Phillips is launching a new strategy to accommodate buyers of fees and risk-averse shipments through the debut of the “dynamic model” and the revised fee structure. Starting from the fall auction in September, bidders will be able to lock in reduced fees by prioritized binding written bids (or exceeding published underestimate) 48 hours before the auction begins. In return, these early movers will benefit not only from the initial bid, but from all subsequent bids. Essentially, this is a pre-auction bid form and does not require submitting the final hammer price.
“We have a history of positive outcomes for our customers, which is proven by 90% sell rate this spring,” Phillips CEO Martin Wilson said in a statement. “Our goal now is to generate dynamic bidding and provide sellers with greater certainty by encouraging early engagement.”
So, what are the auction houses? It is presumed that control over today’s cautious and well-arranged auction landscapes is gained greater control without third-party assurance. By inspiring early commitments, Phillips can build price momentum ahead of time, reassuring people to find signals about interest levels and narrative confidence. For buyers, the reward is simple: reduce transaction costs.
Recent auction analysis shows that guaranteeing night sales now dominates and is gradually spreading into a day, and once these deals are scheduled in advance, questions about real market demand are raised. According to PI-EX, third-party guaranteed reports hit a record 73% in sales in New York’s Hyundai and Modern Nights this May. Christie secured 83% of his total hammers with an irrevocable bid, while Sotheby’s and Phillips were 63% and 65% respectively.
If everything is covered, what remains to cause excitement?
Phillips’ new “dynamic premium” is expected to introduce some new energy – a changing speed structure that favors strategy over status quo. Now, according to buyer behavior, premiums are not the standard 27% (up to $1 million, etc.). Those who bid early get the best price, while those who wait for the full amount of the goods get the best price.
Wilson believes that this behavioral push will inject more energy into early tenders and help prevent awkward cold starts. “We believe this strategic adjustment will lead to a more dynamic auction experience and ultimately provide better results for sellers and bidders,” he said.
The move is based on a broader market trend for the fee experiment, but here, Phillips adds psychological and behavioral twists by tying economic incentives with driving pricing clarity. The strategy was sharply divided with Sotheby’s brief transparency in early 2024 Gambit, which quietly returned in February this year. The current Sotheby’s buyer premium is 27%, up to $1 million, which is $8 million higher than $10,000-80,000, and 15% of $8 million. Despite the 1% overhead premium removed, there is still a 2% success fee remaining. Meanwhile, Christie’s has kept its charging structure stable since 2023: 26%, up to £800,000/$1 million, 21%, up to £4.5 million/$6 million, above that.
The fact that burial in the press release is that while Phillips’ new priority bidding program offers real incentives, its standard premiums are now even higher than its competitors. For New York sales, Phillips’ standard buyer premium is 29%, up to $1,000,000, from $1,000,001 to $6,000,000, up from $6,000,000. In London, the standard premium is 29%, up to £800,000, from £800,001 to £4,500,000, up from £4,500,000, up from 15% of £4,500,000. Hong Kong buyers pay 29%, up to HK$7,500,000, and 22% priced at HK$7,500,001 to HK$50,000,000, 15% higher than HK$50,000,000. Sales of Geneva jewelry follow the same pattern: 29% to CHF 1,000,000, which is 22% higher than CHF 1,000,01 to 6,000,000, and 15% higher than CHF 6,000,000. In Paris, the standard premium is 29%, up to €800,000, from €800,001 to €4,000,000, which is above 15% of €4,000,000. By prioritizing bidding, these rates fell to 25%, 20%, and 14%, respectively.
The premium structure for new buyers, including discounted priority bidding rates, will apply to all Phillips live auctions, starting in the fall 2025 season, and all categories except watches. Whether Christie and Sotheby will follow suit remains to be seen, but given that in the current market, every home is under pressure to reignite bidding and keep its momentum going.
