Storage Auctions

Boycott "Buyer's Premium"

Boycott "Buyer's Premium"
« on: November 02, 2011, 01:57:13 AM »
Hi all,

I'm writing to encourage everyone to boycott auctions that add an additional 10% "buyer's premium" onto your fees, on top of the 10% sales tax you already pay, depending on your area!  In California, that's 20% OVER your bid!
When you bid over $1000, that becomes extremely expensive.  A $1000 bid will cost you $1200 total.   American Auctioneers is doing this now.  Be sure to ask before you go to an auction.  If they do that, please boycott them, and encourage all the other bidders you know to boycott them.   They already make a very good commission from the vendor, so they are double-charging for the same job, with no real service to you.

Enough is enough.

Other auctioneers are doing this as well, but I don't have a list to share.  I'm new here, so I'm sure the members are far more familiar with this than I am.  Apparently in England they are getting even more gouged than we are.  Here is a link to an article on this price gouging:

ganews.co.uk/premium.html

I know this is a fulltime business for many of you, but if there is a way to boycott these Auctioneers that have gotten out of control (sound familiar?)  please do so.
Please also call American Auctioneers at 800 838 7653, and other houses that do this and let them know what you think of their 10% additional "buyer's premium", when they are already making a good commission from the storage facility.

Thanks.

Offline MovieMan

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Re: Boycott "Buyer's Premium"
« Reply #1 on: November 02, 2011, 09:56:35 AM »
My understanding here in central California is that Extra Space facilities are charging a 10% buyer's premium effective a couple of months ago.

In central CA the Extra Space's are conducted by J. Michael's (headed by Mike Joyce) which has its main office in southern CA.

My feeling is that Extra Space is taking advantage of the TV shows' popularity and is using that 10% to help defray the cost of the 20% to 25% they are paying J. Michael's.

*******

As to boycotting such practices, I would say "good luck".  There will be regular bidders to whom the extra 10% will not be a deterrent. I might be one of those if the lkr really looks good...it only takes one good piece to offset that extra cost and if the lkr is full of goodies I would take the hit.

On the other hand the extra charge MIGHT dissuade some of the newer buyers who in fact DO pay the sales tax as well at the time they buy the lkr.


Re: Boycott "Buyer's Premium"
« Reply #2 on: November 02, 2011, 03:39:17 PM »
Boycotting will not work. You will never get every single buyer to do that and failing to secure a zero attendance just means those that showup will get a better deal. You just have to be able to do the math as you are bidding and calculate the extra fees into your bid. If it's still a deal, buy it, if not, then let it go.
If I think a locker is worth $300.00, I know I have to stop bidding at about $260.00 when they are collecting tax and buyer's premiums. 260 x.10=$26 (premium): 286x.07=$20 (tax, approx.). (Personally, I think it is illegal to collect the tax on the buyer's premium but they do.)

Re: Boycott "Buyer's Premium"
« Reply #3 on: November 03, 2011, 12:20:55 AM »
I figure the buyers premium into the final cost of the locker.If I boycot those auctions there would be very few auctions to attend.

Offline Cobia

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Re: Boycott "Buyer's Premium"
« Reply #4 on: November 03, 2011, 07:30:47 AM »
Boycotting will not work. You will never get every single buyer to do that and failing to secure a zero attendance just means those that showup will get a better deal. You just have to be able to do the math as you are bidding and calculate the extra fees into your bid. If it's still a deal, buy it, if not, then let it go.
If I think a locker is worth $300.00, I know I have to stop bidding at about $260.00 when they are collecting tax and buyer's premiums. 260 x.10=$26 (premium): 286x.07=$20 (tax, approx.). (Personally, I think it is illegal to collect the tax on the buyer's premium but they do.)

I personally love the auctions with the 10% buyers premiums because so many people forget about it when they start bidding especially the newbies. Conversation at last buyer premium auction.
NOOB "I don't know if I should have spent $750 on that locker, but hopefully it will work out."
ME "No, you just spent $825 on that locker. Good luck with that one."
NOOB sullen look on face, walks away
Said locker particulars 10 x 15 3/4 full, roaches ran for cover when door went up, nasty red couch, washer, Alabama luggage (garbage bags filled primarily with Wal-Mart clothing), Wal-Mart bike (must of been what sent the bidding to the moon  ::) ) nasty boxes, junk, etc.

Offline bwd111

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Re: Boycott "Buyer's Premium"
« Reply #5 on: November 03, 2011, 10:16:35 AM »
Hi all,

I'm writing to encourage everyone to boycott auctions that add an additional 10% "buyer's premium" onto your fees, on top of the 10% sales tax you already pay, depending on your area!  In California, that's 20% OVER your bid!
When you bid over $1000, that becomes extremely expensive.  A $1000 bid will cost you $1200 total.   American Auctioneers is doing this now.  Be sure to ask before you go to an auction.  If they do that, please boycott them, and encourage all the other bidders you know to boycott them.   They already make a very good commission from the vendor, so they are double-charging for the same job, with no real service to you.

