After three months of prepping for the auction we are almost ready. A good friend and car collector passed away in March, He always said "there will be a hell of an auction someday" Weather is supposed to be nice and it should be interesting.
Besides the cars there are piles of parts, engines, tools, hit & miss engines, antiques, tractor, etc...
Silver Creek NY - Saturday at 9am. Live onsite and and web bidding as well.
That looks like the one i was going to attend until i found out there is a 28% buyers premium. I think that is way too high. I don't think that Barrett Jackson is that much.
28%? it's 13% cash at sale
I have always thought that the person to whom the service is provided should be the one paying for it. Attempting to jack every nickel he can out of folks is a service to the seller, not to the buyer.
The way I see it whether or not a buyer's premium is imposed does not affect what a buyer is willing to pay for an item.
For example, if a buyer is interested in an item, and values it at $1,0000, he will bid up to $1,000 if there is no buyer's premium and will stop at $870 if there is a 15% buyer's premium. In either case, the buyer pays $1,000. If there is a buyer's premium the seller collects $130 less than would be the case with no buyer's premium because the bidder stopped $130 short of the items true value.
In the end, the seller takes the hit. But maybe it feels less painful for him to see paperwork that makes it look like the buyer took some of the hit.
It's all optics and perception.
Is the person who passed away named Walter Pyzda? The spelling of the last name may be wrong. I think that is his property and he was the nicest person to meet. Sorry to hear of his passing.
Diane, yes it was Walt Pazda that passed away. He died in March. He always loved to show off his collection to anyone that was interested.
I just spoke with his SO and it was him that died. That is so sad. He was such a nice man. RIP Walter.
He used to give us parts if we needed them. He wouldn't take any money. He would ask, "Does it make you happy?" "That is all that matters". Not too many people like that.
Timothy, I agree with you to a certain extent. If everyone at the sale did the "math game" you are correct. But the guy who would have gave 1000.00 for the item but stopped at 870.00 more than likely did not get it. The guys not playing the "math game" still bid it to 1000.00 one of them won it for 1000.00 but actually paid 1280.00 for it (or 1150.00 if 15% premium). Ive seen it happen too many times. Its very hard to buy anything at a good price, at a sale with a high buyers premium.
Looks like a nice collection.
I would like to read Stan's take on buyers premiums.
I always felt it was all but a rip off.
The auctioneer is working for the estate and should be making his earnings from them not double dipping both seller and buyer.
Doesn't anyone just auction things for a percentage of the total sale? High buyers premiums scare a lot of people away I'm afraid. Maybe auctioneer Stan Howe can explain the inner workings of the auction game.
Donnie, in your example either the item was really worth $1,150 or the bidder that paid $1,150 acted irrationally.
In either of the two foregoing instances, the seller bore the cost of the buyer's premium. Ignoring the seller's premium so as to simplify the analysis, either the buyer paid $1,000 and the seller received $870, or the buyer paid $1,150 and the seller received $1,000.
Jim, do you have a link? i just looked again and it shows 21.5 percent and 7.5 percent sales tax. I am probably at an old link. thanks
Timothy, In my example I am trying to show a item worth 1000.00 actually costing 1500.00 (15% premium). You can call it irrationally bidding or I feel like it is usually caused by people forgetting about the premium and bidding what they feel it is worth, then later remembering their mistake. In a large crowd, there is a good chance of someone forgetting on a lot of the items.
I meant to say "actually costing 1150.00" not 1500.00
There were a few fly by night auction companies that moved into our area that tried to charge a buyer's premium, they are not around any more. It really POed the people when they found an additional 15% added to their bill, the real auction companies make a point to advertize "no buyer's premium" on all their ads. In this part of the world, the seller pays to have the items sold, it is usually 6 to 8% plus ads. That way the seller can decide how much they want to spend on ads.
A guy in N.C. had a auction last year with no buyers premium. The fine print said anouncments at day of sale....
Added a 13% B.P. day of sale. And the good stuff (bait pictures) was nowhere to be found...we did find it later that day,it had been pulled/promised to someone.
