Buying and selling antiques and antiquities is not something to be done at stores for just anyone to purchase them. Those kinds of items can fetch a high value, and if they are in demand enough, it would make sense to put them to auction and sell them to the highest bidder.
For expensive spirits and aged whisky bottles, these auctions are fairly common. From the famous Unicorn auctions to the more niche hammer high auction held online, there are both established brands and up-and-coming ones that want to capture this piece of the market and present their own value offerings in bringing the bidding culture to new customers.
Bidding for Spirits
Whisky auctions are events or online platforms where individuals and collectors can buy and sell bottles of–you guessed it, whisky!
These auctions are typically held to provide a marketplace for enthusiasts to acquire rare and collectible bottles, as well as to sell their own whisky collections. More often than not, having a specific website, brand, or place for an auction helps both buyers and sellers maintain a level of confidence in how the processes of buying and selling are handled.
Live and Online Auctions
These auctions are often held for a worldwide audience, meaning that many of these whisky auctions today are conducted online. Online whisky auction platforms host a website where sellers can list their bottles for sale, and potential buyers can place bids on those bottles. Online auctions are open for a specific period, usually a week or two, during which participants can bid.
Some whisky auctions are held in person, typically in major cities or at whisky events. These live auctions are often part of larger whisky festivals or events and are conducted by professional auctioneers. Sellers who wish to participate in a whisky auction submit details and images of the bottles they want to sell. These bottles are then cataloged and listed on the auction platform or in the auction catalog for live events. The catalog typically includes information about the distillery, age, alcohol by volume, packaging, and any unique features or history of the bottle.
Bidding, Prices, and Premiums
Participants in whisky auctions can place bids on the bottles they are interested in. In the case of online auctions, bidders can enter their maximum bid, and the auction platform automatically increases the bid incrementally on their behalf until their maximum bid is reached or until another participant outbids them. In live auctions, attendees raise paddles or bid cards to indicate their bids.
Some sellers set a reserve price, the minimum amount they are willing to accept for a bottle. If the reserve price is not met, the bottle may not be sold. These auctions often charge a buyer’s premium, which is an additional fee on top of the final hammer price. The winning bidder pays this fee and goes to the auction house to cover their expenses.
Time, Payment, and Delivery
These auctions typically have a set end time for each lot, and the highest bidder at the end of the auction wins the item. Both live and online auctions follow a similar process, with the auctioneer closing the bidding when no further bids are made.
Once the auction is over, the winning bidders are notified and required to make payment, including the hammer price and the buyer’s premium. After receiving payment, the auction house arranges for the delivery of the bottles to the buyers.
After the auction, the auction house typically pays the sellers, deducting a seller’s commission from the final hammer price. The seller’s commission varies depending on the auction house and the bottle’s value.
Buying Auction Items and the Shipping Cost
It is important to consider that everyone participating in an auction, whether it is for whisky or anything else, will be absolutely ready for as much cash as it takes. Even someone looking for rare whiskeys for sale will often consider the auction hammer price, pay the premium, and expect to be done with it.
However, with online auctions, anyone can participate, and many depend on auctions to get some rare whisky bottles with comparatively less capital. That also means people can participate from anywhere, or at least from where the seller or auction house can support their delivery.
Fees, Tariffs, and Handling
Whether delivering cross country or across international waters, there is often a shipping cost associated with the item, which is not only not a fixed cost but is a tariff, meaning that it has to be paid by the buyer. There is typically a separate shipping cost associated with buying any auction items online. When you participate in an online auction and win an item, you will generally need to pay for the shipping and handling of the item in addition to the final hammer price and any buyer’s premium that may apply.
The auction house will have a schedule of shipping and handling fees, which may vary based on the size, weight, and destination of the item. These fees cover the cost of packing, insuring, and shipping the item to the buyer. At times, it is done by the seller instead, which actually depends on the specific auction house and how they hold events. Auction houses often offer various shipping options to accommodate the preferences and needs of buyers. You can choose between standard or expedited shipping, and you can have the option to use a preferred shipping carrier or service.
For example, certain auction houses, such as Unicorn Auctions, pack their items well enough that it is almost impossible for the bottles to break during shipment and transit. Of course, it is not a guarantee for every auction house, but typically, there is insurance that comes with transit as well. The cost of this insurance is often included in the shipping and handling fees, but you should confirm this with the auction house.
Insurance for Auctioned Items
Whether auctioned items are insured depends on several factors, including the auction house’s policies, the type and value of the items being auctioned, and the agreements between the auction house, the seller, and the buyer.
For example, auction houses typically provide insurance coverage for items while they are in transit, being shipped from the seller to the auction house and from the auction house to the buyer. This is to protect against loss or damage during shipping. The cost of this insurance may be covered by the auction house or passed on to the seller or buyer as part of the shipping and handling fees.
While items are in the possession of the auction house before the auction takes place, they may also be insured against theft, damage, or loss. This is to protect the items while they are in the care of the auction house. They can be insured in bulk insurance, which is a fixed cost for all items or for specific items.
Additionally, sellers may have the option to insure their items separately if they wish to have additional coverage beyond what the auction house provides. They would need to arrange and pay for this insurance themselves, though. Similarly, buyers may also choose to insure the items they purchase at auction after the sale, especially if they plan to store or transport them. The auction house typically does not provide insurance coverage for items once they are in the buyer’s possession.
For particularly valuable items, such as rare art, collectibles, or jewelry, auction houses may have specialized insurance policies or arrangements to ensure that these high-value items are adequately protected.
Protecting the Value
Items bought at auctions are typically of high value, and protecting that value comes at its own cost. Of course, the alternative is to assume and take over a lot of risk in shipping, transporting, storing, and even handling someone else’s property at the auction house. To prevent that, these cautionary measures are necessary, and are their own niche of the insurance industry.