Our standard management fee is 4 % - for this we provide the following services. Catalog and advertising design and typesetting, catalog dispersment, placement of advertising, block commentary, sale order, clerking of the sale, cashiering the sale, billing/collection of unpaid lots, transfer of registration papers, dispersment of funds to consignors, contracting sale staff (auctioneer, ring men, internet broadcast), contracting of sale facility, handle absentee bids, list the sale and catalog on our website and occasionally some photo work.
Advertising costs can be a tight line to walk and knowing when enough is enough or too much can be challenging. Personally I prefer to spend most of our advertising dollars in well known/read publications that may also provide ring service in an advertising package and stay away from doing a lot of "local" advertising.
Printing the "right" amount of catalogs can also be a point of interest. Our "Hot list" for our mailing list is approximately 2500 active buyers. We will sort this list according to geographical locations and direct mail catalogs to those individuals as well as to buyers that we know are actively pursuing more genetics for their program. I personally hate black and white catalogs, nothing says we cut corners more than a cheap looking catalog with black and white photos. A quality 4 color catalog will grab the attention of prospective buyers faster than anything else. Plant the seed that you are selling quality genetics when they first lay eyes on the catalog.
Every management company has their own list of duties and they can vary wildly from company to company. Cost of facility rent can also sway the sale expenses quite a bit.
We typically aim for a 15 % commission rate on our sales. Some get a little higher and a few will come in just a little below that. As stated above the commission rate is directly related to the gross of the sale. RCR