The lifeblood of the ecosystem, the consignor is the source of the cards no longer wanted which need to be moved to a new collector at a strong price so the consignor can use those proceeds for his desired purpose. In a traditional auction format, the hammer price is slightly (one bid increment or less) more than the highest price two buyers are willing to pay. Using a Dutch auction construct, the hammer price is the highest price that one buyer is willing to pay, which in a perfectly efficient market would necessarily be equal to or more than the hammer price at a traditional auction. In brief, to consign with Dutch Auction Sports Cards (DASC) the consignor will:
1) Review and sign the Consignment Agreement. (Contact DASC to discuss amending the standard terms, if desired.)
2) Identify cards to be consigned.
3) Make a good faith estimate of how many lots to purchase, then make the purchase. In most circumstances, this will be $2 or less per card.
4) Through consultation with DASC (if desired), make a final decision on constituting the lots to be offered, the type of Dutch auction to run on each lot, and the starting bid for each lot. No additional payment or refund will be made at this time.
5) If desired, identify the lowest bid price the consignor is willing to accept on each lot. If no lowest price is identified, the consignor may still monitor their lots and pull the lot from auction at any time.
6) Await sales and payment. Each lot will be paid at 86.75% of the eBay bid price at time of sale, minus the 2% of the starting bid. So for instance, a single graded card lot listed at a starting price of $150 and selling at $120 will result in payment to the consignor of $101.10. Any discrepancy between the good faith estimate (see #3) and the final decision (see #4) will be remedied with the first sale(s) until there is no discrepancy.
The Consignor
The Bottom Line
-The consignor always maintains control. Control over the type of Dutch auction, the starting bid, and whether to pull the lot from auction. The consignor does not relinquish control unless/until the lot is paid for by a third-party buyer or purchased by DASC.
-The consignor often achieves a hammer price more than could have been achieved otherwise. The payout is exactly what they would receive had they sold the card on eBay themselves, minus $2 or less per card and 2% of the starting bid. Given DASC’s brand and marketing and the Dutch auction format, this will often be a net gain.
-The consignor feels no pressure to shill bid or otherwise manipulate the market, and may feel some satisfaction at knowing the lot is likely destined for a true collector.