Buyer’s Premium Basics

You may have heard the term buyer’s premium before - but what exactly does it mean? Infinity Asset Solutions is here to bring the buyer’s premium fee back to basics when it comes to machinery auctions.

 

Today we’re going to discuss the importance of the buyer’s premium and why it is essential to hosting quality machinery auctions.

 

If you’ve already participated in an auction you probably already have some understanding as to what the buyer’s premium entails. As its name suggests, the buyer’s premium is the fee attached to the sale of the buyer that bids the most. The fee goes to the auctioneer hosting the event. You’re probably thinking, “what entitles the auctioneer to receive a fee on top of my bid price?”. The buyer’s premium doesn’t just line the pockets of the auctioneer. It is used to enhance the overall auction experience for everyone who participates inindustrial auctions – including buyers.

 

Improving the Auction Experience

 

The buyer’s premium fee is used by the auctioneer for the logistics and planning of hosting future auctions. The buyer’s premium fee is put toward ensuring a functional auction experience for sellers and buyers. Everything from location, rental equipment, marketing, etc. are costs associated with hosting an auction. Implementing a buyer’s premium contributes to funding these costs.

 

Buyer’s Premium as Tradition

 

The buyer’s premium is a long-standing auctioneer tradition. It is standard among reputable auctioneers to implement some sort of buyer’s premium on auction items.

It is important for auctioneers to be up front about this fee before the auctioning off process. It is also worth noting that the buyer’s premium is often non-negotiable. Transparency is an integral aspect for upholding a buyer’s premium in an auction – so be sure to ask in advance, or do your research before participating in an auction to ensure there are no unexpected fees later on.  

 

Finding a Reputable Auctioneer

 

Infinity Asset Solutions is an experienced auctioneer and full service assets provider. We service businesses of all sizes from a diverse range of industries. We are fully capable of ensuring you receive the best value for your assets. Consider participating in one of our machinery auctions today.