consignment fees

[sealmark2]

Just wondering today - with all of the auction houses and many auctions daily requesting consignments what are the varying consignment fees for the sellers ? They seem to be all over the place from zero to 15% or more.

Thanks,

sealmark

[jcmtiger]

I think you have it right zero to 20 % you just have to negotiate. Depends on value of items you are consigning in my experience.

[BRoberts]

There will be a parade of people posting on this thread puffing their chests and saying how they will NEVER pay a consignment fee and neither should you. Depending on the auction house, maybe you shouldn't. Then again, maybe you should. Think of picking an auction house as deciding where to go out to eat for a steak.

You could go to Ponderosa or Golden Corral and get a "steak" for less than $10. Maybe you want a slightly better steak than that. Applebee's could service your needs for maybe $15-$20. Or maybe you step up a bit more and go to Outback, figuring you'll pay $25 to $30 for that steak. You can keep going up the ladder and paying more money for a better steak, ending up at a place where you'll be forking out $80 or more for a hunk of beef.

My point isn't that you always have to pay more to get more (though many times you do). It's that not all steaks are the same, and neither are all auction houses. The owners of smaller auction houses don't want to admit it, but they often offer no consignment fees because that's what they have to do in order to get consignments. It doesn't take a research genius to see which auction houses sell the most items for the most money. Most often it's not the boutique auction houses.

So rather than placing all of your focus on consignment fees, focus on the auction houses.

[Jewish-collector]

It has to do with how much time & effort that the auction house needs to do to get your stuff ready to sell (grading, describing, etc,...). If you have a substantial amount, do you want it in a separate physical catalog as something like "The sealmark collection" ?

Be aware that all auction houses will take all "auction worthy" stuff, but some auction houses seem to bring higher prices for certain material depending what it is (ie baseball, basketball, football, hockey, non-sports, uniforms, equipment, autographs, vintage, modern, cards, etc,... For example, a certain auction house might be better for a 1986 Fleer Michael Jordan PSA 10 than a Babe Ruth game used bat.

Best of luck !!!

[sealmark2]

Thanks guys (or gals as the case may be). I like the steak analogy but I just paid $75 for a steak and lobster dinner so I guess why am I asking about consignment fees ?

More responses to come I suspect.

Sealmark

[Bobsbats]

I've paid 20% on items i've consigned, I have also paid 0%. Some auction houses are being aggressive with obtaining consignments, so they lower the buyers fee. Good luck with your consignments

[notfast]

Originally Posted by Bobsbats

I've paid 20% on items i've consigned, I have also paid 0%. Some auction houses are being aggressive with obtaining consignments, so they lower the buyers fee. Good luck with your consignments

I just floated a possibly 6 figure card to Goldin and was told 0% and no % of the buyers premium.

I know 6 figure isn’t crazy anymore, I guess, but you’d think they would give up some portion of the BP…

[jcmtiger]

Originally Posted by notfast

I just floated a possibly 6 figure card to Goldin and was told 0% and no % of the buyers premium.

I know 6 figure isn’t crazy anymore, I guess, but you’d think they would give up some portion of the BP…

I think you are doing ok.

[jcmtiger]

Originally Posted by notfast

I just floated a possibly 6 figure card to Goldin and was told 0% and no % of the buyers premium.

I know 6 figure isn’t crazy anymore, I guess, but you’d think they would give up some portion of the BP…

I think you are doing ok. 7 figures would get you some portion of the BP.

[NATCARD]

I think with the fact there are a bunch 5+ major auction houses all pulling in top $$ for items now that a negative rate (part of the buyers premium) on a valuable card (to be determined what is valuable) can be negotiated. I do not see why an auction house would not give up some of their 21% to 25%+ buyers premium to get the best items they can away from another auction house. Jeff W

[Aquarian Sports Cards]

Originally Posted by NATCARD

I think with the fact there are a bunch 5+ major auction houses all pulling in top $$ for items now that a negative rate (part of the buyers premium) on a valuable card (to be determined what is valuable) can be negotiated. I do not see why an auction house would not give up some of their 21% to 25%+ buyers premium to get the best items they can away from another auction house. Jeff W

I don't disagree with your sentiment on the absolute top tier, and of course that term is relative to each auction company. My top tier is a helluva lot lower than REA's for instance.

