[BeanTown]

Make up a consignment list. Then allow all the AHs compete for your business. Mention you are a Net54 member and using Net54 advertisers will most likely give you a very good deal. I imagine you have already been contacted privately by some AHs already with this post.

Depending on the amount of consignments, you should not have to pay a consigners fee and if you consign enough stuff, ask for a percentage of the buyers fee paid to you. Plus, AHs will pay for grading many times. It's also good to have them allow you to read the auction description of your consignments before they get posted.

Many other things can be negotiated to like catalog placement, reserves, lot groupings, the size used in the catalog (quarter, half, or full page) and maybe even a cover.

[irishdenny]

Originally Posted by BeanTown

Make up a consignment list. Then allow all the AHs compete for your business. Mention you are a Net54 member and using Net54 advertisers will most likely give you a very good deal. I imagine you have already been contacted privately by some AHs already with this post.

Depending on the amount of consignments, you should not have to pay a consigners fee and if you consign enough stuff, ask for a percentage of the buyers fee paid to you. Plus, AHs will pay for grading many times. It's also good to have them allow you to read the auction description of your consignments before they get posted.

Many other things can be negotiated to like catalog placement, reserves, lot groupings, the size used in the catalog (quarter, half, or full page) and maybe even a cover.

Also, At THiS Point iN Your humble AH Stage...

"You Can Always Hire Mr. Beantown Jay ta do Your Negotiating"
He Obviously Has Done THiS Before...

Looks Like Mr. Jay coulda Saved You iN upwards of $1250,
And Possibly EVeN More!?

"How bout a Sea Story!?"

When i was iN the Submarine Navy,
I was known ta be a "Sea Lawyer"
We were few & far apart...

i Help'd other Sub Sailors Re-Negotiate Their Contracts
Due to Their Career Counselor "Miscounseling" Them.
i help'd many "BubbleHeads" recouped Ovar $300,000 iN about 10 year time frame...

Unfortunately wit Cards & AH's,
There's No Miscounseling...
JuST "Lessons Learned"!

Next Time, i'm Sure the Numbers Will Go Your Way ~

[packs]

Still have no idea why a house would charge a commission if they charge a buyer's premium. That's double dipping.

[autograf]

I think they charge commission and premium because they can. And because thousands of catalogs and postage aren't cheap. There are some that don't and there are most that won't if you have big enough consignments. I think that's the key. I think it's a fallacy to say that you won't pay commission ever on a $3K consignment. That's a nice chunk of change for most, but about a 'normal' lot in one of the big auction house auctions. As a general rule, the more you consign, the less you pay. If you have huge, high demand items, you may get some of the buyer's premium as well. Like JC said. Make a list, make it a large group, and shop it around. Don't be afraid to play one against the other. It can't hurt. And, as far as the business, there are LOTS of people looking at every lot in every auction. Some to try to buy to make money. Some to try to buy to build their collection. And tons of other reasons. Sometimes, something slips through. But more and more, those are the exceptions. Good luck!

[bobbyw8469]

Originally Posted by packs

Still have no idea why a house would charge a commission if they charge a buyer's premium. That's double dipping.

Memory Lane does it....and are getting rich!