Tricky Math

It was recently brought to my attention that a local auction company is using “tricky math” in slamming the ‘Buyer’s Fee.’  I am not ever going to get into ‘playing the game’ with this company and will continue to stand on our reputation and integrity.  There ARE a couple of points that should be made however….

Very succinctly, if Buyers are informed prior to bidding, MOST are intelligent enough to decide how much they want to bid.  Professional auction companies have been using this tool (to keep them in business AND able to pay things like liability insurance…workmen’s comp…, etc).  Recent statistics show that 80% of auctioneers nationwide use the Buyer’s Fee as an advantageous tool for securing good merchandise from sellers!

With no comment on the other “tricky math” that was used in that auction company’s post, let’s look at what would happen when he charges the 20% commission that he states on a $15,000 vehicle with no Buyer’s Fee…

STRAIGHT MATH:

The Other Auction Company - 

$15,000 Bid on vehicle less 20% commission = a Seller’s net of $12,000  

and a $3000 commission 

Seller puts only $12,000 in his pocket on a $15,000 vehicle

Superior Auction Company –$15,000 Bid on vehicle 

less 0% commission = a Seller’s net of $15,000  

and a $1,500 commission (Buyer’s Fee)

Seller puts $15,000 in his pocket on a $15,000 vehicle

Now let’s pretend that the Buyer bid less because he knew there was a Buyer’s Fee of 10% and he only wanted to pay $15,000 total:

$13,650 Bid on vehicle less 0% commission = a Seller’s net of $13,650 and a $1,365 commission (Buyer’s Fee) for a total purchase of $15,015

Seller puts $13,650 in his pocket on a $15,015 vehicle

 

Pretty easy math!  Now onward to serving our clients and customers!!