What is the buyer’s premium (BP)?
Almost every firearms auction has a buyer’s premium that is charged to winning bidders. A Buyer’s Premium is the amount added to the winning bid amount (hammer price). The BP is used by the auction company to promote the auction and to help defray the auction expense costs. The BP at RIAC is 18.5% if you pay by credit card. It is reduced to 15% if you pay by cash, check or wire transfer. For example, if the Winning Bid Amount is $1,000 and you pay by check, the Buyer’s Premium would be $150 (15% of $1,000). The Total Purchase Price is then calculated as the Winning Bid Amount + the Buyer’s Premium, or $1,000 + $150 = Total Purchase Price of $1,150