• We’re currently investigating an issue related to the forum theme and styling that is impacting page layout and visual formatting. The problem has been identified, and we are actively working on a resolution. There is no impact to user data or functionality, this is strictly a front-end display issue. We’ll post an update once the fix has been deployed. Thanks for your patience while we get this sorted.

math interpretation

DrPizza

DrPizza

Administrator Elite Member Goat Whisperer
TERMS: 13% buyer's premium, 3% discount for cash or check.​
Click to expand...


So, if something costs $100, the buyer's premium brings it up to $113, then the 3% discount drops it to $109.61, right? Not $110.

Heading to an auction tomorrow, expect to spend enough to where the innumeracy makes a difference. Apparently, these are the people who think that if something's on sale for 60% off, and you have a 40% off coupon, that it's free.
​
 
Language is unclear, but it probably means that there is a 3% discount on the buyers premium, not the end total.
 
Your math is exactly right, DrPizza.

I don't agree with Sho'Nuff. My guess is that the 13% Buyer's Premium is the surcharge that pays the auctioneer for his / her services. That yields the total payable. Now, IF you are paying with cash, the auctioneer is not going to pay a 3% discount on a charge-card payment. So, he / she will let you keep that money and pay only 97% of the total payable, because that is exactly what he / she would receive, net after the charge-card discount.
 
The discount should be on the purchase price with the buyer's premium added on after the discount is taken.
 
Sho'Nuff said:
Language is unclear, but it probably means that there is a 3% discount on the buyers premium, not the end total.
Click to expand...

I think it could possibly mean a 10% buyer's premium for people paying by cash/check, but I don't think it's crystal clear.

It would seem just as logical to see it like this:
13% buyer's premium added to winning bid amount, that's automatic.
THEN you MAY get a 3% discount if paying by cash/check (since no credit card transaction fee).

But I would not be surprised if the auction outfit assumed those two methods as equivalent, and you could get a different result depending on which person figured the bill and the method they happen to use.

What I would expect is that the people doing the calculating will assume add 13% then subtract 3% = add 10% just to speed the process.

I don't think you can say either method is wrong, because the wording is vague.
 
You can speculate all you want, and technical accuracy may or may not apply. The only way you'll know for sure is to ask.
 
You left off option C: 13% premium of $100 = $13, that premium is reduced by 3% for cash, so a total of 0.97*$13 = $12.61 premium. Final total $112.61.

Although it could technically be any of those options, the way it is worded sounds like it would be 3% off of the $100. Final total $110.
 
DrPizza said:
So, if something costs $100, the buyer's premium brings it up to $113, then the 3% discount drops it to $109.61, right? Not $110.

Heading to an auction tomorrow, expect to spend enough to where the innumeracy makes a difference. Apparently, these are the people who think that if something's on sale for 60% off, and you have a 40% off coupon, that it's free.
Click to expand...

A forty basis point delta is going to make a difference? Holy crap, how much are you spending? Just to illustrate, if you spend $10,000 the delta is $39, and the auction house (which is where I assume the buyer's premium is going) makes $1,000 on that.

FWIW, you're totally right. the 3% discount is obviously to offset the merchant's fee on a credit card, and that merchant's fee would be applied to the buyers premium as well as the notional amount of the winning bid. If I was in your shoes I would argue it if it was anything over $1,000. Just bring a calculator and show them.

As an aside, it just occurred to me that they really just want to make $10% on the auction after merchant fees. The real mistake that they're making is that they should be charging a 13.4% buyers fee with a 3% cash discount. So a $100 notional bid would cost the buyer $113.40, subtract the 3% merchant fee (or cash discount) and they're left with $109.98.
 
You must log in or register to reply here.

TRENDING THREADS

Back
Top