(800) 853-2651
SHOP NOW

Buyer's Premium Auctions

C

cool hand

Member
Location
SE IN
Buyers premium
Maybe I misunderstand the concept, but buyers premium auctions infuriate me. I will not attend such an auction. Your views on this particular feature ?
 
Really no reason to get upset. The other buyers are paying also. Auction houses have to make money either the buyer or the seller pays and in most cases both. All you have to do is REMEMBER that when you bid one hundred dollars you are actually bidding 110 dollars or what ever the b buyers premium is. If you did not attend auctions with buyers premium you pretty much would be left out around here. Kind of the norm.
 
At this point in time I just dont care for some of the auctions that charge substantially more if you buy online vs in person.
 
Only auctions I attend with buyers premiums are ones that charge a premium for credit card users (reasons for that are understood).
Everyone that has attended many auctions knows there are buyers that could care less if they have to pay an extra 10%, maybe they are the ones that certain auctions are targeting. We all have seen auction prices that made no logical sense, do those buyers mind an extra 10 or even 15% ?
 
They found a way to nearly double their income and the people paying the extra just go along with it. I dont get upset, I just wont attend those auctions.
 
I don't care for the buyer premium bit either. A couple years ago I saw the auctioneer SUSPEND the premium on six items at one sale, how fair is that??
 
It's simple. The auctioneers have figured out that there are plenty of weak willed buyers out there to pay such premiums. Not so much weak willed sellers. Buyer's premiums are not going away anytime soon. Contrast that with a couple generations ago when most farmers were sold out less than willingly and buyers had to be coaxed to attend sales. So the practice back then was to charge the seller. Even if it was a bad situation with the seller the auctioneer always got paid because the banks did not want to be in the selling business.
 
I'm only going to pay how much I want for something if that includes a buyers premium that is fine I just figure that into my bidding.I couldn't care less
how the seller and auctioneer divide the money up.
 
Well, nobody likes to pay extra for anything, that's human nature. If you contacted the auction company and told him that you weren't going because of the premium they charge, they'd probably say ..... 'OK, anything else I can help you with today?' Think of it as a sales tax. The only way to avoid it is to stay home and not buy what's for sale (or up for auction).
 
I decide what I'm willing to pay for an item, and reduce that by the buyer's premium to determine my maximum bid.
 
I think that there's so much demand for auctioneers and people liquidating their stuff, that if a job is just so-so, they'll do a buyer's premium sale. If you have a big, juicy farm auction with nice total sales prospects and quality merchandise, then the seller can negotiate a no-buyer's-premium sale, - possibly to his/her advantage. It's all about how much the auctioneer wants to take home.
 
9 out of 10 that i attend are buyers premium auctions. it doesn't make any difference to me what kind they are. most of the time, we don't even know what the premium is!
 
We used to attend a nationally known antique auction house for many year when we were in the business. The owner said he'd never charge a buyers premium. But, circumstances and the market changed to the point he was losing consignments to houses that had reduced the seller's percentage and implemented a buyer's premium. Our favorite house had to implement the buyer's premium or they would have gone out of business.

It's really a sharing of the selling expenses between seller and buyer. I don't like it either but that's the way it is now.
 
When this all started, I asked one of our local auctioneers what a buyers premium was. He said that sometimes the seller refuses to pay the auction company's commission. In that case we charge a buyers premium to get our commission. I am thinking there is not much difference either way, the seller is going to be missing some money - there just isn't a commission listed with a dollar value subtracted from the sale total. As long as the buyer remains aware of the premium charged the sale total could/will be less, there is just not a number for anyone to see.
 
Anyone that can do math knows how much they are bidding and bid according to what they plan on paying for an item. If they want 50% buyers premium then the seller is losing 50%.

Hate to ask how you feel about sales tax....
 
From what I have seen the seller is not losing a thing. How does the auctioneer not got paid when he is the one that hands out the check for the sale of the seller's item(s)? In the old days of charging a seller the auctioneer's commission is taken out of that check before it reaches the seller. At least that is how it went around here. Auctioneers can see that the escalation in new equipment prices has created very healthy bidding for older low tech (lower parts cost and easier to repair) machinery. Just this past Saturday a very rough JD 2640 and welded up 146 loader brought over 4,000 dollars at a local auction. That is a good 1,500 dollars more than what I would have given for it. But somebody had an immediate need for such an outfit and probably figured if they had to dump several thousand dollars into the tractor and live with a usable but ratty loader they were still ahead many many thousands from a later tractor and loader.
 
When you buy at a store you have to pay taxes on the purchase. It isn't included in the price of the item, it is added later. In my opinion, it is the exact same thing. But to each his own. Accept it or not, it is strictly your choice and no one else's.
 
