How does a buyer’s premium adversely effect net recovery?
Keep in mind, most bidders are intelligent and a buyer’s premium is irritating. First, it tends to depress turnout. Secondly, bidders can do the math in their heads but tend to err on the conservative side of their bidding. Say someone is bidding on something on which they will spend $10,000 but knowing a 10% buyer’s premium will be charged, they stop bidding at $9,000. OK, so you say you would have to pay that $1000 anyway. The problem is that the bidding may be depressed by more than 10%, as is normally the case. The bottom line is you are going to pay one way or another. And you get what you pay for. When you engage The Dobbins Company, you’re getting the best.
