Auctions in general
A few observations about auctions in general from the cheap seats.
!. IMO, shill bidding is not a good thing, even if in the contract. Rather then use a shill to push the bid up to the reserve, why not start the bid at the reserve (which should be the least amount the owner will take for the car), not some inflated figure.
2. Why is it fair for one seller to be charged 4% because their car did not reach reserve, but another person pay10% because their car did? The one who put a realistic reserve on their car is being penalized.
3. If you hope to get 250 for your car, which is what the reserve should be, but would rather pay 4% commission instead of 10%, why not put the reserve at 350, so when the bidding stalls at 250ish, the auction house agrees to drop their commission rate if you will drop your reserve. On $250,000, the difference between 4% and 10% would be $15,000.
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Tom Clary
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