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Auction House Fees Prize Quiz

22 replies [Last post]
Thu, 08/11/2011 - 01:12
Mayaura's picture
Mayaura

People seem to have some misconceptions about how much it costs to sell things in the Auction House, often assuming it just costs a flat 10% of the sale price. But the actual cost is more tricky to calculate. So here's the deal. I'll send 1,000 crowns by mail to the first two people to give me the correct answer to either one of the following actual auctions I had.
1) sold a 2 day auction item for 399,990. How much was the actual cost to me?
20 sold a 2 day item for 10,900. How much was the actual cost to me?
ign: Mawashimono

Thu, 08/11/2011 - 01:22
#1
Mafiaso's picture
Mafiaso
there aint no other math

there aint no other math behind it or i could be wrong???

because when you sell, u put listing fees but if it is sold, the listing fee is refunded meaning u pay flat 10% of sellin price
1: .1*399 990
2: .1*10 900

Thu, 08/11/2011 - 01:36
#2
iSpycheck
Legacy Username
I'll assume that the numbers

I'll assume that the numbers you posted are the sold prices after deducting the 10% fees.

So the final sales price on the auction for 1) would be 444,433. The 10% fee would be 44,443.

Then that of 2) would be 12,111. The 10% fee would be 1,211.

The fees would still be your actual cost of selling them on the AH. If you're asking for the listing fee for each, then there isn't enough information since I still need the initial bid prices, according to the wiki.

Thu, 08/11/2011 - 01:42
#3
Jigokunoinu
Legacy Username
There was no cost to you in

There was no cost to you in either case. You made money ;)

1) You made 359991cr
2) You made 9810cr

Thu, 08/11/2011 - 01:49
#4
Mafiaso's picture
Mafiaso
/agree with both.

/agree with both.

Thu, 08/11/2011 - 01:56
#5
Dukesky
Legacy Username
-

As far as I know, it IS a flat 10% off the sale price.
However, the posting fee is included on the return, so maybe that is confusing the OP?...

Thu, 08/11/2011 - 03:43
#6
Mayaura's picture
Mayaura
this is not a trick question

The prices I listed are the prices the buyers paid. How much did Spiral Knights charge me for the transaction? No one is even close to right yet. And yes, the cost can be calculated from the info given. The Wiki site, while being technically correct in its information, is quite inadequate in helping us to actually calculate the cost.

Thu, 08/11/2011 - 04:44
#7
Algol-Sixty's picture
Algol-Sixty
If the items sold, the cost

If the items sold, the cost is a flat 10% of the sale price. If the item is not sold, then the cost is the listing fee, which is tricky to calculate. The first reply to your post gave the correct answer. The amount you get back in the AH mail is different since it is both refunding the listing fee and deducting the selling fee.

Edit: I guess there are also a large number of opportunity costs and risks, such as time spent listing, monitoring, dealing with mail, etc. and risks of mistyping numbers, putting the wrong thing up for sale, etc. Those can end up being quite expensive, but the costs can't be calculated based on what the OP provided and the OP says that they provided all the information you need.

Thu, 08/11/2011 - 04:32
#8
Abathur's picture
Abathur
I guess ...

I guess the OP is the only one who don't get it ...

Thu, 08/11/2011 - 05:26
#9
Volebamus's picture
Volebamus
Let me guess, are you

Let me guess, are you factoring outside things like CE-Crown conversion in these costs?

The givens in the beginning don't suggest that though.

Thu, 08/11/2011 - 05:51
#10
Mayaura's picture
Mayaura
Just straight crowns

Most people are under the impression that it will cost them 10% to sell an item, and they are quite wrong.
HINT: the actual cost is somewhere between 0% and 5%.

And Itbeginx gave the correct calculation. although I think by chance, for 2) and will get the prize if i can get his ign. It cost me only 90 crowns to sell that recipe, which is less than 1% of the selling price. I was charged 10% of the selling price (1,090 crowns) minus the refunded listing fee (which was 1,000 crowns).

Thu, 08/11/2011 - 06:11
#11
Volebamus's picture
Volebamus
guyjin... I don't think you

guyjin... I don't think you even understand your own claim. If you add up all the costs, you did not just lost 90 crowns, if we go by it being a 10k recipe purchase from Basil.

10,900 - 10,000 - 10,900(.1) = 190

The problem is your initial situation wasn't even mentioned that it was just a recipe in the first place. That is not to be assumed automatically, and the multiple factors behind selling an item for the 399,990 (which I assume is a 5* in AH, but I would never personally make that sale in the first place since the margin is much lower than I'm used to) is too much to account for (mats if you had to purchase, recipes if you had to purchase, opportunity costs, etc.)

Thu, 08/11/2011 - 06:33
#12
Trouser's picture
Trouser
A proposition

Guyjin, send me a 5,000cr "trade fee", and I will refund it and give you an additional 9,000cr, a total of 14,000cr, in exchange for a mere 10,000cr. You make 4,000cr, easy as pie.

