The world of art auctions may seem intimidating, but like any encounter with something new that is at once mysterious and complex, it is a thing of beauty that, once understood, can be an utterly pleasurable experience.
Established in 2010, the country’s premier auction house, Salcedo Auctions, is dedicated to providing its clients with a seamless buying experience. With the growth of the Philippine economy, and with it, the increase in the number of Filipinos who now have the financial capacity to indulge their finer pursuits, we introduce this series of articles for those who are new to the auction process, starting with one of its key features, the “buyer’s premium.”
In an art auction, such as in major sales in the Salcedo Auctions’ forthcoming The Well-Appointed Life, held both live and online, bids are called by the auctioneer in increasing amounts. When no further offers are made, the auctioneer makes a last call once the last and highest bid is received by shouting out “Fair warning!” before striking the gavel (the hammer that he wields like a judge) on the block in the podium. This signals the close of a sale.
This sale price, called the “hammer price,” is indicated in the invoice that the successful bidder receives. Added on top of this amount is what is called the ‘buyer’s premium,” a concept introduced by Salcedo Auctions in the Philippines. The buyer’s premium is set at 15 percent, which with value-added tax (VAT), comes out to 16.8 percent. The sum of the hammer price and the buyer’s premium comprise what is called the “total purchase price.”
What is a buyer’s premium?
It is a service fee to enable Salcedo Auctions to deliver its distinctive brand of customer experience. This enables the auction house to offer the best in Philippine art and valuable collectibles at fair prices, which are achieved through a distinctive auction sale platform hosted in an impressive venue, thus upholding the company’s core values of excellence, connoisseurship, and market integrity.
As the industry pioneer, Salcedo Auctions secures its leadership position by always putting the interests of its clients first—setting the well-appointed standard in the local art scene.
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