Advantages & disadvantages of an auction

What are the advantages of an auction?

• Free valuation
• Access to a large database with many references and price histories

What are the disadvantages of auction sales?

• The seller does not know in advance the price he will receive
• There is a double commission
  • On the seller: on average 15% (15.6% at Idealwine)
  • On the buyer: between 21% and 30% incl. VAT (25.2% at Idealwine)
• No guarantee of sale
• Long payment terms: between 30 and 60 days after sale
• Warehousing costs from 15th day after sale date
• Representation fees in the event of non-sale of lot
• Collection, dispatch and return of the parcel are at the seller's expense
• Cellar buy-back: wine auctions buy back your cellar at the low estimate of your wine bottles, free of charge. On iDealwine, the terms of payment are - 75% of the sum will be paid when you pick up your wines and the remaining 25% will be paid after the bottles have been appraised within 15 days.

Understanding the terms: auction vocabulary

• Auctioneer: a ministerial officer responsible for estimating and managing a wine auction. The auctioneer is not necessarily a specialist in the object you wish to sell
• Wine auction estimate: Based on historical auction prices: Generally given by a range of 2 prices, with a high and a low wine estimate. Please note that these are in no way guarantees of the hammer price at the time of sale.
• Reserve price: A reserve price is the minimum price given by the seller, below which he does not wish to sell the bottle(s) of wine. This reserve price is confidential and non-binding. If the lot does not reach the minimum price given, the sale is not carried out and the lot must be represented at a future sale or recovered by the seller after the sale.
• Purchase order: the purchase order is given when the buyer cannot be present at the sale. This order is left to the auctioneer or his staff.
• Hammer price or adjudication price: corresponds to the price given by the last wine bid, generally the moment at which the auctioneer strikes the hammer while pronouncing "adjugé". Buyers' and sellers' costs are calculated on this price.
• Auction fee or buyer's fee: this is the percentage of the hammer price to be paid by the buyer when paying for his lot. These fees vary from 20% to 30%, depending on the sale. (21.6% at Idealwine)
• Seller's fee: this is the percentage of the hammer price retained by the seller at the time of payment. This fee is intended to cover service, advertising, catalog, transport and storage costs, as well as expert fees if required. They may vary according to the lots on sale. They average 15% (15.6% at Idealwine)
• IDealwinerating: corresponds to the "hammer" price, plus the fees paid by buyers in auction rooms. For example, an Idealwine quotation of 121.6€ corresponds to a hammer price of 100 and a net selling price of 84.6€
• Sales results: results are given at hammer price, excluding auction fees.

In conclusion

• This sales channel may have its advantages, but it also entails considerable costs. The time between the moment you decide to sell your wines and the moment you receive your money is very long. Not to mention the fact that you can never be sure that your lot will be sold.
• A sales channel like VinsGrandsCrus allows you to have your wines appraised under the best possible conditions. Thanks to our 40 years of expertise, our numerous valuation tools and our buying and selling histories, we are able to offer you buy-back prices in line with real market values for your bottles.
• Once the estimate has been accepted, we offer you cash payment, i.e. we buy your bottles of wine with payment on delivery and without any charges.
• If you would like to sell your wines or cellar, please contact us on the " Sell your wines " page.