Buyer's Premium is a dis-service to the seller. First; he/she is already paying a percentage to the auctioneer, second; buyers will bid less knowing they have to add the premium, third; some potential buyers (like me) will not attend due to the added premium thereby resulting in lower bids due to smaller attendance.
Agree with Gary's comments. I will not go to a sale with buyer's premiums unless there is something that I really really want....and then I do the math to decide how much to bid.
Man check out all the TT's! I wish I could get one. I LOVE that Esso tanker.
HOLY SMOKES. I just checked out the auction website. Not much in the way of anything speedstery, but gracious that place is a GOLD MINE of correct/original T parts. I mean, there's multiples of everything under the sun. There's 3 or 4 different complete engines for every T listed. All kinds of frames, rear ends, TONS of small stuff like Hyatt bearings, pullers, it just goes on and on and on.
going thru the car pictures, I figure lot 101 a 26 tudor is worth 5000, and lot 104 26 tudor 6000, we will see how the buyers premium affects that
I am an antiques dealer and go to many auctions. They ALL charge a buyer's premium. Usually 10% if you pay by cash or check and 13% if you pay by credit card.
I've been going to auctions here in the NW. MO. area for forty years and I had never heard of a buyer's premium until I started watching Barret-Jackson several years ago. I suppose some around here are starting to do it by now, if so, I won't be there. I don't care how you spin the bid/commision/premium equation. JMHO. Dave
The premiums are irrelevant to me as a buyer. They are negotiated between the buyer and seller. It's called free enterprise. It works well for everyone involved.
By all means if you can't figure out how to bid accordingly you should avoid any area in life that requires math. It's just a number - pay the total amount you want to with the fees included. If the price goes higher than you want to pay, including the fees, then you, the bidder, can just stop bidding. As the bidder you control how much you are willing to pay.
Royce, the buyers premiums do affect you. If you buy something for 100.00 they will add the premium to your ticket price so you end up paying 115.00 for it (plus tax). The buyer is the one to take the hit. It adds up real quick if you buy much. Around here the average Auction percentage on sales is 25 percent with no buyers premiumn. At most auctions the seller pays all that. So on a 100.00 sale the seller gets 75.00 and the auctioneer gets 25.00. And the buyer only paid the 100.00 he bid for the item. The auctioneers that are starting to do buyers premiums around here are supposed to be splitting the 25 percent between the buyer and seller. The auctioneer still gets the 25.00 of the 100.00 sale. Now the seller is only charged 10.00 for his part of the selling and the buyer is now charged 15.00 for his purchase (if it is a 15 percent buyers premium) so now the buyer paid 115.00 for his 100.00 bid. The auctioneers I talked to have said it is to try and get more sellers to use them for the auctioneer instead of someone else. By having the buyers premium the buyer should get 10 percent more money from his sales. That is the way it was explained to me by the few auctioneers that do it around here. I believe it is open to being used to the auctioneers benefit if he starts taking some of the buyers premium, (like I think some do) That may be the reason for the high buyers premium at this sale. ????? Make the premium a little higher so the auctioneer gets a little more. The auctioneer I use for my sales charges 25 percent of my sales for his commission. That's it, nothing else. There are no minimum bids for anything except big ticket items like cars boats motorcycles ect. All items with a minimum are announced before the sale and in the flyers. There are no changes to be announced the day of sale. No items are to be sold early or removed from the sale. (unless a legal dispute is brought up by an estate or ???) and if you can not make the sale leave a bid. He will bid for you in standard bid increases and not start the item at your bid. I have left bids for well over 100.00 for example and bought the item for 20.00 He does his auction the most honest and transparent way I have ever seen. He says if you do not want it to sell, do not bring it. He has a huge following of both buyers and sellers. It takes me about 4 months to get a spot in his sales as there are so many sellers wanting to sell there stuff there. I just wish more sales were like his. OK I'll stop ranting for now, Buyers premiumns have always been a dislike of mine .... these are just my opinions and Im sticking to them, not trying to make anyone mad,