Christie's raises BP

[spider9698]

Was bidding on some items this week at Christie's and received this email. Wonder if others will follow suit??

 

 

----------------------------------------------------------

 

Dear Christie's Client,

 

As a registrant for an upcoming Christie's sale, please be advised that, as of 1 September 2007, Christie's buyer's premium shall be an amount equal to 25% of the hammer price of each lot up to and including $20,000, plus 20% of the excess of the hammer price over $20,000 up to and including $500,000, plus 12% of the excess of the hammer price above $500,000.

 

Exceptions: The buyer's premium on purchases of Wine shall be 20% of the hammer price.

 

Buyers shall, in addition, continue to be responsible for all applicable sales or use taxes. Please also note that different thresholds apply for different salerooms.

 

Thank you very much for your interest in our sale.

 

Sincerely,

 

Karen Christian

Head of Client Service

[delekkerste]

Sotheby's Raises Buyer's Premium, Following Christie's

2007-08-23 07:39 (New York)

 

 

By Mark Beech

 

Aug. 23 (Bloomberg) -- Sotheby's, the world's second-largest

auction house, will raise some of its buyer's premiums, it said

in an SEC filing.

 

Sotheby's said that in salesrooms in the U.S., the premium

will be 25 percent of the sale price on the first $20,000, 20

percent of the price above $20,000 up to and including $500,000

and 12 percent of any remaining amount more than $500,000.

 

The increase takes effect on Sept. 1.

 

Previously, the buyer's premium charged on auction sales was

20 percent of the hammer price on the first $500,000 and 12

percent of any remaining amount more than $500,000.

 

Sotheby's also said that it had entered into auction

guarantees totaling $103.2 million, in addition to the $274.9

million previously reported.

 

Christie's International, the world's largest auction house,

said on Aug. 3 that it will raise buyers' commissions by about

one-quarter for art costing $20,000 or less as it seeks more

profit from lower-priced auction sales.

 

--Editors: Ruane (rev)

 

[tth2]

Kind of puts the whining about Heritage`s 19.5% BP in perspective, doesn`t it?

[sborock]

Or any BP.

 

I always find it amusing that people complain about any BP Heck, I just bid what I want to pay and factor in the BP. If I win, great, if not, also great as I did not pay more than I wanted to.

[Sal]

they will keep cranking them up until people stop buying, or until another startup auction house decides to pop up. then they will probably overcorrect.

 

anyway, this is just a way for these houses to offer a better deal for consignors, as they can offer over 100% of hammer by applying some of the additional BP to the consingor

[Stronguy]

Kind of puts the whining about Heritage`s 19.5% BP in perspective, doesn`t it?

 

Can Heritage truely be far behind.

[comix4fun]

Sotheby's Raises Buyer's Premium, Following Christie's

2007-08-23 07:39 (New York)

 

 

By Mark Beech

 

Aug. 23 (Bloomberg) -- Sotheby's, the world's second-largest

auction house, will raise some of its buyer's premiums, it said

in an SEC filing.

 

Sotheby's said that in salesrooms in the U.S., the premium

will be 25 percent of the sale price on the first $20,000, 20

percent of the price above $20,000 up to and including $500,000

and 12 percent of any remaining amount more than $500,000.

 

The increase takes effect on Sept. 1.

 

Previously, the buyer's premium charged on auction sales was

20 percent of the hammer price on the first $500,000 and 12

percent of any remaining amount more than $500,000.

 

Sotheby's also said that it had entered into auction

guarantees totaling $103.2 million, in addition to the $274.9

million previously reported.

 

Christie's International, the world's largest auction house,

said on Aug. 3 that it will raise buyers' commissions by about

one-quarter for art costing $20,000 or less as it seeks more

profit from lower-priced auction sales.

 

--Editors: Ruane (rev)

 

 

Wow less than 3 weeks apart on the announcement and the SEC filing is done within days of each other as well....and the terms are exactly the same for the majority of items.

