GENERAL CONSIGNMENT INFORMATION
Effective date: August 1, 2013
RJ’s Auction Service wants to thank you for considering us to service your auction needs. The following information will serve as a guideline and hopefully answer some of your questions concerning consigning items to the auction.
RJ’s Auction Service will use their expertise to advertise, display, and sell your items in a manner that is mutually beneficial to both of us. RJ’s Auction Service sells almost all items at “ABSOLUTE AUCTION” meaning that the items will be sold to the last and highest bidder, recognized by the auctioneer, with no minimums or reserves. An “Absolute Auction” ensures the bidder that the item will sell on auction day. The advantage of an “Absolute Auction” to a seller is that the item will definitely sell. The disadvantages of an “Absolute Auction” to a seller are the loss of the option to reject the final bid and the possibility of getting less than they feel the item is worth. It is the policy of RJ’s Auction Service to prohibit sellers from bidding on their own items either directly or indirectly.
Getting the items to the auction facility is usually the responsibility of the seller. The item(s) should arrive clean and ready to be sold. THE COMMISSION CHARGED IS FOR SELLING YOU ITEM (S) – NOT FOR PICKING THE ITEMS UP, CLEANING THE ITEMS, WASHING THE ITEMS, OR REPAIRING YOUR ITEMS. If we pick up your items, clean your items, wash your items, or repair your items there will be an additional charge. As an example, most people look under the cushions of sofas, love seats, and chairs before they bid on them, so it’s a good idea to remove the cushions and vacuum before we pick them up, or you bring them in to be sold. The same principle is true when it comes to good dishes and china. Before bringing them in to be sold they should be washed. So, in order to avoid additional fees please ensure that your items are cleaned and in good repair before consigning them.
If you are unable to bring the items to the auction facility, RJ’s Auction Service can provide pick-up service at an additional fee (depending on the availability of equipment and personnel). The rate charged for this pick-up service is based on thirty dollars ($30.00) per man-hour. RJ’s will furnish a truck, the necessary personnel, and all the equipment necessary to complete the pick-up and transport them to our auction facility.
The time is figured from when we leave the auction facility (4 Corners) until we arrive back at the auction facility. It does not include the time it takes to unload your items once we arrive back at the auction facility. A minimum charge of sixty dollars ($60.00) will apply to any pick-up made by RJ’s Auction Service. Due to the high cost of fuel there will be a fuel surcharge based on the number of miles traveled to complete your pick-up. A fuel surcharge of seven-dollars ($7.00), or forty-cents ($0.40) per mile traveled, whichever is greater, will be applied to all pick up. The total charge for pick-up is usually deducted from the proceeds of the auction.
We DO NOT accept the following types or categories of merchandise: (1) garage sale leftovers; (2) every day clothing and shoes; (3) old sofas, easy chairs, and recliners; (4) older or stained mattresses; and (5) console TVs and console stereo systems. For a list of items that usually sells well at auction refer to “Attachment I”. For a list of items that are not suitable for auction refer to “Attachment II”. Items arriving with garage sale tags or prices on them will be refused. RJ’s AUCTION SERVICE RESERVES THE RIGHT TO REFUSE ANY OR ALL ITEMS PRESENTED FOR CONSIGNMENT.
It should be noted that when you consign items to be sold it is almost impossible to list every item; especially when there are a number of boxes with lots of miscellaneous items in each box. We will list all the major items, and then group the rest as “One lot of miscellaneous”. Please note that we may group your miscellaneous items together either in boxes or flats to be sold. This will be done based on our experience of what other similar items have sold for in the past.
Our personnel will screen items as they arrive to eliminate those items that, we believe, for one reason or another are unsuitable for auction. When items are consigned and do not sell they will be disposed of and a disposal fee charged to the consignor. In order to avoid the disposal fee you must inform RJ’s Auction Service at the time the item(s) are consigned that you wish to pick up any unsold item(s). You must pick up the unsold item(s) no later than the close of business on the Tuesday following the auction. Failure to pick the unsold item(s) up by the designated time will result in a fee of $10.00 (ten-dollars) per day to cover storage costs. If the item(s) are not picked up within 10 days from the date of the auction any unsold item(s) will be disposed of and the consignor will be charged a storage fee and a disposal fee. A check due the consignor for the item(s) sold will not be issued until the issue of any unsold item(s) has been resolved.
