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 17.5% for our Premier, Sporting and Collectors, and Arms and Accessories auctions, and 18.5% for our RIAC On Time auction. For example, if the Winning Bid Amount is $1,000 and you pay by check, the Buyer’s Premium would be $175 (17.5% of $1,000). The Total Purchase Price is then calculated as the Winning Bid Amount + the Buyer’s Premium, or $1,000 + $175 = Total Purchase Price of $1,175. All purchases made by credit card are subject to an additional 3.5% service fee. If the purchaser utilizes RIAC’s live bidding platform ‘RIAC Live’, there will be a fee charged, calculated as an additional 1% of the hammer price.