Auction House thievery Lelands style

[robertsmithnocure]

Originally Posted by cgjackson222

I am no shipping expert, but I think the cost is for the insurance.

Yes, I corrected my post. I should have been more clear and said that the fee was for shipping and insurance. My guess is that shipping is probably on ly $20 for his item, but the insurance is nearly $200. The insurance portion is what he was questioning.

[Aquarian Sports Cards]

Originally Posted by robertsmithnocure

Yes, I corrected my post. I should have been more clear and said that the fee was for shipping and insurance. My guess is that shipping is probably on ly $20 for his item, but the insurance is nearly $200. The insurance portion is what he was questioning.

UPS insurance cost on $20,000 would be $230 (though of course they only honor insurance on cards up to $1000)

Postal Registered would be the way to go, the insurance is much cheaper on a registered packaged. Declared value of $20,000 would be postage plus $42.10

I imagine, like most auctions, they have private insurance, so guessing costs is tough, but if you know the other options you at least have an idea.

[gzman]

Hi Scott,
Is there any reason for an auction house to have a separate % insurance coverage if they have a policy covering their entire operation like Collectibles Insurance?
Mailing and Shipping – For shipments to your customers anywhere in the world. Temporary and permanent shipping coverages are available to accommodate your delivery needs.
Thanks for your insight!

[Aquarian Sports Cards]

Originally Posted by gzman

Hi Scott,
Is there any reason for an auction house to have a separate % insurance coverage if they have a policy covering their entire operation like Collectibles Insurance?
Mailing and Shipping – For shipments to your customers anywhere in the world. Temporary and permanent shipping coverages are available to accommodate your delivery needs.
Thanks for your insight!

Because that policy isn't free so why would you get the coverage for free? It costs thousands of dollars a quarter, even for our coverage which I am sure is lower in dollar value than the huge companies. We basically figured out, over the course of a year, what the insurance cost us compared to using postal or carrier insurance per package and pass along a HUGE discount (less than 50%) compared to the various carrier rates.

We lose a good amount of money on shipping every auction (we charge actual postage or shipping plus the discounted insurance rate plus $5, which in most cases doesn't even cover the supplies let alone the labor) so the idea that now we're going to insure for free is a non-starter. But I get it, half of the posts I respond to seem to take the point of view that auctions don't deserve to make money because they make too much money...

[Eric72]

Originally Posted by Aquarian Sports Cards

Because that policy isn't free so why would you get the coverage for free? It costs thousands of dollars a quarter, even for our coverage which I am sure is lower in dollar value than the huge companies. We basically figured out, over the course of a year, what the insurance cost us compared to using postal or carrier insurance per package and pass along a HUGE discount (less than 50%) compared to the various carrier rates.

We lose a good amount of money on shipping every auction (we charge actual postage or shipping plus the discounted insurance rate plus $5, which in most cases doesn't even cover the supplies let alone the labor) so the idea that now we're going to insure for free is a non-starter. But I get it, half of the posts I respond to seem to take the point of view that auctions don't deserve to make money because they make too much money...

Come on, Scott, didn't you know? Auction Houses are supposed to be nonprofits.

[Aquarian Sports Cards]

Originally Posted by Eric72

Come on, Scott, didn't you know? Auction Houses are supposed to be nonprofits.

I didn't realize it when I started, but I have been assured repeatedly on net54 that I am supposed to be running a charity

[gzman]

Scott, thanks for the insight. I appreciate it. But understand that many other auction houses line item the insurance at 1%(which is comparable to USPS as you stated) on top of very high shipping costs(sometimes stated with listing)-and buyer %'s that are higher than yours, and in some cases, much higher...

Because that policy isn't free so why would you get the coverage for free? It costs thousands of dollars a quarter, even for our coverage which I am sure is lower in dollar value than the huge companies. We basically figured out, over the course of a year, what the insurance cost us compared to using postal or carrier insurance per package and pass along a HUGE discount (less than 50%) compared to the various carrier rates.

We lose a good amount of money on shipping every auction (we charge actual postage or shipping plus the discounted insurance rate plus $5, which in most cases doesn't even cover the supplies let alone the labor) so the idea that now we're going to insure for free is a non-starter. But I get it, half of the posts I respond to seem to take the point of view that auctions don't deserve to make money because they make too much money...[/QUOTE]

[Aquarian Sports Cards]

Originally Posted by gzman

Scott, thanks for the insight. I appreciate it. But understand that many other auction houses line item the insurance at 1%(which is comparable to USPS as you stated) on top of very high shipping costs(sometimes stated with listing)-and buyer %'s that are higher than yours, and in some cases, much higher...

Well they're trying to make money on shipping, and there's nothing wrong with that. People need to, and do, vote with their money. I often wonder if the lengths we go to to keep things reasonable for our customers are worth it.

If most other companies view every part of the transaction as a profit center, yet we're not seeing any benefit from being more buyer friendly, I'm not sure what the incentive is to remain so!

[Casey2296]

Originally Posted by Aquarian Sports Cards

Well they're trying to make money on shipping, and there's nothing wrong with that. People need to, and do, vote with their money. I often wonder if the lengths we go to to keep things reasonable for our customers are worth it.

If most other companies view every part of the transaction as a profit center, yet we're not seeing any benefit from being more buyer friendly, I'm not sure what the incentive is to remain so!

-
Don't lose faith Scott, I don't know how you guys do it at what is best a 20% margin. Add labor and other costs seems more like a 7% margin. That's a labor of love and thank you for sticking with an industry where you're only as good as your last auction.
-

[gzman]

Originally Posted by Aquarian Sports Cards

Well they're trying to make money on shipping, and there's nothing wrong with that. People need to, and do, vote with their money. I often wonder if the lengths we go to to keep things reasonable for our customers are worth it.

If most other companies view every part of the transaction as a profit center, yet we're not seeing any benefit from being more buyer friendly, I'm not sure what the incentive is to remain so!

I don't think most of your competitors view every part of the transaction as a profit center...but those that do leave a negative impression for sure...(IMHO)

[Eric72]

Originally Posted by Aquarian Sports Cards

Well they're trying to make money on shipping, and there's nothing wrong with that. People need to, and do, vote with their money. I often wonder if the lengths we go to to keep things reasonable for our customers are worth it.

If most other companies view every part of the transaction as a profit center, yet we're not seeing any benefit from being more buyer friendly, I'm not sure what the incentive is to remain so!

Scott,

I realize my purchases don't add up to very much. However, I tend to get a few things per year from your AH because you're so buyer friendly.

Drop in the bucket, to be sure, but there are certainly others who feel as I do and spend their money accordingly.