Vectis auction economics

[jared007]

Hi,

I was wondering if anyone can confirm the "all in price" that a buyer has to pay when winning a Vectis auction listing? I looked up the FAQ on the website but still a bit unclear what the final result would be. This is my interpretation, keeping it simple with an example £100 hammer price:

- Final hammer price = £100.00
- Add buyers premium of %20
- new calculated price = £120.00
- add VAT at 17.5%
- new calculated result of: 120 + (120/100 * 17.5) = £141.00
- if paying by credit card add another 2% (more if amex)
- new calculated price: 141 + (141/100 * 2) = 143.82

So a winning bid of £100 will actually hit your credit card as £143.82. This is not even including a delivery/postage fee which someone told me was a minimum of £15.

Can anyone confirm my working above?

Cheers, Jared.

 

[maxf]

You only pay vat on the commission - so your £100 will be £124 plus credit card fees (if that's how you pay) and shipping.

 

[jared007]

Great, thanks for clarifying.

 

[Mr-shifter]

Vat only gets charged once, so it was paid on these when they were sold. The commission and other charges on the other hand are what incurs the vat.

There's a premium for cc's and a premium for using a live online bidding, as they use a third party.

If you do everything the most expensive way you will be stuck for 25% plus postage.

 

[Richard_H]

If paying on a credit card through invaluable they do not charge the fee that vectis does.

 

[jared007]

If you do everything the most expensive way you will be stuck for 25% plus postage.

Alright, So this is the statement I was working towards. So if you only have a certain budget (and are going to stick with it), then you need to work backwards from that amount -- by 25% -- to determine the maximum hammer price you are willing to go for.

Cheers, Jared.

 

[jedi_mister]

Alright, So this is the statement I was working towards. So if you only have a certain budget (and are going to stick with it), then you need to work backwards from that amount -- by 25% -- to determine the maximum hammer price you are willing to go for.

Yep, that's right. Then take your maximum bid multiply it by 2 and you still won't stand a chance of winning anything :lol: :lol: