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iBiD charges a 15% buyer’s fee and a 15% seller’s fee for machinery auctions. They apply to different sides of the transaction. The examples below use the winning bid/final equipment sale price as the fee base and exclude tax and separately agreed services.
Buyer’s fee
The buyer’s fee, sometimes called a buyer’s premium, is added to the winning bid. Buyer subtotal before tax and other costs = winning bid × 1.15.
Seller’s fee
The seller’s fee is deducted from the equipment sale proceeds. Seller proceeds before other agreed deductions = final equipment sale price × 0.85. The seller does not receive the buyer’s fee.
| Winning bid / sale price | Buyer’s fee, 15% | Buyer subtotal | Seller’s fee, 15% | Seller proceeds before other deductions |
|---|---|---|---|---|
| $5,000 | $750 | $5,750 | $750 | $4,250 |
| $10,000 | $1,500 | $11,500 | $1,500 | $8,500 |
| $25,000 | $3,750 | $28,750 | $3,750 | $21,250 |
What to include beyond the bid
- Applicable taxes: confirm the taxable amount, treatment of the buyer’s fee and any accepted exemption documents with iBiD before payment.
- Inspection or specialist evaluation; decommissioning and utility disconnection.
- Dismantling, rigging, loading, packing, freight, transit insurance and unloading.
- Destination permits, electrical work, air or dust systems, foundations, repairs, tooling, software transfer and commissioning.
- Any event-specific charges disclosed in the terms or agreed service scope.
Do not assume either 15% fee includes these services. Get written scopes and quotes, and confirm who pays each charge. A loading charge is not necessarily a freight charge, and freight may exclude unloading.
Work backward to a maximum bid
Suppose your total budget is $15,000 and you reserve $3,500 for removal, transport and setup. That leaves $11,500 for the equipment and buyer’s fee, so the maximum winning bid is $10,000 before allowing for tax or a contingency. Reduce that bid limit further for those amounts. When tax and other costs are budgeted separately, use: maximum bid = (total budget − all other costs) ÷ 1.15. Round down to an allowed bid increment.
Read the quantity basis
If a bid is $1,000 per unit for three units, the equipment amount is $3,000 and the 15% buyer’s fee is $450. If $1,000 is the price for the entire three-item lot, the fee is $150. Check the lot wording before bidding.
Confirm the settlement details
Buyers should confirm deposits, payment methods, payment deadlines and release conditions for the event. Sellers should confirm settlement timing, other agreed deductions, treatment of unsold lots and any lien payoff. The guide does not establish those terms. If an older page or agreement quotes a different fee, ask iBiD to reconcile it in writing before proceeding.
Before committing: Read the terms for the specific auction and lot, and resolve missing or conflicting details with iBiD in writing. This guide explains preparation; it does not set payment deadlines, pickup dates, deposit rules, warranties, or other event terms.
iBiD Machinery · Updated October 14, 2026