Auction Fees & Commission

[Bertha Bot]

29 Nov 2006
Auction Fees & Commission


It seems that there's still some confusion about the new Auction Fees & Commission so we would like to try and straighten it out.

The easy bit: The Procurement Order Fee is the same as ever: 1 PED for every day you wish the order to remain on the Auction. This fee is paid up-front when creating the order.

The complicated bit: Placing an item on the Auction involves two combined charges: The Base Fee and the Regressive Markup Commission.

The Base Fee: A Base Fee of 0.5 PED is charged when placing any item on the Auction. This is a one-time fee paid up-front when placing any item on the Auction.

The Regressive Markup Commission: This commission is paid on the difference between the Opening Bid and the item's TT value (the Markup). The commission begins at 5% but gradually decreases as the Markup value increases (a Regressive Commission). Complicated as it might seem, it actually ensures that items with large Markup values don't end up paying ridiculously high commissions. In fact, a maximum commission ceiling of 100 PED is in effect. We've replaced the graph in the Auction Section of the Participants Guide to show the Commission Percentage versus Markup Value instead.

The Regressive Markup Commission is paid up-front with the Base Fee when placing an item on the Auction. Remember, the commission is based on the difference between the Opening Bid and the TT value. If you want to keep the initial commission low - keep the Opening Bid low.

The last bit: When an item is finally sold at Auction, the Regressive Markup Commission is again calculated, but this time on the difference between the final Sale Price and the TT value. Then, the original commission you paid to place the item on the Auction is deducted and the remainder is charged against the final Sale Price.

We haven't included the exact formula, not because it's secret, but because it feels just a bit too hard core. Anybody talented with mathematics and who has the interest can easily work it out by placing two items on the Auction and doing some math. Anyway, we hope this sheds a little more light on Auction Fees & Commissions.

Thanks,
Development Team




More...

[The Nightbird]

Originally Posted by Witte

After reading the newest developer blog, some things got my attention. First of all the blog:

Quote=MA

29 Nov 2006
Auction Fees & Commission

It seems that there's still some confusion about the new Auction Fees & Commission so we would like to try and straighten it out.

The easy bit: The Procurement Order Fee is the same as ever: 1 PED for every day you wish the order to remain on the Auction. This fee is paid up-front when creating the order.

The complicated bit: Placing an item on the Auction involves two combined charges: The Base Fee and the Regressive Markup Commission.

The Base Fee: A Base Fee of 0.5 PED is charged when placing any item on the Auction. This is a one-time fee paid up-front when placing any item on the Auction.

The Regressive Markup Commission: This commission is paid on the difference between the Opening Bid and the item's TT value (the Markup). The commission begins at 5% but gradually decreases as the Markup value increases (a Regressive Commission). Complicated as it might seem, it actually ensures that items with large Markup values don't end up paying ridiculously high commissions. In fact, a maximum commission ceiling of 100 PED is in effect. We've replaced the graph in the Auction Section of the Participants Guide to show the Commission Percentage versus Markup Value instead.

The Regressive Markup Commission is paid up-front with the Base Fee when placing an item on the Auction. Remember, the commission is based on the difference between the Opening Bid and the TT value. If you want to keep the initial commission low - keep the Opening Bid low.

The last bit: When an item is finally sold at Auction, the Regressive Markup Commission is again calculated, but this time on the difference between the final Sale Price and the TT value. Then, the original commission you paid to place the item on the Auction is deducted and the remainder is charged against the final Sale Price.

We haven't included the exact formula, not because it's secret, but because it feels just a bit too hard core. Anybody talented with mathematics and who has the interest can easily work it out by placing two items on the Auction and doing some math. Anyway, we hope this sheds a little more light on Auction Fees & Commissions.

Thanks,
Development Team

I highlighted the important sections. Now to take a look at the example provided in the tutorial:


Quote=MA

Example:
You would like to sell your old pistol which has a TRADE TERMINAL value of 5 PED. You set the OPENING BID to 105 PED. To place the item at the auction it costs you:

Base Fee + markup commission = 0.5 + markup commission on 100 PED = 5.26 PED to place item on auction.

The final SALE PRICE for the pistol was 205 PED.

Additional Markup commission -> Total Markup Commission - Commission already paid = 4.76 PED

Once your item is sold you will receive a message stating,"Your item was sold at auction for 205 PED. Your account has been updated with 200.24 PED."

From the example, you pay a total fee of 5.26 + 4.76 = 10.02 PED to sell an item at 200PED markup.

When you goto auction, and place somthing for TT+200 opening bid, the fee will be 9.58 PED, you can try this yourself.

Sooo, where did the 10.02 - 9.58 = 0,44 PED go?????

It looks like MA doesnt understand their system themselves

I didn't want it type it all up again

P.S. I love EU but MA, please share formulas they're not secret so we can decide for ourselves what the math is, without needing to go through an interpreter.

[Stryker]

Other Bertha announcements commenting on the new changes after the VU would have saved countless players from jumping the ship and jumpstarting the first recession we have seen in a long time

[Jake Rogue]

For Info, MA's example quoted above has been establshed as wrong.

See: The amzing maths of MA

[Roth]

Complicated as it might seem, it actually ensures that items with large Markup values don't end up paying ridiculously high commissions

No it doesnt.. we still pay ridiculously high commisions, would cost me about 350ped if i wanted to sell my tiger/jag armor in auc for example.. and I dont know about you but to me that is way to much.
lets say this armor change owner 10 times, that would make the total sale cost one third of the armors actual value

well maybe its just me but i get upset every time I have to put something in auc, which prevent me from having fun

[zappen]

One thing i´ve never seen before is this....
"The easy bit: The Procurement Order Fee is the same as ever: 1 PED for every day you wish the order to remain on the Auction. This fee is paid up-front when creating the order."

Has it always been like this??

[Bird]

Yes, it has.

[Mikah]

Originally Posted by zappen

One thing i´ve never seen before is this....
"The easy bit: The Procurement Order Fee is the same as ever: 1 PED for every day you wish the order to remain on the Auction. This fee is paid up-front when creating the order."

Has it always been like this??

Yes, it has

Hmm... are you sure? I thought it was 1 PED per item auctioned regardless of time, not per day... ???

Im I the only one confused with all of this?? Screw auction, Im gonna support my local stores

[MrWizard]

Originally Posted by Roth

No it doesnt.. we still pay ridiculously high commisions, would cost me about 350ped if i wanted to sell my tiger/jag armor in auc for example.. and I dont know about you but to me that is way to much.
lets say this armor change owner 10 times, that would make the total sale cost one third of the armors actual value

well maybe its just me but i get upset every time I have to put something in auc, which prevent me from having fun

I think MA needs to add an option to sell complete armor sets.

The cap for the regression fee is 100 PED, but when you've got 6 high end armor pieces, you end up paying that fee 6 times....

[Bird]

Originally Posted by Mikah

Hmm... are you sure? I thought it was 1 PED per item auctioned regardless of time, not per day... ???

Im I the only one confused with all of this?? Screw auction, Im gonna support my local stores

Quite sure, I always thought it's way too expensive.