|
|
West Union, Illinois | I'm an old fashioned stick in the mud so my short answer is 0, but let me explain why I am asking:
I was cruising around eBay and found an upcoming auction for a Farmall B. The way the seller writes the description, payment, and shipping info makes me wonder if I really want to mess with them anyway. Things like INVOICES MAY BE SENT OUT A DAY OR TWO AFTER THE AUCTION andIF YOU DO NOT GET YOUR ITEMS PAID FOR BY MONDAY, THEN YOUR PACKAGE WILL BE SHIPPED AT OUR CONVENIENCE Then I noticed there is an 18% buyers premium! If you win a live auction item, you're charged a buyer's premium, a fee paid to the seller. The buyer's premium is calculated based on the bid amount. I realize I'm an old fashioned stick in the mud, but that seems a bit excessive to me.
What do you consider a fair buyer's premium? |
|
| |
|
West Cental Arkansas | Most equipment auctions I attend do not have buyers premiums. In the rare instances where buyers premium is used it will be 5% on equipment.
One real estate auctioneer has a 10% buyers premium.
Most people here despise buyers premiums. |
|
| |
|
Columbia Basin, Ephrata, WA | I think 10% capped at $250 per item is enough for a buyers premium. Auctioneers can spend a ton of time selling little crap, but to tack thousands of dollars on to the bid price of larger items seems like a bit much.
I'm good at math, I don't mind a buyers premium, but I'm a little surprised sellers allow them just for how many bidders they apparently turn off.
|
|
| |
|
| Zero for an in person purchase. I can see a very small premium if bidding for a live auction if you buy on-line. Buyers premium on eBay would be a big turn off for me. Figure your listing fees in your base price and let it go.
AaronSEIA |
|
| |
|
Beresford SD | Purple Wave is 10%. Just factor that into your bid and bid accordingly.
Edited by Curt Keiser 12/28/2014 15:23
|
|
| |
|
WY, OK | 3% when using Credit Card otherwise 0 is reasonable to me. Worse are the guys that only take cash or will take a check but only with a huge upfront down payment and bank letter to go with check. The flat max dollar amount isn't bad either, especially for those high percentage auctions. Never understood penalizing your patrons that you need to have come to your auction and buy items. Have to watch Purplewave, it is usually 18% as just about anything sold in KS, which a lot of their stuff is, is also subject to the near 8% sales tax. I can count on one hand how many times I have seen a buyers premium added to an ebay auction.
Edited by Galaxie64 12/27/2014 20:32
|
|
| |
|
Centralia, MO | A fair buyer's premium is absolutely "0". The seller hires the auctioneer or the auction company to sell for him so all premiums should be his responsibility. So far I have refused to attend or make a purchase at an auction with a buyer's premium. |
|
| |
|
Amherst WI | +1
On all accounts
Also that description to me on EBay screams scam. They'll charge you 18% for a tractor that never existed. They'll have your money and will be hauling water in gourds by 10:00 am. |
|
| |
|
| 0 % at the sales I go to and buy ,and leave happy |
|
| |
|
West Union, Illinois | hinfarm - that description to me on EBay screams scam. I would tend to agree except they do have an eBay feedback of 99.3% on 4737 ratings |
|
| |
|
Columbia Basin, Ephrata, WA | What have they been selling to get those 4737 ratings? If its doll clothes and knitting yarn and now all of the sudden there's a tractor for sale I'd be suspicious that the account got hijacked. If its spark plugs, tires, and IH decals you're probably ok.
|
|
| |
|
| My answer is 0. Yes, I know, bid accordingly, but I figure there is a reason they have a buyers premium and it makes them more money or they wouldn't do it. Sorry, but I don't bid on anything with a BP. I'm not playing their game. |
|
| |
|
Western illinois | Nothing |
|
| |
|
| ZERO |
|
| |
|
Eastern ND | The "tractor" is a 1/16 Ertl. |
|
| |
|
Columbia Basin, Ephrata, WA | Ha, right. Ok so maybe it is legit if sold by the doll clothes lady.
