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      Read the rules at the top of this page before posting.   12/30/16

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Mark Neukirchen

Tarisio Selling Commission Increase

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I just noticed on Tarisio's website (buried within the Selling FAQs) that their selling commission has now increased from 9% (plus 1% for insurance) of the first $7000, to 20% (plus 1% for insurance) of the first $10,000. Seems pretty bold. Just curious, was anyone already aware of this increase? If so, how did you learn about it? I had no clue.

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Otherwize not comparable to ebay, but price wize quite similar. 10% ebay fee, 6% paypal fee, 2,5% transfer fee from paypal, + poor exchange rates = roughly 20% cost...

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Yikes!  I hadn't noticed that change.  And, yes, it definitely is in the T2 contract, too.  I guess the 20% buyer's premium is the same.  Where can I buy Tarisio stock?:)

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Boy...  I bet the bottom line would be much easier to reach if retail clients would accept charges of nearly 40% on consignments in the shop (and they get to sell the item "as is")! :) 

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Are they offering any new incentives to entice sellers? Doubling the sellers' fee is a pretty powerful disincentive!

Sellers should adjust their reserve prices accordingly.

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Doubling the commission is troubling, but even more disconcerting to me is the lack of an announcement regarding the increase, along with an explanation as to why it took place. I’m on both their email and snail mail list and have not noticed any communication regarding this increase. Were they just going to surprise people with the news when it came time to sign the contract? This definitely leaves a bad taste in my mouth.

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Hi all,
 
The Tarisio and T2 seller's commission changed about a year ago. We raised the seller's commission on the first tier and eliminated all seller's commission over $10,000 (£8,000 in London sales). Previously we charged 9% on the first $7,000 then 2.5% between $7,000 and $50,000. Now we have no seller's commission at all on the amount over $10,000. More information is available on the Tarisio website.
 
Thanks and have a good weekend!
 
Tarisio & T2

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15 hours ago, T2-Auctions said:
Hi all,
 
The Tarisio and T2 seller's commission changed about a year ago. We raised the seller's commission on the first tier and eliminated all seller's commission over $10,000 (£8,000 in London sales). Previously we charged 9% on the first $7,000 then 2.5% between $7,000 and $50,000. Now we have no seller's commission at all on the amount over $10,000. More information is available on the Tarisio website.
 
Thanks and have a good weekend!
 
Tarisio & T2

Thanks for chiming in. I have a few questions for you.

On average, approximately what percentage of your sales fall into the over $10,000 category?

How did you notify your previous/repeat consignors of the commission change?

Was the motive for making the change to increase revenue, to increase the number of over $10,000 consignments, or to decrease the number of below $10,000 consignments?

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9 hours ago, Mark Neukirchen said:

n average, approximately what percentage of your sales fall into the over $10,000 category

All or almost all the T2 sales are in the under $10k category.

They make more money on a $10,000 sale than they do on a sale between $10,000 and $20,000.

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So a seller who has an item in the high thousands might be hesitant to consign because of falling short of the 10K cut. Fair enough but IMO this is a sweet spot where a player can get a really decent instrument at auction. I think with a step system like this something will always get lost.

I also wonder about the bidding increments. There seems to be a barrier when the item reaches the point where the bidding increments go up (like 5K). I always wondered why they did this when they could easily have smaller increments without the auction taking forever.  I suppose Tarisio has enough data to see if this barrier really exists. I know I'm conscious of it when buying and plan bidding accordingly.

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When an auction house can make as much off the sale of one Impressionist painting as the entire musical instrument auction, it makes is difficult to maintain a violin/strings department.

I am sure that Jason knows what he is doing, and although Richf asked about the IPO, I doubt that would ever happen.

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In the end it all comes down to profitability; its a shame that most fine instruments are becoming collector commodities to be bought and sold for investments; instead of in the hands of violinist as it has been in most cases for the past several hundred years.

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On July 15, 2017 at 11:24 PM, Mark Neukirchen said:

Was the motive for making the change to increase revenue, to increase the number of over $10,000 consignments, or to decrease the number of below $10,000 consignments?

Removed because I misunderstood the sellers' commission structure.

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22 hours ago, GeorgeH said:

Theoretically, if your instrument sells for $9,999, you only collect $8,000, but if your instrument sells for $10,000 (a dollar more), you collect all $10,000. That is a pretty steep jump in commission for a difference of $1 in the sales price!

It appears that you may have a misunderstanding on the commission structure. The 21% fee (20% commission plus 1% insurance) applies to the first $10,000 on any sale, no matter if it is $1000 or $100,000. So an instrument with a selling price of $10,000 would have a fee of $2100, and an instrument with a selling price of $100,000 would also have a fee of $2100. I should add that they also have a $90 minimum commission per instrument sold.

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On 7/18/2017 at 0:18 PM, fiddlecollector said:

Basically its down to profit,ive watched all the buyers and sellers premiums  at most auction houses going up and up over the last 20 years.:(

Just curious, do you happen to remember if the other auction houses handled their fee increases with the same apparent stealth? Also, how does Tarisio's 41% total take (21% seller, 20% buyer) compare to that of other auction houses?

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47 minutes ago, Mark Neukirchen said:

It appears that you may have a misunderstanding on the commission structure. The 21% fee (20% commission plus 1% insurance) applies to the first $10,000 on any sale, no matter if it is $1000 or $100,000. So an instrument with a selling price of $10,000 would have a fee of $2100, and an instrument with a selling price of $100,000 would also have a fee of $2100. I should add that they also have a $90 minimum commission per instrument sold.

Yes, I did have a misunderstanding on the commission structure. Thanks for the clarification!

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