Phillips is rolling out a new strategy to accommodate both fee-fatigued buyers and risk-averse consignors with the debut of a “dynamic model” and revised fee structure, as announced yesterday. Beginning with its fall auctions in September, bidders will be able to lock in reduced fees by expressing early interest in a lot via a priority binding written bid—at or above the published low estimate—submitted at least 48 hours before the auction begins. In return, those early movers will benefit from discounted buyer’s premiums, not only on their initial bid but also on all subsequent bids for that lot. Essentially, it’s a form of pre-auction bidding that doesn’t require committing to a final hammer price.
“We have a history of delivering positive results for our clients, as evidenced by our 90 percent sell-through rate this spring,” Martin Wilson, CEO of Phillips, said in a statement. “Our aim now is to build on that by encouraging early engagement to generate spirited bidding and provide greater certainty for sellers.”
So, what’s in it for the auction house? Presumably, greater control over today’s cautious and already highly choreographed auction landscape without the necessity of third-party guarantees. By incentivizing early commitments, Phillips can build price momentum in advance, offering reassurance to consignors looking for signals on interest levels and narrative confidence. For buyers, the reward is simple: lower transaction costs.
Recent auction analyses had shown that guarantees now dominate the marquee evening sales and are also creeping into day sessions, raising questions about how much genuine market demand remains once the deals are pre-arranged. According to Pi-eX, third-party guarantee coverage hit a record 73 percent during the Modern and Contemporary evening sales in New York this past May. Christie’s led with 83 percent of its hammer total secured by irrevocable bids, while Sotheby’s and Phillips followed at 63 percent and 65 percent, respectively.
If everything’s underwritten, what’s left to spark excitement?
Phillips’ new “dynamic premiums” promise to introduce some fresh energy—a shifting rate structure that favors strategy over status quo. Rather than the standard 27 percent (up to $1 million, etc.), the premium now flexes based on buyer behavior. Those who bid early get the best rates, while those who wait pay full freight.
Wilson believes this behavioral nudge will inject more energy into early bidding and help prevent awkward cold-start lulls. “We believe this strategic adjustment will lead to a more vibrant auction experience and ultimately support better outcomes for both our sellers and bidders,” he said.
The move builds on a broader auction market trend of fee experimentation, but here Phillips adds a psychological and behavioral twist by pairing financial incentives with a push for pricing clarity. This strategy diverges sharply from Sotheby’s short-lived transparency gambit in early 2024, which was quietly walked back this February. The current Sotheby’s buyer’s premiums are 27 percent up to $1 million, 22 percent from $1-8 million, and 15 percent above $8 million. The 2 percent success fee above the high estimate remains, though the 1 percent Overhead Premium was removed. Christie’s, meanwhile, has kept its fee structure steady since 2023: 26 percent up to £800,000 / $1 million, 21 percent up to £4.5 million / $6 million and 15 percent above that.
Buried in the release is the fact that while Phillips’ new Priority Bidding scheme offers real incentives, its standard premiums are now even higher than those of its competitors. For New York sales, Phillips’ standard buyer’s premium is 29 percent up to $1,000,000, 22 percent from $1,000,001 to $6,000,000 and 15 percent above $6,000,000. In London, the standard premium is 29 percent up to £800,000, 22 percent from £800,001 to £4,500,000 and 15 percent above £4,500,000. Hong Kong buyers pay 29 percent up to HK$7,500,000, 22 percent from HK$7,500,001 to HK$50,000,000 and 15 percent above HK$50,000,000. Geneva jewels sales follow the same pattern: 29 percent up to CHF 1,000,000, 22 percent from CHF 1,000,001 to CHF 6,000,000 and 15 percent above CHF 6,000,000. And in Paris, the standard premiums are 29 percent up to €800,000, 22 percent from €800,001 to €4,000,000 and 15 percent above €4,000,000. With Priority Bidding, those rates drop to 25 percent, 20 percent, and 14 percent, respectively.
The new buyer’s premium structure, including the discounted Priority Bidding rates, will apply to all Phillips live auctions beginning with the Fall 2025 season across all categories except watches. Whether Christie’s and Sotheby’s will follow suit remains to be seen, but it could happen given that in the current market every house is under pressure to reignite bidding activity and keep momentum alive.