Buying at arm's length

Kmaddock · 6th August 2019, 11:40 AM

On a medal forum i frequent I read the following

DNW plans to hike buyers premium to 24% from 20%, starting in September. This will mean that successful bidders will now need to add 28.8% to the hammer price (due to VAT on the buyers premium)

it is getting to be a large %

Keep well

Ken

A. G. Maisey · 6th August 2019, 12:18 PM

Which I guess means less for sellers.

Kmaddock · 6th August 2019, 12:58 PM

Quote:

Originally Posted by A. G. Maisey

Which I guess means less for sellers.

I assume, so commission with them is 15% plus VAT!

MForde · 6th August 2019, 03:27 PM

With the advent of the big online auction platforms of recent years it makes sense that fees have gone up as the houses have found a greater audience and with this connectivity has come greater costs. Is some of it greed? Yes, of course. Personally, I dislike all the fees anyway because I'm a simple chap who likes to know the price without having to do calculations on the fly.

A. G. Maisey · 6th August 2019, 09:50 PM

You have a very generous heart Ken, and I compliment you upon your humanity.

When I said "--- less for the sellers." I was not thinking in terms of commissions, but rather in terms of how much the seller will receive for an item put to auction.

At the end of the day everything has a perceived value, and that value is what the buyer will usually not go far beyond, so if fees for buyers rise, that is an inbuilt element in total cost, and the hammer price will fall accordingly, resulting in a lower payment to the seller.

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6th August 2019, 11:40 AM	#1
Kmaddock Member Join Date: May 2014 Location: Ireland Posts: 543	On a medal forum i frequent I read the following DNW plans to hike buyers premium to 24% from 20%, starting in September. This will mean that successful bidders will now need to add 28.8% to the hammer price (due to VAT on the buyers premium) it is getting to be a large % Keep well Ken

6th August 2019, 12:18 PM	#2
A. G. Maisey Member Join Date: May 2006 Posts: 6,992	Which I guess means less for sellers.

6th August 2019, 03:27 PM	#4
MForde Member Join Date: Apr 2018 Location: UK Posts: 36	With the advent of the big online auction platforms of recent years it makes sense that fees have gone up as the houses have found a greater audience and with this connectivity has come greater costs. Is some of it greed? Yes, of course. Personally, I dislike all the fees anyway because I'm a simple chap who likes to know the price without having to do calculations on the fly.

6th August 2019, 09:50 PM	#5
A. G. Maisey Member Join Date: May 2006 Posts: 6,992	You have a very generous heart Ken, and I compliment you upon your humanity. When I said "--- less for the sellers." I was not thinking in terms of commissions, but rather in terms of how much the seller will receive for an item put to auction. At the end of the day everything has a perceived value, and that value is what the buyer will usually not go far beyond, so if fees for buyers rise, that is an inbuilt element in total cost, and the hammer price will fall accordingly, resulting in a lower payment to the seller.