Sothebys and the Art of Profiting From a Fee Cut

Auction house Sotheby’s made news this month by announcing a fee cut for buyers of fine art and other luxury goods. This marked a sea change from the steady increases that have taken the buyer’s premium — what the winning bidder pays on top of the bid price — from 10% when Sotheby’s introduced it in 1979 to the current 26%. The fee will fall to 20% under the new arrangement.

Sellers will pay a 10% commission up to a $50,000 cap, with Sotheby’s standardizing formerly bespoke discounts and kickbacks that were widely reported under the existing system.

ncG1vNJzZmivp6x7o7jOqKSbnaKce6S7zGimqaGenryve8Crq6KbnJrAcH6Pa2tmaGJifnV70qiroZ2Srnq0ecCnm2asmJp6or7TZqafZaCnvKe106KloGWWp7yuecBmnZ6dXZjCtQ%3D%3D