CHRISTIE’S INCREASES COMMISSION – AGAIN The auction house price wars continue: Yesterday Christie’s announced it was upping their buyer’s premium to match that of Sotheby’s. The move is part of a flurry of price bumps as the auctioneers have jostled for position in the race to make profits.

“We analyzed our own business needs and looked at the advantage of additional revenue,” said the president of Christie’s North America, Marc Porter. “We are always reviewing our pricing structure to remain competitive.”

Rate hikes began December 3, when Christie’s announced it was making a small increase in its buyer’s commission. For all lots above $100,000, buyers would be charged an extra $500 – not much, just half a percentage point – but presumably enough to add up over thousands of lots. This brought the house in sync with its chief competitor, Sotheby’s.

On December 15, Sotheby’s announced its would be charging buyers more, too, and said the 20% commission would apply to the first $200,000 spent at auction, not just the first $100,000. This appeared to be a more aggressive pricing model, tacking on an added 8% increase in some cases.

Yesterday, Christie’s announced it was increasing its rate again, to a commission that matches Sotheby’s. But the house says it will not keep raising its rates just to keep up with Sotheby’s.” There is a threshold for the buyer premium beyond which our clients would find it unacceptable,” said Mr. Porter. “We hope not to cross that threshold, whether or not Sotheby’s decides to go beyond it.”

And the house was concerned to squash any references to fee-fixing, an unethical practice that got both houses into serious legal trouble only recently. “We are scrupulous in ensuring that there is no collusive behavior, but it is absolutely legal and ethical to offer similar financial incentives so long as they are not established in an illegal manner,” said Mr. Porter.