Less than two weeks after Christie’s announced that it was increasing the fees it charges buyers, Sotheby’s followed suit. On Thursday afternoon, when the auction house reported its 2012 financial results, it announced that it would increase what is known as its buyer’s premium - or the fees it charges buyers â€" for the first time since 2008.
Both companies had been charging 25 percent for the first $50,000; 20 percent on the amount from $50,000 to $1 million and 12 percent of the rest. Now shoppers at Sotheby’s will be charged 25 percent on the first $100,000; 20 percent from $100,000 to $1.9 million and 12 percent of the rest. For more than 98 percent of lots sold this change will represent an increase of 2 percent or less, the company said, and no sales will see more than a 3.6 percent increase in the final purchase price.
It will be slightly cheaper to buy at Cristie’s. When Christie’s increase goes into effect on March 11, it will charge 25 percent for the first $75,000; 20 percent on the next $75,001 to $1.5 million and 12 percent of the rest.
Over the last few years both auction houses have begun giving some of its biggest sellers a percentage of the buyer’s premium as an incentive to get their business, a practice which cut into profits. For the full year, Sotheby’s saw both its revenues and profits decline. Revenues in 2012 were $768.5 million, an 8 percent decline from the previous year; the company attributed much of that fall-off to a reduction in commissions. Net income was $108.3 million, a 37 percent decrease from 2011.
