Want to know the best bargain in the automotive industry today? It’s the average selling fee for consignors at wholesale auto auctions in the U.S.

Let's have some fun and look at a typical fee of, say, $100 — and I am being generous, as we all know, when chain auctions are offering less than that with transportation, car washes and month-end rebates, all deducted from that price.

What do auctions provide in the way of value?

— Pickup and delivery while paying all the related fees to simplify the process for their customers, including repo fees and related

— Thousands of acres of secure and paved storage

— Condition reports with qualified staff and auto grade technology in many cases interfaced with the customer's proprietary software and/or AutoIMS

— CFPB compliance measures and responsibilities

— Bonding, liability and garage insurance

— State-of-the-art simulcast products along with multi-image uploads

— Backside guarantees of announcement issues through the NAAA arbitration policy

— Title services

— ACH services to insure day-after-sale payments while floating the buying side

— Access to flooring companies to insure that a wider base of buyers can bid on their products

— Marketing both in-lane and online and promotional activities along with detailed-oriented and firewall-protected websites and databases

— Audit compliance

— State and local DMV compliance

— Memberships to national industry associations, state independent auto dealers associations and subscriptions to VHR and vehicle pricing guides

— Advertising both digitally and in print media

— Reconditioning, mechanical, PDR and transportation services

Not a bad package of services, processed by well trained and experienced employees.

Well you might be saying, Jim, what is your point here?

It's a simple one: Transferring costs over the past 10-15 years from the seller to the buyer is a short-term vision that in the case of many high volume units just leads to less returns in the sale price or flat out less total sales penetration in consignment in general. This then leads to consignors going around auctions to try and drive returns and hoped for increased distribution.

Giving away anything all the time, clearly states you place no value on it; and in this case it's your service. Time for us to give it the value it truly deserves.

Editor’s Note: Jim DesRochers is vice president at Dealers Auto Auction of the Southwest. As with any contributed content, the opinions expressed in this and other editorial columns are solely that of the author’s and do not necessarily reflect those of Auto Remarketing or its parent company.