Editor’s Note
Phillips has announced a new, tiered buyer’s premium structure set to begin in September 2025. While standard rates will see a modest increase, the auction house is introducing a novel “Priority Bids” incentive, rewarding early participants with lower premium rates. This move aims to reshape bidding dynamics in the global auction market.
International auction house Phillips has announced that starting September 2025, it will introduce an industry-first buyer’s premium rate system. This new system will slightly increase the current standard buyer’s premium rates for global auctions while simultaneously launching a new incentive scheme called “Priority Bids.” This scheme offers buyers who participate in bidding early the benefit of paying a lower premium rate. However, all watch auctions will continue to maintain the current standard buyer’s premium rates.
Phillips’ current standard buyer’s premium rates are a three-tiered structure based on the hammer price: 27%, 21%, and 14.5%. The new standard rates will be adjusted to 29%, 22%, and 15%. These new rates will apply to all live and online auctions for Modern & Contemporary Art, Design, Photography, Editions, and Jewelry categories held from this autumn onwards. The “Priority Bids” buyer’s premium rate is applicable only to live auctions in the aforementioned categories, and Phillips may adjust these rates based on market conditions and business assessments. As noted, all watch auctions will maintain the current standard rates without any increase.
The industry-first “Priority Bids” system will only be effective through legally binding written bids submitted at least 48 hours before the auction starts. The bid amount must not be lower than the low estimate of the lot, and once submitted, the bid cannot be withdrawn. Buyers who successfully win a lot through a “Priority Bid” and meet the terms will enjoy significantly reduced buyer’s premium rates based on the final hammer price: 25%, 20%, and 14%.
This statement was made by Martin Wilson, who took over as CEO of Phillips earlier this year. The buyer’s premium payable is calculated progressively based on the hammer price of the lot.
The new buyer’s premium rates and “Priority Bids” rates applicable from September 2025 are detailed in the following examples and tables. The rates vary by auction location (New York, London, Hong Kong, Geneva for Jewelry, Paris) and are structured in tiers based on the hammer price. For instance, in New York auctions, the standard rate for the first $1,000,000 of the hammer price is 29%, while the “Priority Bids” rate for the same tier is 25%. All watch auctions will maintain the rates effective from March 2023.