That being said a couple questions. Who's charging 21 - 25%? I thought most were at 20%.

2nd, and I beat this dead horse a LOT. Name a business that people expect to be able to run on a smaller gross margin than an auction company?

There are some people who think that there should never be any commission and often a piece of the BP should be given away. At 20% BP if you charged no commission ever I don't know how a company could stay in business, and that's before you start giving away the BP. Auction companies aren't some license to print easy money as your assorted Crazy Uncles and others have found out over the years. How many fly-by-night companies have come and gone? There's a reason for that, and it's not because they made so much money in a couple auctions that they retired.

[butchie_t]

You as a consignor, always have the option to shop.

A consignment fee is simply the cost of doing business. Part of the process frankly.

TANSTAAFL - I learned this in college.

Cheers,

Butch

[LEHR]

FWIW,
I've consigned with six different AH's in the last 20 years. My consigned items have sold between $30 at the lowest and $12k at the highest, and I've never paid a consignment fee on anything.

*(edited to add)* After reading Bill Roberts post above I just want to add that my post was not a "chest puff", just reality. I'll also add that I've only been asked to pay a consignment fee once and when I said no I'll just consign somewhere else the AH's backed down and took the items at 0%. This was on a bunch of cheaper stuff that sold in 10-12 lots for around $2k total.

[parkplace33]

The more value your item (s) have, the the more you can negotiate.

You can get minus percentage as well, just have to have the right items.

[Exhibitman]

With a very expensive graded card, you should not accept less than 110% of the hammer price, and no costs of sale pass-throughs, either. Anything more, look for another AH.

[bobbyw8469]

Originally Posted by parkplace33

The more value your item (s) have, the the more you can negotiate.

You can get minus percentage as well, just have to have the right items.

That's is what I dealt with as I was looking for auction houses. Back then, Ebay was charging only 10%. They have now gone up to around 15%. Other auction houses I have encountered want to charge the seller 10%, and the buyer 20%. That is effectively 30% per item. I don't mind them making money, but MOST bidders factor in that 20% into their bid price. So you are already behind the 8 ball there. Then they want 10% from me on TOP of that!?!?!?! Looks like I will probably die with these cards.

[Andy Sandler]

In my auctions, I have never charged the consignor a fee on any item that sold for $500 or more. It is just good business. Being fair and open-minded works.
In my auctions I have had items sell for $270,000 and $5 and everything in between.
Sincerely, Andy Sandler
www.AllSportsAuctions.com
andy@allsportsauctions.com

[hcv123]

For vintage (1900-1980) cards with easily established market values (translation - most cards) I am a full time dealer and take on private consignments for select better cards. For higher value cards my rates are much better than auction houses:

$10K+ 7.5%
$1K-$10K 10%
less than $1K 20%

No possibility of "falling through the cracks" and I can usually move quality stuff pretty quickly (2-4 weeks). PM me for further explanation or exploration.

[timzcardz]

Originally Posted by Aquarian Sports Cards

2nd, and I beat this dead horse a LOT. Name a business that people expect to be able to run on a smaller gross margin than an auction company?

I'll take a crack at this.

I believe (not certain) that car dealerships fall in the 15-18% range.

Realtors, 6%.



P.S. When you say "auction company" I assume that you mean a company that auctions goods owned by others, rather than one that has purchased goods and auctions them themselves where they do have capital tied up in the inventory itself.

[RCFire82]

Why not sell yourself on platforms such as this BST, FB, Instagram, offer-up, card shows, etc...and increases your bottom line with no fees, premiums, taxes, etc.

Same with selling a home. It's not difficult to speak/work with a title and escrow company directly. Cut out the agent(s) and save 3% to 6% on your bottom line. Million $ homes are common here in SoCal, that's a savings of $30,000 - $60,000.

Handling things yourself isn't the easier route. But...a little leg-work can be the difference of substantial amounts of money.

Just a thought.

[Peter_Spaeth]

Originally Posted by bobbyw8469

That's is what I dealt with as I was looking for auction houses. Back then, Ebay was charging only 10%. They have now gone up to around 15%. Other auction houses I have encountered want to charge the seller 10%, and the buyer 20%. That is effectively 30% per item. I don't mind them making money, but MOST bidders factor in that 20% into their bid price. So you are already behind the 8 ball there. Then they want 10% from me on TOP of that!?!?!?! Looks like I will probably die with these cards.

