What is the point of the "Buyer's Premium"?

[BobC]

Originally Posted by luciobar1980

So I get it, you have to think about the Buyer's Premium and take it into account and bid accordingly. But what is the actual point? The only possible motive I can come up with is that's a psychological tactic by the auction house to make you feel like you're paying less than you actually are, or even worse, hoping for ignorance on the part of the buyer.

Sorry if this has been discussed.

I think you hit the nail on the head. It is sort of a psychological selling trick to make buyers feel like they aren't paying as much as they really are, so they bid a little higher in the heat of the moment. Exact same concept when you go into stores and see items priced at $1.99, $4.95, or $9.99. Why don't they simply round the prices up $0.01 or so to an even dollar amount? They do it so the buyer feels like they are somehow paying less, even though you can see what it costs right on the price tag.

And they say we humans are supposed to be smarter than all the other creatures on Earth. Really makes you wonder some times. LOL