REA increasing their BP and making other changes

[bnorth]

Originally Posted by Huysmans

With all due respect, unless I'm missing something, your comparison doesn't make sense.

With an auction house, the buyer's premium has to be factored in after the hammer price.
A card that sells for $5,000.00 will net the consignor $5,000.00 if there is no consignment fee as you stated. The buyer pays the $5,000.00 plus 23% for a total cost of $6,150.00 to the buyer.

If the card sells for $4,000.00 before the buyer's fee, like in your auction house example, it's not a $5,000.00 card - it's a $4,000.00 card, in which the consignor with no fee gets $4,000.00.

The problem is that you compared a $4,000.00 winning bid (auction house) to a $4,920 winning bid (on eBay through Probstein, 4 Corners, etc).

I believe you are confused because the real winning bid through the AH isn't $4000. It is the total of the actual price the winner pays including the BP.

I see it this way if the consignor isn't also hit with a sellers fee from AH.
Card sells for $5K on eBay so after fees(5%) seller gets $4750. 5% of $5K is $250.
Card sells for $5K at AH. Seller gets $4065 after the AH takes the BP(23%) from the real sale price($5K) the buyer paid. The $4065 is the "winning"(LOL) bid before the 23% buyers premium is added to the real selling price the buyer paid.

If I am wrong someone please post the math. To be clear I do not care how the AH tries to add confusing fees to get more cash from the consignor or trick buyers into bidding more than they thought. As long as I know the numbers up front I am good.

[Huysmans]

Originally Posted by bnorth

I believe you are confused because the real winning bid through the AH isn't $4000. It is the total of the actual price the winner pays including the BP.

I see it this way if the consignor isn't also hit with a sellers fee from AH.
Card sells for $5K on eBay so after fees(5%) seller gets $4750. 5% of $5K is $250.
Card sells for $5K at AH. Seller gets $4065 after the AH takes the BP(23%) from the real sale price($5K) the buyer paid. The $4065 is the "winning"(LOL) bid before the 23% buyers premium is added to the real selling price the buyer paid.

If I am wrong someone please post the math. To be clear I do not care how the AH tries to add confusing fees to get more cash from the consignor or trick buyers into bidding more than they thought. As long as I know the numbers up front I am good.

The buyer's premium isn't SUBTRACTED from the winning bid, it's ADDED.
So, if the bid total is $5,000.00 at auction end, the buyer's premium of 23% is ADDED to this total, not SUBTRACTED as in your example. So the buyer would pay a total of $6,150.00 as I previously mentioned.

The consignor - if paying no fees as was the original example given - receives $5000.00, which was the total of bidding at auction end.

Think about it logically, if the winning bid at the end of the auction is $5,000.00, and the consignor pays 0% commission, how could he possible end up with $4,000.00, as in the example of the original poster. 0 is 0 no?? not 20% ??

So again, the buyer's premium is ADDED to the final hammer price, it is not taken from it.

[bnorth]

Originally Posted by Huysmans

The buyer's premium isn't SUBTRACTED from the winning bid, it's ADDED.
So, if the bid total is $5,000.00 at auction end, the buyer's premium of 23% is ADDED to this total, not SUBTRACTED as in your example. So the buyer would pay a total of $6,150.00 as I previously mentioned.

The consignor - if paying no fees as was the original example given - receives $5000.00, which was the total of bidding at auction end.

Think about it logically, if the winning bid at the end of the auction is $5,000.00, and the consignor pays 0% commission, how could he possible end up with $4,000.00, as in the example of the original poster. 0 is 0 no?? not 20% ??

So again, the buyer's premium is ADDED to the final hammer price, it is not taken from it.

I get how it works. Take my example and actually do the math. My example shows the buyer paying the exact $5k total for their purchase in both examples. OK my math is actually a few pennies off because in my example the buyer at the AH really only paid $4999.95 for the card the consignor will receive $4065 for.

Seriously please show me the math when the real total selling price the buyer pays is $5K.

[Huysmans]

Originally Posted by bnorth

I get how it works. Take my example and actually do the math. My example shows the buyer paying the exact $5k total for their purchase in both examples. OK my math is actually a few pennies off because in my example the buyer at the AH really only paid $4999.95 for the card the consignor will receive $4065 for.

Seriously please show me the math when the real total selling price the buyer pays is $5K.

Yes, your example shows the BUYERS paying the same price. So what?? What the seller gets is in relation to the FINAL HIGH BID, not what the buyer's FINAL price is. Again, the buyer's commission price is ADDED to the HIGH BID with an auction house.

Seriously Ben, you're combining the winning bid with the buyer's fee as opposed to basing what the consignor gets which is based on the winning bid amount. The winning bid amount determines what the consignor gets, the buyer's fees are ADDITIONAL to that.