I tend to watch how much they charge and it also depends if I wanting something in particular or just seeing if I can get a good deal on something. more auction are doing this in the last few years and see it more on online auctions.
 
I used to make a living attending auctions buying and selling farm equipment and I don't like buyers premiums. HOWEVER like anyone else I have the freedom and choice to not attend at all, or bid 10% less to account, or not worry with and pay it TO EACH THEIR OWN but I still dont like it grrrrrrrrrrrr

John T
 
NY 986, I am suggesting the seller can lose because buyers may stop bidding earlier due to the buyers premium. This would mean the auction total would be less. Some auctions are also subject to sales tax which would have the same effect of stopping the bidding earlier. However, there is really no way to know because you can't just rerun the action without the fees. Yes, the auctioneer gets his/her commission either way. Yes, the old way was to pay the seller the sale total minus the auctioneer's commission. In the case of a buyer's premium, the seller is paid the sale total minus the buyer's premium. The unknown is, what effect does a buyer's premium have on the sale total when the seller knows his/her bid price is, the bid plus buyer's premium? If the sale total is reduced the seller can lose.
 
Think about this. If the auctioneer did not charge a buyers premium then the auctioneer would charge the seller a higher commission.
 


Cool hand you are not looking very cool, LOL. This has come up here many times in the past. If you can't calculate it in your head your 'phone has a calculator.
 
On a local basis I am not seeing that happening. Bidding is very healthy on nearly all items including those that have questionable value. The auctioneers are picking up on that most bidders have little in the way of discipline. Some items are limited by what they are in nature and will only fetch so much money unlike other items which receive bids equally or surpassing what they were when new. A CIH 720 plow within the last 10 days sold for 1,700 dollars despite being in near new condition. What is going on at auctions that I find maddening is the timing sale. I had two items my wife was watching last Friday and for an hour my bid was the highest. Then with five seconds to go on each item somebody jumps in to outbid me. Time is insufficient for me to post a counter bid. I found it very strange that this happened twice in the same sale in the same manner. If I did not know any better I would say that the auctioneer was helping someone stalk me. GRRRRR.
 
I don 't see why you are so angry. As you indicated, just don't attend. But of course you will miss many auctions. Around me you would miss just about all of them. Lots of things I don't like but can't change so I shrug and move on.
 
(quoted from post at 06:29:07 10/05/21) I don 't see why you are so angry. As you indicated, just don't attend. But of course you will miss many auctions. Around me you would miss just about all of them. Lots of things I don't like but can't change so I shrug and move on.
Click to expand...

It's because I can't get stuff cheee-eeee-eeee-eeeeap anymore!

The guys complaining are primarily the ones who go to the auctions to get things at way below their true value so they can take them home and "flip" them, or at least boast about how little they paid for their piece of equipment.
 
(quoted from post at 16:01:50 10/04/21) Buyers premium
Maybe I misunderstand the concept, but buyers premium auctions infuriate me. I will not attend such an auction. Your views on this particular feature ?
Click to expand...

Fundamentally I do not have a problem with the buyers premium format as I can easily do the math in my head so I don't go over what I am willing to pay for an item.

What I do have a problem with when it comes to this format is there seems to be many out there that can't or don't do the math which often results in them bidding an item up higher than what is the going value for an item.

I once watched 2 guys bid up and buy a skid of automotive antifreeze, their final cost with the premium was about $2 more per jug than what the local stores were charging for the exact same stuff.

When your surrounded with stupid like that you wonder why you even wasted your time going to the sale in the first place.
 
Bidding right at the end of a online timed bid happens all the time. It is a bidding method to try do exactly what they did, catch you off guard! It's not the auctioneer trying to bid you up.
 
(quoted from post at 12:36:50 10/05/21) Bidding right at the end of a online timed bid happens all the time. It is a bidding method to try do exactly what they did, catch you off guard! It's not the auctioneer trying to bid you up.
Click to expand...

Yes, what good would it do for the auctioneer to outbid you at the last second without giving you a chance to up your bid? They get stuck with the item, no commission, and no buyer's premium.

That practice is called "bid sniping" or just "sniping." It's regular bidders doing it, hoping you're at your upper limit so they can outbid you by a small amount right at the last moment.

You placed an upper limit on your bid for a reason, that reason being if the bidding went over that amount, you did not want the item. So why get upset if you get outbid?

There are ways to combat sniping: Increase your bid at the last minute by just over the minimum amount, so even if they try to snipe you, you will outbid them and beat them at their own game. Snipe the sniper.

