In September, Phillips will say in a Tuesday announcement that Phillips will debut its new fee structure, a “priority buyer-priority structure” that is a “priority bidding” “priority buyer-priority structure.”
It works as follows: Binding written bids must be placed at least 48 hours before the auction start time and must be equal to or greater than the underestimate published in the batch. According to Phillips, the winning priority bid will benefit from a “significantly lowered” buyer premium rate.
“We have a history of positive results for our customers, which proves the 90% sell rate this spring,” Phillips CEO Martin Wilson said in a statement. “We aim now to enhance our position in this area by encouraging early engagement to generate dynamic bids while providing greater certainty for sellers. Rewarding all buyers who submit early commitments will create more momentum in the early stages of bidding and have a compelling auction experience. We believe that this strategic adjustment will lead to a more dynamic auction experience and ultimately sellers and competitors.
According to the press release, bidders benefit the bidder of priority from the lower buyer’s premium rate, winning the bid is the amount of their priority bid whenever they get a successful bid, or subsequently put a higher bid. The new tender structure will apply to live auctions starting this fall and will likely be used in all categories that move forward.
The latest prices for New York sales are as follows: New buyers have a premium of 29% hammer price, including $1 million; the portion is over $1 million, up to 22% of $6 million; the portion is over $6 million. Meanwhile, the priority bid rate began at 25%, dropped to 20%, and then dropped to 14%, over $6 million.
Phillips also released the latest buyer premium and priority bid rates for upcoming sales in London, Hong Kong, Geneva (jewelry only) and Paris. Although hammer prices will be listed in local currency, they will be roughly the same as the threshold for New York sales. The standard interest rate for the advanced level is 29/22/15%, and the priority level 25/20/14% will remain fixed in all of these positions.
Watching the auction will continue to use the existing buyer’s premium rates. Timed online auctions will be available with new standard rates, but are not currently eligible for priority bids.
Art consultant Dane Jensen told Artnews On Tuesday, the impact of the new expenses was limited. “This does apply only to batches with more affordable prices, because it is usually guaranteed,” Jansen said.
He added that the biggest advantage seems to be going to auction houses, not collectors, as the structure provides experts with 48 hours to come and buy experts who offer higher bids. “It eliminates unpredictable performance from auctions, and strategically, buyers want to work for their own benefit. It requires a sophisticated buyer to make the job favorable, otherwise bidders may inadvertently raise prices.”
One of Phillips’s major competitors: Sotheby’s announced, and the way to walk there, and the way to walk there.
In December 2024, Sotheby’s abandoned the overhaul fee structure launched in May, resuming the previous seller’s “customized” terms. Under the current system, the buyer’s premium ranges from 15% to 27% of the hammer price, depending on the value of the job. Now, the model has put the seller’s committee’s maximum limit of 10%, the initial $500,000 hammer price and completely abandoned lots estimated to be below $5 million. Buyer premiums under this system are set at 20%, up to $6 million, up to 10%.
At the time, Sotheby’s CEO Charles Stewart described the fee overhaul as Artnews As a “wise destruction”, it also shows that the art market is becoming increasingly “mature”.
Jansen added: “You have to ask yourself who benefits from these changes. Is it a home or a buyer? Basically, we’ve reached the point where no one is willing to pay or higher fees – in some cases they can deter buyers. But if auction houses need to figure out more revenue, they now need more revenue, not more products, not more products.
Correction, July 22, 2025: Earlier versions of this article incorrectly illustrate the deadline for priority levels. They must be placed at least 48 hours before sale, not eight hours before sale.
