Phillips Auction

This Fall, Phillips Will Debut ‘First-of-its Kind’ Priority Bidding Structure

This September, Phillips will debut a new fee structure, a “first-of-its-kind buyer’s premium structure” featuring “priority bidding,” the auction house said in an announcement Tuesday.

Here’s how it will work: A binding written bid must be placed at least 48 hours before the auction’s start time and must be equal to or greater than the lot’s published low estimate. According to Phillips, the winning priority bid will benefit from a “significantly lower” buyer’s premium rate.

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According to the press release, bidders placing a priority bid will benefit from the lower buyer’s premium rate whenever they place the successful bid—whether that winning bid is at the amount of their priority bid or a higher bid placed subsequently. The new bidding structure will apply to live auctions beginning this fall, and potentially to all categories moving forward.

The updated rates for New York sales are as follows: the new buyer’s premium is 29 percent for hammer prices up to and including $1 million; 22 percent for the portion above $1 million and up to $6 million; and 15 percent for the portion exceeding $6 million. Priority bidding rates, meanwhile, begin at 25 percent, decreasing to 20 percent and then to 14 percent for portions above $6 million.

Phillips also released updated buyer’s premium and priority bidding rates for upcoming sales in London, Hong Kong, Geneva (jewelry only), and Paris. Though hammer prices will be listed in local currency, they will correspond to approximately the same thresholds as the New York sales. The premium tiers—29/22/15 percent for standard rates and 25/20/14 percent for priority bids—will remain fixed across all these locations.

Watch auctions will continue to use the existing buyer’s premium rates. Timed online-only auctions will adopt the new standard rates but are not currently eligible for priority bidding.

Art advisor Dane Jensen told ARTnews on Tuesday that the new fees should have a limited impact. “This really is only applicable to more moderately priced lots, as usually the top lots have guarantees,” Jensen said.

The biggest advantage, he added, seems to go to the auction house, not collectors, as the structure gives specialists 48 hours to shop the bid around and solicit a higher bid. “It removes unpredictability from an auction, which strategically buyers want to work to their advantage. It will take a sophisticated buyer to make this work to their advantage, otherwise a bidder may inadvertently push the price up,” Jensen said.

The announcement follows the fee shake-up—and subsequent walk-back—by one of Phillips’s primary competitors: Sotheby’s.

At the time, Sotheby’s CEO Charles Stewart described the fee overhaul to ARTnews as a “smart disruption” and a sign of the art market’s increasing “maturity.”

On this, Jensen added: “You have to ask yourself who benefits from these changes. Is it the house or the buyer? Essentially, we’ve reached the point where no one wants to pay more or higher fees—they’re just too high and can, in some cases, be a deterrent to buyers. But if auction houses need to figure out ways to generate more revenue, they now need a new product that inspires more bidding rather than more fees.”

Correction, July 22, 2025: An earlier version of this article misstated the deadline for priority bidding. They must be placed at least 48 hours before the sale, not eight hours before the sale.

A History of Phillips Auction House

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Phillips, founded in 1796, is an auction house specialising in contemporary art, design, and luxury collectibles. Over the years, it has expanded its focus beyond traditional auctions to incorporate digital platforms and high-profile sales. With an emphasis on both emerging and established artists, Phillips operates on a global scale, adapting to changes in the art market and auction industry.

The Early Days

One of the most remarkable moments in its early history was Phillips’ unique distinction as the only auction house ever to conduct a sale within the walls of Buckingham Palace. This exclusive event underscored the firm’s prominence in London’s auction scene and further elevated its status among collectors of fine art and antiquities.

Early Auctions

Unlike many of its competitors, Phillips placed a strong emphasis on creating an engaging and theatrical experience for its clients. The auction house became known for hosting elaborate evening receptions before major sales, allowing collectors and buyers to preview items in a more social and immersive setting. This strategy helped foster a sense of exclusivity and anticipation around Phillips’ auctions and this approach later became a standard practice across the industry.

Phillips in the 20th Century

Early Ventures into Modern and Contemporary Art

This transition was driven by a growing demand from collectors and investors who were looking beyond classical artworks to embrace the avant-garde and experimental styles of the time. As movements such as Abstract Expressionism, Surrealism, and Pop Art gained traction, Phillips recognised an opportunity to diversify its offerings and appeal to a new generation of buyers. The auction house began featuring works by influential artists of the early and mid-20th century, including Pablo Picasso, Henri Matisse, and Joan Miró, alongside established classical pieces.

To further establish itself in the evolving art market, Phillips also expanded its expertise in contemporary artists emerging in the post-war period. The auction house curated sales featuring works from figures such as Francis Bacon, Mark Rothko, and Andy Warhol. By showcasing these works, Phillips laid the groundwork for what would become one of its key areas of specialisation in the 21st century.

By the latter half of the century, Phillips had cemented its reputation as an auction house willing to innovate and adapt to changing market dynamics. This foresight positioned the company to become a major player in contemporary art auctions in the decades to come, bridging the gap between traditional collecting and the emerging interest in modern and postmodern artistic movements.

A New Era

Phillips de Pury Company

In 1999, Bernard Arnault of LVMH acquired Phillips and merged it with private art dealers Simon de Pury and Daniela Luxembourg. The rebranded Phillips de Pury Company placed a strong emphasis on contemporary art, design, and photography. Under de Pury’s leadership, the auction house refined its niche, appealing to collectors seeking cutting-edge works.

Phillips in the 21st Century

Expansion and Global Reach

Innovation in Auction Practices

During the COVID-19 pandemic, Phillips adapted to the changing landscape by refining its digital platforms and launching virtual auction rooms that provided real-time bidding experiences. This pivot not only maintained sales momentum during lockdowns but also set a precedent for the future of auctions. The integration of live-streamed bidding, digital catalogues, and enhanced online engagement tools has since become a permanent feature of Phillips’ auction model.

In 2023, Phillips took its digital strategy a step further with the launch of Dropshop, a platform designed for the exclusive release of limited-edition artworks and collectibles. This initiative reflects Phillips’ commitment to innovation by offering collectors a direct and curated purchasing experience outside of traditional auction formats. Dropshop has provided a new way for artists to engage with buyers in an increasingly competitive market.

Introducing Priority Bidding

In another bold step forward, Phillips has introduced a new Buyer’s Premium Structure that rewards early engagement – a first for the auction world. Launching in Autumn 2025, the new model introduces Priority Bidding, a system designed to incentivise written bids placed at least 48 hours prior to an auction’s start.