Seriously though, I've seen listings that seemed a bit off and the item was something that in no way matched what the seller had been trading to get their positive feedback rating.
|
|
| |
|
central, Il. | packerfan - 12/27/2014 22:22
Nothing
+1
Now if I go to an auction where there is this "buyers premium", may I charge them a "sellers premium" if I buy what they are selling? How would that go over when I ask the auctioneer that question when I register at the auction? Probably like a lead baloon. |
|
| |
|
| Just say "no" to buyer's premium's.
|
|
| |
|
southern MN | On an eBay item, that would be a scam to me.
Paul
Edited by paul the original 12/28/2014 00:39
|
|
| |
|
ncia | the first time I saw it at a farmland auction, it really created a stir in the crowd. Problem was that NONE of the pre sale literature and mailings disclosed it. First time it was mentioned was just prior to the beginning of the auction. the land auction was conducted by a company called central states and was in buffalo center iowa. Now, one could admit that they were doing what the sellers wanted and I have no way of knowing that. I will say that they will NEVER sell anything for me or my heirs. (I had included a link, but in retrospect, I edited it back out)
Edited by idalivered 12/28/2014 06:03
|
|
| |
|
North Central IL | 5% buyer's premium on a large land auction in western IL next month. |
|
| |
|
NW Iowa. / SW Arizona | Agree, have never paid it, never will. |
|
| |
|
Saronville NE | Is no such thing as a reasonable buyers premium! |
|
| |
|
SESD | Purplewave is no big deal because it's an internet auction and everyone is on the same playing field with the 10%.
The ones I don't like is when they use proxibid. There are live bidders and internet bidders. There is probably no premium for most the live bidders. The proxy is a lot of times 2or3% capped at 750. I can even live with that if it's something I really want and a big ticket item. But the ones that want a straight percentage are ridiculous. Why even have it on proxy if you are going to have a straight 6% premium? When you are looking at big ticket items like 50K +, what are these auctions thinking? |
|
| |
|
Marianna Arkansas | Should be zero. If its not and has something I really need to buy and its real close to home and easy to haul I'll go but I'm putting the percentage in my top bid. Otherwise I won't even go to one. |
|
| |
|
ncia | At least your aware of it ahead of time |
|
| |
|
Southeast Colorado | I figure the seller pays the fee whether there is a buyer's premium or not. If you watch big ticket items sell on internet auctions you will notice that most of the time the buyers are smart enough to bid accordingly. Most of these big ticket items on a 10% bidder premium auction will bring 10% less than a similar item with no bidder premium. In the case of Purple Wave.......... keep in mind that when you look up selling prices in their archives, they add in the buyer's premium when they record that amount. |
|
| |
|
| Not to answer your original question but I assume buyer's fees would be a deductible expense? Might play to your favor on something like farmland assuming total dollars would be equal with or without the buyer's premium. |
|
| |
|
Midwest | Well in the movie godfatherII the Nevada gaming commission kind of ask for one with a gaming license and Micheal's answer was. "Absolutely nothing"
https://www.youtube.com/watch?v=wPmTp9up26w
Edited by Cornstalk1 12/28/2014 08:49
|
|
| |
|
Bethany, MO | it wouldn't make a bit of difference to me. I can't speak to this item. It sounds a little fishy. |
|
| |
|
Mather, Manitoba | That's interesting to see a buyers premium on Ebay. Wonder if Ebay still takes their 10% per item on that style or not. |
|
| |
|
Whiskey, Tango, Foxtrot | This question is always amusing. There is one auction I know of that charges a 10% buyers fee, and the sellers are only charged a $500 advertising charge, and a flat $10/item. So, they are charging less than most auctions, but they have changed who they are charging.
I personally could care less. Auctions usually clearly state it up front that there is a buyers fee, and I passed the third grade math required to calculate that on top of my bid. A buyers fee doesn't change how much I'm willing to pay for an item. They can charge 50% if they want, their auction. It is interesting how AgTalk supports a free market economy until it comes to land rent and auction fees, then we go to pure communism.
