Increased premium at REA

[Clydewally]

So REA increased the buyers premium for its last auction from 20% to 23%. I was wondering if other auction houses are following suit and whether it changes anyone's view about consigning to, or bidding on, REA.

[Brent G.]

The last Clean Sweep auction was 22% — up 2% from the last one I bid in a few months back.

[jayshum]

Originally Posted by Clydewally

So REA increased the buyers premium for its last auction from 20% to 23%. I was wondering if other auction houses are following suit and whether it changes anyone's view about consigning to, or bidding on, REA.

The increase actually started with their September auction.

[parkplace33]

I am sure 25 and 30 percent are not far behind.

Something has to give.

[ValKehl]

IIRC, which I often don't, Heritage was the first of the major sports auction houses to recently increase its BP, from 20% to 22%. I wasn't surprised that REA subsequently raised its BP, but I was quite surprised that REA raised its BP to more than Heritage's, which I think gives Heritage a bit of a competitive advantage. On the other hand, this may enable REA to give consignors of high-value items a bigger slice of the BP.

[Aquarian Sports Cards]

17.5% We LOWERED it in 2024. Just saying...

[raulus]

Originally Posted by Aquarian Sports Cards

17.5% We LOWERED it in 2024. Just saying...

Must be something sinister at play in there where we can find a reason to get excited about it.

[calvindog]

These wealthy auction house owners are soaking the common collector.

[Yoda]

Greed is one of the seven deadly sins.

[Johnny630]

Originally Posted by parkplace33

I am sure 25 and 30 percent are not far behind.

Something has to give.

Agree. I can see 25% juice coming in the very near future.

[raulus]

Originally Posted by Yoda

Greed is one of the seven deadly sins.

Luckily, the rest of us outside of the AH world would never suffer from it.

[Brent G.]

Originally Posted by Johnny630

Agree. I can see 25% juice coming in the very near future.

No question we'll see that number in the next few years. Could be wrong, but I'd say 30% is the eventual cap on what people will tolerate.

[Brian Van Horn]

Do I hear 24, 26, 30?

[Casey2296]

Originally Posted by Brent G.

No question we'll see that number in the next few years. Could be wrong, but I'd say 30% is the eventual cap on what people will tolerate.

I'm already tempering my bids at the >20% level, especially since I live in a high-tax state the number is already above 30%.

[t206fanatic]

Originally Posted by Clydewally

So REA increased the buyers premium for its last auction from 20% to 23%. I was wondering if other auction houses are following suit and whether it changes anyone's view about consigning to, or bidding on, REA.

unclear why this would change anyones view with regard to bidding, buyers aren't the ones getting soaked here.

[JollyElm]

greedisgoodauctionhouses.jpg

[BRoberts]

Originally Posted by t206fanatic

unclear why this would change anyones view with regard to bidding, buyers aren't the ones getting soaked here.

Because many in attendance here either can't grasp the facts of a BP or just want something to lament about. Also, math is hard.

[BRoberts]

Originally Posted by Aquarian Sports Cards

17.5% We LOWERED it in 2024. Just saying...

If a tree falls in the woods ...

Just saying.

[calvindog]

We should unionize and take the power from the wealthy auction house owners like Brian and give it back to the people.

[Jstottlemire1]

Originally Posted by calvindog

These wealthy auction house owners are soaking the common collector.

True!

[Aquarian Sports Cards]

Originally Posted by BRoberts

If a tree falls in the woods ...

Just saying.

Well, if after almost 8 years of having continuous full page ads in at LEAST one major hobby publication at all times (a mix of SMR, SCD and various Becketts) and all of our online advertising, including this site, and Auction Report among others, social media and even non-hobby print and online advertising, our presence at EVERY Philly, Chantilly, Strongsville and the National and a handful of other assorted shows, if someone still thinks of us as a tree in a lonely forest, I have to conclude they simply don't pay much attention to their surroundings.

Just saying.

[Carter08]

Originally Posted by Aquarian Sports Cards

Well, if after almost 8 years of having continuous full page ads in at LEAST one major hobby publication at all times (a mix of SMR, SCD and various Becketts) and all of our online advertising, including this site, and Auction Report among others, social media and even non-hobby print and online advertising, our presence at EVERY Philly, Chantilly, Strongsville and the National and a handful of other assorted shows, if someone still thinks of us as a tree in a lonely forest, I have to conclude they simply don't pay much attention to their surroundings.

Just saying.

