Increased premium at REA

[Clydewally]

So REA increased the buyers premium for its last auction from 20% to 23%. I was wondering if other auction houses are following suit and whether it changes anyone's view about consigning to, or bidding on, REA.

[Brent G.]

The last Clean Sweep auction was 22% — up 2% from the last one I bid in a few months back.

[jayshum]

Originally Posted by Clydewally

So REA increased the buyers premium for its last auction from 20% to 23%. I was wondering if other auction houses are following suit and whether it changes anyone's view about consigning to, or bidding on, REA.

The increase actually started with their September auction.

[parkplace33]

I am sure 25 and 30 percent are not far behind.

Something has to give.

[Johnny630]

Originally Posted by parkplace33

I am sure 25 and 30 percent are not far behind.

Something has to give.

Agree. I can see 25% juice coming in the very near future.

[Brent G.]

Originally Posted by Johnny630

Agree. I can see 25% juice coming in the very near future.

No question we'll see that number in the next few years. Could be wrong, but I'd say 30% is the eventual cap on what people will tolerate.

[Brian Van Horn]

Do I hear 24, 26, 30?

[Casey2296]

Originally Posted by Brent G.

No question we'll see that number in the next few years. Could be wrong, but I'd say 30% is the eventual cap on what people will tolerate.

I'm already tempering my bids at the >20% level, especially since I live in a high-tax state the number is already above 30%.

[ValKehl]

IIRC, which I often don't, Heritage was the first of the major sports auction houses to recently increase its BP, from 20% to 22%. I wasn't surprised that REA subsequently raised its BP, but I was quite surprised that REA raised its BP to more than Heritage's, which I think gives Heritage a bit of a competitive advantage. On the other hand, this may enable REA to give consignors of high-value items a bigger slice of the BP.

[Aquarian Sports Cards]

17.5% We LOWERED it in 2024. Just saying...

[raulus]

Originally Posted by Aquarian Sports Cards

17.5% We LOWERED it in 2024. Just saying...

Must be something sinister at play in there where we can find a reason to get excited about it.

[calvindog]

These wealthy auction house owners are soaking the common collector.

[BRoberts]

Originally Posted by Aquarian Sports Cards

17.5% We LOWERED it in 2024. Just saying...

If a tree falls in the woods ...

Just saying.

[calvindog]

We should unionize and take the power from the wealthy auction house owners like Brian and give it back to the people.

[Aquarian Sports Cards]

Originally Posted by BRoberts

If a tree falls in the woods ...

Just saying.

Well, if after almost 8 years of having continuous full page ads in at LEAST one major hobby publication at all times (a mix of SMR, SCD and various Becketts) and all of our online advertising, including this site, and Auction Report among others, social media and even non-hobby print and online advertising, our presence at EVERY Philly, Chantilly, Strongsville and the National and a handful of other assorted shows, if someone still thinks of us as a tree in a lonely forest, I have to conclude they simply don't pay much attention to their surroundings.

Just saying.

[jayshum]

Originally Posted by BRoberts

If a tree falls in the woods ...

Just saying.

I've sold plenty with Scott over the past year and been happy with the results.

Just saying.

[CollectingAmericasPastime]

Originally Posted by BRoberts

If a tree falls in the woods ...

Just saying.

Then there would be plenty of people to hear this tree fall, considering numerous people have had mail days this week courtesy of The Collector Connection. Mine should be arriving in the coming days as a matter of fact, and I very much enjoyed the entire process.

I used REA several years ago to sell a huge chunk of my collection; they were absolute class to work with. However, if I were to bid with them in the future, I will certainly be taking into consideration the higher BP - as everyone should. It's all basic math and buying practices (e.g. shipping & taxes are factored into eBay purchase prices). Ultimately, the key is how you treat your customers. I'm not a huge player in the AH space, but I've had nothing but solid experiences so far with REA and The Collector Connection. With that being said, I certainly appreciate Scott's decision to lower BP's and may be able to participate a bit more in his auctions as a result.

[Rhotchkiss]

Originally Posted by BRoberts

If a tree falls in the woods ...

Just saying.

I think what Scott has done with Collector Connection is incredible, and I tell him that often. He took its predecessor from nothing to a very legitimate AH that gets great items and phenomenal results, has honest and competent customer service, and puts out multiple auction types (pre war, post war, non-sports) quarterly.

Scott, dont listen to the hater (who need a hearing aid). You are crushing it, you keep doing you. My only complaint is that you wont let me buy in!

Ryan Hotchkiss

[Balticfox]

Originally Posted by Aquarian Sports Cards

17.5% We LOWERED it in 2024. Just saying...

When is your next Post War auction?

[Aquarian Sports Cards]

Originally Posted by Balticfox

When is your next Post War auction?