Enough is enough.

Other auctioneers are doing this as well, but I don't have a list to share.  I'm new here, so I'm sure the members are far more familiar with this than I am.  Apparently in England they are getting even more gouged than we are.  Here is a link to an article on this price gouging:
ganews.co.uk/premium.html

I know this is a fulltime business for many of you, but if there is a way to boycott these Auctioneers that have gotten out of control (sound familiar?)  please do so.
Please also call American Auctioneers at 800 838 7653, and other houses that do this and let them know what you think of their 10% additional "buyer's premium", when they are already making a good commission from the storage facility.

Thanks.
Why not make it 20% people love to over bid! Maybe this will stop over bidding? Then maybe we can start getting great lockers at 150-350 again. lol yeah good luck with that happening.

Re: Boycott "Buyer's Premium"
« Reply #6 on: November 03, 2011, 01:50:56 PM »
I'm so thankful that I've yet to attend an auction with a real auctioneer and the "buyers premium".

Offline jrossjr79

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Re: Boycott "Buyer's Premium"
« Reply #7 on: November 03, 2011, 08:22:43 PM »
lol, I support this. GO ahead boycott it. I will enjoy the peace and quiet and get my lockers lower priced because of it. SO ya I support yall boycotting it. But you wont see me boycott it.

Re: Boycott "Buyer's Premium"
« Reply #8 on: November 03, 2011, 11:43:56 PM »
I just shave the 10% off my max bid.  If I figure it's a hundred dollar unit I only go to 90.  Generally I avoid professional auctioneers, but sometimes I have to deal with them.

I to wish people would boycott auction, for this reason or any.  The fewer the merrier.

Re: Boycott "Buyer's Premium"
« Reply #9 on: November 04, 2011, 08:15:08 AM »
While you the buyer want to get the deals Cheap the auctioneer cannot make a living???
All people see is the auction not the work before and after an auction.

Offline MovieMan

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Re: Boycott "Buyer's Premium"
« Reply #10 on: November 04, 2011, 10:41:59 AM »
While you the buyer want to get the deals Cheap the auctioneer cannot make a living???
All people see is the auction not the work before and after an auction.

Well, let's take a couple of examples:

Example #1:

A batch of lkrs sells for $6000. Auctioneer might get 20%; if so that is $1,200 for 30 or so minutes of actual work.
That's pretty good money.

Even considering that the auctioneer had to drive x miles to get to the auction, had to update an online list and maybe a physical list to hand out, etc, etc, it still works out to a lot of money.

Example #2:

A batch of lkrs sells for $600. Auctioneer getting same 20% for 30 or so minutes of actual work would get $120 minus the costs indicated above.

I can't imagine anyone would complain about the pay that actually would fall between those two extremes.

***

Oh, I forgot to mention that in central California if the auction company cuts the locks and does a picture and paper work for the facility they typically get $25 per lock cut.  Cut 10 locks...get $250 for maybe 1 to 1.5 hours of work (plus the drive, gas, etc).

Sorry, I have no sympathy for the "poor" auctioneer.

Offline Drew

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Re: Boycott "Buyer's Premium"
« Reply #11 on: November 04, 2011, 11:32:02 AM »
They are making bank right now!

Offline alloro

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Re: Boycott "Buyer's Premium"
« Reply #12 on: November 06, 2011, 11:55:25 AM »
Ever see a unit go for $1 or $10? The auctioneer did all of the work for $0.10 or $1, so it goes both ways. Like it was said earlier in this thread, subtract 10% from your maximum bid so you don't over pay.

Re: Boycott "Buyer's Premium"
« Reply #13 on: November 07, 2011, 12:22:05 AM »
lol, I support this. GO ahead boycott it. I will enjoy the peace and quiet and get my lockers lower priced because of it. SO ya I support yall boycotting it. But you wont see me boycott it.

That's the spirit, jrossjr!  I figured there would be many people with your attitude.  That's what keeps the auctioneers raising the buyer's premium over the years from 5%, to 7%, now 10%, Sotheby's now charges 15% on some auctions, why not 20%?  You won't mind, no matter how narrow your profit margins becomes.   It's folks like you that will ensure that it keeps going up over the years.
Good job.....

Offline jrossjr79

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Re: Boycott "Buyer's Premium"
« Reply #14 on: November 07, 2011, 08:27:03 AM »
That's the spirit, jrossjr!  I figured there would be many people with your attitude.  That's what keeps the auctioneers raising the buyer's premium over the years from 5%, to 7%, now 10%, Sotheby's now charges 15% on some auctions, why not 20%?  You won't mind, no matter how narrow your profit margins becomes.   It's folks like you that will ensure that it keeps going up over the years.
Good job.....

Everything goes up in price with time. So that does not make a difference with me. And if you add that 10% to your bid, your not losing on your profit margins. If you are not doing that, then that is your loss.


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