HughThistle
Member
I understand that Ritchie are to introduce a buyer's fee this summer-- which I guess is in line with other auctions --but it's another cost to soak up. Will it affect your biding?
-
Thank you for visiting HeavyEquipmentForums.com! Our objective is to provide industry professionals a place to gather to exchange questions, answers and ideas. We welcome you to register using the "Register" icon at the top of the page. We'd appreciate any help you can offer in spreading the word of our new site. The more members that join, the bigger resource for all to enjoy. Thank you!
Ritchie bros auction fees
- Thread starter HughThistle
- Start date
SKM Excavation
Active Member
- Joined
- Feb 24, 2011
- Messages
- 35
- Location
- Sask,Canada
- Occupation
- Heavy duty Mechanic bye trade. Self employed cont
No eqipment is at a all time low in the states but up here in canada its still busy as ever and people are still willing to pay.
take cash... Auctions here love it... they do add 3 to 10 % at auction here.. for credit cards..
There are a couple here that now charge a 10% buyers premium.. we stopped going to his auctions...
He saw me at the farm store the other day... Ask where I had been... Not at your auctions that charge 10 %... He was a bit peod..
There are a couple here that now charge a 10% buyers premium.. we stopped going to his auctions...
He saw me at the farm store the other day... Ask where I had been... Not at your auctions that charge 10 %... He was a bit peod..
Auctioneerhere
Well-Known Member
I spoke with a RB rep from Denver...
He was excited about the new fee as it would provide better service for the customer.
Should help earnings in the stock market.
I will still buy from them.
He was excited about the new fee as it would provide better service for the customer.
Should help earnings in the stock market.
I will still buy from them.
tootalltimmy
Senior Member
Online bidding - 2%
Credit card - 3%
Lots under $10,000 - 10%
HST tax in B.C.- 12%
You mean there is more yet!!
Credit card - 3%
Lots under $10,000 - 10%
HST tax in B.C.- 12%
You mean there is more yet!!
HughThistle
Member
I think the deal will be 10% on lots under $2,500 (as it is now). And a new charge of 2.5% on lots over $2,500 -- capped at $950 per item.
It could add up if you're buying a few machines but at least it's capped. I've only been to auctions by RB and Euroauctions, but I'm guessing this is in line with others. Interesting to see what the new services for the customer will be. Any idea? Wouldn't people prefer just to pay less though?
It could add up if you're buying a few machines but at least it's capped. I've only been to auctions by RB and Euroauctions, but I'm guessing this is in line with others. Interesting to see what the new services for the customer will be. Any idea? Wouldn't people prefer just to pay less though?
joispoi
Senior Member
If the services for the buyers have to do with machine inspections, warranties and/or providing better access to viewing, testing and history reports I would think it worth every penny. If the services are unrelated to any of that, I can´t see people being too excited about paying extra.
One thing to keep in mind is that if something is going to cost you 10% extra, it will also cost the guy you´re bidding against 10% extra. It´s still a level playing field for buyers. A good deal is a good deal no matter how they divide the check you write at the end of the auction. It could be more of a deterrent for sellers than buyers....although I suspect if your iron is going to auction, you don´t have much say anymore in who sells it and for how much.
One thing to keep in mind is that if something is going to cost you 10% extra, it will also cost the guy you´re bidding against 10% extra. It´s still a level playing field for buyers. A good deal is a good deal no matter how they divide the check you write at the end of the auction. It could be more of a deterrent for sellers than buyers....although I suspect if your iron is going to auction, you don´t have much say anymore in who sells it and for how much.
SKM Excavation
Active Member
- Joined
- Feb 24, 2011
- Messages
- 35
- Location
- Sask,Canada
- Occupation
- Heavy duty Mechanic bye trade. Self employed cont
Iron planet gives way better reports on equipment condditions and way better and more pictures so if they plan on spending some cash to upgrade customer service componets im all for it.
ILLICEMAN
Well-Known Member
I do agree Iron Planet give you a good overview of the unit.I would nrver go to a auction and bid on something I could not run.When checking eq.out if it would not run I would not bid on it.In over 20 yrs I never go the shaft.
Axle
Well-Known Member
Whats the sellers fee? Is that being cut only to be made up for by a buyers premium?
Would it affect me as a buyer? Not really, whatever the top price I'm willing to pay for a piece of equipment (including premium) will remain unchanged. I'd probably grumble about having to pay an extra "tax" after the fact. But at the end of the day I still pay out the same amount.
Alex.
Would it affect me as a buyer? Not really, whatever the top price I'm willing to pay for a piece of equipment (including premium) will remain unchanged. I'd probably grumble about having to pay an extra "tax" after the fact. But at the end of the day I still pay out the same amount.
Alex.
John C.
Senior Member
A buyer's premium is tacked on after the gavel falls. If the auctioneer is at $100,000 when he says sold, then your cost is $110,000 plus any applicable sales taxes that might apply. In the seller's premium the gavel price is what you pay your taxes on because the seller pays the auctioneers commission.
This is only a gambit to entice sellers into parting with their property at what is pitched as no cost. The trend through the industry is going this way and if all the other auctioneers are doing it, then Ritchie Bros., so the thought goes, should do it also. I have also seen both a buyer and seller premium where the commission cost is shared.
The trend to look for is does this in fact reduce proceeds because of lower sale prices. Most people I know are very cognizant of what they are paying and will adjust their bidding strategies accordingly.
