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How Do Auction Houses Work?

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Auction houses – the very term conjures images of gavel-pounding, fervent bidding, and the exhilarating chase of acquiring a prized possession. From the legendary Sotheby’s of London to Christie’s with its global presence, the world of auction houses is a blend of history, art, commerce, and theatre. 

But how exactly do these institutions operate? Let’s pull back the curtain on the intricate choreography that unfolds at these establishments.

1. The Conception: Consignment

An item’s journey, be it a Van Gogh masterpiece or a first edition of J.K. Rowling’s “Harry Potter”, often starts with a consignment. An individual or entity looking to sell approaches the auction house to have their items listed.

Authentication and Valuation: Experts at the auction house, armed with years of expertise and research resources, validate the item’s authenticity. After this, estimating the item’s market value is derived, often considering historical significance, provenance, and demand.

2. The Preview: Exhibition

Before the actual auction, items are displayed in an exhibition. This serves dual purposes: potential buyers can inspect the items, and the exhibition generates buzz. For instance, a piece of jewellery once owned by Princess Diana, exhibited at Christie’s, would undoubtedly draw considerable attention and intrigue.

3. The Main Event: The Auction

The auction can be thrilling, with Christie’s King Street saleroom in London or Sotheby’s New York auction floor buzzing with energy.

Bidding: As the auctioneer introduces an item, bids fly in, either from attendees in the room, over the phone, or even online in today’s digital age. The pace can be frenetic, with auctioneers maintaining a rhythmic cadence, acknowledging bids and constantly upping the ante.

Hammer Time: The climax of any auction is the fall of the auctioneer’s gavel, signifying the acceptance of the final bid. The iconic phrase, “Going, going, gone!” is more than just theatre; it’s the culmination of the process, with the highest bidder earning the right to the item.

4. After the Gavel: Payment and Delivery

Once the hammer falls, the winning bidder must settle their payment, typically within a specified period. Auction houses, like Bonhams or Phillips, have stringent payment methods and terms. Once payment is cleared, the item is either collected by the buyer or delivered, often with insurance and other logistics arranged by the auction house.

5. The Auction House’s Cut: Buyer’s and Seller’s Premium

Auction houses are, after all, businesses. They earn through a ‘seller’s premium’ (a percentage of the final bid amount from the seller) and a ‘buyer’s premium’ (an additional charge on the winning bid to be paid by the winner).

The world of auction houses is a fascinating blend of art and commerce. Institutions like Sotheby’s, Christie’s, and Bonhams don’t merely sell items; they offer stories, histories, and moments of shared human culture. Whether you’re a seasoned collector or a casual observer, there’s no denying the allure and excitement of the auction world.

Fine Art Shipping With Mail Boxes Etc

Mail Boxes Etc. (MBE) offers specialised solutions in fine arts shipping, catering to dealers, galleries, and artists’ unique needs. Understanding the delicate nature of fine arts, MBE provides expert handling and shipping services for Fragile, Large, Awkward, and Valuable (FLAV) items. 

Their adept handling of FLAV items ensures that each piece of art, whether a fragile sculpture, a large canvas, or an awkwardly shaped installation, is treated with the utmost care and professionalism. MBE’s comprehensive services include custom packaging, climate-controlled transportation, and secure delivery options, ensuring that each piece of art arrives at its destination in pristine condition.

This tailored approach makes MBE a trusted partner in the art world, where the safe and efficient transport of fine arts is not just a requirement but an art in itself.

Open a new MBE Center

Mail Boxes Etc./MBE Centres are operated by independent operators as franchisees, who operate under a franchise agreement under the brand name of MBE. Through its franchise network Mail Boxes Etc. provides support services for businesses and individuals. Logistics and shipping services represent the main services of MBE – enabled by MBE through contractual agreements concluded for the benefit of its franchisees with the main domestic and international express couriers - and other graphics and printing services - provided either directly or on the basis of agreements with large printing centres. The promotion of services for business and private customers is carried out in the framework of the business activity of each MBE franchise partner within and outside of the MBE Centres ("sales prospecting"). Each franchise partner is contractually obligated to perform such activities. Mail Boxes Etc. and MBE are registered trademarks used with permission of MBE Worldwide S.p.A. (All Rights Reserved). The services offered by the individual MBE Centres can vary depending upon the location. The material available on this Internet site, the information contained herein and any other relevant related data may not in any manner be copied, distributed, changed, republished, reproduced, downloaded or forwarded to third parties, without the expressed prior written authorisation of Mail Boxes Etc. (UK) Limited. We accept no responsibility with regard to the unauthorised use of the material available on this Internet site, the information and/or the data contained herein.