Buyer's Premium

[DanP]

Originally Posted by cbcbcb

It seems that the buyer's premium would be almost entirely passed onto the consignor. When I bid, and I hope when most others bid, I price in the buyer's premium into the value of the item. If an item is worth $200, I will only bid $167 if there is a 20% BP. Thus, the consignor takes the entire hit. It would be interesting to do a study on this.

I agree, and I think most buyers do also. If that's true, you're correct the co-signor takes the entire hit. However, it seems to me like the sellers get a premium on their products at these auctions (rather than eBay). So if the seller gets 20%+/- more than they would selling on eBay they really aren't "taking any hit". Dan

[Davalillo]

I don't get it? The buyers premium means nothing to a potential buyer. He has a total price he is willing to pay--how much of it is accounted for by the buyers premium is meaningless

[ls7plus]

I agree--the buyer has to and does factor the buyer's premium into the price he is ultimately paying for the card. When the premium is rising, as it has been for some time now, the seller simply nets less. He does, however, receive the benefit of the auction house's distribution network and publicity related to the auction, as well as the effort the auction house puts into depicting and describing the card, as well as often times the player himself (see Bill Goodwin's catalogues). As Barry correctly states, the auction house has to make a profit too.

Larry