Heritage Raises Coins BP to 20%

Truly disgusting and greedy move by Heritage. They are slowly pushing out all of the smaller collectors.

Received this note:

Dear Brandon,

Please note that for all Coin & Currency auctions closing after August 11th, 2017, the Buyer's Premium will be 20% (minimum $19). Please direct any inquiries to 214-409-1150 or Bid@HA.com.

This was not a decision that we came to lightly. Heritage is a major player on the world auction stage, and our BP rates will now be competitive with the rest of the world's key auctioneers.

The Buyer's Premium for auctions in other categories will remain unchanged.

Sincerely,

Heritage Client Services
3500 Maple Ave. 17th Floor
Dallas, TX 75219-3941
Bid@HA.com​

I replied with this email to them.

Dear Heritage,

I'm sad to see your greedy move to an almost absurd 20% BP for Coin & Currency auctions. You continue to make money hand over fist and fill your pockets, and this move isn't very well masked when it is claimed that it is done to remain competitive. I find the idea as stated to be absurd and counter-intuitive:

"This was not a decision that we came to lightly. Heritage is a major player on the world auction stage, and our BP rates will now be competitive with the rest of the world's key auctioneers."

If you want to truly "be competitive" with the rest of the auctioneers, then keep your rates lower. That would cause people to prefer your services as one of the best and most competitive (i.e., less costly) auction houses in the business.

Sadly, you have likely limited my future business with this move. I see this as nothing more than a money grab and "price fixing" of the auction premiums across auction houses.

Kind regards,
Brandon ​

 

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Does anyone else charge 20%? (I don't know what eBay charges, but they don't count, IMHO)

 

We will see if this reduces their consignments or not because this hurts those choosing to sell there the most. Even though it's a "Buyers" premium, it comes out of the seller's pockets. They are not as worried about sales volume as they are sales commissions apparently, but I'm sure they have it worked out that this way benefits them the most. I don't view that as greedy, I view it as them operating their business in the way the see fit best. The nice thing is as consumers we have the right to respond in the form of not buying or selling as much from them moving forward.

 

"When you've got them by the balls, their hearts and minds will follow."
- Charles Colson, special counsel to President Nixon.

 

Yep. Continually increasing fees may expedite it too.

 

Large ones probably not, they negotiate most of the fee away anyway.

Legend has a huge opportunity to steal a lot of business away though if they are interested in expanding that business.

Regardless the fees are completely out of control.

 

Haha, this made me LOL.

Legend basically only sells PCGS and CAC coins. They are leaving out 50%+ of the USA-coin market. Not to mention, all of the world (non-USA) coins, which Legend will likely never touch -- they simply don't know anything besides "best of the best, PCGS, CAC, registry players, yadda yadda" material.

 

CAC isn't a requirement for their auctions, besides the best of the best is where the auction houses make their bread and butter. Legend could easily end up getting the big boy money maker coins from them.

 

Most of the major European houses have been 20% for several years. Some of the smaller US and European houses have been as much as 22% - 25% (and if you live in Europe you also have to pay a 15% VAT tax. So a European collector buying from a European house had to pay 35% in taxes and fees.)

Remember the good ole days when it was 10%/0% OR 5%/5%

 

Isn't there a seller's premium as well?
I ask becasue I had a friend sell a classic car at an large auction and he was charged (I think) a 15 percent seller's premium. And I know the buyer was charged a 15 percent buyer's premium.
If an auction house is getting 15 (or 20) percent at both ends, that's a ton of money they are racking in.

 

Stacks Bowers started the recent round of increases to 20% BP. Heritage and Goldberg have followed. Bonham's has been charging 25% for years. Legend has a split system: 17.5% (may go to 20%) for live auctions and 10% for internet-only auctions. Great Collections is 10%.

The buyer's premium is actually paid by the consignors. As a buyer I couldn't care less how what I pay gets divvied: tax, BP, auction house, shipping, orphans in India, etc. .... all I care about is the total cost. When I bid, my bid is based on what my total cost will be. When I consign though, all I'll get is the hammer. As BP's go up, consignors get less of the total.

Cal

 

If you get the hammer price you are doing well. The sellers premium can be as much as I believe 10% meaning you get only 90% of the hammer.

 

You're right that any seller's premium will be deducted from the hammer price.

Seller's premiums are negotiable; buyer's premiums usually are not. The power to negotiate is based pretty much on the value of the consignment. The higher the value of the consignment, the lower the seller's premium. Often the consignor can negotiate a zero seller's premium. I've heard, but have no hard data, that for an extremely valuable consignment (6 figures or more), seller may get a kickback of part of the buyer's premium.

Cal

 

I heard in some cases (high dollar coins) sellers negotiate a portion of the buyer fee's also. Not been in that position myself - but I was able to negotiate a 5% seller fee from heritage.

 

Well I just recently got a 25% raise at the hospital. My response was "Why? I know the hospital isn't doing that well financially, and I'm doing fine on what I was already getting. I don't need the raise." They gave it to me anyway. And in out department there is a government certification test we can take, and if we do we get an extra dollar an hour. Everyone else has taken it. When they tell me I should take it my response has always been "Why?, I don't need the extra money. Frankly I tend to feel they are paying me more than the job is worth now."

 

The free market will decide whether the bidding on Heritage will sustain the increased fee. And the free market also means that competitive sources to Heritage were just handed an increased advantage, at least as far as this collector is concerned.

 

Everything is negotiable with the right consignments. Of course the problem is most people can't reach that level though some dealers may help and include your stuff with their consignment if you have a good relationship.