How does one avoiding losing their shirts with auctions houses?

Aquarian Sports Cards · #1 05-28-2017, 09:22 AM

Quote:

Originally Posted by rednecksims

Additionally with AHs and PWCC alike you do not have to worry about shipping issues or returns. Any AH who runs a buyers premium over 12% I would not do business with, unless it is just too good of a deal or the item is a one off.

Who runs an auction with a buyer's premium that low? I can't think of any one of the big boys lower than 15%.

rednecksims · #2 05-28-2017, 07:18 PM

Quote:

Originally Posted by Aquarian Sports Cards

Who runs an auction with a buyer's premium that low? I can't think of any one of the big boys lower than 15%.

And that's why I don't do a lot of business with them unless it's a special item. I can usually buy from smaller ones, get the same items, and get better prices. Just takes some searching.

brianp-beme · #3 05-28-2017, 11:03 PM

Quote:

Originally Posted by Aquarian Sports Cards

Who runs an auction with a buyer's premium that low? I can't think of any one of the big boys lower than 15%.

Brockelman Auctions is 12.5% buyers premium. And it is an AH that upfront states that there is no seller's premium for consignments. And his auctions are big boy enough for me. And the next one starts Monday 5/29.

Brian

Aquarian Sports Cards · #4 05-29-2017, 06:39 AM

Quote:

Originally Posted by brianp-beme

Brockelman Auctions is 12.5% buyers premium. And it is an AH that upfront states that there is no seller's premium for consignments. And his auctions are big boy enough for me. And the next one starts Monday 5/29.

Brian

That's amazing, I don't know how he keeps the doors open.

edhans · #5 05-29-2017, 08:01 AM

I can't seem to get into the current auction. Keeps defaulting to the February lots. Anyone else having the same problem?

Leon · #6 05-29-2017, 08:03 AM

Probably hasn't opened it yet. IN a little while. He is probably lifting weights somewhere...

To the original question, buy low and sell high....and never, ever pay a seller's commission, no matter how great the AH says they are......

Quote:

Originally Posted by edhans

I can't seem to get into the current auction. Keeps defaulting to the February lots. Anyone else having the same problem?

jefferyepayne · #7 05-29-2017, 08:58 AM

Quote:

Originally Posted by Leon

To the original question, buy low and sell high....and never, ever pay a seller's commission, no matter how great the AH says they are......

Yes. How you buy is as important as how you sell when trying to make $$$. Some things you can do to minimize purchase cost.

1. Avoid auctions houses with offices in your home state where you have to pay sales tax! Plenty of other auctions to choose from without paying this extra fee. If you must have something in an auction that is going to charge you tax, reduce your max bid by the tax amount so you don't overspend.

2. Take any discounts available by paying with cash / checks. I know you want your items ASAP but I personally would rather have the item AND more cash in my pocket. I'll wait if there is a discount.

3. If you have your own insurance, ask the auction house if they can reduce their shipping & handling and use your insurance if your policy covers shipments to you.

4. Opt out of getting a printed catalog if the AH gives you a small discount for doing so. A few do.

5. Last but most definitely not least ... stick to your price and don't over spend! Most (but not all) items you are after will show up again in the next year or so and may go for even less.

jeff

Aquarian Sports Cards · #8 05-29-2017, 10:58 AM

Quote:

Originally Posted by Leon

To the original question, buy low and sell high....and never, ever pay a seller's commission, no matter how great the AH says they are......

As someone who is in the process of becoming an auctioneer, statements like this are so disheartening. If you listened to everybody's advice in this thread you would never deal with a house that charged a seller's commission or over 12.5% buyer's premium. I'd like you to tell me what other business you know of that is expected to survive on a 12.5% margin? I know when I sell as a dealer I certainly couldn't make those margins work. Any full time guys here want to chime in on trying to make a living on a 12.5% GROSS margin? Trust me, one of the reasons I am getting into the auction game is because I think it can be done better, but man I don't know how you expect someone to make a living let alone run a company on the numbers you all appear to be suggesting.

Leon · #9 05-29-2017, 11:05 AM

You picked the lowest percentage to apply my statement to.

When I made it was thinking of a 20% (which is fairly standard) BP....and at that, an AH can make a living, probably without a seller's fee. But again, if there is a ton of work to do or some other extraordinary thing, then a sales fee can be warranted. I am pretty sure I have actually paid a small one before too, now that i think about it....

Quote:

Originally Posted by Aquarian Sports Cards

As someone who is in the process of becoming an auctioneer, statements like this are so disheartening. If you listened to everybody's advice in this thread you would never deal with a house that charged a seller's commission or over 12.5% buyer's premium. I'd like you to tell me what other business you know of that is expected to survive on a 12.5% margin? I know when I sell as a dealer I certainly couldn't make those margins work. Any full time guys here want to chime in on trying to make a living on a 12.5% GROSS margin? Trust me, one of the reasons I am getting into the auction game is because I think it can be done better, but man I don't know how you expect someone to make a living let alone run a company on the numbers you all appear to be suggesting.

Luke · #10 05-29-2017, 01:31 PM

Quote:

Originally Posted by Aquarian Sports Cards

As someone who is in the process of becoming an auctioneer, statements like this are so disheartening. If you listened to everybody's advice in this thread you would never deal with a house that charged a seller's commission or over 12.5% buyer's premium. I'd like you to tell me what other business you know of that is expected to survive on a 12.5% margin? I know when I sell as a dealer I certainly couldn't make those margins work. Any full time guys here want to chime in on trying to make a living on a 12.5% GROSS margin? Trust me, one of the reasons I am getting into the auction game is because I think it can be done better, but man I don't know how you expect someone to make a living let alone run a company on the numbers you all appear to be suggesting.

In my opinion, it seems like you're looking at this in the wrong way. If you're the auctioneer, it's not really a 12.5% margin. If you had bought an item for $100 and then sold it for $112.50, then that would be a 12.5% margin.

As an AH, you're just selling other people's stuff that you have no money tied up in. If I give you a Green Cobb to sell and it goes for $5k plus the 12.5% BP, that's $625 you just made without any risk or investment (obviously advertising, salaries, etc, but every business has these things). As long as you can build the business enough to get good consignments and your overhead isn't massive, of course you can make a living with a 12.5% BP. Those are big IFs of course, but the business model itself is pretty easy to understand.

PhillipAbbott79 · #11 05-30-2017, 10:37 PM

Quote:

Originally Posted by Aquarian Sports Cards

As someone who is in the process of becoming an auctioneer, statements like this are so disheartening. If you listened to everybody's advice in this thread you would never deal with a house that charged a seller's commission or over 12.5% buyer's premium. I'd like you to tell me what other business you know of that is expected to survive on a 12.5% margin? I know when I sell as a dealer I certainly couldn't make those margins work. Any full time guys here want to chime in on trying to make a living on a 12.5% GROSS margin? Trust me, one of the reasons I am getting into the auction game is because I think it can be done better, but man I don't know how you expect someone to make a living let alone run a company on the numbers you all appear to be suggesting.

Restaurants are at 3% to 4% I think. The key is volume. If you have the volume you don't need the margin to survive.

You want to start a business and have a long line of people right from the get go. That is not easy to do. That is why people buy businesses and why some are more profitable than others.

sb1 · #12 05-29-2017, 09:08 AM

Quote:

Originally Posted by edhans

I can't seem to get into the current auction. Keeps defaulting to the February lots. Anyone else having the same problem?

Thanks for everyone's patience the auction is now open as of 10:00 am EST.

www.brockelmanauctions.com

Good luck and enjoy.

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