dereksbicycles

I tried to do business with 1 local auction place. They told me that if my item sells for less than $125, they keep $20. That means if your item sells for $20, they keep $20. You have zero. If your item sells for $85, they keep $20. You have $65.

I would not like to do business this way. Let's think....you bring in an item for me to sell. Why would I care if your item sells for $50 or $90??? Either way, I have my $20. Who cares if you have $30 or $70, right??

That is why I would very much prefer a commission if I was to ask someone to sell items for me. That way, the person will be motivated to get the most for my item. The most for you and me.

What do you think???

Moved to personal finances
Moderator naisho

Deafness

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DeafCaroline

I think if you prefer a commission instead of a flat fee that you should find a different seller. On the other hand, if their fee is always $20 no matter what the price of the item is, it could be more profitable for you than a commission based on a percentage of your profit.

naisho

It depends on how much your item is worth. A popular example is ebay, which is completely based on commission. ebay's fees are 9.00% of the ending price, with a max of $100.00.

If you got an ebay auction that sold for $10, you paid them $1 in fees.
For $100, you've paid $9.
For $1000, you've paid $90.

If you sold your turbocharged car for $5000, you would have paid $450.00 in 9% commission if it wasn't for the max of $100 ebay stated.
The $20 flat rate would have been cheaper in that situation.

AlleyCat

I would go on a commission/percentage base, not a flat fee in the case of Derek's selling bicycles as they don't go for as much as cars, etc., right? (Unless he's selling other more expensive things.)

dereksbicycles

I sell mostly bikes, but also have furnitures, and old toys.

This company that I was mentioning was a flat $20 only if item sells less than $125. If it is more than $125, then they go to percentage.

Yeah, it would be nice to just owe $20 flat fee if I sold my $5000 turbocharged car, but that is not going to happen unless someone wants to be nice to me.

Either way, I just think it is my opinion, but I think seller will try harder to get more for item if it was based on commission and not flat fee.

playsonfreeway

Wirelessly posted

The auction house has its costs to recoup. For items under $125 it isn't profitable for them to handle on percentage. What is the value of your bikes? Do you think they will sell for more $125?

Daredevel7

In the case of having a "place" to sell things where you're still the one who is selling it, i.e. naming your price (like ebay), all of the above make sense.

However, I think what Derek is talking about is having someone else sell it for him. It seems like they are the ones who name the price, not Derek. A flat fee would not cause motivation for that person to sell it high as possible.

dereksbicycles

I had thought more of furnitures and vintage items but none would be worth over $125 alone.

Yes, I'm talking about auction houses in general.

dereksbicycles

Yes, I agree that flat fees won't cause motivation. Yes, whenever a person asks someone to sell for them, it is the auctioneer that names price, not the co signer.

Jiro

so.... move on to different employer then.

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