Phillips auction house announced a new fee structure for fall 2025 called "priority bidding," which offers lower buyer's premium rates to bidders who place written bids at least 48 hours before a live sale. The move aims to encourage early engagement and generate more spirited bidding, while also providing certainty for sellers. The house is simultaneously raising its standard buyer's premium to as high as 29 percent on works up to $1 million, making it the highest among major auction houses. CEO Martin Wilson, who took over in January, hopes the program will mitigate risk and shore up sales of mid-priced works.
This development matters because it reflects the auction industry's struggle to revive sales amid a persistently depressed art market. The new fee structure could reshape bidding behavior, but critics warn it may cause "sticker shock" and penalize spur-of-the-moment buyers. The initiative follows Sotheby's failed fee overhaul in 2024 and comes as half-year auction stats look grim, galleries close, and fairs suspend editions. Whether priority bidding will actually boost engagement or simply shift costs remains uncertain, but it signals a broader search for solutions in a contracting market.