For the third year in a row, Sotheby’s has announced that it will increase its buyer’s premium. According to an article in the Financial Times: Buyers will pay 25 per cent of the hammer price up to and including $300,000 [it was up to $250,000], 20 per cent from $300,000 to $3m and 12.9 per cent above $3m [it was 12.5%], effective November 1.
In August, the auction house reported disappointing earnings … down 14% from the previous year. Here is an interesting thought … if your earnings are dropping, maybe it is time to cut back your expenses? Does not seem very fair to keep forcing your clients to foot the bill!
Wonder how long it will take for Christie’s to match the increase? I bet it will not be long.
Source: Sotheby’s to raise buyer’s premium