When you figure out why this offer is a scam, you will understand why your total cost of selling those items was 10% of the sale price.

(Not a real offer. For illustrative purposes only. Void where prohibited.)

Thu, 08/11/2011 - 07:14
#13
Trojanm's picture
Trojanm
...

The only cost in selling an item in the AH is the 10% fee on the sale price (or listing fee in event of non-sale)

For example, you create an auction for a wolver cap at 3K buyout and 2 days auction time. The listing fee here is 300 crowns which is immediately taken. If the item gets sold, lets say at buyout of 3K, the listing fee of 300 crowns which you had paid earlier is returned to you. Also, a fee of 10% of the sale price is taken from you, amounting to 300 crowns.

So the cost is 300cr(original listing fee) - 300cr (refunded listing fee) +300cr(10% sales fee) = 300cr

Thu, 08/11/2011 - 07:54
#14
john1111
Legacy Username
me thinks someone forgot to

me thinks someone forgot to look at the refunded listing fee part of the letter from his auction house mail and just looked at his final sales figure.

Thu, 08/11/2011 - 08:03
#15
iSpycheck
Legacy Username
Okay, so the second sale was

Okay, so the second sale was of a 4* recipe. Like Volebamus said, there's no way anyone would automatically assume and decide that it was a recipe that you sold. But that's only a minor problem.

This is just a repetition of Volebamus's calculations:

-10,000 CR for buying the recipe off him (-10,000 net gain)*
-1,000 CR for the listing fee, as you stated (-11,000 net gain)
+10,900 CR for the final sales price (-100 net gain)*
-1,090 CR for successfully selling the recipe; 10% sellers fee charged (-1,190 net gain)
+1,000 CR for successfully selling the recipe; listing fee refunded (-190 net gain)

However, this is only the net gain/loss from selling the recipe, not the cost of selling an item. Yet even if you find that by taking away the starred calculations above, the final answer would still be the 10% sellers fee (-1,090 net gain) that you're arguing against. The problem is that, per response #10, you did not factor in the listing fee that you put in for selling the recipe. That makes your argument look like you assumed that you received that listing fee refund for free.

Unless we're still missing something from what you've said, your argument that "the cost of selling an item is not the 10% sellers fee" is the misconception here.

Thu, 08/11/2011 - 08:15
#16
Selenashine's picture
Selenashine
I don't even know what the

I don't even know what the question is. "Actual cost"? What the hell is that supposed to mean? It cost you the item to sell the item?

If you mean the crowns lost forever through this transaction, it's 10%. If you put it up for auction and it doesn't sell, it's the listing fee.
For 2 days, the listing fee is 5% of buy now price (assuming your starting bid was 1 crown or something). You will appear to get 95% of the auction price when you sell the item.

Thu, 08/11/2011 - 09:32
#17
Nievem's picture
Nievem
Finally, when you put an item

Finally, when you put an item on the auction house you must consider how much it cost to you, divide that cost by 0.9, that's the minimum price you have to sell it for to break even, assuming you manage to sell it. If you sell at any lower you are losing money, if you don't sell you are losing money.

Most people don't understand this that's why you see many 4* recipes for less than 11112 crowns on the ah. They believe they are just recovering their initial expenses. Such apparently-hard-to-sell recipes would be better sold on trade chat if you don't want to take a hit on your finances. They are hard to sell so there's a big chance they won't even at that price. And the more you lower to get it sold the more you lose for having sold it below price.

If you hold on selling the item, even if you don't try the trade chat, then you give a chance for those items already on the market to be sold and then you can put yours up instead of increasing the competition for who can sell first, and lose more at that.

Thu, 08/11/2011 - 09:59
#18
Pupu
Legacy Username
Wut

If you sell the item, 10% is "lost".
The refunded listing fee is what you paid at the beginning, so it's just returned money.
You are confused because they return you the listing fee along with the sale money, so it looks like less than 10%.

Thu, 08/11/2011 - 10:23
#19
Saviiz
Legacy Username
xd my programm can calculate

xd my programm can calculate the auction house prize...
http://forums.spiralknights.com/en/node/18094

Thu, 08/11/2011 - 13:21
#20
Mayaura's picture
Mayaura
Oh, Yes, I see my mistake.

Thank you for taking the time to respond to this. It has really been bothering me. Indeed, the cost of selling is a flat 10%.

Thu, 08/11/2011 - 16:42
#21
Shrinkshootr
Yeah I was about to say

Yeah I was about to say something here along the lines of guyjin not really understanding the whole math thing, but it seems he got it. Gotta check them numbers!

Thu, 08/11/2011 - 21:46
#22
john1111
Legacy Username
so who got the prize?

so who got the prize?

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