Understanding What You Actually Keep When Selling at Auction
You’ve decided to sell part of your coin collection through auction. Heritage Auctions and Stack’s Bowers Galleries both want your consignment. Their marketing promises record prices and expert presentation. But after the hammer falls and your coins sell, what do you actually receive after fees?
The difference between what buyers pay and what sellers net can exceed 30% of the hammer price. Understanding fee structures at major auction houses determines whether selling at auction makes financial sense compared to dealer sales or private transactions.
How Auction House Fees Work
The Double-End Fee Structure
Both Heritage and Stack’s Bowers charge fees to buyers AND sellers. A coin hammering at $10,000 generates fees from both sides of the transaction.
Buyer’s premium: A percentage added to the hammer price that the buyer pays to the auction house
Seller’s commission: A percentage of the hammer price that the seller pays to the auction house
On a $10,000 hammer, a 20% buyer’s premium means the buyer actually pays $12,000 total. If the seller pays a 10% commission, they net $9,000. The auction house collects $3,000 ($2,000 from buyer, $1,000 from seller) from the transaction.
This double-end model is standard across numismatic auctions, but the specific percentages vary significantly between houses and based on consignment value.
Heritage Auctions Fee Structure
Seller’s Commission at Heritage
Heritage uses a sliding scale based on total consignment value. Higher-value consignments receive better commission rates:
Consignments under $50,000: 10-20% commission (negotiable based on coin quality and demand)
Consignments $50,000-$200,000: 5-10% commission
Consignments $200,000-$1,000,000: 0-5% commission
Consignments over $1,000,000: Negotiable, sometimes 0% or negative (Heritage pays premium to secure high-value consignments)
These are starting points—Heritage negotiates commissions based on factors including:
– Coin rarity and demand (key dates, condition rarities command lower commissions)
– Consignment timing (filling gaps in upcoming auctions may earn better terms)
– Relationship history (repeat consignors often receive preferential rates)
– Marketing needs (Heritage may reduce commissions on coins that photograph well for catalog covers)
Buyer’s Premium at Heritage
Heritage charges buyers 20% on the first $400,000 of purchases within a single auction, then 15% on amounts exceeding $400,000.
For internet/phone bidders, add 3% for credit card payments. Floor bidders paying by check or wire avoid this surcharge.
Example: A buyer purchasing $500,000 in coins pays:
– $80,000 (20% on first $400,000)
– $15,000 (15% on remaining $100,000)
= $95,000 in buyer’s premium (19% effective rate)
Additional Heritage Fees
Photography and catalog listing: Free for coins over certain values, $5-20 per lot for lower-value material
Insurance: 1% of hammer price (can be negotiable for large consignments)
Return fees: Heritage charges sellers if coins don’t meet reserves and return to consignor
Shipping: Seller pays return shipping if coins don’t sell; Heritage pays shipping to buyers
Stack’s Bowers Galleries Fee Structure
Seller’s Commission at Stack’s Bowers
Stack’s Bowers similarly uses sliding scales, though their brackets differ slightly from Heritage:
Consignments under $25,000: 10-15% commission
Consignments $25,000-$100,000: 5-10% commission
Consignments $100,000-$500,000: 0-5% commission
Consignments over $500,000: Negotiable, often 0% or negative
Stack’s Bowers particularly aggressively pursues major collections and rarities for their official ANA and Whitman auctions, sometimes offering negative commissions (they pay consignors a premium) to secure prestigious material.
Buyer’s Premium at Stack’s Bowers
Stack’s Bowers charges 20% buyer’s premium across all purchase amounts. Unlike Heritage’s tiered structure, Stack’s maintains 20% regardless of total purchase volume.
Internet/phone bidders using credit cards pay an additional 3% processing fee. Floor bidders paying by check, wire, or cash avoid this charge.
Additional Stack’s Bowers Fees
Photography and cataloging: Generally included for quality material; fees may apply to bulk lots or low-value items
Insurance: Typically 1% of hammer price
Unsold lot fees: Stack’s may charge return fees for lots not meeting reserve
Authentication fees: PCGS/NGC certification costs may be borne by consignor for raw coins
Real-World Comparison: What Sellers Actually Net
Example 1: $5,000 Consignment (Single High-Grade Rare Date)
Coin hammers at $5,000
Heritage (assuming 15% commission):
Hammer price: $5,000
Less seller commission (15%): -$750
Less insurance (1%): -$50
Net to seller: $4,200
Stack’s Bowers (assuming 12% commission):
Hammer price: $5,000
Less seller commission (12%): -$600
Less insurance (1%): -$50
Net to seller: $4,350
Difference: Stack’s Bowers nets seller $150 more (3.6%)
Example 2: $100,000 Consignment (Key Date in MS65+)
Coin hammers at $100,000
Heritage (assuming 5% commission):
Hammer price: $100,000
Less seller commission (5%): -$5,000
Less insurance (1%): -$1,000
Net to seller: $94,000
Stack’s Bowers (assuming 5% commission):
Hammer price: $100,000
Less seller commission (5%): -$5,000
Less insurance (1%): -$1,000
Net to seller: $94,000
Difference: Identical net to seller
Example 3: $1,000,000 Consignment (Major Rarity)
Coin hammers at $1,000,000
Heritage (assuming 0% commission – competitive major rarity):
Hammer price: $1,000,000
Less seller commission: $0
Less insurance (negotiated to 0.5%): -$5,000
Net to seller: $995,000
Stack’s Bowers (assuming 0% commission):
Hammer price: $1,000,000
Less seller commission: $0
Less insurance (negotiated to 0.5%): -$5,000
Net to seller: $995,000
Difference: Identical (both houses compete aggressively for major rarities)
Beyond Fees: Other Factors Affecting Net Proceeds
Hammer Price Achievement
Lower fees don’t help if your coins hammer for less. Heritage’s massive bidder base (over 1 million registered bidders) sometimes achieves higher hammer prices that offset slightly higher commission rates.
