Quote:
Originally Posted by Aquarian Sports Cards
While I don't dispute that, the reason buyer's premium was started was competition for consignments between Sotheby's and Christie's mainly in the Art realm. Basically they used the "hey we're only charging "x" commission" line, and glossed over (if mentioning at all) this newfangled Buyer's Premium.
Buyers not paying attention, getting caught up in the heat of the moment, etc. was an unlooked-for side bonus as hard as that may be to believe.
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Good point, and also points to the psychological feature to entice and attract more consignors. Think about it, if someone is looking for an AH to sell/auction a card for them, guess who that consignor/seller is more likely to choose if one AH says they only charge the seller say a 15% commission, while the other says they only charge the buyer say a 20% commission? You know that some sellers/consignors will hear that the AH will only be charging the buyer a fee/commission, and think that means they'll end up with more money, and also because they like the idea of no money coming out of their pocket to pay the AH. Truth is, assuming that the buyers are smart and properly do their math and factor in their buyer's premium in the amount they end up bidding, the consignor/seller is actually better off choosing to pay the seller's commission in my example. But as mentioned, many times the buyers also forget about the buyer's premium in the heat of the moment.