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Internet Auctions and Buyers Premiums - Value


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Having recently purchased a couple of items on a recent Internet auction I wondered what people's views on here were on buyers premiums and how they affect values and what people are prepared to pay when buying on these auctions . 

Valuation is an art not a science and I fully understand it is what someone is prepared to pay on the day in a particular auction , however some of the buyers premiums charged by the online auction  houses are one fairly substantial the buyers premium I paid recently was 27.6% which is not far off plus a third of the hammer price . As it was the particular items I bought fell within what I was prepared to pay but there have been numerous occasions where the buyers premium has stopped me buying in effect . As regards value if for example the model say was knocked down at £100 in the auction I was looking at the actual cost to the buyer would have been £127.60 so is the value of that item £100 or £127.60 ? What I am saying here is if I listed the item on EBay the following day would it sell for around £100 or £127 .60 ? 

Also in this scenario are sellers losing out because of the high cost of buyers premiums and is it affecting the actual value of items in the market place ? 

Any views or thoughts ? 

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1 hour ago, FendtFarmer said:

It’s horrendous that’s buyers premium, certainly puts me off from buying there and there is some really nice stuff gets sold and at not bad prices either....until you add the commission 

Yes but that bad if you won't to sell it on but if your keeping the model it's up to you what you pay and the hammer price 

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29 minutes ago, FendtFarmer said:

Yeah true, guess it’s everyones personal preference at end of the day 

Well I bought a set for £75 and +16,20 and then post I say it be up to £150 when home but won't be selling it 

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For a seller it can be a good place to sell I think as you have not got the hassle that comes with selling on eBay none payers posting etc. I don’t know how the fees compare for selling but buy the time eBay and PayPal take their % ebay is not a cheap place to sell.

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On ‎12‎/‎8‎/‎2018 at 9:39 PM, Zebedee said:

For a seller it can be a good place to sell I think as you have not got the hassle that comes with selling on eBay none payers posting etc. I don’t know how the fees compare for selling but buy the time eBay and PayPal take their % ebay is not a cheap place to sell.

Worked example for you - this is using a local to me Auction House and their fees.  It also assumes that you are attending and can take away your purchase from said Auction House.  Ebay numbers assume you are a private seller as I don't know what business seller fees etc. are.  Hope it makes sense.....and that I have my calculations about right!!!

                                                                                 Auction House
  Buyers Commission Total Payable Sellers Commission Total Received Total for
Hammer Price (20% + VAT) by Buyer Entry fee Commission Fee by Seller Auction House
£100.00 £24.00 £124.00 £3.00 £18.00 £79.00 £45.00
                                                                                          Ebay
  Buyers Commission Total Payable Sellers Commission Total Received Total for
Final Price   by Buyer Entry fee Valuation Fee by Seller Ebay
£100.00 £0.00 £100.00 £0.00 £10.00 £90.00 £10.00
                                                                       If Posted and Paid with PayPal
  Buyers Cost Total Payable Sellers Commission Total Received Total for
  Postage by Buyer PayPal Fee Valuation Fee + Postage Cost by Seller PayPal
  £10.00 £110.00 £4.07 £21.00 £84.93

£4.07

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1 hour ago, AndyB said:

Worked example for you - this is using a local to me Auction House and their fees.  It also assumes that you are attending and can take away your purchase from said Auction House.  Ebay numbers assume you are a private seller as I don't know what business seller fees etc. are.  Hope it makes sense.....and that I have my calculations about right!!!

                                                                                 Auction House
  Buyers Commission Total Payable Sellers Commission Total Received Total for
Hammer Price (20% + VAT) by Buyer Entry fee Commission Fee by Seller Auction House
£100.00 £24.00 £124.00 £3.00 £18.00 £79.00 £45.00
                                                                                          Ebay
  Buyers Commission Total Payable Sellers Commission Total Received Total for
Final Price   by Buyer Entry fee Valuation Fee by Seller Ebay
£100.00 £0.00 £100.00 £0.00 £10.00 £90.00 £10.00
                                                                       If Posted and Paid with PayPal
  Buyers Cost Total Payable Sellers Commission Total Received Total for
  Postage by Buyer PayPal Fee Valuation Fee + Postage Cost by Seller PayPal
  £10.00 £110.00 £4.07 £21.00 £84.93

£4.07

I have just sent you a message there? 

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