How Advertising and Facility Fees Are Prorated in a Multi-Consignor Auction

In a multi-consignor auction, one of the most common questions we receive is how shared costs--specifically advertising and facility fees--are divided fairly among sellers. The answer is straightforward: costs are prorated based on the percentage of total dollars sold.

Proration ensures that each consignor pays a fair share relative to their contribution to the auction's overall results. Rather than splitting costs evenly or charging flat fees, this method aligns expenses with performance.

Here's a simple example. If a multi-consignor auction produces $20,000 in total sales and one consignor's items account for $5,000 of that total, that consignor represents 25% of the auction's gross sales. As a result, they would be responsible for 25% of the total advertising and facility fees.

This approach benefits sellers of all sizes. Smaller consignments are not burdened with disproportionate costs, and larger consignments contribute appropriately based on their share of the auction. Everyone benefits from the same professional marketing, bidder traffic, and facility access.

Advertising costs include promoting the auction across multiple channels to attract serious buyers. Facility fees cover the physical space, utilities, and infrastructure required to host previews and in-person bidding. By prorating these expenses, SHERIDANS ensures fairness and transparency across the board.

This system also reinforces one of the key advantages of a multi-consignor auction: shared resources with shared benefits. Each consignor gains exposure that would be difficult to achieve independently, while costs remain proportional and predictable.

At SHERIDANS, we believe clarity builds trust. If you're considering consigning items and want to understand how costs would apply in your situation, we're always available to provide a clear breakdown and answer questions before you move forward.