Many online auction platforms that local auctioneers use have an auto-extend feature which adds a minute, or 2 minutes, or 5 minutes, AND minimum bid increments, to the auction to discourage bid "sniping."
 
No auto extend feature in this sale. I guess next time I will have to leap frog the sniper in this case by 10 dollars. It just
seemed weird that the same thing happened on two different items probably 70 lots apart. I guess now I will have to see if I want
to deal with Kent seeing he has gotten real rigid on item pick up. No problem with small stuff that you can throw in your pick up
truck bed but not everybody is on standby if you need a tractor or implement hauled ASAP. I need a parts tractor so I can do some
work on my M.
 
May or may not work,on line auctions in my area are a 'soft close' meaning if a bid is made in the last minute or so it resets the bidding back to over a minute.I've seen that go on for quite awhile.On ebay auctions with a hard close I rarely bid my maximum until the final few seconds.I've entered bids hundreds of dollars over the current bid with just a few seconds left,rebiding $10 more would not work
 
I have seen some auctioneers offer the soft close feature but it was not in play here. The one item was 50 dollars with my bid and the sniper offered 55 so at least here I think 60 dollars would have worked. I still find it strange that I would get sniped twice in the same auction on unrelated items but a lesson learned.
 
I should also say in regards to B.E. that this was not a ebay type auction where the auction company knows you have set an upper limit relative to your current bid. I had the high bid until being sniped and know the final selling price.
 
You may know the final bid but you don't know what the winner bidders maximum bid was.What you are calling sniping is just smart bidding.On a hard close auction say I'll go $2000 but the bidding over several days inches up to $500.The last few hours or so I'll enter bids that meet the minimum increase maybe pushing to bid up to $700 then I quit bidding hoping the other bidders think I'm done,then in the last few seconds I'll enter my $2000 maximum bid knowing no one has time to rebid.Of course others may be using the same tactic and I might get out bid.If you want an item you have to enter your absolute maximum no matter how cheap things seem to be going.
 
For the auction in question there was no way to set a predetermined maximum amount for the auctioneer to refer to. So there is no way for a competitor to do so as well. As said this was not an ebay type auction or anything like it. Pretty much like if we were standing there live but only timed versus a square off where it is sudden death when nobody raises the bid. If you are at 700 with time running out you automatically go to 2,000 dollars?
 
(quoted from post at 19:50:15 10/05/21) For the auction in question there was no way to set a predetermined maximum amount for the auctioneer to refer to. So there is no way for a competitor to do so as well. As said this was not an ebay type auction or anything like it. Pretty much like if we were standing there live but only timed versus a square off where it is sudden death when nobody raises the bid. If you are at 700 with time running out you automatically go to 2,000 dollars?
Click to expand...

You just experienced plain old internet auction sniping.
The two of you were playing chicken as to who got the very last bid in on time.
 
The system increases the bid amount by the minimum needed for my bid to outbid the highest bidder.Usually increments of $25.If the next highest bidder say
bid $1425 I'd get the item for $1450.
 
You must log in or register to reply here.

Similar threads

W
1948 Case DC
Replies
3
Views
389
ShakerPrairie
S
Butch(OH)
Consignment auction plow sales?
2
Replies
21
Views
667
Leroy
L
W
What's wrong with this picture?
Replies
2
Views
659
Wrangler1973
W
K
Restored Oliver 550 at auction
Replies
0
Views
526
K Effective
K
T
Buyers premium
2
Replies
33
Views
2K
BarnyardEngineering
BarnyardEngineering
Tractor Parts Tractor Manuals

We sell tractor parts! We have the parts you need to repair your tractor - the right parts. Our low prices and years of research make us your best choice when you need parts. Shop Online Today.

Copyright © 1997-2024 Yesterday's Tractor Co.

All Rights Reserved. Reproduction of any part of this website, including design and content, without written permission is strictly prohibited. Trade Marks and Trade Names contained and used in this Website are those of others, and are used in this Website in a descriptive sense to refer to the products of others. Use of this Web site constitutes acceptance of our User Agreement and Privacy Policy TRADEMARK DISCLAIMER: Tradenames and Trademarks referred to within Yesterday's Tractor Co. products and within the Yesterday's Tractor Co. websites are the property of their respective trademark holders. None of these trademark holders are affiliated with Yesterday's Tractor Co., our products, or our website nor are we sponsored by them. John Deere and its logos are the registered trademarks of the John Deere Corporation. Agco, Agco Allis, White, Massey Ferguson and their logos are the registered trademarks of AGCO Corporation. Case, Case-IH, Farmall, International Harvester, New Holland and their logos are registered trademarks of CNH Global N.V.

Yesterday's Tractors - Antique Tractor Headquarters
Website Accessibility Policy

Back
Top