One of the phrases you may encounter while reading up about auctions is “buyer’s premium”.
Buyer’s premium is the additional fee that the successful bidder must pay to the auction house on top of the winning bid amount. The practice started in 1975, when two of the world’s leading auction houses – Christie’s and Sotheby’s – began to include a buyer’s premium, initially 10% of the hammer price (winning/highest bid amount) to increase their net income. The buyer’s premium usually goes to the auction house, or auctioneer as his payment, and not to the seller of the item being sold in the auction.
The topic of buyer’s premium has been a divisive topic. Auction buyers at Christie’s New York questioned if it is legal when it was first implemented in 1977, considering they do not get any additional value from it. Authorities concluded it is legal, as long as auction buyers are properly informed about it. Since then, other auction houses from all over the world followed suit. The percentage of buyer’s premiums have also increased over the years, with the two aforementioned auction houses charging between 12.9% to 25% buyer’s premium today.
At Diamond Auctions, we are proud to say that we don’t charge a buyer’s premium.
As part of our commitment to make authentic, high quality luxury items accessible to more and more buyers, we implemented a No Buyer’s Premium policy. This gives you up to 20% savings, on top of our heavily discounted rates of up to 80% RRP!
We have never charged a buyer’s premium, and we plan to keep it that way. In the interest of keeping our luxury items as competitively priced as possible, we also have no hidden credit card fees or any additional charges.
We run our business with absolute transparency regarding the pricing of all our items. If you emerge as the auction winner on our site who met the reserve price and posted the highest bid amount, you will only pay for that bid amount, and not a dollar more. This makes our online auction site one of the most trusted online auction sites in Australia.
By doing away with buyer’s premiums, credit card charges and other extraneous fees, we succeed in giving our members a budget-friendly and worry-free luxury shopping experience.