Auctions as a Way of Buying and Selling Should be Reconsidered

Auctions as a Way of Buying and Selling Should be Reconsidered

When I started collecting 40 to 45 years ago, antique and collecting specialized auctions (Coins, Autographs, etc.) were not a prevalent as they are today.  Additionally, commissions and fees were very reasonable when it came to buy and/or sell collectibles.

Around the 1970s to 1980s, typical auction buyer premiums averaged around 10% and the seller was charged up to 5%. So, if you bought a silver dollar for $100, you would pay a total of $110 plus taxes, if any.

The seller may pay $5 for the privilege to to use an auction company's reputation to sell.  Back then, auctions served as a great partner to fellow dealers as an avenue for collectors to find a variety of items for their collection.

Savvy dealers would use the auction platform to buy needed merchandise and/or sell stale merchandise to others who were looking for a certain item.  This complement to their normal business dealing was another revenue source for the dealer.

Today, though, auction buyer premiums and fees are at 25% with some even at 28% or 30%.  Additionally, seller's fees have topped 20%!

Meaning, the auction house pockets up to 50% of a sale!

If your item sold for a total of $125 with the buyer's premium, the you may only take about $65 to $70 home. The rest goes to the auction house.

Consider this before buying!  If you decide to sell the item you just bought, say 10 years from now.  Assume it sells to someone else for same change in price, you will only net out the same $65 to $70.

Great investment!

This is why we are starting another alternative for collectors and dealers to enjoy their hobby without the inevitable concern of selling and losing out to outrageous fees and premiums.

The platform referred to here is Collectors Forum. This will be a website where collectors sell good quality non flea market items with no commissions or premiums involved.

Unlike ebay, bonafide collectors and dealers will buy and sell good, quality items by going through a screening process. Listings will undergo self policing by others in this forum. We have even a strongly reputable, low cost escrow company to offer their services for buyer and seller protection.