See link below. It was 17.5%. New rate becomes effective after the ANA auction. They try to present it as though it's a good thing for buyers. Actually, it's consignor's who will pay. Buyer's generally have a fixed maximum they will pay that is hammer plus premium. If premium goes up, hammer goes down. I think live auctions and paper catalogs, which are major expenses, will fade away except for really expensive coins. So there will little reason to justify even the common 17.5% premium we see today. Some auction companies, like Legend and Great Collections, are charging only 10% buyer's premium for internet-only auctions. I predict a gradual shift of more expensive coins to auction this way. If you are a consignor and have a coin with $10K market value (i.e. what collectors are willing to pay in total), do you want to consign it to Stacks Bowers and get $8,333 (=10K/1.2) or to an internet-only auction by Legend or GC and get $9,091 (=10K/1.1)? eBay may benefit too from premium increases by traditional coin auction companies. Cal Link: http://www.stacksbowers.com/News/Pages/PressReleases.aspx?ArticleID=192
Has been happening in ancient auctions for a while now. Just like eating out, service people think there is no upper limit to what they can charge. Maybe they are right, but I suspect that the growth of takeout firms is showing consumers are sick of overpaying wait staff, and I believe you are right that other avenues will probably increase in popularity. Too bad there isn't a good site like Ebay that screens through listings to prevent all of the fakes and garbage. I simply do not have time to wade throw the garbage on Ebay anymore.
I hate buyer premiums. It does not make me spend more, it just makes it take longer to calculate how much my bid should actually be.
Heritage maybe, but I know that some of their execs opposed going from 15% to 17.5% a few years back. I don't think it will happen at Great Collections, at least not to 20%. Their thing is internet-only with a low buyers premium. I think if they do it right, they can start taking away higher-end coins from the big boys. Some auction houses, like Bonham's, charge 25%. Cal
It seems like the big 2 auction houses are moving to a model where only high value consignments can be viable for the seller giving them leverage to get back part of the fee. Legend certainly has a huge opportunity here if they remain with their lower fees. They are the one place competition wise that has proven the ability to get the same class of high end buyers and get big bucks for items. eBay should also see more 3 figure coins coming back to them if they sit on their fees, it's just not practical to be giving up almost 40 percent on lower value submissions.
I think Legend has a winning formula of having internet-only auctions with 10% buyers fees and live auctions for more expensive coins with 17.5% buyers fees. Cal
These auction fees are exorbitant and there should be legislation capping fees at a certain percentage.
Eh, not sure I would get the government involved in that. Just let the consumer make the call on how much is too much.
I agree. I fully expect their auction business to grow if that is something they are interested in growing.
I agree the government should stay out of setting coin auction premiums. I don't know that there is collusion (which would be a crime), so it's a free market. If a particular company raises its rates too high, they'll lose business to other companies. And collectibles are hardly necessities, so why should there be anything resembling price controls? A place where the government could take a useful role is being more active in suppressing counterfeits. Cal
Auction houses in every day items have even higher premiums. The local auction houses in my area charge 40% to the consignor and have a 10% buyer's premium. It is highway robbery in my opinion but they still sell tons of stuff since heirs and non-interested sellers don't care as much about their returns. Everything But The House (EBTH), a nationwide online auction firm, charges 40% plus from what I've heard but they still have plenty of business. I'm concerned that fees are only going to get worse since consignors don't seem to have a lot of leverage.
EBTH also has a horrible return policy. Basically, they won't accept returns on non-authentic items for jewelry (cite in house gemologist as an expert) and autographs (refuse to accept opinions of industry experts). I would imagine their policies are similar for problem coins. Also, I'd call them regional to the Ohio River Valley. They're expanding, yes, but that's their honey hole, so to speak.
I agree all very greedy with premiums and all other conditions,one of the most unscrupulous industries, unregulated ,not very transparent Amazing at gouging the public,only industry where you never know how much something will cost. Then some have the cheek to pay you after 45 days if you are selling. But when you are buying make sure you pay in full (with all the extra costs) with in 2-3 days or else extra charges. A real mugs game buying from Auctions. Think Salvator Mundi only $450.000.000.
