Redding Auction Service, Inc. is a NO BUYER’S PREMIUM auction facility!
What is a Buyer’s Premium?
A buyer’s premium is a percentage that an auction company adds on top of the price a buyer pays.
How Does a Buyer’s Premium Work?
For example, if an auction company has a 10% buyers premium and an item sells for $100, when the purchaser goes to check out the item will actually cost $110.
How Does a Buyer’s Premium Affect the Buyer?
When a company charges a buyer’s premium, bidders have to constantly calculate what the item is actually going to cost when they go to check out. This gives them a much lower margin on what they are able to spend regardless of whether they are a dealer or collector. It can be confusing and distracting while customers are trying to bid and figure out what amount they are actually bidding at.
How Does a Buyer’s Premium Affect the Seller?
Sellers often wonder how a “buyer’s” premium could affect them, and it could not have a greater affect. When buyer’s are having a percentage added to the price they pay, they are not going to bid as high. Therefore, items are not reaching their full potential and you are not getting the greatest return on your investment. Sticking with the same example, if someone only has $100 to spend, and they know they are being charged a 10% buyers premium, they are going to stop bidding at $90 knowing that it will be $100 when they go to pay. Not to mention, the seller does not see any of this money. Companies that charge a buyers premium are charging that on top of the selling commission and therefore taking a larger percentage of your collection. If a company has a 20% selling commission and a 10% buyer’s premium, they are actually taking 30% of your collection.
Why Does Redding Auction Service, Inc. NOT Charge a Buyer’s Premium?
Redding Auction Service, Inc. does not believe in charging a buyer’s premium. We are one of the last facilities in the country to maintain not charging one. We believe in our reputation, and although we have to work much harder, your best interest is our main priority. Being that we work strictly off commission, the better we do for our consigners, the better we do for ourselves. We are not guaranteed anything, so we have to get it right.