SOTHEBY'S REVAMPS BUYER'S PREMIUMS

The single most annoying and opaque aspect of buying and selling items at auction is about to get a lot more pleasant and transparent — at least at Sotheby's, which unveiled a major transformation of its commission structure on Thursday.

Why it matters: Buyers and sellers alike have been frustrated for decades at the way in which the amount they end up paying (or receiving) can differ significantly from the hammer price in the auction room.

• Those differences — effectively, the amount of the transaction that Sotheby's takes for itself — have risen steadily over the years. Now, they are going to fall to a multi-decade low after May 20.
• Thursday's announcement from Sotheby's represents a major reset — and is likely to put huge pressure on Christie's to follow suit. (Christie's declined to comment to Axios on what they may or may not do.)

By the numbers: For a work hammered at $1 million, Sotheby's gross profit is going to fall 32% from $370,000 to $250,000.

What they're saying: "The reduction in the Buyer's Premium will incentivize more bidding from clients and result in higher hammer prices for sellers," said Sotheby's CEO Charles Stewart in announcing the move.

The bottom line: This is a very aggressive move from Sotheby's owner, French telecoms billionaire Patrick Drahi, and one that's aimed squarely at gaining market share. It's likely to be welcomed by collectors around the world.

To read the complete article, see:
2. Auction pricing is about to become a lot more transparent (https://www.axios.com/newsletters/axios-markets-e0c7c425-ce32-4051-94ce-3f05f779b3f5.html)

	NBS (coinbooks.org) Web