Buyer’s Premium-?

At the beginning of the 2013 season, Merritt Auctions made the decision to offer it’s sellers the option of deferring some of the commission costs to the buyer’s in the form of a 10% Buyer’s Premium (negotiated at the time the auction is booked-our sellers ALWAYS have the option of choosing a different commission structure).  We made this decision in response to the growing angst & dismay our sellers were having in incurring ALL the costs of the auction.

As a full-service auction company, Merritt Auctions of Greenville MI provides a service to both sellers & buyers.  It is our pleasure to unite eager sellers with qualified, interested in buyers in a professional setting wherein all parties benefit.  This service is what we have provided for over 50 years, a win-win environment for all.

With rising costs of labor, insurance, fuel, etc, it was at the point that something had to be done if we were to continue offering the same professional service that we have for over 50 years.  Charge the sellers more?  This is the approach we took at first.  But again we ask, should the sellers have to incur all the costs when BOTH parties are benefiting?  Many of the extra costs we incur we do so for the benefit of the buyer.  In talking with our buyers, most would prefer to pay a premium in return for the excellent customer service they receive rather than have us cut back on those services or be unable to offer auctions altogether.

We have seen the jabs taken by other auction companies, trying to capitalize on the fact that they do not charge a buyer’s premium, even accusing us of being ‘unfair’ and that’s their prerogative.  We will stand on our hard-earned reputation for bringing quality sales in a professional, trusting manner…rather than cutting costs by offering an inferior product, or by being ‘unfair’ to our sellers.

It is standard practice by many auction houses across the industry to charge a buyer’s premium (Miedema’s, Sheridan’s, Harris Bros, Proxibid, Christie’s, Sotheby’s, etc)  We value each & every one of our buyers AND our sellers and we prove that everyday in the excellent customer service we provide to all.  We thank each & every one of you for your loyal patronage over the years, and hope you will continue to support us as you always have.  We listen to all of our customers, and value your feedback.

Thanks again-The Merritt Auction team.

Click here for wikipedia Buyer’s premium page

Click here for an article by Mike Brandly on calculating the Premium

This entry was posted in auction news and tagged , , by merrittauction. Bookmark the permalink.

About merrittauction

Merritt Auction Service was started by “Red” Merritt in Greenville, MI in 1951. For over 60 years, we’ve grown to be one of the most respected Auction Companies in the state of Michigan. The company is now owned and operated by Red’s son Doug Merritt and grandson Tim Tobey. Together they continue the fine tradition of knowledge, hard work and professionalism you have come to know and expect. We’ve auctioned just about anything you can imagine-Real estate, antiques, estates, business liquidations, farm equipment, and Auto & Municipal Auctions. Our complete package includes advertising, setup, tear down, auctioning, clerking, cashiers, tables & tents. We serve the entire West Michigan area and beyond. Our advertising efforts include large mailing lists, emails, newspapers, local shopping guides, signage, YouTube, craigslist.com, Facebook, our website, auctionzip.com and more! Merritt Auction Service is bonded, insured and we are graduates of Reppert’s School of Auctioneering. We are long-time members of the Michigan State Auctioneer’s Association (MSAA) and Doug Merritt serves on the Board of Directors and Tim Tobey is a past Director. Red Merritt is an MSAA Hall of Fame Auctioneer. This gives you peace of mind–you know you’re dealing with professional, reliable auctioneers. We Rent Tents Tables & Chairs! Click Here For More Rental Information “Specializing in Live Auctions Since 1951″