Commission Rates for Australian Auction Houses: A Comprehensive Guide

Australia's auction market is rife with platforms and practices, each offering varying commission structures for their clients. Understanding the typical percentages these auction houses take from the sale price is crucial for sellers. This guide breaks down the common practices and specific fees charged by auction houses in Australia, providing clarity to both newcomers and seasoned sellers.

General Overview of Auction House Fees

Seemingly, Australian auction houses are becoming more discreet about publishing their fees, with direct information becoming harder to find. This enigma has left many sellers scratching their heads. Through our research and personal experience, this guide aims to demystify the world of auction house fees in Australia.

Typical Commission Rates

From our personal experience, auction houses in Australia take a significant chunk of the sale price. For instance, for photography work and musical instruments in Sydney, you might be offered to receive 22% of the sale price inclusive of GST and insurance, while photography fees stand at 5.50 per listing. This is just one example, and the rates can vary significantly based on the type of item being auctioned and the specific auction house.

Small Item Auctions: IT Cabling and Beyond

When dealing with smaller items like IT cabling, bundling them into cardboard boxes and selling in bulk appears to be a more economical route. This method bypasses the need to navigate through the complexities of auction house fees, offering a straightforward means of recycling or selling. However, for those who still prefer the auction route, understanding the specific fees associated with different types of auctions can be invaluable.

Specific Example: Pickles Car Auctions in Sydney

As a specific example, consider Pickles Car Auctions in Sydney, which operates under the NSW Government Vehicles program. Their fee structure for car auctions is as follows:

NSW Government Vehicles All lots sold to Dealers: $401.50 including 60.50 in admin fee All lots sold to Non-Dealers: $499.50 including 60.50 in admin fee

These fees are just one part of what a seller needs to pay. The final sale price is often subject to deductions from these fees, leaving you with a percentage of the RRP (Recommended Retail Price) on the final sale. Typically, only items in high demand—such as laptops and smartphones—see a better return, with sellers getting closer to 50% of the RRP.

Conclusion

Despite the variability in auction house fees, understanding the typical percentages and specific fees charged can help sellers make informed decisions. The key is to research thoroughly, compare rates, and consider the unique needs of the items being sold. With this knowledge, sellers can navigate the complexities of the Australian auction market more effectively and ensure a profitable outcome.

Keywords

auction house commission, Australian auction fees, auction house rates

Meta Description

Learn about the typical commission rates and specific fees charged by Australian auction houses. Understand how these fees impact your final sale price and navigate the market effectively.