The buyers premium is simply a tool auctioneers use to make more money. Auctioneers will tell you its a tool used to entice more sellers to consign with them. Here's how it works....
Say an auctioneer charges 20% commission to the seller at a traditional auction. Sellers don't like paying the 20%, so the auctioneer can offer a lower seller commission and charge a buyers premium, but here's the part they don't talk about.....they'll lower the sellers commission to 15% and charge the buyer 10%, so they make 25% instead of 20%!!!!!! Here's something else they don't tell you.....by law the buyers premium is supposed to go to the seller as part of the auction proceeds UNLESS the contract with consignors states otherwise.
I've had this discussion with an auctioneer friend that is a proponent of the bp. He says the lower seller commission helps to lure consignors to bring their merchandise to market. I countered that its the buyers with cash in hand that lure sellers to consign their merchandise.
I go to allot of collector auctions. Auctioneers say they need the additional income from the bp to offset their costs. Of course I look at it differently. Consider the expenses a buyer incurs going to an auction. The auctions I generally go to involve allot of travel, quite often hotel, meals, and travel expenses. The auctioneer's expenses pale in comparison to the buyers collective expenses.
Simply put the bp is BS. If the auctioneers want/need to charge more they should have the balls to tell the sellers they need to pay more.
I ALWAYS deduct the amount of the bp from what I'm willing to pay for an item.
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