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Doug S.'s Blog

22 Jul 2020

Buyers premium

| Doug S.

Hi Folks!Am I the only one that objects to 20% buyers premiums? Im frugal and I understand that folks need to make money but 20% seems outlandish to me! Or am I being really cheap :)Doug

Comments

Mokie

Level 6

I don't generally participate in any auctions as I seem to find what I want eventually online at a reasonable price. Plus, many auctions seem to be geared more toward the bigger budget collectors and I am definitely a bottom dweller collector. (:

Doug S.

Level 4

Mokie, Yes I noticed on the particular site I was looking at they had very high end/rare stuff. Like crazy off the charts pricing for some coins. Which makes those fees they charge very lucrative for them. Thanks for the reply Doug

Mike

Level 7

Hi Doug. I don't believe one exist. You have small market auction houses and the ones that have the big ones. What I read here I'm surprised know one mentioned it the sellers fee. You put up an item it sells you pay 10%!! So these company's get you from both ends plus tax..

Doug S.

Level 4

Hey Mike! Your right so now the fees to the house are 30% above and beyond actual retail/collector value. For an expensive coin there is no way they have incurred any marketing or handling costs that justify such exorbitant fees. So I choose not to use them them. Thanks for replying Doug

I. R. Bama

Level 5

My understanding is that dealers typically mark up 20 to 40% over wholesale. Get ahold of the CDN grey sheet for current wholesale prices. PCGS price list is market price. This is where there is room for negotiating a sell price from a dealer. Yes it is true they have to earn their livelihood. Compare their mark up compared to what you pay in markup at a store for clothing, electronics, or even groceries where you look at 50 to 100% markup without a squeak from the public. I'm not so sure they are being unfair. But like you, I want my coins at the least expensive cost too.

Doug S.

Level 4

Bama, I subscribe to CDN, Grey sheet and CPG pricing, so I have the tools I need to pay reasonable prices. And there are companies that don't charge buyer or seller fees. Thats why I use them. But in order to see the largest selection of coinage, Ive looked at other sites and see those outrageous buyer fees. Thanks for replying Doug

Golfer

Level 5

Local auction company here charges 20% buyers fee. And if you use a charge card, they charge a percentage extra for charge cards. The online bidders I believe pay a little bit more for bidding online. I have attended the coin auctions and if a lot of silver coins is worth 200 dollars in silver value, people will bid appropriately. Maybe bid up to 170 dollars, because they know its only worth 200 in silver at the time. The auction house must be the winner, and the sellers must be the loser. But the auction houses must have the upper hand, so they charge what they want.

Doug S.

Level 4

Golfer, With other options out there I won't do business with them. I was frankly shocked to see such high fees. I was curious about the opinions of others. Thanks for the reply Doug

Longstrider

Level 6

Great Collections is, I think, 15%. Many are less if you pay with a check. It is crazy, you are right. Everybody wants a piece of the take. Credit card companies, Pay Pal everybody. Don't forget tax and shipping as well.

Doug S.

Level 4

No buyer fees is the reason I use David Lawrence Rare Coins almost all the time. And they will accept reasonable offers on coins that aren't actively being auctioned. Thanks for replying Doug

I think it's a bit overbearing, especially if the person consigning the item also has to give a percentage. I think 15% would be more reasonable. You just have to take into account the premium when purchasing, what I don't get is some collectors saying they bought a certain coin off an auction firm for a decent price, but fail to mention the buyer's premium that spikes up how much they really spent.

Doug S.

Level 4

I agree. It ludicrous. It seems like its the high end auctions houses that are the worst. I was curious about the thoughts of others on this . Ive been looking at a site that has an amazing selection of stuff but I refuse to pay an additional 20% on top of something that may be pricey to start with. Thanks for replying. Doug

Mike

Level 7

I have two auctions were I buy and there are no buyers fee.at all. One for my tokens and one for all coins. There out there.

Doug S.

Level 4

Hey Mike, Ive been using one that doesn't. But Ive been Looking at a site that has an amazing inventory but Im not paying 20% above and beyond the value of the coin. I was curious if my thinking was inline with what others thought about this. Thanks for replying. Doug

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