December is the next post war sports.

Next up is Non-sports, which will have a pre war component to it.

[t206fanatic]

Originally Posted by Clydewally

So REA increased the buyers premium for its last auction from 20% to 23%. I was wondering if other auction houses are following suit and whether it changes anyone's view about consigning to, or bidding on, REA.

unclear why this would change anyones view with regard to bidding, buyers aren't the ones getting soaked here.

[BRoberts]

Originally Posted by t206fanatic

unclear why this would change anyones view with regard to bidding, buyers aren't the ones getting soaked here.

Because many in attendance here either can't grasp the facts of a BP or just want something to lament about. Also, math is hard.

[JollyElm]

greedisgoodauctionhouses.jpg

[Fred]

Originally Posted by Clydewally

So REA increased the buyers premium for its last auction from 20% to 23%. I was wondering if other auction houses are following suit and whether it changes anyone's view about consigning to, or bidding on, REA.

What this means for people in my area is that the juice is over 31.75% when not including shipping/handling.

Winning Bid = $5K, total out the door = $6587.50 + S/H.

[Peter_Spaeth]

Originally Posted by Fred

What this means for people in my area is that the juice is over 31.75% when not including shipping/handling.

Winning Bid = $5K, total out the door = $6587.50 + S/H.

So bid accordingly. In your hypothetical, you're really bidding 6587.

[ricktmd]

Im not for price increases. With the increase in realized prices being so much higher auction houses all got a raise in their 20% cut of a larger pie. Almost all businesses are charging more for services these days as costs are higher on everything especially human resources. I dont know that a 10% increase in fees is unwarranted after sitting at 20% for many years. Scott posting he is down to 17.5% makes the thecollectorconnection.com an attractive auction

[Exhibitman]

Here's what I don't get about AH price increase rationales: If inflation is up, presumably prices go up on cards. Cards are sold on consignment. If the AH takes 20% of the revenue, and prices are up, the AH's revenues go up too. The 3% seems to me to be just taking a larger piece of the overall pie.

It also seems to me that the auctioneers are matching eBay's price increases to keep about an 8% gap between them rather than reacting to overall costs. It is a little hard to isolate because eBay charges a final value fee and a transaction processing fee on all money including sales tax and shipping fees, but as best as I can figure it, eBay takes around 15% of each sale I make under $7500. That has gone up from 12% or so over the last few years as eBay has raised rates and minimum payment processing fees (which disproportionately impact smaller value lots like mine).

Now, that is not to say that eBay and auctioneers are the same. A lot of items that I sell on eBay would be put into bulk lots in an auction, purchased by eBay sellers at wholesale prices, and broken up to be sold at retail for a profit. I try to keep that value by selling on eBay. Some items are better consigned to a specialty auction. Love Of The Game has sold some very esoteric baseball items for me at far more than I would ever have gotten from eBay. Anything I stumble across that I think is really special I will offer to Al before I try to sell it myself.

[calvindog]

The auction houses are increasing their BP's because they can. Once one of them raised BP above 20%, the others felt safe in doing so as well.

[ncinin]

Originally Posted by Exhibitman

Here's what I don't get about AH price increase rationales: If inflation is up, presumably prices go up on cards. Cards are sold on consignment. If the AH takes 20% of the revenue, and prices are up, the AH's revenues go up too. The 3% seems to me to be just taking a larger piece of the overall pie.

It also seems to me that the auctioneers are matching eBay's price increases to keep about an 8% gap between them rather than reacting to overall costs. It is a little hard to isolate because eBay charges a final value fee and a transaction processing fee on all money including sales tax and shipping fees, but as best as I can figure it, eBay takes around 15% of each sale I make under $7500. That has gone up from 12% or so over the last few years as eBay has raised rates and minimum payment processing fees (which disproportionately impact smaller value lots like mine).

Now, that is not to say that eBay and auctioneers are the same. A lot of items that I sell on eBay would be put into bulk lots in an auction, purchased by eBay sellers at wholesale prices, and broken up to be sold at retail for a profit. I try to keep that value by selling on eBay. Some items are better consigned to a specialty auction. Love Of The Game has sold some very esoteric baseball items for me at far more than I would ever have gotten from eBay. Anything I stumble across that I think is really special I will offer to Al before I try to sell it myself.

One thing to consider is many good cards sold in auction houses, consigned by knowledgeable consignors are getting 1.05% or more of the hammer price due to the incredible competition for the consignments.

I have been offered 1.05% to 1.10% many times and recently 1.15% of the hammer, thus buyer's premiums are up to 22 and 23%.

I still encounter customers at shows who actually pay a 10% - 15% seller's fee where they are receiving 85% - 90% of the hammer.........ouch.