It's nice that they didn't do it on the exact same day *cough* collusion *cough*

they waited a few days. I mean it's not like they have ever done anything like this before....

 

February 5, 2001

Sotheby's Guilty Plea Brings Collusion Case Closer to End

By CAROL VOGEL

With a federal judge's acceptance on Friday of a plea deal in which the auction house Sotheby's admitted its guilt in a price-fixing conspiracy and agreed to pay a $45 million fine, the Justice Department investigation and the civil suits that have stemmed from the case are ending.

 

But even as lawyers begin winding down their work, questions remain, particularly in the criminal investigation, about the collusion between Sotheby's and its competitor, Christie's. The most prominent is whether A. Alfred Taubman, Sotheby's former chairman and the company's controlling shareholder, will face an indictment stemming from the collusion, which involved fixing commission rates paid by many customers through much of the 90's.

 

While Mr. Taubman has denied any wrong doing, the Justice Department is said to have been meetings with his lawyers for several weeks. Another meeting is believed to be scheduled for tomorrow.

 

Also at issue in the criminal inquiry is when the collusion began. On Friday, in spelling out the terms of a $512-million civil settlement agreed to by the two auction houses, David Boies, a lawyer for the 130,000 customers represented in the class-action suit, said he believed that collusion had begun either in early 1992 when Sotheby's and Christie's decided to raise the fees they charged buyers or that, at the very least, the companies colluded to maintain their charges in the years that followed.

 

But Sotheby's lawyer Steven A. Reiss of Weil, Gotshal & Manges said Sotheby's has maintained that there was no collusion over buyer's fees, but only over seller's fees beginning in 1995. Mr. Reiss called the amount that Sotheby's has agreed to pay ''extraordinary,'' adding that the auction house's half of the settlement exceeds the $22 million he estimates were the damages to its customers. Mr. Taubman has agreed to pay $156 million of Sotheby's $256 million share of the settlement.

 

Rather than paying their settlement entirely in cash, Sotheby's and Christie's initially offered to pay $100 million in certificates that future sellers could use toward commission fees and other charges. This has triggered a dispute over the value of the coupons.

 

Judge Lewis A. Kaplan of the Federal District Court in Manhattan, initially skeptical of the value of the coupons, commissioned an analysis that determined the value of the certificates should be increased to $118 million.

 

Last month, under pressure from Mr. Boies's firm, Boies, Schiller & Flexner, the auction houses agreed to increase the value to $125 million.

 

Some auction-house customers said the certificates were a benefit for sellers because their cash value was 80 cents to the dollar. ''I'll be happy to buy them from anyone who wants to sell them,'' said Michael R. Zomber, a fire arms and armor dealer from Culver City, Calif.

 

But Thomas R. Broussard, speaking on behalf of some auction house customers at Friday's hearing, called the certificates nothing but a ''marketing tool'' that would ''continue the duopoly.''

 

''Phillips is trying to get into this market,'' Mr. Broussard said, referring to a third auction house that is challenging Sotheby's and Christie's, but which would have no reason to honor the coupons. ''How are they going to compete,'' he said, ''if we don't just get cash?''

 

Objections were also raised to Judge Kaplan's decision to dismiss three lawsuits brought against the two houses by buyers at foreign auctions. Judge Kaplan said the claims had no merit.

 

For all the arguing, there were no complaints from customers about the amount of the settlement. As Friday's hearing was nearing its end, the judge spoke about his unusual decision to hold an auction in which law firms hoping to be named lead counsel submitted bids that were weighed in terms of which would likely return the most money to the plaintiffs.

 

The average bid envisioned a settlement of $130 million, the judge said, hundreds of millions less than the final figure the judge is considering. The bid by Mr. Boies and his partner Richard Drubel was so advantageous, the judge said there was a savings in legal fees of tens of millions of dollars, which he called ''successful beyond my imaginings.''

 

 

[MutantKeys]

Or any BP.

 

I always find it amusing that people complain about any BP Heck, I just bid what I want to pay and factor in the BP. If I win, great, if not, also great as I did not pay more than I wanted to.

