Every dollar should go towards your assets, not additional fees.
Most auctioneers charge a buyer's premium, a fee paid by the successful bidder on top of the winning bid.
While it may appear that the buyer is paying this fee, the reality is that buyer's premiums influence how much buyers are prepared to bid in the first place.
Buyers generally have a maximum budget. If part of that budget must be paid as a buyer's premium, there is less available to bid on your assets.
Imagine a buyer has a maximum budget of NZ$10,000.
If there is no buyer's premium, they can bid the full NZ$10,000 for your asset.
If a 15% buyer's premium applies, they may only be able to bid around NZ$8,700, with the remaining amount going to the auctioneer as buyer's premium.
The buyer still spends around NZ$10,000.
The difference is simply where the money goes.
Without a buyer's premium:
With a 15% buyer's premium:
The buyer's budget hasn't changed; the distribution of the money has.
A buyer's premium forms part of the auctioneer's remuneration, even though it doesn't appear on the vendor's commission invoice.
Because it is paid by the buyer, it is often viewed separately from the commission charged to the vendor. In reality, it is simply another way the auctioneer is paid from the sale.
When comparing auction providers, it's important to consider the auctioneer's total remuneration, not just the commission shown on the vendor's invoice.
A lower advertised commission can appear attractive, but once buyer's premiums are taken into account, the auctioneer may actually receive significantly more from the sale.
Most auctioneers operate their own auction platforms, where they are able to charge buyer's premiums.
Skylarc has chosen a different approach by selling through Trade Me, New Zealand's largest online marketplace. Because Trade Me doesn't support buyer's premiums, buyers can direct their entire budget towards bidding on your assets instead of paying additional auction fees.
We believe that's better for buyers, and ultimately better for vendors.
At Skylarc, our remuneration is simple and transparent.
We earn our revenue from the agreed vendor commission, and only the agreed vendor commission.
We don't charge buyers additional fees, and we don't believe money that could be bidding on your assets should instead be diverted into buyer's premiums.
Our success comes from achieving the best possible result for your asset realisation.
The more of a buyer's budget that can be directed towards bidding, the greater the opportunity for stronger competition.
That's why we believe buyers should be competing with their full budget, not reserving part of it to pay additional auction fees.
No buyer's premium. No hidden commission. Just more money competing for your assets.
Talk to our experienced team about your assets and get a clear, no-obligation proposal.
If you're considering selling machinery, vehicles, or business assets, the Skylarc team can walk you through the online auction process and help you understand the next steps.
