Create A Buyer’s Premium
A buyer’s premium is an additional fee charged to the winning bidder on top of the final auction price. It’s typically a percentage of the winning bid and is paid to the auction house to cover administrative costs and generate profit. For example, if a buyer wins an item for $1,000 and the auction house has a 10% buyer’s premium, the total amount owed would be $1,100 ($1,000 + $100). This fee is common in both online and in-person auctions.
To apply a buyer’s premium to an auction or specific lots, make sure the necessary formulas are set up in advance.
- The ‘New Lot Defaults’ section, found under Pre Auction, applies essential charges—commission, buyer tax, buyer premium, and optional seller tax—to lots in AF360.
- Click the plus sign button to view the Buyer Premium formulas you’ve created, then choose the one you’d like to apply to the auction.
- If you have added lots to your auction before setting your formulas, ensure you click the upload button on the right to update your lots with the new formulas.