Stack’s Bowers’ specialized numismatic expertise and collector base sometimes achieves premium prices on specific series (early American, patterns, colonials) where their expertise is recognized.
The 5% you save on commission means nothing if the coin hammers 10% lower due to a smaller bidder pool or poorly timed auction.
Reserve Policy and Auction Placement
Both houses allow reserves (minimum acceptable hammer prices), but policies differ:
Heritage generally accepts reserves up to 80-90% of pre-auction estimate. Setting reserves too high risks coins not selling, incurring return fees.
Stack’s Bowers works similarly but may be more flexible on reserves for major pieces they particularly want to sell.
Unrealistic reserves help nobody. Coins that don’t sell cost you time and incur return fees, while tying up your capital.
Catalog Placement and Marketing
Both houses provide superior lot presentation compared to smaller auctions. Questions to ask:
– Which specific auction will feature your coins? (Flagship sales vs. internet-only auctions)
– What catalog position will your lots receive? (Earlier lots get more attention)
– Will your coins appear in print catalogs or online-only?
– What photography and description quality will your lots receive?
A coin buried in lot 2,847 of a 3,000-lot internet sale won’t achieve the same price as the same coin featured as lot 157 in a major signature auction with full-page color catalog illustration.
Negotiating Better Terms
What’s Negotiable
Both Heritage and Stack’s Bowers negotiate on:
– Seller commission rates (especially for $50,000+ consignments)
– Insurance fees (large consignments can sometimes eliminate this)
– Catalog photography quality and placement
– Reserve policies
– Payment timing (standard is 35-45 days post-auction; sometimes negotiable)
What’s Generally Not Negotiable
– Buyer’s premium (set company policy)
– Credit card processing fees
– Authentication requirements (coins must be certified for major auctions)
– Minimum consignment values for premier auctions
Leverage Points
You have more negotiating power when:
– Consignment total exceeds $100,000
– You own key dates or major rarities auction houses want for catalog covers
– Multiple auction houses are competing for your consignment
– You’re a repeat consignor with sales history
– Your timing helps fill gaps in upcoming major auctions
When Heritage Makes More Sense
Consider Heritage when:
– Selling modern bullion-related items (Heritage’s massive general collector base)
– Consigning certified coins in competitive series (Morgan dollars, classic commemoratives)
– You need absolutely maximum bidder exposure
– You’re selling mixed collections spanning multiple specialties
– You value technology platform and online bidding interface
Heritage’s size and technological sophistication creates bidding momentum that sometimes achieves hammer prices offsetting any commission differences.
When Stack’s Bowers Makes More Sense
Consider Stack’s Bowers when:
– Selling early American coins, colonials, or patterns
– Consigning major rarities for signature auction placement
– You want traditional numismatic expertise and collector base
– You’re selling specialized material that benefits from focused collector attention
– Personal service and consultation matter more than bidder quantity
Stack’s Bowers’ numismatic pedigree and specialized expertise sometimes achieves premium prices in classical series that justify choosing them even with comparable fees.
The Real Question: Auction vs. Dealer Sale
Before comparing Heritage and Stack’s Bowers, consider whether auction sale makes sense at all.
Auctions work best for:
– Rare coins with strong collector demand
– Key dates and condition rarities
– Complete sets or specialized collections
– Items where competitive bidding could drive prices above retail
Direct dealer sales work better for:
– Common material in average grades
– Bullion-related items without numismatic premiums
– Situations where you need immediate payment
– Collections without standout pieces worth auction marketing
A dealer might pay 65-75% of retail immediately, while an auction (after 10-20% total fees and 35-45 day payment delays) nets you 70-80% of hammer—which may or may not exceed what dealers would pay.
Making the Decision
Contact both Heritage and Stack’s Bowers. Describe your consignment specifically. Ask:
1. What commission rate would you offer?
2. Which specific auction would feature my coins?
3. What catalog placement and photography would my lots receive?
4. What pre-sale estimates do you suggest?
5. What reserve policies would you recommend?
Compare their responses on total package—not just commission rates. The house offering 2% lower commission but placing your coins in an online-only internet auction probably won’t outperform the house charging slightly more but featuring your coins in a major signature sale.
Both Heritage and Stack’s Bowers are professionally managed auction houses with decades of successful numismatic auction experience. Neither will defraud you or mishandle your consignment. The question isn’t which is “better”—it’s which is better for YOUR specific coins and circumstances.
Focus on maximizing the hammer price through optimal timing, marketing, and bidder exposure. Saving 3% on commissions means nothing if poor placement costs you 15% in hammer achievement. Choose the house and auction that positions your coins for maximum competitive bidding—that’s what determines what you actually net when the hammer finally falls.
