Countless auctioneers work with sellers, clients, or consignees and many times the auctioneer dictates the commission or charge for their services. In other words, “I charge …” and you can take it or leave it.
We ask today, “Can the seller, client, or consignee dictate your commission?” Not surprisingly, many auctioneers say they can’t or they won’t work with such a seller, client, or consignee. In other words, the auctioneer has to set the commission and fees.
So if I understand this, it’s not the commission (or fees) themselves, but rather if the auctioneer dictates them, they’re acceptable, and if the seller dictates them, they’re not acceptable?
For example, I’m an auctioneer and I charge 20% commission, but the seller insists on 25%. I would personally agree to that even though I didn’t suggest it, but given the “I must dictate it” philosophy, maybe I should insist on 5% less?
Many auctioneers do contract work all over the United States, and I can assure you many times the contractee sets the rates, and the contractor must either accept those rates or look for other work.
Otherwise, it really doesn’t matter who sets the rates (commissions, fees) as long as both parties agree — I can say I’m charging 25% or my client can suggest 25% and either way, we’re good. Why does the auctioneer need to dictate all fees anyway?
In one of the most profitable and longstanding auction relationships we ever had — the client suggested a commission and fees — and we agreed. We didn’t have to agree and could have suggested something else, but it didn’t matter to us who set the fee.
For those unfamiliar with contract principles, generally, there are competent parties, consideration, and a meeting of the minds which for the latter involves offer and acceptance. One party can offer, the other party can counter-offer and it doesn’t matter who starts that process.
Or, maybe it does matter? Does the auctioneer have to dictate his or her fee? We would suggest not necessarily, but if you as an auctioneer only work when you alone set the fee — good luck with that plan.
Mike Brandly, Auctioneer, CAI, CAS, AARE has been an auctioneer and certified appraiser for over 30 years. His company’s auctions are located at Mike Brandly, Auctioneer, Brandly Real Estate & Auction, and Goodwill Columbus Car Auction. He serves as Distinguished Faculty at Hondros College, Executive Director of The Ohio Auction School, and an Instructor at the National Auctioneers Association’s Designation Academy and Western College of Auctioneering. He has served as faculty at the Certified Auctioneers Institute held at Indiana University and is approved by The Supreme Court of Ohio for attorney education.
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