Advantages and disadvantages of an auction

What are the advantages of an auction?

• Free valuation
• Availability of a large database with lots of references and price history

What are the disadvantages of auctions?

• The seller does not know in advance what 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% inclusive of tax (25.2% at Idealwine)
• No guarantee of sale
• Long payment terms: between 30 and 60 days after the sale
• Storage costs from the 15th day following the day of sale
• Representation costs if the lot is not sold
• Collection, dispatch and return of the parcel are at the seller's expense
• Cellar buy-back: wine auctions buy back your cellar based on 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 collect your wines and the remaining 25% will be paid after the bottles have been appraised within 15 days.

Understanding the terms: auctioneering vocabulary

• Auctioneer: this is a ministerial officer responsible for estimating and managing a wine auction. The auctioneer is not necessarily a specialist in the sector of the item you wish to sell
• Wine auction estimate: Based on historical auction prices: Generally given by a range of 2 prices, with a high wine estimate and a low 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 in the event that the buyer cannot be present at the sale. This order is left to the auctioneer or his staff.
• Hammer price or hammer price: corresponds to the price given by the last wine bid, generally the moment at which the auctioneer strikes the hammer while pronouncing "adjugé". The buyer's and seller's 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 the lot. These fees are variable and can range from 20 to 30% depending on the sale. (21.6% at Idealwine)
• Seller's fee or sales 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, catalogue, transport and storage costs, and expert fees if required. They may vary depending on the lots being sold. They average 15% (15.6% at Idealwine)
• IDealwinewine price: corresponds to the hammer price, plus the fees paid by buyers in the auction rooms. For example, an Idealwine price of €121.6 corresponds to a hammer price of €100 and a net selling price of €84.6
• Sale results: results are given at the hammer price, excluding auction fees.

In conclusion

• This sales channel may have its advantages, but it also entails significant costs. The time between when you decide to sell your wines and when 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 such as VinsGrandsCrus allows you to obtain an estimate for your wines on the best possible terms. Thanks to our expertise of over 40 years, our numerous valuation tools and our buying and selling history, we are able to offer you purchase prices that reflect the real market value of your bottles.
• Once the estimate has been accepted, we offer you cash payment, which means that we buy your bottles of wine with payment on delivery and without any charges.
• If you would like to sell your wines or your cellar, please contact us on the " sell your wines " page.