I just got a t205 Collins from the tree in the lonely forest’s auction this past Sunday. Thank you!

[ccre]

I was very impressed with your last auction and was able to snag a much needed beauty.

[jayshum]

Originally Posted by BRoberts

If a tree falls in the woods ...

Just saying.

I've sold plenty with Scott over the past year and been happy with the results.

Just saying.

[Fred]

Originally Posted by Clydewally

So REA increased the buyers premium for its last auction from 20% to 23%. I was wondering if other auction houses are following suit and whether it changes anyone's view about consigning to, or bidding on, REA.

What this means for people in my area is that the juice is over 31.75% when not including shipping/handling.

Winning Bid = $5K, total out the door = $6587.50 + S/H.

[Balticfox]

Originally Posted by Aquarian Sports Cards

17.5% We LOWERED it in 2024. Just saying...

When is your next Post War auction?

[Peter_Spaeth]

Originally Posted by Fred

What this means for people in my area is that the juice is over 31.75% when not including shipping/handling.

Winning Bid = $5K, total out the door = $6587.50 + S/H.

So bid accordingly. In your hypothetical, you're really bidding 6587.

[Aquarian Sports Cards]

Originally Posted by Balticfox

When is your next Post War auction?

December is the next post war sports.

Next up is Non-sports, which will have a pre war component to it.

[ricktmd]

Im not for price increases. With the increase in realized prices being so much higher auction houses all got a raise in their 20% cut of a larger pie. Almost all businesses are charging more for services these days as costs are higher on everything especially human resources. I dont know that a 10% increase in fees is unwarranted after sitting at 20% for many years. Scott posting he is down to 17.5% makes the thecollectorconnection.com an attractive auction

[Exhibitman]

Here's what I don't get about AH price increase rationales: If inflation is up, presumably prices go up on cards. Cards are sold on consignment. If the AH takes 20% of the revenue, and prices are up, the AH's revenues go up too. The 3% seems to me to be just taking a larger piece of the overall pie.

It also seems to me that the auctioneers are matching eBay's price increases to keep about an 8% gap between them rather than reacting to overall costs. It is a little hard to isolate because eBay charges a final value fee and a transaction processing fee on all money including sales tax and shipping fees, but as best as I can figure it, eBay takes around 15% of each sale I make under $7500. That has gone up from 12% or so over the last few years as eBay has raised rates and minimum payment processing fees (which disproportionately impact smaller value lots like mine).

Now, that is not to say that eBay and auctioneers are the same. A lot of items that I sell on eBay would be put into bulk lots in an auction, purchased by eBay sellers at wholesale prices, and broken up to be sold at retail for a profit. I try to keep that value by selling on eBay. Some items are better consigned to a specialty auction. Love Of The Game has sold some very esoteric baseball items for me at far more than I would ever have gotten from eBay. Anything I stumble across that I think is really special I will offer to Al before I try to sell it myself.

[calvindog]

The auction houses are increasing their BP's because they can. Once one of them raised BP above 20%, the others felt safe in doing so as well.

[CollectingAmericasPastime]

Originally Posted by BRoberts

If a tree falls in the woods ...

Just saying.

Then there would be plenty of people to hear this tree fall, considering numerous people have had mail days this week courtesy of The Collector Connection. Mine should be arriving in the coming days as a matter of fact, and I very much enjoyed the entire process.

I used REA several years ago to sell a huge chunk of my collection; they were absolute class to work with. However, if I were to bid with them in the future, I will certainly be taking into consideration the higher BP - as everyone should. It's all basic math and buying practices (e.g. shipping & taxes are factored into eBay purchase prices). Ultimately, the key is how you treat your customers. I'm not a huge player in the AH space, but I've had nothing but solid experiences so far with REA and The Collector Connection. With that being said, I certainly appreciate Scott's decision to lower BP's and may be able to participate a bit more in his auctions as a result.

[Lorewalker]

Originally Posted by KMayUSA6060

Then there would be plenty of people to hear this tree fall, considering numerous people have had mail days this week courtesy of The Collector Connection. Mine should be arriving in the coming days as a matter of fact, and I very much enjoyed the entire process.

I used REA several years ago to sell a huge chunk of my collection; they were absolute class to work with. However, if I were to bid with them in the future, I will certainly be taking into consideration the higher BP - as everyone should. It's all basic math and buying practices (e.g. shipping & taxes are factored into eBay purchase prices). Ultimately, the key is how you treat your customers. I'm not a huge player in the AH space, but I've had nothing but solid experiences so far with REA and The Collector Connection. With that being said, I certainly appreciate Scott's decision to lower BP's and may be able to participate a bit more in his auctions as a result.