Once an item(s) has been consigned (regardless of whether we picked the items up, you dropped the items off, or you had someone drop the items off for you) an item cannot be withdrawn from the auction without paying a “Withdrawal Fee”. The “Withdrawal Fee” will be twenty-five percent (25%) of the estimated fair market value of the item(s) that is withdrawn from the auction. (RJ’s Auction Service will be solely responsible for determining the estimated fair market value of the item(s) withdrawn from the auction). RJ’s Auction Service will be solely responsible for determining when the “Withdrawal Fee” is due. RJ’s Auction Service may choose to deduct the “Withdrawal Fee” from the proceeds of the auction, or may choose to have the “Withdrawal Fee” paid in full when the item(s) are withdrawn from the auction. In order to avoid this “Withdrawal Fee” please make sure you wish to sell the item(s) before you consign them to be sold.
Our commission structure has remained constant for the last nine years. Due to the increased costs associated with sorting and preparing items for auction we went to a multi-tiered commission system in June of 2004. We decided to apply a higher commission rate to the area that was the most labor intensive. That area is the sorting, separating, and re-boxing of items that arrived in boxes, bags, or totes. The commission rate will vary depending on the type of item(s) being sold.
Here are some general guidelines
and examples. Note: These are only guidelines and examples. What
an individual item or lot sells for will ultimately determine the commission
rates you get charged.
12% Commission is charged on large items such as vehicles, boats, campers, or similar items. While it is our policy to sell everything without reserve, I will allow these items to be sold with reserve under the following conditions. (1) That your intention to sell the item(s) with a reserve is disclosed at the time you consign the item(s). (2) That you understand and agree to pay a “Marketing Fee” of twenty-five dollars ($25.00) per item to help cover the cost of marking your item(s). (3) There will be a minimum fee of twenty-five dollars ($25.00) per item if your item sells at or above the reserve price. (4) Both the consignor and RJ’s Auction Service will work towards establishing a reasonable reserve.
25% Commission is charged on any individual item or lot that sells for at least twenty dollars ($20.00) regardless of whether it is sold on-line, or during either the outside or the inside portion of a live in-house auction.
35% Commission is charged on any individual item or lot that sells for at least seven dollars ($7.00) but less than twenty dollars ($20.00) regardless of whether it is sold on-line, or during either the outside or the inside portion of a live in-house auction.
50% Commission is charged on any individual item or lot that sells for less than seven dollars ($7.00) regardless of whether it is sold on-line, or during either the outside or the inside portion of a live in-house auction. This category is the most labor intensive and time consuming part of what we do. Items generally sold at this commission rate are items with little cash value and might be sold individually, by the flat, or by the box.
A Buyer’s Premium will be added to the high bid for each lot sold to establish the final selling price. The Buyer’s Premium will be between 2.5% and 10% depending on the selling price of each lot. The Buyer’s Premium will be retained by RJ’s Auction Service to help offset the cost of conducting the auction. Please see Buyer’s Premium chart posted on our website and at the auction facility, or please ask for a copy.
We make every attempt to sell all your items during the auction they have been scheduled for. There are times when we do not get all the items from one consignor sold during the scheduled auction. When this happens we will pay the consignor for the items we did sell and will schedule the remaining item(s) to be sold at our next auction.
Auction Service pays its consignors by company check. Consignor’s checks are
normally ready on the next Saturday following the Saturday on which their items
were sold. Due to corrections that
may need to be made or a large number of consignors it may take longer to
reconcile the auction and to get the checks printed.
Checks not picked up will be mailed the following Monday.
If you have any questions or do not understand any portion or term used in this “General Consignment Information” document please ask for clarification before consigning your item(s) or signing the “Consignment Control Form”.
Richard H. Garvin,
CAI, ATS, GPPA, CES