Auction House thievery Lelands style

gzman · #1 03-23-2025, 03:22 PM

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 · #2 03-23-2025, 03:37 PM

Quote:

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 · #3 03-23-2025, 07:58 PM

Quote:

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.
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gzman · #4 03-23-2025, 10:50 PM

Quote:

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 · #5 03-24-2025, 01:52 PM

Quote:

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.

Aquarian Sports Cards · #6 03-24-2025, 04:49 PM

Quote:

Originally Posted by Eric72

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.

Thanks Eric, sometimes I like to throw myself a pity party, and whining is never a good look, so rest assured my customers are greatly appreciated.

Just to give people a little perspective I worked in live theater in PA for almost 20 years. Not exactly a path to riches. I still haven't personally made in any year since I've begun in the auction business, what I made in my last year in theater.

To pull back the curtain a little bit, gross margins after paying consignors are consistently 28%. That has to cover 4 salaries and a part time graphic designer. 1200 Sq Ft of office space and utilities, 6000 Sq Ft Warehouse space & Utilities, auction software (which takes a percentage of every sale) Insurance, advertising, travel and show fees etc... If you're a $100,000,000 company that 28% goes a LONG way. If you're a $1,000,000 company well, not so much.

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