You, and others, make it sound like you are going to pay more now for the same card before the BP increase. Makes no sense. I think most SOBER bidders know their price is their bid + whatever the BP is + sales tax (if applicable) + shipping. It should not matter to a bidder if a BP is 30%. It should matter to every consignor.

[Fred]

Originally Posted by Lorewalker

You, and others, make it sound like you are going to pay more now for the same card before the BP increase. Makes no sense. I think most SOBER bidders know their price is their bid + whatever the BP is + sales tax (if applicable) + shipping. It should not matter to a bidder if a BP is 30%. It should matter to every consignor.

Believe me, I am well aware of the juice and always consider that the overall cost is not the final bid value.

People with no sales tax requirements ultimately get a bidding advantage while my area is probably at the worst disadvantage because of the tax rate.

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[raulus]

Originally Posted by Fred

Believe me, I am well aware of the juice and always consider that the overall cost is not the final bid value.

People with no sales tax requirements ultimately get a bidding advantage while my area is probably at the worst disadvantage because of the tax rate.

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I know we all like to think that the other bidders always factor in the juice when bidding, but my sense is that’s often not the case. I would also suspect that it would be common for bidders to assume that the juice is still 20% when doing their mental math, even though it’s risen. For some sites, finding the precise amount of the BP takes some digging.

[perezfan]

Originally Posted by raulus

I know we all like to think that the other bidders always factor in the juice when bidding, but my sense is that’s often not the case. I would also suspect that it would be common for bidders to assume that the juice is still 20% when doing their mental math, even though it’s risen. For some sites, finding the precise amount of the BP takes some digging.

Fully agree with this. We are bidding against a lot of people who are not fully informed, or simply fail to do the homework. It is unavoidable in this hobby, as there are always people who seem "surprised" by the BP, the sales tax, and even the shipping + insurance costs.

[gunboat82]

Originally Posted by Aquarian Sports Cards

Well, if after almost 8 years of having continuous full page ads in at LEAST one major hobby publication at all times (a mix of SMR, SCD and various Becketts) and all of our online advertising, including this site, and Auction Report among others, social media and even non-hobby print and online advertising, our presence at EVERY Philly, Chantilly, Strongsville and the National and a handful of other assorted shows, if someone still thinks of us as a tree in a lonely forest, I have to conclude they simply don't pay much attention to their surroundings.

Just saying.

Right? The Nadja Wagner generated enough interest that there was a point where I just started mashing the next-bid button for funsies, knowing full well that I'd be outbid in an instant.

[bobbyw8469]

Originally Posted by Yoda

Greed is one of the seven deadly sins.

So is Sloth.

[ncinin]

Originally Posted by Exhibitman

Here's what I don't get about AH price increase rationales: If inflation is up, presumably prices go up on cards. Cards are sold on consignment. If the AH takes 20% of the revenue, and prices are up, the AH's revenues go up too. The 3% seems to me to be just taking a larger piece of the overall pie.

It also seems to me that the auctioneers are matching eBay's price increases to keep about an 8% gap between them rather than reacting to overall costs. It is a little hard to isolate because eBay charges a final value fee and a transaction processing fee on all money including sales tax and shipping fees, but as best as I can figure it, eBay takes around 15% of each sale I make under $7500. That has gone up from 12% or so over the last few years as eBay has raised rates and minimum payment processing fees (which disproportionately impact smaller value lots like mine).

Now, that is not to say that eBay and auctioneers are the same. A lot of items that I sell on eBay would be put into bulk lots in an auction, purchased by eBay sellers at wholesale prices, and broken up to be sold at retail for a profit. I try to keep that value by selling on eBay. Some items are better consigned to a specialty auction. Love Of The Game has sold some very esoteric baseball items for me at far more than I would ever have gotten from eBay. Anything I stumble across that I think is really special I will offer to Al before I try to sell it myself.

One thing to consider is many good cards sold in auction houses, consigned by knowledgeable consignors are getting 1.05% or more of the hammer price due to the incredible competition for the consignments.

I have been offered 1.05% to 1.10% many times and recently 1.15% of the hammer, thus buyer's premiums are up to 22 and 23%.

I still encounter customers at shows who actually pay a 10% - 15% seller's fee where they are receiving 85% - 90% of the hammer.........ouch.

