Understanding the Basic Cost Structure of a Personal Property Auction

One of the most common questions personal property consignors ask is, "How do auction costs work?" At SHERIDANS, we believe understanding the cost structure upfront helps consignors make confident, informed decisions.

Every personal property auction includes several core cost components, each tied directly to the work required to successfully bring items to market.

Labor and hauling are often the largest expenses. This includes on-site labor for sorting, staging, loading, transporting, and setting up items for preview and auction day. The scope of this cost depends on factors like item volume, location, accessibility, and the level of preparation required.

Advertising is another key component. Auctions rely on targeted marketing to reach qualified buyers through online platforms, email campaigns, signage, and other media. In a multi-consignor auction, advertising costs are shared among sellers and prorated based on results.

Facility fees cover the cost of operating and maintaining a professional auction space. This includes utilities, insurance, and the infrastructure required to host previews and bidding. Like advertising, these fees are typically prorated in multi-consignor auctions.

Commission is the primary performance-based fee. It is calculated as a percentage of the final hammer price and varies depending on the type of asset being sold. This structure aligns SHERIDANS' interests with the consignor--our goal is to maximize value.

Finally, a buyer premium is paid by the buyer, not the seller. It covers additional costs of business that SHERIDANS incurs and helps support the auction platform and services. Importantly, it does not come out of the consignor's proceeds.

SHERIDANS is always transparent about costs and happy to explain how each applies to your specific situation. A clear understanding at the beginning leads to smoother auctions and better outcomes for everyone involved.

Want to chat more about auction costs? Give us a call or send us a message!