Will Heritage Start to Run Out of Steam?

[esquirecomics]

Will Heritage Start to Run Out of Steam?

 

With the new 19.5% BP I'd say they already are.

 

I just took a quick look at the Terms and Conditions listed on the Heritage site, and it still says that the buyer's premium for comic auctions is 15%. Other types of auctions are 19.5%:

 

BUYER’S PREMIUM:

2. On bids placed through Heritage, a Buyer’s Premium of fifteen percent (15%) for Heritage Numismatic Auctions Inc, Heritage-CAA, and Heritage Comics Auctions and Heritage Movie Posters or nineteen and one-half percent (19.5%) for Heritage Sports Collectibles, Heritage Music & Entertainment Memorabilia, Heritage Art Auctions, Heritage Americana and Heritage Galleries & Auctioneers of the hammer price will be added to the successful bid. If the bid is placed through eBay Live a Buyer’s Premium equal to the normal Buyer’s Premium plus an additional five percent (5%) of the hammer price will be added to the successful bid up to a maximum Buyer’s Premium of Twenty Two and one-half percent (22.5%). There is a minimum Buyer’s Premium of $9.00 per lot.

 

This looks pretty clear to me. But if I am looking at the wrong information, let me know.

 

I see no evidence that their policy has changed either. So unless Metro (which created the 19.5% thread) has some inside knowledge that we do not have (and I am e-mail Heritage management to inquire), they are mistaken and misreading the above.

Someone else posted in the Metro thread that the preview for the next auction shows the 19.5% buyer's premium. I did check one of the upcoming auctions and it did (at least a few days ago) show the 19.5% premium.

 

For comics?

 

Anyway, I've e-mailed Jaster and Allen so we will know soon enough.

[esquirecomics]

And another high-grade Superman #2(a paltry 8.0 this time).

 

Wow. Another one.

 

Wonder if it will get more than the $15,500 I got for mine (bought from Heritage months earlier for $11,500) last year?

 

Might be the same copy. No images up yet for that book, but the page quality is the same as yours.

 

 

Certainly possible but knowing the guy I sold it to, I would doubt it. There are 2 copies in the census now.

[greggy]

Will Heritage Start to Run Out of Steam?

 

With the new 19.5% BP I'd say they already are.

 

I just took a quick look at the Terms and Conditions listed on the Heritage site, and it still says that the buyer's premium for comic auctions is 15%. Other types of auctions are 19.5%:

 

BUYER’S PREMIUM:

2. On bids placed through Heritage, a Buyer’s Premium of fifteen percent (15%) for Heritage Numismatic Auctions Inc, Heritage-CAA, and Heritage Comics Auctions and Heritage Movie Posters or nineteen and one-half percent (19.5%) for Heritage Sports Collectibles, Heritage Music & Entertainment Memorabilia, Heritage Art Auctions, Heritage Americana and Heritage Galleries & Auctioneers of the hammer price will be added to the successful bid. If the bid is placed through eBay Live a Buyer’s Premium equal to the normal Buyer’s Premium plus an additional five percent (5%) of the hammer price will be added to the successful bid up to a maximum Buyer’s Premium of Twenty Two and one-half percent (22.5%). There is a minimum Buyer’s Premium of $9.00 per lot.

 

This looks pretty clear to me. But if I am looking at the wrong information, let me know.

 

I see no evidence that their policy has changed either. So unless Metro (which created the 19.5% thread) has some inside knowledge that we do not have (and I am e-mail Heritage management to inquire), they are mistaken and misreading the above.

Someone else posted in the Metro thread that the preview for the next auction shows the 19.5% buyer's premium. I did check one of the upcoming auctions and it did (at least a few days ago) show the 19.5% premium.

 

For comics?

 

Anyway, I've e-mailed Jaster and Allen so we will know soon enough.

Yes, for comics. Here's a link to an auction scheduled for their May Signature auction --> Link

 

The buyer's premium is noted as 19.5%.

 

Hell, here's a screen shot.

 

[adamstrange]

Reading the fine print! What are you, a lawyer?

 

Hey! There's no need for name calling!!!

 

RHG

 

Guilty as charged.

 

Yeah, I knew that, though I wasn't sure Fuelman did.

 

And you're really a nice guy. For a lawyer.

[esquirecomics]

Ok, I received the following response from Heritage today:

 

BP will be raised to 19.5% starting with our sale (820).

We have resisted raising BP for a couple years, but ever increasing costs have compelled us to do so.

The bright side for consignors is we have some more flexibility with seller's fees, and are offering more financing and payment options.

 

So, mystery ended. BP is being increased.

