How do they affect You?

Have you noticed that more & more storage auctions are collecting a buyer's premium? Wonder why or how that affects you? Then read on.

What is a buyer's premium? It's a fee charged in addition to what you bid on a unit. It's generally 5-10% of the winning bid amount. So, if you bid $100, you're actually paying $105 or $110 depending on the premium (also remember to calculate sales tax if the facility collects it & you do not have a resale license).

Crowded Storage Auction

How does a premium affect you? In theory it doesn't. If you want to double your money and think you can safely do so with a $100 bid, then adjust your bid down to $90 and you'll pay $99 after the premium. If everyone does this, then premiums may bring smaller crowds without raising unit prices. But if people do not adjust their bids to account for the premium, prices may increase. Then the question is whether prices are still lower because of the smaller crowd.

The bottom line: don't fear premiums. But pay attention to the numbers to determine whether they're actually reducing or increasing prices at the auctions you attend. And if you decide you don't like the premiums don't hesitate to give the facility & auctioneer your feedback. Storage auction procedures are not set in stone & facilities are realizing more and more how important bidders are to their bottom line. 

And that's buyers' premiums folks! Now click the images below for Tips from the Pros...

 Storage Hero Rebecca Fox Storage Hero Rebecca Fox ~ Ever find something you think could be valuable but you're not quite sure what it is? Rebecca dishes her best tips & resources...this is a must read.
 Ken & Keith Maahs Ken & Keith ~ This week these twin brothers pontificate about what to do with all the stuff from the unit you just won. See how to set up a sale at your home & learn backup options for the stuff that doesn't sell.
 Drenton Beres Drenton Beres ~ Our eBay whiz breaks down whether to auction or use a fixed price on eBay. If you sell with a fixed price should you include the "best offer" option? Drenton breaks it all down.
 Auctioneer Tom Litton Tom Litton ~ Advice straight from a professional auctioneer. This week Tom tells us what "As Is. Where Is" means. A serious buyer needs to know the legal ins & outs and Tom puts it in easy to understand terms.
 The Redneck Picker The Redneck Picker ~ Networking is important. Your reputation is important too, ie how you deal with people in your network. The Redneck Picker gives you the lessons he's learned.

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