math interpretation

[DrPizza]

TERMS: 13% buyer's premium, 3% discount for cash or check.​

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.
​

 

[waffleironhead]

Yeah, they should have written it as only a 10% buyers premium if paying cash or check. Guessing that is what they meant.

 

[FuzzyDunlop]

a way of putting the fee for credit card use onto the buyer, not the seller.

 

[DrPizza]

a way of putting the fee for credit card use onto the buyer, not the seller.

Yes, that's their intention. But, 13% premium and 3% discount does not work out to 10%.

 

[Sho'Nuff]

Language is unclear, but it probably means that there is a 3% discount on the buyers premium, not the end total.

 

[Paperdoc]

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.

 

[momeNt]

I'm voting that it means 10%.

 

[BoomerD]

The discount should be on the purchase price with the buyer's premium added on after the discount is taken.

 

[highland145]

Simple. Pay in goats.

 

[jaedaliu]

I would imagine that the 13% and 3% are modifiers of the original amount.

Where's Meghan54 when you need him?

 

[kranky]

Language is unclear, but it probably means that there is a 3% discount on the buyers premium, not the end total.

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.

 

[dank69]

The interpretation which leaves you with the least amount of money is correct.

 

[surfsatwerk]

I was told there would be no math.

 

[highland145]

I was told there would be no math.

Kind of like surprise but sex, right?

 

[surfsatwerk]

Kind of like surprise but sex, right?

Every time I do something nice for my wife, I remind her it's coming.

 

[highland145]

Every time I do something nice for my wife, I remind her it's coming.

I just sneak up on her. Say hi for me.

 

[surfsatwerk]

I just sneak up on her. Say hi for me.

I will be sure to do that. :ninja:

 

[moonbogg]

Good luck.

 

[MongGrel]

Good luck.

 

[yuchai]

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.

 

[rudeguy]

Finally buying that property?

My experience is it would be $110 but I guess it's YMMV

 

[TheVrolok]

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.
[/LEFT]

...

 

[lxskllr]

The only way you'll know for sure is to ask.

That's optimistic. They may not know themselves. I treat questions like this as I would a dice roll, and prepare for the worst.

 

[dullard]

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.

 

[Blackjack200]

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.

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.