REA increasing their BP and making other changes

[jayshum]

Originally Posted by Huysmans

These are not equal comparisons. Both you and Ben are comparing a closing bid of $4,000.00 with the auction house, to a closing bid of $4,920 on Ebay. Honestly, can you not see the difference??

IF the closing bid for both the auction house and eBay is $4,920.00, which is all that matters in making a fair comparison, the seller with the auction house and a 0% commission fee gets $4,920. The eBay seller pays 5% commission which is $246.00, for a net total of $4,674.00 to the seller.

You're comparing two DIFFERENT high bid totals. You don't add the buyer's premium INTO the high bid, it's added ON TOP of the high bid. Of course the buyer will get more for a card that sells for a HIGH BID of $4,920 on eBay, compared to a card that sells for a HIGH BID of $4,000.00 at an auction house. I don't know how to better spell it out.

The assumption being made is that the selling price is the same because the buyer is including the BP being added on when determining what their high bid will be. If that's the case, then the example is correct. Yes, the high bids are different, but what the buyer pays isn't.

If the selling prices are different (which is what happens if the actual high bids are the same), then yes, the consigner will do better with the auction house, but since many people say they include the BP when deciding what their high bid will be, it's more likely that the high bid will be lower if there's a BP added on top of it.