Phillips auction house will launch a new "priority bidding" fee structure this September, offering a lower buyer's premium rate to bidders who place a binding written bid at least 48 hours before a live auction, provided the bid meets or exceeds the lot's low estimate. The standard buyer's premium will remain at 29/22/15 percent for New York sales, while priority bidding rates drop to 25/20/14 percent. The policy applies to live auctions across New York, London, Hong Kong, Geneva, and Paris, but excludes watch auctions and timed online-only sales.
The move is significant because it represents a strategic shift in auction house dynamics, rewarding early commitment to generate bidding momentum and provide sellers with greater certainty. However, art advisor Dane Jensen notes the structure primarily benefits the auction house by giving specialists 48 hours to shop bids, potentially pushing prices higher. The announcement follows a controversial fee overhaul by rival Sotheby's in 2024, which was later walked back, highlighting ongoing competition and experimentation in auction fee models.