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Hi, I had I quick question. I recently held an auction. I was charged
15% of the total
sales by the Auctioneer. Just before stating the auction she announced
there will
be a 10% buyers fee. So, all said she made 15% from us and 10% from
the buyer
for a total of 25%. I realize 10% does not come out of my pocket it
comes out of the
buyers pocket, but if you consider the buyers are going to consider
this when bidding
and bid lower to compensate for the added 10% then it is I that will
ultimately be paying
the 10%, right? Is this legal? Again, the contract with the Auctioneer
stated only 15%.
Thank you for your time and any help that you may give in regard to
this matter.
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On Wed, 2 Apr 2008 18:01:05 -0700 (PDT), BobbyTMS@yahoo.com wrote:
Hi, I had I quick question. I recently held an auction. I was charged
15% of the total
sales by the Auctioneer. Just before stating the auction she announced
there will
be a 10% buyers fee. So, all said she made 15% from us and 10% from
the buyer
for a total of 25%. I realize 10% does not come out of my pocket it
comes out of the
buyers pocket, but if you consider the buyers are going to consider
this when bidding
and bid lower to compensate for the added 10% then it is I that will
ultimately be paying
the 10%, right? Is this legal? Again, the contract with the Auctioneer
stated only 15%.
Thank you for your time and any help that you may give in regard to
this matter.
Let's say the items sold totalled $100,000.
You pay the auctioneer $15,000 for their services.
Each person who buys something, "buyer", pays the auctioneer 10% of
the value of the item purchased. NOT the total income of the auction.
So if "buyer" claims a $1000 item "buyer" pays auctioneer $100. YOU
pay nothing more.
So even though the percentages add up to 25%, that is not what the
auctioneer is taking home. It could be more, it could be less,
depending on the value of the items sold.
And yes it is perfectly legal. It's an age old tradition of
auctioneers to take a percentage rather than a lump sum.
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Hi, I had I quick question. I recently held an auction. I was charged
15% of the total
sales by the Auctioneer. Just before stating the auction she announced
there will
be a 10% buyers fee. So, all said she made 15% from us and 10% from
the buyer
for a total of 25%. I realize 10% does not come out of my pocket it
comes out of the
buyers pocket, but if you consider the buyers are going to consider
this when bidding
and bid lower to compensate for the added 10% then it is I that will
ultimately be paying the 10%, right?
Yep
Is this legal?
Check with the Texas state department that licenses Auctioneers and ask
them.
Again, the contract with the Auctioneer
stated only 15%.
You're argument that the Buyer's fee actually depresses the price bidders
offer,
in effect costing the seller 25% is logically valid.
Check with the Texas state department that licenses Auctioneers and ask
them.
Thank you for your time and any help that you may give in regard to
this matter.
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On Wed, 2 Apr 2008 18:01:05 -0700 (PDT), BobbyTMS@yahoo.com wrote:
Let's say the items sold totalled $100,000.
No, let's not, you stammering jackass.
--
Posted via a free Usenet account from http://www.teranews.com
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Bobby,
Did you have a written contract? What does it say? I've not been to an
auction in several decades but I don't ever recall this "buyer's fee" so I
disagree with Richard, it's not an age old tradition.
I doubt that the buyer's fee is illegal but it may breach the contract
between you and the auctioneer. As you point out this fee depresses your
profit.
Might be worth a trip to small claims court. But first visit a few
auctions to see if this fee is common in your area.
Good luck,
Dave M.
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Bobby,
I think your logic is sound, but you overlook one side-effect that may
"lessen the sting" a bit.
If the bidders offer less in anticipation of the 10% surcharge, the
overall amount from which the auctioneer gets 15% will be less. As a
result, her 15% is a lesser amount also (surely her 15% is not based
on the selling price PLUS her 10% fee). In other words, for every
dollar her sellers fee costs you, you really only lose $0.85 Not the
ideal situation, but not quite as painful as you are imagining.
Check the terms of the contract or engagement agreement you signed.
Any breach will likely be found there. I don't suspect this is her
first auction, so unless she is trying to flat out fleece you, she
likely had authorization to do what she did. This may be a lesson in
"read before you sign".
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