Quote:
Originally Posted by 30 Closed Cab PU
Do Auto Auctioning/Listings with a buyer's premium affect final proceeds to the Seller much? In other words, do Buyers have a tendency to spend more, or do they figure total cost and stick to the max they want to spend?
My father used to pretty much shun buying things at Farm Auctions that had Buyer's premiums unless there was something he really wanted/needed. We knew of some farmers that would not even go to any auctions with Buyer's premiums.
|
While I have no scientific basis for my answer, my instinct is that a premium does not. Most people do not know the real value of something, -and while they might choose an arbitrary number ahead of time at a sale or even an eBay listing, so often the auction bids blow right past what someone valued it at. That, and the mindset that you were the top bidder but you are outbid however one more $10 bid might get it bought also plays in your mind.
For me, I would rather pay the premium as to get caught in the 'Bidder's Choice' triangle. If you are unfamiliar with this technique, the auctioneer groups items and lets the high bidder choose. A great example might be a group of 10 fenders in the lot which might consist of a mint R/F 1930 fender, a pair of nice factory welled 1931 fenders, a pair of 1932 fenders, and maybe a NOS 1937 fender and several other unidentifiable fenders. Everyone is gathered around and the bidding is moving fast. You have your eye on that 1930 fender and have hoped to buy it for less than $500 (-because you need it). You are bidding against 6 or 7 others but you have no idea whether they are bidding to pick that same R/F fender you are wanting, -or whether they are after the 37 fender or those '31 fenders. Generally speaking, no one is willing to take a chance on losing out on the fender they want, so in this type auction, the first 2 or 3 items go for way more money than they are worth. Knowledgeable Auctioneers are aware of this and will tell you that the entire lot will bring more money this way than individually selling the items. Ironically, to save time the auctioneer will allow the highest bidder to take as many items from the lot for the same money. So if the hammer fell at $750 for an item, the high bidder has the choice to take two items from that lot for $1500. Then they will ask the back-up bidder if he wants an item at his bid. If he bid $740 and wants the '37 fender, then he gets that and they start the lot auction over again. I have even seen where they will add the next lot of items beside the one you were just bidding on to keep the price up. Maybe you were holding out for those '32 fenders and now we have new items added to the lot which likely is drawing new bidders that you do not know what they are bidding on. Oh, and then factor in an auction that is simultaneously running an internet auction too on these items you are bidding on, and it really makes getting a bargain tough.