{"id":55762,"date":"2024-12-23T16:52:57","date_gmt":"2024-12-23T21:52:57","guid":{"rendered":"https:\/\/rehs.com\/eng\/?p=55762"},"modified":"2024-12-26T16:27:56","modified_gmt":"2024-12-26T21:27:56","slug":"sothebys-announces-about-face-on-fees","status":"publish","type":"post","link":"https:\/\/rehs.com\/eng\/2024\/12\/sothebys-announces-about-face-on-fees\/","title":{"rendered":"Sotheby’s Announces About-Face On Fees"},"content":{"rendered":"
\"front<\/a>

Sotheby’s<\/p><\/div>\n

On Thursday, December 19th, Sotheby\u2019s sent a letter to clients informing them that, after only six months, they are reversing their decision to adopt a new, pared-down fee structure.<\/span><\/p>\n

In February 2024, Sotheby\u2019s announced that starting in May, they would implement a new fee structure where all sales up to $6 million would be subject to a 20% buyer\u2019s premium, with everything over $6 million hit with 10%. This stood in stark contrast to their previous fee structure, similar to the buyer\u2019s premium systems maintained by comparable auction houses like Christie\u2019s and Bonhams. This consisted of a 26% first tier on all sales up to $1 million, with a 20% fee on anything between $1 million and $4.5 million. Sotheby\u2019s would then apply 13.9% to everything beyond $4.5 million. The switch to the two-tier structure was said to simplify things, make things easier for buyers, and bring in new business. In Sotheby\u2019s letter, they explained that the initial move <\/span>was meant<\/span> to \u201cencourage growth in our markets by creating transparency, simplicity, and fairness on fees that have always been intimidatingly complex.\u201d Along with the buyer\u2019s premium changes, they set their seller\u2019s commission to a flat 10%, aiming to discourage negotiations with buyers. Sotheby\u2019s CEO, Charles Stewart, described the move as \u201ca step toward maturity for the art world\u201d. Despite the sentiment surrounding the changes, it appears they did not have the desired effect.<\/span><\/p>\n

Auction house premiums have only been going up and up over the past few years, with Christie\u2019s <\/span>increasing their buyer\u2019s premiums three times in three years<\/span><\/a>. This trend of increasing fees and decreasing returns for sellers could have long-term effects on the market, potentially dissuading buyers and sellers from participating in auctions. So Sotheby\u2019s February announcement was like a breath of fresh air. Finally, we\u2019ll all be getting a bit of space to breathe without thinking about exorbitant commissions. <\/span>Sotheby\u2019s tried to explain the return to the old fee structure as the result of\u00a0 \u201cevaluating the needs and preferences of both our buyers and sellers<\/span>\u201d<\/span>.\u00a0 Is it because they care about clients, or is it because they\u2019re not making as much money as they hoped? Sotheby\u2019s has been making some drastic changes in response to the 2024 art market, including <\/span>cutting around one hundred employees from their New York offices in December<\/span><\/a> and <\/span>fifty staffers from their London headquarters in May<\/span><\/a>.<\/span><\/p>\n

The new fee structure,<\/span> which will go into effect February 17, 2025, will consist of 27% on everything up to $1 million, 22% for between $1 million and $8 million, and 15% on everything above that. The new structure enacted in May did away with the 1% overhead fee Sotheby\u2019s previously charged. Despite the sudden reversal, the overhead charges will not be coming back. Additionally, the only remaining part of the new structure is a 2% fee on sellers for when an item sells over its estimate, or what some call a success fee.<\/p>\n

By: Nathan Scheer<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

On Thursday, December 19th, Sotheby\u2019s sent a letter to clients informing them that, after only six months, they are reversing their decision to adopt a new, pared-down fee structure. In February 2024, Sotheby\u2019s announced that starting in May, they would … More…<\/a><\/p>\n","protected":false},"author":6,"featured_media":40842,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,1],"tags":[49,207,15,11,9,606],"class_list":["post-55762","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-rehs-galleries","category-rehs-contemporary","tag-auction","tag-auction-news","tag-comments-on-the-art-market","tag-rehs-contemporary-news","tag-rehs-galleries-news","tag-sothebys"],"yoast_head":"\nSotheby's Announces About-Face On Fees - Rehs Galleries<\/title>\n<meta name=\"description\" content=\"On December 19th, Sotheby\u2019s sent a letter to clients informing them that they are reversing their decision to adopt a new fee structure.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/rehs.com\/eng\/2024\/12\/sothebys-announces-about-face-on-fees\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Sotheby's Announces About-Face On Fees\" \/>\n<meta property=\"og:description\" content=\"On December 19th, Sotheby\u2019s sent a letter to clients informing them that they are reversing their decision to adopt a new fee structure.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/rehs.com\/eng\/2024\/12\/sothebys-announces-about-face-on-fees\/\" \/>\n<meta property=\"og:site_name\" content=\"Rehs Galleries\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/RehsGalleriesInc\" \/>\n<meta property=\"article:published_time\" content=\"2024-12-23T21:52:57+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-12-26T21:27:56+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/rehs.com\/eng\/wp-content\/uploads\/2020\/11\/sothebys_web.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1218\" \/>\n\t<meta property=\"og:image:height\" content=\"1200\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Nathan Scheer\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Nathan Scheer\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/rehs.com\\\/eng\\\/2024\\\/12\\\/sothebys-announces-about-face-on-fees\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/rehs.com\\\/eng\\\/2024\\\/12\\\/sothebys-announces-about-face-on-fees\\\/\"},\"author\":{\"name\":\"Nathan Scheer\",\"@id\":\"https:\\\/\\\/rehs.com\\\/eng\\\/#\\\/schema\\\/person\\\/1d33fd182b28afdad8fc3548ffe6bdc4\"},\"headline\":\"Sotheby’s Announces About-Face On Fees\",\"datePublished\":\"2024-12-23T21:52:57+00:00\",\"dateModified\":\"2024-12-26T21:27:56+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/rehs.com\\\/eng\\\/2024\\\/12\\\/sothebys-announces-about-face-on-fees\\\/\"},\"wordCount\":500,\"publisher\":{\"@id\":\"https:\\\/\\\/rehs.com\\\/eng\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/rehs.com\\\/eng\\\/2024\\\/12\\\/sothebys-announces-about-face-on-fees\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/rehs.com\\\/eng\\\/wp-content\\\/uploads\\\/2020\\\/11\\\/sothebys_web.jpg\",\"keywords\":[\"auction\",\"Auction News\",\"Comments on the Art Market\",\"Rehs Contemporary - 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