I bid low or not at all when the fee rises to 20%. The damage of any buyer premium over 18% concerns return customers. This auctioneer doesn't have simultaneous onsite sessions, using Proxibid for Internet only ones. "We use it to pay fees - credit card processing, Internet fees and shipping. "We do not use the buyer's premium as a revenue stream," he says. This auctioneer does charge onsite buyers a 10% fee for winning bids.Īnother auctioneer has limited buyer premiums to 8%. It costs me just as much for advertising for small a auction as it does for a large auction." "I am trying to keep my head above water. "I lose 2%, on every transaction at that," he states, noting Proxibid fees went from 5 % to 6%. One auctioneer charging 23%, the highest BP in the coin category on Proxibid, says the higher fees are needed to offset losses. Onsite sessions usually have lower buyer premiums, or none at all, which has always bothered me because all venues-online and onsite-come with expenses. Moreover, some of these estate auctioneers are doing simultaneous onsite sessions requiring rent space or other physical preparations and staff.
So if the house charges 15% buyer premiums, it is looking at 3-5% profit. Then there are photography costs from equipment to freelance photographers. Those fees alone justify an 8-10% premium.
Auctioneers have to pay credit card companies, Auction Payment Network (for secure transactions) and Proxibid hosting fees. I understand the reasons for higher fees. But the trend with some of my favorite auctioneers has been to continue raising fees on Internet buyers, and I believe we may have reached the tipping point in some auctions charging 23%-almost a quarter of the hammer price.Ĭonversely, some sellers are able to keep rates as low as 8%. I have been able to get bargains there that I could never secure on rival portals, such as eBay.
Proxibid coin auctions are a mainstay of my hobbyist experience.