Buyer's and seller's premiums

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.

MADAM – Re: condition report charges at Moore Allen & Innocent for lower-value items.

MADAM – Once again we have an auctioneer defending an increased charge with various excuses given for the necessity (‘Auctioneer to charge for condition reports’, ATG No 2369).

Cotswold auction house Moore Allen & Innocent is trialling a new operation to encourage more people to attend its saleroom.

In a letter to ATG, auctioneer Michael Roberts of PFK Penrith defends auction house commissions saying “the majority of regional firms offer a good service, fairly priced”.

MADAM – I refer to your article regarding the slight wrist-slap the Advertising Standards Authority gave Christie’s about notification of extra fees charged for services rendered (ATG No 2365).