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If this sounds reasonable to you, then
read the following.
Mr. Seller contacts Mr.
Buyers_Premium
to sell
his
items at public auction.
Mr. Seller and Mr.
Buyers_Premium
negotiate the deal as follows.
Mr.
Buyers_Premium
tells Mr. Seller that he will charge a
"Buyers Premium" of 10% (or other percentage) and save
Mr. Seller that amount by charging it to the Buyer.
Usually, this percentage is reduced from the
higher
percentage that Mr. Seller must pay Mr.
Buyers_Premium.
In other words, Mr.
Buyers_Premium
says that he needs
25% (or other percentage) but he will reduce that
percentage by the 10% that he charges the Buyer.
Thereby only charging Mr. Seller 15% and charging Mr. Buyer
the additional 10%
to make Mr.
Buyers_Premium
the total 25%.
If this sounds reasonable to you, then
read the following.
Mr. Seller contacts Mr. No_Premium another
Auctioneer which does business in his community.
Mr. No_Premium after discussing the items to be sold
tells Mr. Seller that he would charge him 20% to sell his items.
~~~~~ Conclusion made by Mr. Seller ~~~~~
-
Mr.
Buyers_Premium
charges 25%
but, this is reduced by 10% "Buyers Premium"
Which leaves the 15% that Mr. Seller will pay.
-
Mr. No_Premium charges a straight 20%.
Thereby, Mr. Seller chooses Mr.
Buyers_Premium.
Mr.
Buyers_Premium
must be a better businessman
he is trying to save money for his seller.
Mr. No_Premium will not get the business.
If this sounds reasonable to you, then
read the following.
But, he also knows that there is a 10%
"Buyers Premium"
which will be added to his bill.
Therefore, he reduces his $100 bid by 10% and decides that he will only bid $90.
The bidding progresses and Mr. Bidder is the high bidder at his top bid of $90.
It appears Mr.
Buyers_Premium
is doing a good job for Mr. Seller.
Item Sold For $90.00
Mr.
Buyers_Premium
commission of 15% equals $13.50
Mr. Seller receives $76.50 for his item.
If this sounds reasonable to you, then
read the following.
Now its Auction day again.
Same Mr. Buyer same item but no "Buyers Premium".
The bidding progresses and Mr. Bidder is the high bidder at his top bid of $100.
Again its Settlement time.
Mr. No_Premium pays Mr. Seller for his item.
Item sold for $100.
Mr.
No_Premiums commission of 20% equals $20.
Mr. Seller receives $80.00 for his item.
It appears that Mr.
No_Premium was a family friend.
~~~~ Final Conclusion ~~~~
Mr.
Buyers_Premium
received
"Buyers Premium" of $9.00
and commission of $13.50
for a total of $22.50
Mr. No_Premium receives
his commission of $20.00
It seems to me that a "Buyers
Premium" is only
a way to get the seller to pay more money.
Also,
the
only
winner
is
the
Auctioneer
who
charges
the
"Buyers
Premium".
So
who
is he
looking
out
for?
Therefore, is it a
"Buyers Premium" or a
??????? "Sellers
Premium" ???????
Remember, usually all you have to do is follow the Money !
Also, in my opinion an Auctioneer should charge a
straight percentage, not a percentage and charges
for setup, advertising, etc.
But, that's another topic.
Press
Here
for
printable
copy
of
"Buyers
Premium"
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