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 Replies: 46 / Views: 6,698 |
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Valued Member
 United States
282 Posts |
I am used to paying the sales tax on purchases. But for something that is generally considered by many to be an investment, it hurts the ability to successfully bid against other collectors/investors who do not have to pay the tax.
So someone from Virginia, to pick a random state, would be able to bid $90 higher than me and pay the same price. That is a considerable disadvantage for those of us living in just a few states.
Edited by syeb
06/14/2016 4:21 pm
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Rest in Peace
United States
4078 Posts |
Thanks Syeb, This is a wakeup call for me.
Screw these rip-off companies. Buyer's premium bull.
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Bedrock of the Community
United States
10982 Posts |
Quote:
Thanks Syeb, This is a wakeup call for me.
Screw these rip-off companies. Buyer's premium bull. You'll find Buyer's Premiums at all auction companies. ebay has the seller pay while true auction houses pay their bills with the Buyer's Premium (primarily). If you factor the BP into your bids it makes no difference whether their is Buyer's Premium or not or what percentage the BP is. These are not "rip-off" companies any more than any other for profit business. |
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Valued Member
United States
282 Posts |
I think the only rip off artist here is New York State/City. 8.875% sales tax on top of the 11+% combined state/local income tax.
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Bedrock of the Community
United States
94367 Posts |
BH1964 - Correct. It's an easy enough lesson to learn! If anyone is upfront about their charges, it's Heritage. Is ebay a viable option to the big auction houses like Heritage? Certainly not for early, rare or seldom-seen items, but very possibly for many other things, especially 20th c. issues like a 1909S-VDB cent, for example. Possibly the best thing about Heritage is the free online access to its auction archives, a staggering resource. You need a password (easy to get), but spend some time learning how to use it and you will have a remarkable tool to assist you in your bidding/buying decisions. Edited by Coinfrog
06/14/2016 5:06 pm
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Pillar of the Community
United States
7375 Posts |
Yeah, living in NY State, I almost pulled the trigger on a Heritage coin, but read the rules just in time about the tax. We're moving to GA soon though, and I know they don't have a GA office....yet.
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Pillar of the Community
United States
1660 Posts |
Always a good idea to calculate forward on the final cost. No surprises, or accidental overpays, that way.
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Bedrock of the Community
United States
94367 Posts |
edweather - get your bids in early!
(Actually, I don't see Heritage in Atlanta).
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Bedrock of the Community
Australia
21788 Posts |
Over the years I have bought lots of items from public auction.
I always attend the pre auction view day and single value written bids.
When I write my bids, I keep a separate list of my bids that include ALL taxes and fees. I calculate all of these before I write my bid on the auctioneer's bid submit sheet.
I like to do all my price research calmly in my own time at home, using the printed auction catalog or the on line catalog and have a good idea of the value of the items I am interested in before attending the view day.
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Pillar of the Community
Australia
7096 Posts |
The Buyers premium IS a rip off as far as I am concerned.
It is mostly affecting the person that has consigned the coin more than the buyer as most buyers figure the BP into their bids and bid accordingly.
The seller/consignee is hit with a selling fee Plus the amount that the bids have been affected by the BP.
At the end of the day the auction house is getting more than a quarter of the coins value just for selling it.
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Pillar of the Community
Canada
4227 Posts |
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in Canada sales tax ranges from 5-13% 15%! |
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Rest in Peace
United States
7075 Posts |
syeb -- thanks for sharing. I feel a little less crummy about the fees involved when I send flowers to my mother. I understand why the fees are what they are -- it just irks me that, like you, I settle on a price and then watch it go up and up and up before I'm through the transaction. Like you, I know what's coming, but I still feel like I got sucker-punched.
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Pillar of the Community
United States
1211 Posts |
bpoc1: How DARE these "rip off companies" charge a fee for services rendered.
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Valued Member
United States
282 Posts |
jerseyben: Do you enjoy paying $30-$50 for a piece of baggage on an airplane trip? Ever rising seat prices when fuel prices have plummeted? Electricity rates that seem to climb every year regardless of lower energy prices or low inflation?
That is what happens when a relatively few large companies control the bulk of a business, and the fees rise beyond the realm of reasonableness. This is why we have anti-monopoly and price fixing laws in the country. And a few auction houses control the market, fewer still the coin and collectible market enabling them to charge outlandish fees.
So you are correct that companies should charge what the market can bear - however if there is a lack of competition resulting in a near-monopoly situation, that is when the situation needs correcting.
But in this case my main concern was with the sales tax charged on an investment, resulting in the inability to fairly compete at auction for the residents of a few states.
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Rest in Peace
United States
4078 Posts |
Jerseyben said, Quote:
bpoc1: How DARE these "rip off companies" charge a fee for services rendered. Not sure how to understand this remark. Having no dealing with any auction companies I was not aware of the, "buyer's premium." With the OP post again this is an eye opener. Let me also thank the members who have experience with Auction items with their advice and knowledge. |
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Replies: 46 / Views: 6,698 |
First Page
Posted 06/14/2016 4:25 pm