Thats exactly what I do when I buy from Heritage.

[Stronguy]

Or any BP.

 

I always find it amusing that people complain about any BP Heck, I just bid what I want to pay and factor in the BP. If I win, great, if not, also great as I did not pay more than I wanted to.

Thats exactly what I do when I buy from Heritage.

 

Living in Texas you get really screwed with Heritage...

Hammer price: $1,000

BP: $195

Tax: $98.59

Shipping: $25

Total: $318.59... 32% over hammer price.

 

That means I'm actually going to bid a/b $680 on a book that should go for $1000... never going to win at that rate. Also take into account that their "employees" are not paying the BP, shipping or tax on the BP. So, an "employee" could bid up to $917.49 and still get it cheaper than a non-employee.

[sborock]

The tax thing used to afffect me when I was living and bidding in NY, but BP's are how the auction houses/consignment sites make their money.

 

It's just business, but it does stink when you live in the state you are bidding in

[Stronguy]

I rarely take tax into consideration, especially when buying a $1000 book or OA. And to be honest I don't pay shipping from Heritage, they are only 10 minutes from my office so I do a pickup... every little bit helps.

[MutantKeys]

The tax thing used to afffect me when I was living and bidding in NY, but BP's are how the auction houses/consignment sites make their money.

 

It's just business, but it does stink when you live in the state you are bidding in

Good thing I am too poor to buy from Sotheby's

[MutantKeys]

Or any BP.

 

I always find it amusing that people complain about any BP Heck, I just bid what I want to pay and factor in the BP. If I win, great, if not, also great as I did not pay more than I wanted to.

Thats exactly what I do when I buy from Heritage.

 

Living in Texas you get really screwed with Heritage...

Hammer price: $1,000

BP: $195

Tax: $98.59

Shipping: $25

Total: $318.59... 32% over hammer price.

 

That means I'm actually going to bid a/b $680 on a book that should go for $1000... never going to win at that rate. Also take into account that their "employees" are not paying the BP, shipping or tax on the BP. So, an "employee" could bid up to $917.49 and still get it cheaper than a non-employee.

Tax really sucks .

[Sharkey]

Sotheby's Raises Buyer's Premium, Following Christie's

2007-08-23 07:39 (New York)

 

 

By Mark Beech

 

Aug. 23 (Bloomberg) -- Sotheby's, the world's second-largest

auction house, will raise some of its buyer's premiums, it said

in an SEC filing.

 

Sotheby's said that in salesrooms in the U.S., the premium

will be 25 percent of the sale price on the first $20,000, 20

percent of the price above $20,000 up to and including $500,000

and 12 percent of any remaining amount more than $500,000.

 

The increase takes effect on Sept. 1.

 

Previously, the buyer's premium charged on auction sales was

20 percent of the hammer price on the first $500,000 and 12

percent of any remaining amount more than $500,000.

 

Sotheby's also said that it had entered into auction

guarantees totaling $103.2 million, in addition to the $274.9

million previously reported.

 

Christie's International, the world's largest auction house,

said on Aug. 3 that it will raise buyers' commissions by about

one-quarter for art costing $20,000 or less as it seeks more

profit from lower-priced auction sales.

 

--Editors: Ruane (rev)

 

 

Wow less than 3 weeks apart on the announcement and the SEC filing is done within days of each other as well....and the terms are exactly the same for the majority of items.

It's nice that they didn't do it on the exact same day *cough* collusion *cough*

they waited a few days. I mean it's not like they have ever done anything like this before....

 

February 5, 2001

Sotheby's Guilty Plea Brings Collusion Case Closer to End

By CAROL VOGEL

With a federal judge's acceptance on Friday of a plea deal in which the auction house Sotheby's admitted its guilt in a price-fixing conspiracy and agreed to pay a $45 million fine, the Justice Department investigation and the civil suits that have stemmed from the case are ending.

