Auction ripoff???

carl reitnauer · Sep 11, 2013

We have a bimonthly auction here in SW Fl that I occasionally consign to. I hadn't been in a couple years and hailed 5 pallets of odball stuff that was in the way. Registration cart had a sign stating 50% sellers fees on lots of $100 or less..........is this common? I go to BUY pallets of BS that have a jewel I need....very little stuff today;no need to go sales day.Anyone else run into this?

Pops1532 · Sep 11, 2013

(quoted from post at 23:40:30 09/11/13) We have a bimonthly auction here in SW Fl that I occasionally consign to. I hadn't been in a couple years and hailed 5 pallets of odball stuff that was in the way. Registration cart had a sign stating 50% sellers fees on lots of $100 or less..........is this common? I go to BUY pallets of BS that have a jewel I need....very little stuff today;no need to go sales day.Anyone else run into this?

That doesn't affect the BUYER.
The 50% is the commission the SELLER pays the auction house on lots that sell for $100 or less.
50% may be a bit steep but it's not unheard of. Many auctioneers charge a different commission rate based on price or the type of merchandise being sold.

RodinNS · Sep 11, 2013

Yep... they do that to discourage people from hauling their junk to the auction... They don't make anything selling 5 dollar lots. They also don't want to pay to dispose of the junk that doesn't sell.

Rod

waltdavies · Sep 11, 2013

Dang, I have bought a lot of stuff at estate auctions for $2.00 that no one else wanted. Got my bug deflector for my Ranger that way.
Walt

Straw Boss · Sep 11, 2013

Auction Yard here charges sellers as follows.

1-499...............25%
500-999...........15%
1,000-9,999........8%
10,000-19,999....6%
20,000-29,999.....5%
30,000 and up.....4%
*minimum $20.00 commission*

Needless to say you want to bring items worth a thousand or more, but if you have truck tires to get rid of it beats paying someone to take them.

Ivan in Mich · Sep 11, 2013

I have been to a couple here that charge a 10% buyer preiumn on top of the sellers fee so they get everybody. I took some big stuff to one a few years ago and I had 300 or 400 dollars and was hit with 40% fee. Never again. Guess what happened to that one in less than a year. He moved on

Ken Macfarlane · Sep 12, 2013

I think its 20% buyer and sellers fee on small items at our local auction.

Traditional Farmer · Sep 12, 2013

Large consignment auction here charges 25% for less then $300 but in your case the whole lot would fall under 1 number and you'd be charged on what the whole lot amounted to not individual pieces so if your whole lot bought $1000 you pay around
10%.50% sounds like hiway robbery to me.
Another consignment auction charges buyers and sellers 10% but if you consign early there is no sellers premium and he is loaded with good quality stuff every time.

Pops1532 · Sep 12, 2013

The auction houses that have the highest commissions usually sell household goods or general merchandise.
One local auction house charges 30% no matter what. Some charge 10% for garage items, 20% for furniture, 30% for household.
Another auctioneer I know charges a flat 10%. Commission rates are all over the place. It's not hi-way robbery. Consignors know up front what they'll pay.
Same with the buyers premium. I'm not a fan of the bp, but I always consider it when figuring what I'll bid on something.

Auction ripoff???

carl reitnauer

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Pops1532

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RodinNS

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waltdavies

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Straw Boss

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Ivan in Mich

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Ken Macfarlane

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Traditional Farmer

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Pops1532

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