Auctions (not eBay)

niknaknoo1982

Is it normal practice for auctions to charge buyer 15% aswell as charging the seller??

theonlywayisup

My local auction house charges 18% plus VAT for the buyer and 12% for the seller.

niknaknoo1982

Thanks, i didn't know about buyers being charged fees too, always thought it was just the seller!!

soolin

The fees vary between houses. I use several auction houses and pay between 12-20% buyers premium on top of which VAT is also added.

The auction houses are required to display their commission charges somewhere on site or in the auction catalogue.

alien1234

wow, it is a bit high for charges isnt. I have not used auction house before. More visibility than eBay?

soolin

alien1234 wrote: »

wow, it is a bit high for charges isnt. I have not used auction house before. More visibility than eBay?

Frankly it varies, some of the houses I use have live online bidding and some do not.

I mainly buy from auctions and resell on ebay or to my contacts, but certain things I have bought just do better at auction.

If you are interested in real auctions this is a good place to start.

http://www.the-saleroom.com/en-gb
A world of advice though, make sure you read the individual terms and conditions for each auction house, some require you to colelct in 24 houirs whilst others allow you a week. So only bid if you can get there and collect.

lastly, check buyers premium, and is using this site to bid live they charge an extra 3% on hammer price.

It is very addictive though, I often have an auction running in the background while I am working.

bris

I use a couple of auctions where I am and the fee is 15% + VAT. You have to just factor this in with your bid. Some people who are new to real auctions get carried away and bid for second hand goods way over what they are worth, by the time they go to pay, they get the charges added and realise you can get a brand new one for less.
Sometimes the sale is alo subject to VAT as well as the 15% commision so look out for that too.

porto_bello

I've just been having a look through a forthcoming auction at Toovey's Auctioneers in West Sussex.

The buyer's premium is 22.5% + VAT And if payment is by credit card - there's another surcharge of 3% + VAT. Meanwhile, the seller's fee is 15% + VAT plus a listing fee of £6.

So if an item sells for £100, the auctioneer takes roughly an extra £31 from the buyer and an extra £24 from the seller ...

£55 in fees for selling on a £100 item! :eek: ... I'm surprised anybody buys or sells there!

RFW

Auction house charges vary massively. Some sell their own stock or on behalf of regular clients and try and discourage other vendors by having high charges. Some charge high buyers' premium and others charge none. I very rarely charged a buyers' premium but it became less and less viable to not charge.

Some do charge over the top, but it can be a difficult business to turn a profit. Advertising costs can be steep. Some sale rooms may only have one sale a month or even less frequent than that, so the turnover on the day has to be high. I know of a couple of salerooms where the sales fee is 25% or more but the way they market and attract custom it can often be worth it.

soolin

I must say that since I've started using B and M auction houses I'm beginning to think ebay is cheap in comparison!

I do get such a thrill though bidding in a real auction, it's the whole experience- usually sitting in a draughty building nursing a hot cup of tea waiting for the lots I want.

RFW

I remember one of the first auctions my dad let me go to on my own, it was in a massive industrial unit, I had to wait there most of the day and as the day went on it got colder and colder and then started snowing. As they had to have all the shutters open for access reasons, it was actually snowing inside!

It's still one of the best days I can remember.

There's actually been a resurgence in 'real' auctions over the last couple of years.