International auction house Sotheby’s has announced a new structure for its fees for buyers and sellers. The details were revealed by Chief Executive Officer Charles F. Stewart in a release on February 1st.
The statement reads: “As a Sotheby’s client, you deserve clarity and simplicity when buying and selling with us. So today, in response to consistent feedback, we’re announcing the most significant changes to our fee structures in more than 40 years.
“First, we’ve reduced our buyer’s premium to a flat rate of 20% on purchases of a hammer value up to $6 million – and 10% on any amount above that. This represents a 26% decrease for the vast majority of our sales, and a reduction at all price points. And of course, whatever is good for buyers is good for sellers.
“For sellers, we’ve standardized our commission rate to 10% up to $500,000 across all categories (i.e., a cap of $50,000 per lot). Recognizing that our largest customers deserve preferred terms, we will waive our seller’s commission for consignments above $5 million, and will also rebate 40% of our buyer’s premium to sellers for consignments above $20 million.
“And we’ve eliminated our Overhead Premium, which was previously a 1% administrative fee on all sales.”
Fairness
Mr Stewart continues: “To preserve fairness for all sellers, these fee structures will not be negotiable, as was often previously the case. Larger sellers will receive the benefits of waived seller’s commissions as a reward for their valuable business. These simplified terms will help sellers focus on what is most important, which is how Sotheby’s can use its industry-leading expertise, marketing capabilities and powerful global audience platform to maximize the value of their art and luxury objects.
“Consignments signed after April 15 will reflect these new terms for sellers, and the new buyer’s premiums will go into effect globally on May 20. This applies to all auctions excluding wine and spirits. For a reminder of the auctions we have planned this spring and beyond, please visit our sales calendar.
“Going forward, we will publish jargon-free rate cards for both buyers and sellers, providing an easy-to-use guide to the fee structure. And the terms are always published and available on our website for your reference.
“We think this clearer, more intuitive system is the absolute best in class and will contribute to fairer auctions, characterised by increasing values.
“We look forward to seeing you at our 2024 sales.”
The release is accompanied by the chart below showing the new fee structure at a glance.
Established in 1744, Sotheby’s is the world’s premier destination for art and luxury. Sotheby’s promotes access to and ownership of exceptional art and luxury objects through auctions and buy-now channels including private sales, e-commerce and retail. Its trusted global marketplace is supported by an industry-leading technology platform and a network of specialists spanning 40 countries and 70 categories which include Contemporary Art, Modern and Impressionist Art, Old Masters, Chinese Works of Art, Jewellery, Watches, Wine and Spirits, and Design, as well as collectible cars and real estate. Sotheby’s believes in the transformative power of art and culture and is committed to making its industries more inclusive, sustainable and collaborative.
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