No, they make dollar$ for auctioneer, consignor and buyer.
Yes, Proxibid charges a 5% premium to join its network. That’s a bargain, because potential sales for estate auctions reach a wider audience. But that’s no reason to charge more than 15% buyer’s fee and add excessive fees for handling. In fact, doing so will cost everyone more money–except Proxibid.
There’s logic here. If you are selling a $20 gold bullion piece, for instance, and the gold price is $1400 per ounce, your onsite bidders will pay that much usually with no fee but your online ones–the very people you are trying to reach–will have to pay $1642 for the same coin at $242 over melt (plus postage and handling, or $270 more) for the same item.
That means your onsite folks better have deep pockets week after week or will run out of money. Meanwhile Proxibidders looking to buy bullion will visit one of the Honor Roll auctions included here.
Lower buying fees also can spark bidding wars. If you charge your onsite folks buyer’s fees, that just may be the trigger–not only for starting that bidding war but also for generating more business. After all, a 10% fee from onsite folks and a 15% fee from online ones will generate far more cash than 18% from only online bidders. (Pay Proxibid’s 5% premium with the extra 5% charged to online bidders.)
That evens the playing field in a win-win for everyone.
Still in doubt? Contact our top auctioneers and see what they have to say.
A few things should be mentioned here. Proxibid charges $750 per month to each auction house to run auctions. They charge $35 per auction to be included in their email ads each week. Yes 5% goes to Proxibid and another 3% goes to credit card merchant services. This does not include the actual overhead that auction houses have. We have to pay people to type catalogs, take pictures, answer calls, and pack auctions. We have our own advertising expenses and general supply costs associated with packing auctions every week. We have been with Proxibid for 5 years and it is still a hand to mouth business at times. One should note that dealing with Proxibid bidders that do not pay their bills or have bad credit cards costs us time and money as well. To summarize, our auctions average $50,000 per month with a 10% consignor fee, 0% on gold, 7.5% on certified items and 15% buyers premium we collect on average 14% to the house and that is only $1,750 per week to pay a staff of 5 people and pay business overhead including taxes to Uncle Sam. Many have came and tried to do it cheaper and those businesses have failed. If someone has an honest way for us to do this cheaper for the client that bids from the comfort of his home, please feel free to email us the way. The general auction bidder on our site receives the winning bid at 40% or more behind DEALER grey sheet asking prices. Regardless, of each auction houses actual % percentage breakdown, most are all selling items to the bidder for the same cash in my opinion.
Sincerely,
Charles C.
Midwest Coins
Yes, many have tried to meet standards … and many have failed. But ones that continue, that persist, that draw the best crowds onsite and the highest numbers online, not only have great policies but also great consignments. It’s competition. And that’s good for the hobby,.