[Lorewalker]

Originally Posted by perezfan

Fully agree with this. We are bidding against a lot of people who are not fully informed, or simply fail to do the homework. It is unavoidable in this hobby, as there are always people who seem "surprised" by the BP, the sales tax, and even the shipping + insurance costs.

So then to those who are aware of what all the associated costs are, they should use some discipline and back out once an item is more than they want to pay. This is not a new concept and one that should have always been applied.

To those who do not care or who are too lazy to investigate the terms, they should not complain if they win and are then surprised what the total is that they owe.

[Peter_Spaeth]

Originally Posted by perezfan

Fully agree with this. We are bidding against a lot of people who are not fully informed, or simply fail to do the homework. It is unavoidable in this hobby, as there are always people who seem "surprised" by the BP, the sales tax, and even the shipping + insurance costs.

On what do you base this? I find it hard to believe that people successful enough in life to be bidding on consequential cards truly do not have a clue that the "bid" price is not the final price.

[Aquarian Sports Cards]

Originally Posted by gunboat82

Right? The Nadja Wagner generated enough interest that there was a point where I just started mashing the next-bid button for funsies, knowing full well that I'd be outbid in an instant.

LOL, that's the spirit!

[Rhotchkiss]

Originally Posted by BRoberts

If a tree falls in the woods ...

Just saying.

I think what Scott has done with Collector Connection is incredible, and I tell him that often. He took its predecessor from nothing to a very legitimate AH that gets great items and phenomenal results, has honest and competent customer service, and puts out multiple auction types (pre war, post war, non-sports) quarterly.

Scott, dont listen to the hater (who need a hearing aid). You are crushing it, you keep doing you. My only complaint is that you wont let me buy in!

Ryan Hotchkiss

[raulus]

Originally Posted by Peter_Spaeth

On what do you base this? I find it hard to believe that people successful enough in life to be bidding on consequential cards truly do not have a clue that the "bid" price is not the final price.

A lot of assumptions in your analysis. While certainly true sometimes, my experience working with lots of successful people suggests that they have plenty of blind spots. And that’s before we add in emotion and alcohol into the mix.

There’s no question that there are some exciting psychological elements at play when retailers promote a smaller price, even when we know precisely how much to add to the advertised price to get to the actual price. It’s a big part of the reason why retailers do it.

[Peter_Spaeth]

Originally Posted by raulus

A lot of assumptions in your analysis. While certainly true sometimes, my experience working with lots of successful people suggests that they have plenty of blind spots. And that’s before we add in emotion and alcohol into the mix.

There’s no question that there are some exciting psychological elements at play when retailers promote a smaller price, even when we know precisely how much to add to the advertised price to get to the actual price. It’s a big part of the reason why retailers do it.

Emotion and alcohol might make you exceed your threshold and go to a higher level, but not make you forget there is a BP.

How many people on this forum have EVER posted they somehow forgot there was a BP?

[raulus]

Originally Posted by Peter_Spaeth

Emotion and alcohol might make you exceed your threshold and go to a higher level, but not make you forget there is a BP.

How many people on this forum have EVER posted they somehow forgot there was a BP?

Shockingly, we’re not the only ones bidding on auctions.

And forgetting the BP is one thing. Mentally discounting it is another. In other words, tricking ourselves into rationalizing that we’re paying less than we really are, because we allow ourselves to be cajoled into the self delusion that we’re bidding less than we really are.

[Peter_Spaeth]

Originally Posted by raulus

Shockingly, we’re not the only ones bidding on auctions.

And forgetting the BP is one thing. Mentally discounting it is another. In other words, tricking ourselves into rationalizing that we’re paying less than we really are, because we allow ourselves to be cajoled into the self delusion that we’re bidding less than we really are.

Sounds awfully speculative and a bit psychobabblish to me. How do you know other people are "mentally discounting" the BP in order to rationalize their bidding? Come on.

[Casey2296]

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Good Whiskey and post auction regrets have built many great collections.
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[BioCRN]

Once again...shout out and thanks to the auction houses that show you what your "real" bid actually will be before confirming it so I don't have to continuously do math as the auction winds down.

MVPs, all of you.

[Brent G.]

Originally Posted by Casey2296

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Good Whiskey and post auction regrets have built many great collections.
-

I've made a handful of buzzed bids — sometimes it really simplifies the deliberation process. I mean it worked for the Founding Fathers...