This is only a gambit to entice sellers into parting with their property at what is pitched as no cost. The trend through the industry is going this way and if all the other auctioneers are doing it, then Ritchie Bros., so the thought goes, should do it also. I have also seen both a buyer and seller premium where the commission cost is shared.
The trend to look for is does this in fact reduce proceeds because of lower sale prices. Most people I know are very cognizant of what they are paying and will adjust their bidding strategies accordingly.
Auctioneerhere
Well-Known Member
I have been selling at auction since 1994.
Most buyers are fairly astute.
Every once in a while you will see a person who has no experienced bidding.
Auction buyers are the best in the world at managing money. That is why they can pay cash.
Most buyers are fairly astute.
Every once in a while you will see a person who has no experienced bidding.
Auction buyers are the best in the world at managing money. That is why they can pay cash.
asiatrader
New Member
I think rbros has effectively abandoned all it's principles right here with this new fee introduction, as a global equipment trader and a major consignor to rbros auctions globally this has greatly effected my trading strategy ..pure market value will never be reached and it is a disservice to rbros buyers and consignors both. The absolute policy rbros so proudly heralds has gone , it used to be what you bid you pay absolute and final no more no less!! These announcements are all over rbros literature and was the foundation on what the great company was built on..
This is again a fee to boost short term profit and stock value at cost to the customer , I think it will have a hugely negative medium term and long term effect
On rbros...young auction companies such as euro auctions will benefit greatly from
Rbros short sightedness here, I hear they are coming stateside and into Australia very soon, I wish them good luck
PROBIKE101
Well-Known Member
buyer premiums suck
nickbowers
Senior Member
the way i see it machines should bring 10% less but the end cost about the same.
It will catch out a few wood ducks that caught up in the moment
It will catch out a few wood ducks that caught up in the moment
Abscraperguy
Senior Member
In Alberta here, RBA has too much of the market. Their reps are cocky and their service needs help. This company has definitely lost the mantra they were built on. I rarely buy from them anymore. Too much headache and there are friendlier auction yards out there. A lot of the other RBA yards are friendlier than Alberta's.
Provide better service? and a host of other excuses, they are already getting paid by the seller a hefty premium. They will charge what the public will pay and they have that figured out, they have built a multi billion dollar industry and getting even bigger by charging what they think others will pay. I'm glad iron planet and others have came into the market as well, it gives RB a challenge otherwise they'd go even crazier on prices, it might take decades but the day is coming where the buyer and seller will both pay equal amounts and its not the percentages already mentioned, it'll be a lot higher for each. The day is coming where the auction yard will get almost more than the person selling the machine.
The 10% buyers premium for lots under 2500 is saying they don't want to mess with anything under 2500 bucks, they want to sell those 200k machines in the same time as a 2k piece and the commission is a lot more for selling a 200k machine. Its simple maximize profits and minimize time spend doing it, same as any other business, they've just taken it to a higher level and globally is all and figured out how to get both ends to pay for one service. Better service, thats a line of BS, they just want more money for the same or less service, they are already being paid for whatever service they provide, more money isn't going to improve anything but their bottom line.
The 10% buyers premium for lots under 2500 is saying they don't want to mess with anything under 2500 bucks, they want to sell those 200k machines in the same time as a 2k piece and the commission is a lot more for selling a 200k machine. Its simple maximize profits and minimize time spend doing it, same as any other business, they've just taken it to a higher level and globally is all and figured out how to get both ends to pay for one service. Better service, thats a line of BS, they just want more money for the same or less service, they are already being paid for whatever service they provide, more money isn't going to improve anything but their bottom line.
John C.
Senior Member
The buyer's premium is just another ruse to bring in stock to sell. The idea is to charge the seller less as an inducement to bring the machine to RB. Almost all the auctions are doing it now. As noted by Randy88, it is nothing more than finding more people who will put money in the RB bank. What hasn't been brought up is things like yard fees and other add on costs being assessed. One has to wonder when Ritchie will start setting hidden reserves?
Anymore, if you are liquidating assets and have time you need to look at all the options. Most dealers now are offering attractive consignment programs. There are lots of curb stone dealers and the auctioneers other than RB.
If you are looking to purchase there are plenty of other companies that sell iron. All it takes is a little home work up front. Also keep in mind that when an auctioneer says sold at auction, it doesn't always happen.
Anymore, if you are liquidating assets and have time you need to look at all the options. Most dealers now are offering attractive consignment programs. There are lots of curb stone dealers and the auctioneers other than RB.
If you are looking to purchase there are plenty of other companies that sell iron. All it takes is a little home work up front. Also keep in mind that when an auctioneer says sold at auction, it doesn't always happen.
Dug Overburden
Well-Known Member
Every one is in the auction business these days. Even Cat has their own auction service.
Dug Overburden
Well-Known Member
R.B. gobbled up all the older well known acutioneers or forced them out. I remember Miller & Miller, Max Rouse & Sons, Forke Bros, Alex Lion to name a few. Now it's like you only have one choice, R.B. With all the sites they have, they have to put together a sale 4 times a year at each location, I have seen some pretty dismal sales recently. They have ran out of big spreads to sell in Socal.
10% from buyer, 10% from seller, yard fees, painting, trucking.. does not leave much return. Sometimes the prices are so low, you are bidding against scrap dealers ( and that sucks, lot's of nice machines lost forever)
10% from buyer, 10% from seller, yard fees, painting, trucking.. does not leave much return. Sometimes the prices are so low, you are bidding against scrap dealers ( and that sucks, lot's of nice machines lost forever)