Christie’s has announced that its buyer’s premium will increase to 25% for the less expensive lots in its sales. This applies to all classes of goods, from contemporary furniture to antiquities. Of course, the premium charged on the hammer price is not all inclusive. In London, for instance, the auction house charges 17.5% value added tax on the premium, quickly bringing the buyer’s premium to an upcharge of around 30% over the hammer price.
Christie’s and Sotheby’s have both made it very clear they wish to focus on the higher end of the auction market, with Sotheby’s in London, for instance, planning on closing their second tier salesroom at Olympia. Christie’s has likewise announced cut backs at its second tier South Kensington salesroom, discontinuing its collectibles sales. With the premium increases, doubtless other types of business will be driven away. With the premium increase, the major auction houses have moved away from their courtship of the private buyer whose business they so aggressively sought just a couple of years ago. How long will Sotheby’s ‘Arcade’ sales and Christie’s ‘Interiors’ sales continue? Not much longer, I bet.
Private buyers will find typical auction purchases to be more expensive than they had been, but has purchasing at auction ever really been a good deal for the occasional purchaser? Not really. Premium rates inclusive of local taxes and credit card fees have always made auction purchases expensive, always contributing at least 20% to the cost of any purchase. What’s more, the purchase is absolute- you buy it, you own it, in ‘as is’ condition. No returns, unless it’s consigned for resale, and the buyer who is dissatisfied with his auction purchase finds he has to pay another 20% plus to the salesroom for the privilege of having them sell it for him- for whatever they think its worth. If the buyer overpaid for the piece originally? Too bad.
It has astonished me that so many occasional collectors and interior designers over the course of the last few years chosen to make purchases at auction. Except for the excitement of raising your paddle, what’s it got them? Purchases that would have cost them exactly the same had they been acquired from a reputable dealer, which dealer would have allowed them to take the piece out on approval to see if it worked, and accepted it back gratis if it didn’t. The same dealer that, probably, would also take back the purchased piece years hence, if the client decided they didn’t want it.
Although the better art and antiques dealers have always offered a level of service the auction houses couldn’t, what’s apparent now is that the auction houses, for the buyer, aren’t even willing to be price competitive. Don’t worry, though- we offer service, and price, with a smile!