 

But even as lawyers begin winding down their work, questions remain, particularly in the criminal investigation, about the collusion between Sotheby's and its competitor, Christie's. The most prominent is whether A. Alfred Taubman, Sotheby's former chairman and the company's controlling shareholder, will face an indictment stemming from the collusion, which involved fixing commission rates paid by many customers through much of the 90's.

 

While Mr. Taubman has denied any wrong doing, the Justice Department is said to have been meetings with his lawyers for several weeks. Another meeting is believed to be scheduled for tomorrow.

 

Also at issue in the criminal inquiry is when the collusion began. On Friday, in spelling out the terms of a $512-million civil settlement agreed to by the two auction houses, David Boies, a lawyer for the 130,000 customers represented in the class-action suit, said he believed that collusion had begun either in early 1992 when Sotheby's and Christie's decided to raise the fees they charged buyers or that, at the very least, the companies colluded to maintain their charges in the years that followed.

 

But Sotheby's lawyer Steven A. Reiss of Weil, Gotshal & Manges said Sotheby's has maintained that there was no collusion over buyer's fees, but only over seller's fees beginning in 1995. Mr. Reiss called the amount that Sotheby's has agreed to pay ''extraordinary,'' adding that the auction house's half of the settlement exceeds the $22 million he estimates were the damages to its customers. Mr. Taubman has agreed to pay $156 million of Sotheby's $256 million share of the settlement.

 

Rather than paying their settlement entirely in cash, Sotheby's and Christie's initially offered to pay $100 million in certificates that future sellers could use toward commission fees and other charges. This has triggered a dispute over the value of the coupons.

 

Judge Lewis A. Kaplan of the Federal District Court in Manhattan, initially skeptical of the value of the coupons, commissioned an analysis that determined the value of the certificates should be increased to $118 million.

 

Last month, under pressure from Mr. Boies's firm, Boies, Schiller & Flexner, the auction houses agreed to increase the value to $125 million.

 

Some auction-house customers said the certificates were a benefit for sellers because their cash value was 80 cents to the dollar. ''I'll be happy to buy them from anyone who wants to sell them,'' said Michael R. Zomber, a fire arms and armor dealer from Culver City, Calif.

 

But Thomas R. Broussard, speaking on behalf of some auction house customers at Friday's hearing, called the certificates nothing but a ''marketing tool'' that would ''continue the duopoly.''

 

''Phillips is trying to get into this market,'' Mr. Broussard said, referring to a third auction house that is challenging Sotheby's and Christie's, but which would have no reason to honor the coupons. ''How are they going to compete,'' he said, ''if we don't just get cash?''

 

Objections were also raised to Judge Kaplan's decision to dismiss three lawsuits brought against the two houses by buyers at foreign auctions. Judge Kaplan said the claims had no merit.

 

For all the arguing, there were no complaints from customers about the amount of the settlement. As Friday's hearing was nearing its end, the judge spoke about his unusual decision to hold an auction in which law firms hoping to be named lead counsel submitted bids that were weighed in terms of which would likely return the most money to the plaintiffs.

 

The average bid envisioned a settlement of $130 million, the judge said, hundreds of millions less than the final figure the judge is considering. The bid by Mr. Boies and his partner Richard Drubel was so advantageous, the judge said there was a savings in legal fees of tens of millions of dollars, which he called ''successful beyond my imaginings.''

 

 

 

 

[Stronguy]

Or any BP.

 

I always find it amusing that people complain about any BP Heck, I just bid what I want to pay and factor in the BP. If I win, great, if not, also great as I did not pay more than I wanted to.

Thats exactly what I do when I buy from Heritage.

 

Living in Texas you get really screwed with Heritage...

Hammer price: $1,000

BP: $195

Tax: $98.59

Shipping: $25

Total: $318.59... 32% over hammer price.

 

That means I'm actually going to bid a/b $680 on a book that should go for $1000... never going to win at that rate. Also take into account that their "employees" are not paying the BP, shipping or tax on the BP. So, an "employee" could bid up to $917.49 and still get it cheaper than a non-employee.

Tax really sucks .

 

But only about half as much as BP.