This article by Saleroom Manager Bill Nelson is all about understanding buyers’ premiums and sellers’ commissions at auction. Read on for his helpful explanation.
One of the most common questions we hear is, “Why is the auction commission so high?”
The reality is that it isn’t high; rather, it accurately reflects the value of the essential services provided to both buyers and sellers. Let’s explore the details of the auction commissions at 1818 Auctioneers.
Understanding seller’s commission
At 1818 Auctioneers, our seller’s commission is 22.5% (including VAT). This fee covers insurance, professional photography, advertising, and promotion to ensure your items receive maximum exposure. The buyer’s premium plays a crucial role in sustaining the business, helping to cover operational costs and ensuring that we can continue to provide an efficient, professional, secure, and well-promoted auction service.
A small lot fee also directly covers online platform costs, covering the cost of your items reaching a wider audience.
Buyers’ premium and market comparison
Buyers also ask about fees, and we believe in complete transparency. Our buyer’s premium is 27%, which includes VAT and platform costs.
We recently surveyed 100 auction houses accredited by industry bodies such as SOFAA and NAVA. The findings showed that the average buyer’s premium is 31.65%. Only 10 auction houses charge lower fees than here at 1818 Auctioneers, and these are typically liquidation specialists. Our nearest competitors in North West Cumbria and Yorkshire both charge 32.34%.
Why cheaper isn’t always better
Some auction houses advertise lower fees, but it is essential to consider the risks. Before choosing an auctioneer, it is worth asking:
Do they operate within legal requirements? Certain items require special certification, such as CITES for endangered species trade.
Is your money held securely? A reputable auction house should use a client account to protect funds.
Are your items fully insured and marketed effectively worldwide? Without proper insurance, your goods may not be protected, and without effective promotion, they may not reach the right buyers.
Choosing a quality service at a fair price
At 1818 Auctioneers, we balance competitive pricing and professional service, ensuring buyers and sellers receive value for money. While cheaper options may be available, they do not always provide the same level of security, compliance, and exposure. We hope you will choose to buy and sell with us with confidence.
