Buyer's and seller's premiums

Auction houses Bonhams and Phillips have both increased their buyer's premium.

Christie’s has changed its buyer’s premium levels this autumn – creating clear air between its fee structure and those used at Sotheby’s and Bonhams.

MADAM – I note that Sotheby’s will be opening a retail shop at their Bond Street premises (News, ATG No 2462).

MADAM – ATG's report ‘Sotheby’s introduces new fee on top of the hammer price and buyer’s premium’ (News, ATG No 2454) will raise eyebrows.

Sotheby’s has introduced a new fee called an ‘Overhead Premium’ that is payable by all auction buyers across its salerooms and online auctions globally.

Dix Noonan Webb (DNW) has become the first UK numismatics auction house to set its buyer’s premium beyond 20%. The London coins, medal and jewellery specialist will charge a premium of 24% from September.

MADAM – I believe auction houses should make it clear to bidders that buyer’s premium has gone up and the fee does not include VAT.

Auction house Bonhams has raised its buyer’s premium levels, adding a new threshold of 27.5% on the first £2500/$3000 of the hammer price.

MADAM – a simple question to auctioneers in general: are you in danger of slowly killing the goose that lays the golden eggs?

Fees charged by auctioneers, from buyer’s premium to condition reports, have been a hot topic in the pages of ATG and on social media recently. One reader contacted us regarding the move by a West Midlands auction house to charge winning bidders who have used the phone the same fee as online buyers.

MADAM – Bearing in mind that auctioneering can be a university qualification (unlike dealing) and is an occupation that charges for its services, should there not be some form of censure and control over firms that get it so wrong?

MADAM – You continue to receive letters from dealers complaining about buyer’s premiums.

MADAM – Various of your correspondents over the last few weeks find that the prospect of paying for a condition report, as well as a buyer’s premium, sticks in their craw.

MADAM – Your new year’s resolutions piece (ATG No 2374) was thought-provoking, citing aspirations and concerns reflecting the current art and antiques market.

MADAM – I write regarding charging for condition reports for lower-value lots.

MADAM – I appreciate I had my turn the other day (Letters, ATG No 2369), but a quick note covering two points if I may.