posted on June 12, 2001 03:27:13 PM new
I've offered to help a relative sell a rare custom car on eBay. He's given me an official appraisal and tons of good photos, plus additional information I'll need to create a strong listing. I can figure the fees, but have no idea of what a reasonable commission or fee would be.
I've heard anything from 20-40%, but IMO that's awfully high. The car has been appraised at $18,500, and my cousin is willing to accept a much lower selling price just to get it out of his garage. He's thinking around $8,000. I would not be responsible for anything but listing it and the mechanics of putting the buyer in touch with the seller. Arrangements for shipping or driving the car away, payment, etc., would all be handled by the actual owner and the new buyer and I won't be involved.
posted on June 12, 2001 04:35:52 PM new
mrspock, I've already spent several hours reading the (lengthy) appraisal book, interviewing my cousin about the condition of the car, whether it's got all papers, has been garaged, etc., plus taking time to go through the appropriate eBay Auto areas to see what similar cars are selling for, how the ads are written, what kinds of pictures to include, etc. I still have to scan, crop, and clean up the photos and create the listing manually because my listing software doesn't "do" ebay Motors, as I understand it.
This isn't going to be "just writing an ad," or I would be happy to do that for free.
I'm inclining toward 10% because my cousin doesn't even have a computer or an email addy, and so I'm going to have to factor in a bunch of long-distance phone calls whenever I get questions that I can't answer. Plus say about 5-10 hours of basic research, creating the listing, and tending to chores like checking out the bidders' feedback, etc.
Specialized knowledge (about selling on eBay) is worth something, and for someone who doesn't know anything about eBay except that they've heard it's a great place to sell stuff, paying a reasonable commission is definitely better than trying to do it themselves.
Anyway, I'm learning a lot by hearing from you folks. Is there anybody here who's done something similar on a big-ticket item? What potential pitfalls am I overlooking?
posted on June 12, 2001 05:01:31 PM new
still 10% of 8000 is 800 seems like a lot to me for what is involved evan if you put in 40 hours it's 20 a hour.
posted on June 12, 2001 05:10:58 PM new
You are not worth $20 an hour?
That is not considered a very high rate of pay where I live for someone with some skills.
Most people I know who work as an outside consultant in a firm working in design or programing aim at $75/$80 dollars an hour over the estimated life of a project.
The coney island restaurant I go to pays $12.00 and hour to start for counter help + very good tips.
[ edited by gravid on Jun 12, 2001 05:12 PM ]
posted on June 12, 2001 05:13:19 PM new
I have to agree with mrspock's "logical" response about the $800 commission. I've been selling my father's antique widgets for quite some time and have accepted only 10% even though he's been willing to give me more. He has a nearly 100% sell through rate so the money has been very good. I guess it depends on the sell through rate. If the item sells, $800 does seem good but do think about an alternative payment if it doesn't sell so you're time has not been wasted when you could have been listing some of your own items. I'd consider 30% if not a relative but actually I'd probably not even get involved. (Especially if it's a vintage automobile--just make sure you have a valid state title!) I've sold items on consignment from other non-family and have had no bad transactions but they really don't get it. They think it is sooooooo easy and 30% (or more) is is outrageous!
posted on June 12, 2001 05:17:51 PM new
I had made an arrangement to sell someone's SUV for them, and we had agreed on a flat rate amount. I believe it was $200 or $250. I went to their house, took pics, described it in great detail, got as much info from seller that I could, etc.
There's not all THAT much work into listing a vehicle. I personally think $800 is quite steep.
Edited to add: When I sell something on consignment, I get at least 30%. But vehicles are an entirely different situation. You don't have to pack and ship a vehicle, there are no packing supplies expenses, you don't have to bring it to the post office for delivery, etc.
[ edited by ExecutiveGirl on Jun 12, 2001 05:20 PM ]
posted on June 12, 2001 08:22:25 PM new
>have no idea of what a reasonable commission or fee would be.<
Lots of ways to figure that but more info is needed.
>I would not be responsible for anything but listing it and the mechanics of putting the buyer in touch with the seller. Arrangements for shipping or driving the car away, payment, etc., would all be handled by the actual owner and the new buyer and I won't be involved.<
Ok, there are the most important facts for basing a commission fee.
Work involved.
First of all, I would forget the selling price as it really does not matter to you. All that you care about is the time that you will spend working on the sale. You cannot compare autos, boats, trucks, RV's to anything else that you will sell. Because you don't have to 'sell' the car, your job is very easy. Base your charge on time.
We list cars and other large items for people all the time. (have 2 on right now)
We charge the listing fee - $25.00, plus a small service charge for listing the auction. (normally $25.00) That charge covers the time it takes to write the auction and post it. (less than 30 minutes of work) We email interested parties the phone number of the owner and from then on it's out of our hands. If the auction needs to run again they pay the $25.00 and we list it for 10 more days.
Our commission fee if it sells????
$100.00-$200.00.
That's all.
Why only that?
Simple.
So far we don't have more than 2 hours work total in any vehicle that we have sold.
That translates to about $50.00 per hour for sitting here typing!
Are we getting too little??
Maybe, but I am happy. We always seem to have at least one vehicle listing per week.
Last week we have an RV sell in the first 10 day listing!
Just over an hours work, $150.00.
(it sold for just over $25,000.00)
The guy was so happy he gave us a 50% bonus and two more vehicles to list!
posted on June 12, 2001 08:29:30 PM new
We email interested parties the phone number of the owner and from then on it's out of our hands. If the auction needs to run again they pay the $25.00 and we list it for 10 more days.
=============
This brings up a good point. What happens if the sale goes bad AFTER you've turned over the buyer's phone number to the seller? You're responsible as far as eBay goes, and not the actual owner. You're the one who gets involved in negotiating your way out of a problem if the car is defective or not as promised, and you risk a negative on a BIG sale. I think somehow one has to figure that possibility into the equation, right?
Otherwise, I like the idea of figuring my time and actual expenses and charging that way. That seems very fair to everybody.
posted on June 12, 2001 08:38:13 PM new
>This brings up a good point. What happens if the sale goes bad AFTER you've turned over the buyer's phone number to the seller? You're responsible as far as eBay goes, and not the actual owner. You're the one who gets involved in negotiating your way out of a problem if the car is defective or not as promised, and you risk a negative on a BIG sale. I think somehow one has to figure that possibility into the equation, right? <
You risk no negatives because chances are no on will ever bid on the vehicle!
Anyone interested in buying something for thousands of $$ will want to see it in person or have someone else inspect it. We have not had one bid on any vehicle that we have sold, yet all but one have sold. We start the bid at the sellers asking price and put email us for further info and a phone number to discuss the details in the description. If you are worried about someone actually bidding just start the car at the asking price and put a higher reserve on it. ebays fees for cars are fixed so it really does not matter what you put.
Without bids, you are not responsible.
As you stated........
>Arrangements for shipping or driving the car away, payment, etc., would all be handled by the actual owner and the new buyer and I won't be involved.<