I would think that for most stuff, selling it yourself, or through a major ebay seller, would net you more than giving up 30 percent of the value to an auction house through seller fees and buyer's premium.

[sb1]

Too many 0% consigner fee AH's to mention. I have never charged one and am quite surprised to see the people paying 5-10%(or more) for items that end up buried in huge auctions and don't fare all that well.

I charge a 15% buyers premium which is about what it will cost you to sell on ebay AND you get to endure all of the work and pain in the ass buyers.

[Johnny630]

This is why I choose quality over quantity makes it much easier to sell. Doing it yourself it’s not that difficult.

[hcv123]

Originally Posted by RCFire82

Why not sell yourself on platforms such as this BST, FB, Instagram, offer-up, card shows, etc...and increases your bottom line with no fees, premiums, taxes, etc.

Same with selling a home. It's not difficult to speak/work with a title and escrow company directly. Cut out the agent(s) and save 3% to 6% on your bottom line. Million $ homes are common here in SoCal, that's a savings of $30,000 - $60,000.

Handling things yourself isn't the easier route. But...a little leg-work can be the difference of substantial amounts of money.

Just a thought.

BST, FB, IG Offer Up - time investment, price of dealing with "challenging people" and scammers sometimes.

Shows - no fees, taxes, etc?? Really? Try again - Table fee, hotel, meals, transportation, show case rental, body bag rental........Huge time investment. If you are doing it legally - you are required to collect and remit jurisdictional sales tax

[Rhotchkiss]

Originally Posted by hcv123

For vintage (1900-1980) cards with easily established market values (translation - most cards) I am a full time dealer and take on private consignments for select better cards. For higher value cards my rates are much better than auction houses:

$10K+ 7.5%
$1K-$10K 10%
less than $1K 20%

No possibility of "falling through the cracks" and I can usually move quality stuff pretty quickly (2-4 weeks). PM me for further explanation or exploration.

I will stay out of this debate, but only join the thread to endorse Howard- I have never consigned anything to him (I don’t sell much), but I am someone to whom he has moved stuff quickly and at strong (but fair) prices.

[RCFire82]

Originally Posted by hcv123

BST, FB, IG Offer Up - time investment, price of dealing with "challenging people" and scammers sometimes.

Shows - no fees, taxes, etc?? Really? Try again - Table fee, hotel, meals, transportation, show case rental, body bag rental........Huge time investment. If you are doing it legally - you are required to collect and remit jurisdictional sales tax

True on the shows, taxes, and time. My thoughts were simple minded, "go to a local show and be around people that are looking to buy what you have" and make that connection. Obviously by everything listed on the end of all your posts you are more of a dealer and in it for more of a business than someone like me who's primarily in it for the hobby. Hence your thoughts and concerns vs mine. Neither being right or wrong, just different, collector vs dealer (all investors).

[hcv123]

Regardless of the angle, the investments are the same. Put another way, if you have the time and resources to invest, yes you can gross an extra 7.5%-30% ( depending on path and percentage paid to sell). My consignors (particularly for higher valued cards) see their time as worth more than 7.5%-10% of the value of their cards. Some also do not follow the market as closely and are just as liable to under price their cards and depend on my expertise to price their cards to current market.

I would agree on one end of the spectrum if you have a graded card or a few, the time and resources to invest and your finger on the pulse of the market you could likely pocket a bit more. For someone with a larger collection, raw cards, more than a few graded cards we are talking a serious time investment and additional resources to "do it yourself".

If it were that "easy" auction houses and many dealers would be out of business.

That all said, while this is my full time business, it isn't
just business" - I absolutely love the hobby (I have been a collector for almost 40 years) and couldn't put all the time and energy into it if I didn't. I consider myself truly blessed to earn a living from something I am so passionate about!

Originally Posted by Rhotchkiss

I will stay out of this debate, but only join the thread to endorse Howard- I have never consigned anything to him (I don’t sell much), but I am someone to whom he has moved stuff quickly and at strong (but fair) prices.

Thank you for the endorsement Ryan! Haven't consigned yet.........

[chriskim]

I was told consigning a Wagner can get up to 15% BP back.