One auction down south charges 18%. I think that is a good number as sales tax is 8%, so it makes it real easy to just add 25% to bids as your watching them. |
|
| |
|
NE | 5% on land?!!! WTF! Land has been so high lately that the seller can actually negotiate the typical 3-5% commission that they usually charge down to 1 or 2%,now they want to rape the buyer instead! That would completely turn me away from any land sale, they shouldn't be even thinking about doing something like that on land. |
|
| |
|
Southeast Colorado | Well Ben......you better go back and retake that 3rd grade math again. 18+8 surely doesn't equal 25 does it? |
|
| |
|
Bethany, MO | Yup, he's going to be $62 off on a $3,500 bid. I took it to mean he could do the 25% math in his head. |
|
| |
|
Whiskey, Tango, Foxtrot | bowtieighth - 12/28/2014 14:51
Yup, he's going to be $62 off on a $3,500 bid. I took it to mean he could do the 25% math in his head.
Exactly. Actually, sales tax is only something like 7.755% so it wouldn't even be that much... and some items are exempt... but you get the point. |
|
| |
|
Coon Rapids,Iowa | This has been discussed before. I am an auctioneer and think it is B.S. To charge a buyers premium.
I have been in the business for over 30 years and have never charged a buyers premium and never will. We as auctioneers are working for the person or people that hired us and they are paying us a commission. Why should we charge people who come to the auction to spend their hard earned money more than what they payed. It is just like charging someone that goes to a show or movie, then asking them to contribute more during the show because the producers or actors need more money for who knows what reason. We are working for a commission and if we don't work hard enough, then we don't deserve anymore. I will probably get flamed for this as I am getting older and more set in my ways, but these high flying auction companies that try to get auctions all over the country are just trying to take over more and more territory and shut the locals out. We stake our reputations on honesty and fairness. Auctioneers that need extra $ are just feeding their own pockets are being greedy and not doing the job they were hired for.
I apologize for the rant, but I have always felt that I have done my best for a customer and felt confident that they were satisfied with the job that I have done without trying to be greedy.
Steve Seidl
Seidl Auction |
|
| |
|
| ZERO !!!!
cant stand buyers premiums
try not to go to their sales because of it |
|
| |
|
North Central IL | Good deal.
Just out of curiosity, if a realtor brought the buyer to your auction, do you offer a cooperating commission? |
|
| |
|
NEMO | but how did you get $62 on $3500 bid, he was short 1% on his total. I come up with $35. 26% of 3500 is $910. 25% of 3500 is $875. I get $35. Did it in my head, so I could be wrong. Plus I never paid sales tax at an auction. :)
Edited by thekcirp 12/29/2014 05:24
|
|
| |
|
Southeast Colorado | Maybe everyone needs to go back to third grade math. LOL! |
|
| |
|
western iowa,by Denison | Very good Steve-and 99.9% of us agree-I do not buy at those commission auctions unless I can steal it-and most of the bidders have the same idea-we try to devalue at least 50% -and I have seen it happen time after time
|
|
| |
|
Bethany, MO | You're right I did it as a mark up. $3,500/.75 and .74 Used the wrong formula! |
|
| |
|
Coon Rapids,Iowa | Depends. If the realtor contacts me first and says he or she has a potential buyer, I will work with them. |
|
| |
|
| ss@WC Iowa - 12/30/2014 05:01 Depends. If the realtor contacts me first and says he or she has a potential buyer, I will work with them.
I'm curious why you would offer a realtor anything for bringing someone to your sale unless it was someone from way outside your area that wasn't likely to find your sale on their own.
I would think if someone was working with a realtor to find them a piece of property it would be on the buyer to compensate the realtor.
Kind of the same theory as my thoughts on what's wrong with the buyers premiums, whoever is being represented should be the one paying the auctioneer or realtor.
|
|
| |
What do you consider a reasonable auction buyer's premium ?