 

I would love to have a better understanding of just why the BP needs to be increased in light of the continuing barage of PR announcements I see about Heritage setting record prices for its sales. The increase may certainly be justified in light of costs, but I just don't know what those are.

[Timulty]

One could hypothesize that Heritage will not be getting the amount of product in to sell, that they had previously. If the BP is any indication, about 1/4 of what they had been doing. Of course, this is just speculation.

[RareHighGrade]

Ok, I received the following response from Heritage today:

 

BP will be raised to 19.5% starting with our sale (820).

We have resisted raising BP for a couple years, but ever increasing costs have compelled us to do so.

The bright side for consignors is we have some more flexibility with seller's fees, and are offering more financing and payment options.

 

So, mystery ended. BP is being increased.

 

I would love to have a better understanding of just why the BP needs to be increased in light of the continuing barage of PR announcements I see about Heritage setting record prices for its sales. The increase may certainly be justified in light of costs, but I just don't know what those are.

 

I cannot help but think that this is a poor decision on Heritage's part. Just look at the last Signature Auction. The reason that there were so many unsold books is because of a combination of two things: (1) the reserves were set too high, and (2) there was too much of a BP that had to be paid on top of the high reserve. Increasing the BP doesn't solve this problem, it only makes it worse.

 

What Heritage should do instead is require sellers to set lower reserves. This would stimulate more sales and Heritage would make more money. By simply increasing the BP, they will have fewer sales and make less money.

[Timulty]

Telling the seller's to set lower reserves kinda trounces on the freedom of being a seller, doesn't it? A seller determines their own price for things. Now, if a book doesn't sell, the sell should have to pay a nominal fee for listing. I don't know if they do but I would think seller does.

[esquirecomics]

Ok, I received the following response from Heritage today:

 

BP will be raised to 19.5% starting with our sale (820).

We have resisted raising BP for a couple years, but ever increasing costs have compelled us to do so.

The bright side for consignors is we have some more flexibility with seller's fees, and are offering more financing and payment options.

 

So, mystery ended. BP is being increased.

 

I would love to have a better understanding of just why the BP needs to be increased in light of the continuing barage of PR announcements I see about Heritage setting record prices for its sales. The increase may certainly be justified in light of costs, but I just don't know what those are.

 

I cannot help but think that this is a poor decision on Heritage's part. Just look at the last Signature Auction. The reason that there were so many unsold books is because of a combination of two things: (1) the reserves were set too high, and (2) there was too much of a BP that had to be paid on top of the high reserve. Increasing the BP doesn't solve this problem, it only makes it worse.

 

What Heritage should do instead is require sellers to set lower reserves. This would stimulate more sales and Heritage would make more money. By simply increasing the BP, they will have fewer sales and make less money.

 

Many books are Halperins, i.e., ECs, so the fact that they don't meet reserves is his own fault. Also, I have a feeling that some of the books are purposefully set at high reserves merely to have the books in the auction as eye candy. If they sell, great! If not, who cares. They look good. It is a marketing strategy.

[adamstrange]

Ok, I received the following response from Heritage today:

 

BP will be raised to 19.5% starting with our sale (820).

We have resisted raising BP for a couple years, but ever increasing costs have compelled us to do so.

The bright side for consignors is we have some more flexibility with seller's fees, and are offering more financing and payment options.

 

So, mystery ended. BP is being increased.

 

I would love to have a better understanding of just why the BP needs to be increased in light of the continuing barage of PR announcements I see about Heritage setting record prices for its sales. The increase may certainly be justified in light of costs, but I just don't know what those are.

 

I cannot help but think that this is a poor decision on Heritage's part. Just look at the last Signature Auction. The reason that there were so many unsold books is because of a combination of two things: (1) the reserves were set too high, and (2) there was too much of a BP that had to be paid on top of the high reserve. Increasing the BP doesn't solve this problem, it only makes it worse.

 

What Heritage should do instead is require sellers to set lower reserves. This would stimulate more sales and Heritage would make more money. By simply increasing the BP, they will have fewer sales and make less money.

 

Heritage actively encourages buyers to set no reserves. I know this because Halperin encouraged me to have no reserves on any books I consigned. (I consigned once in one of the early sales.) They do have a fee for listing the book in the auction, though for a large consignor everything is subject to negotiation.

 

Could they reject material if the seller doesn't set a reasonable reserve? Sure. While I can't recall hearing about a specific incident where that happened, I'm pretty sure it has. At the same time, if JP is going to give them a few million bucks worth of headline comics then they aren't going to do themselves favors by worrying about reserves on some of the books. Auctions aren't always the best venues for certain books and that's why sellers will sometimes insist on reserves.

