Investor or Collector?

I am so bewildered by the increased fees of auction companies being 17.5%, that may also include state sales tax if the winning bid is under $1500 (California), and high shipping charges. One lot I won recent with all the "juice" and fees added created a 23% "fee" for my winning lot. I have never seen a protest about this issue. Let's face it, coins don't increase that much over 10 years - check any price guide, some keys have even gone down in value - check out a 1909 S VDB in 64 RB for example. But the auction companies rake in huge profits. The largest coin auction company boasts almost a billion dollars yearly in sales.

For this collector, these fees have taken some of the enjoyment away from coin-collecting.

Does anyone feel the same way I do? And if so, how to get back to the days of 10%?

 

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Just factor in the final price for each lot, including any buyer's premium, tax and shipping, and then bid to that point. No one is forcing anyone, to the best of my knowledge, to overbid in an auction.

 

I haven't won an auction in a coons age. Seems the prices I'm willing to pay (bid) and the prices realized don't seem to be in sync. Most of my pickups come from shows.......

 

You say they are charging CA sales tax, do you live in CA? If so, they are only following the law. Nothing to complain about there.

Heck, 17.5% seems reasonable nowadays. Some sellers are trying to get 20% now. I agree its ridiculous, but as Tom says, no one is forcing us to bid. I am not sure where it will be "too much". At some point I am sure there will be diminishing returns from too high of bidder premium, but it hasn't yet.

 

Like Tom says , you have to figure the buyers fee into your bid . If a coin is worth $500 to you do the math so your final bid plus premiums are under $500 .

 

I agree. I always check that the total matches what I am willing to pay. Set a "don't exceed" number and stay with it. The fees don't matter since you are within the amount you were willing to spend.

 

At least Great Collections is still at 10%. Wonder if they will move higher in the near future. If so, I will bid less. I think higher fees only hurt the seller, since people will bid less to cover these fees. I still feel like it's a buyers market right now. Stuff is cheap.

 

As previously stated, just factor in the "juice" as part of your bid and don't go over your self imposed limit.

 

Ksparrow if you want to go back to 10% fees find smaller dealers to work with, you are feeding the beast when you pay 17.5% over market value.

 

Evan
If you want to pay 10% then find smaller dealers, you are feeding the beast when you pay 17.5% over market value...

 

Wouldn't the amount arrived at be the same amount that "others" have arrived at using the same computational formula? I've seen this so often now that I'm sure other folks have as well.

The bottom line is that if the OP doesn't care for the fee's associated with buying coins in an online auction than perhaps he should consider only buying coins at coin shows or from B&M Coin Dealers?

 

I buy most of my coins at auction houses that charge the 17.5%, plus S/H. Yes, it sucks and I wish it were less; however, they also have great coins to choose from and if you're patient, you can get good deals.

These same auctions also attract many buyers, so bidding wars occur frequently. 2 months ago, there was a beautiful Morgan 1897-S MS66*. It hammered at $1700! I bid strong money @ $475 (well over FMV) and I was blown out of the water. No pedigree on the coin, just one that many thought was undergraded. Long story short, I wanted that coin, but only at my final bid. I let it go. There will always be deeper pockets than mine, but I've also learned that if you're patient, you'll be happier in the long run.

Like many said prior to my post, no one is forcing anyone to participate at these auctions. It's supply and demand.

 

I go to antique and estate auctions 5+ times a week for my business up here nearly all are 15% or more. The big boys in nyc are 25% I automaticly factor it in Ha has a nice feature that shows you the total with Bp before you bid. I use this all the time. Stacks does as well

 

Being self employed I'd love to go back to the early 2000s. I could charge less and make more due to the far lower cost of materials and fuel. Nearly all my expenses have gone up more then my profits. Yes I charge more but I actually make less. I can only charge what the market will bear $3-4 a gallon for fuel when you drive 30k miles and more a year and often in a big truck hauling a trailer is killer. And compare the price of lumber plywood etc to 10 years ago too. I miss the years pre 08!

 

Thank you for this comment, many don't understand what you've stated.

 

As mentioned faction in the fee's and shipping in your cost. Of course if you lose don't be surprised if that same coin ends up with a 30% to 50% markup some where else in a dealers inventory or on ebay. I would say stick to ebay - but those coins already have a mark-up or buyers fee built into them. Most people don't realize that and I can only chuckle when they say they avoid buyers fee. Now there are a few exceptions but it is not the rule.

I wish they would raise the fee's to 20% - might keep more bidders away and I could win a few auctions.