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January 18, 2007

Sothebys...Stealing from the Rich.. to make themselves Richer!!

Bad news fellow Art Collectors.....Sotheby's has raised their commission rates they charge art buyers...grrrrrr!

Fat_pigIt's a clear sign the art market it just too fat and greedy good.

Sotheby's has raised the commission rate (buyer's premium) which was 20% on the first $200,000, and then 12% on the balance, to 20% on the first $500,000, and then 12%.

So that is the equivalent to an increase of $24,000 additional commission on an item with a selling price of $500,000. Ouch!

So?? Christies?? Are they going to raise their rates as well??

Overall it's pretty offensive given these 2 companies have an oligopoly been posting record earnings the last few years.. plus the level of customer service is such a total joke. Here's a Bloomberg News story written by Lindsay Pollock Download Sothebys_Gouge_ArtCollectors.htm

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MAO..
Now..that is such an evil photo.
But so appropriate... I just love it!

THANK GOD FOR WWW.IGAVEL.COM!!

What whine would you serve with that?

Yeah, it's a drag for those of you spending more than $200,000 a pop.

Thanks Mark and Lisa...
I'm a big Pinot Noir fan.. or almost anything red..except no freakin Merlot!!

And Lisa.. I'm thinking more about the day when we're all rich and famous from blogging... that we'll have to pay these extra high fees!!

So at what point do you think they'll stop raising their rates? 30%, 50%, 100%, 1000%???

I guess theoretically they could go on until infinity if the buyers keep coming in droves. Buy a painting for 1 million, pay Sothebys 2 million and it's yours! It will happen one day.

Christie's has quietly raised the fee it charges buyers -- for the second time in a year. This increase targets low-end purchases. Beginning on Sept. 1 buyers will be charged 25 percent, increased from 20 percent, on objects costing up to $20,000. Charges on prices above $20,000 remain unchanged: 20 percent on the sale amount from $20,000 to $500,000, and 12% on any amount above that. The auctions are killing off the golden goose of the art market. Without reasonable expectations of liquidity and return, collectors will ease off the throttle of their buying. Christie's change means that a collector will actually lose about 44-45% of the actual value of the sale (25% buyers' fee; 15% sellers' fee; and various other costs added--2% insurance, illustration fees, preparation for auction fees, shipping, etc.). A Christie's person just told me by phone that they wait until Sotheby's moves and then they too hike their rates. If that isn't collusion, I don't know what is.

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