REA increasing their BP and making other changes

[bnorth]

Originally Posted by Huysmans

The buyer's premium isn't SUBTRACTED from the winning bid, it's ADDED.
So, if the bid total is $5,000.00 at auction end, the buyer's premium of 23% is ADDED to this total, not SUBTRACTED as in your example. So the buyer would pay a total of $6,150.00 as I previously mentioned.

The consignor - if paying no fees as was the original example given - receives $5000.00, which was the total of bidding at auction end.

Think about it logically, if the winning bid at the end of the auction is $5,000.00, and the consignor pays 0% commission, how could he possible end up with $4,000.00, as in the example of the original poster. 0 is 0 no?? not 20% ??

So again, the buyer's premium is ADDED to the final hammer price, it is not taken from it.

I get how it works. Take my example and actually do the math. My example shows the buyer paying the exact $5k total for their purchase in both examples. OK my math is actually a few pennies off because in my example the buyer at the AH really only paid $4999.95 for the card the consignor will receive $4065 for.

Seriously please show me the math when the real total selling price the buyer pays is $5K.