Christie’s has notified its customers that the Buyer’s premium has been revised to generate more revenue at the lower levels of sales and at the higher but have impact on six-figure sales:
The September update to the fee schedule amends the price thresholds at which fees are applied (see detail below) but presents no change to the fee percentages themselves. The new premium rate will be an amount equal to 25% of the hammer price of each lot up to and including £50,000/$100,000; plus 20% of the hammer price from £50,001/$100,001 up to and including £1,000,000/$2,000,000 and 12% above £1,000,001/$2,000,001. This change effectively widens the thresholds where the percentage fees apply but does not change the percentage rates.
Please see the examples on the right that illustrate new premium rates at each threshold level.
◊ A client purchasing a lot with a hammer price of £50,000 currently pays £11,875 in premium. They would now pay £12,500 − an increase in premium of £625 (+5.3%)
◊ A client purchasing a lot with a hammer price of £500,000 currently pays £101,875 in premium. They would now pay £102,500 − an increase in premium of £625 (+0.6%)
◊ A client purchasing a lot with a hammer price of £5,000,000 currently pays £661,875 in premium. They would now pay £682,500 − an increase in premium of £20,625 (+3.1%)