 

I've never liked buyer's premiums from the time I first learned about them in the 70s. But it seems to work in disguising the cut that the auction house takes. What is happening with the 19.5% is not taking money out of the buyer's pockets, it's taking it out of the sellers. Now they can tell certain big sellers that there is no commission when in fact there will be a 19.5% commission. There is no cause for alarm as a buyer, there should be a caution for consignors when comparing Heritage as a selling venue vs other avenues.

[esquirecomics]

Heritage actively encourages buyers to set no reserves. I know this because Halperin encouraged me to have no reserves on any books I consigned. (I consigned once in one of the early sales.)

 

Same experience.

[linmoth]

Heritage actively encourages buyers to set no reserves. I know this because Halperin encouraged me to have no reserves on any books I consigned. (I consigned once in one of the early sales.)

 

Same experience.

 

I've had the same experience with Heritage. But it is always up to the consignor to set whatever reserve that they feel is appropriate.

 

Heritage is a business, I think that in our capitalistic society they set whatever BP they feel is necessary to be profitable.

 

Will I pay 19.5%, Doubful. Will I consign books or artwork, Doubtful. Do I like receiving their catalogs, very much so.

 

Was I treated in a very professional manner when I consigned books, yes.

 

Did I receive payment in a timely manner, yes.

 

I don't like the fact that they buy their clients books, crack them, have them worked on, receive higher grades and sell them at an inflated price.

 

Tom

[esquirecomics]

Heritage actively encourages buyers to set no reserves. I know this because Halperin encouraged me to have no reserves on any books I consigned. (I consigned once in one of the early sales.)

 

Same experience.

 

I've had the same experience with Heritage. But it is always up to the consignor to set whatever reserve that they feel is appropriate.

 

Heritage is a business, I think that in our capitalistic society they set whatever BP they feel is necessary to be profitable.

 

Will I pay 19.5%, Doubful. Will I consign books or artwork, Doubtful. Do I like receiving their catalogs, very much so.

 

Was I treated in a very professional manner when I consigned books, yes.

 

Did I receive payment in a timely manner, yes.

 

I don't like the fact that they buy their clients books, crack them, have them worked on, receive higher grades and sell them at an inflated price.

 

Tom

 

On all fronts,

[jmg3637]

Just want to be sure I have it correct.

 

Herritage will be charging 19.5% buyers premium as well as a 15% sellers premium.

 

so for a bid that reaches 1000 the buyer pays 1195 and the seller gets 850.

 

As I calculate it, the cost of the transaction is 28.87% of the gross. The website said that they had sold 295 million during 2005. That would go to revenue for the company of about 85 million. Not sure what there expenses are but anyway you look at it they have been generating major dollars

[tth2]

Just want to be sure I have it correct.

 

Herritage will be charging 19.5% buyers premium as well as a 15% sellers premium.

 

so for a bid that reaches 1000 the buyer pays 1195 and the seller gets 850.

 

As I calculate it, the cost of the transaction is 28.87% of the gross. The website said that they had sold 295 million during 2005. That would go to revenue for the company of about 85 million. Not sure what there expenses are but anyway you look at it they have been generating major dollars

A lot of the big sellers pay much less than a 15% sellers premium.

[CentaurMan]

Just want to be sure I have it correct.

 

Herritage will be charging 19.5% buyers premium as well as a 15% sellers premium.

 

so for a bid that reaches 1000 the buyer pays 1195 and the seller gets 850.

 

As I calculate it, the cost of the transaction is 28.87% of the gross. The website said that they had sold 295 million during 2005. That would go to revenue for the company of about 85 million. Not sure what there expenses are but anyway you look at it they have been generating major dollars

A lot of the big sellers pay much less than a 15% sellers premium.

 

Not just the big sellers. Pretty much all sellers. The one time I consigned with Heritage, they cut me a hefty break off of the 15% without me even asking. I imagine the big sellers can talk it down to practically nothing.

[agro23]

I just made my first major ($500+) purchase from Heritage. With my invoice they sent me a coupon that entitles me (or any family member) to consign this specific book at 50% off the seller's fee in any future auction. So, I'm sure the consignment fees are totally fluid.

[tth2]

A lot of the big sellers pay much less than a 15% sellers premium.

 

Not just the big sellers. Pretty much all sellers. The one time I consigned with Heritage, they cut me a hefty break off of the 15% without me even asking. I imagine the big sellers can talk it down to practically nothing.

That sound you hear is the gnashing of Zaid's teeth!