Several options are available to you if you want to sell your bottles of wine:
- Traders/ Sellers
- Wine merchants
- Auction sales
Right now, we are going to focus on selling wine in auctions, because we want to briefly describe how it works, the possible advantages, its disadvantages and some terms to know about "wine auction".
Auction sales: The way it works
- Submission of a list of grands crus
- Price estimation with a maximum and minimum price range and possibly a reserve price, which is not mandatory
- Delivery of wines in their location
- Organization of the sale takes between 3 and 6 weeks
- The payment of lots sold is normally done within 45 days
- The recovery of the wines that were not sold has to be done by you
Advantages & disadvantages of selling in an auction
What are the advantages of selling you wines in auctions?
- A free estimate
- Access to a large database with lots of references and price history
What are the disadvantages of selling in auctions?
- The seller does not know the price at which he will sell his wine
- There is a double commission
- For the seller: on average 15% (15.6% at Idealwine)
- For the buyer: between 21% and 30% VAT (21.6% at Idealwine)
- No guarantee of sale
- Long delay of payment: between 30 and 60 days after the sale
- Storage costs from the 15th day after the day of the sale
- Representational expenses, in case the lot is not sold
- The recovery, sending and return of the package are the responsibility of the seller
- Wine cellar purchase: Wine auctions buy your wine cellar based on the low estimate of your wine bottles, with no additional cost. On iDealwine, the terms of payment are - 75% of the amount will be paid upon the removal /deposit of your wines and the remaining 25% will be paid after the examination of the bottles within 15 days.
Understanding the terms: auction sales vocabulary
- Auctioneer : is a ministerial officer who is in charge of making an estimation and conducting an auction sale. This auctioneer is not necessarily a specialist in the subject that you wish to sell.
- Wine auction price estimate : Based on auction price history: It generally gives you the annual highest and lowest prices recorded. Attention these are in no way guarantees of the price at which you will sell your wine in an auction.
- Reserve price : A reserve price is the minimum price set by the seller, under which he prefers not to sell his bottle(s) of wine. This reserve price is confidential and not mandatory. If the lot does not reach the given minimum price, the sale is not made and the lot will have to be represented in another sale or recovered by the seller after the sale.
- Purchase order : the purchase order is given in case the buyer can not be present at the sale. This order is left to the auctioneer or his collaborators.
- Hammer price or auction price : corresponds to the price at which a wine was sold in the last auction, It is the price upon which the auctioneer’s hammer falls, while saying “sold”determining the sale price. The buyer and seller fees are calculated according to this price.
- Bidding fees or buying fees : This is the hammer price percentage to be paid by the buyer when paying for his lot. These fees are variable, they can range from 20 to 30% depending on the sales. (21.6% at Idealwine)
- Seller's fees or sale fees : this is the percentage of the hammer price retained from the seller when he is paid. This fee is intended to pay for the service, advertising costs, catalog, transportation and storage costs, examination fees if necessary. They can vary according to the lots on sale. It is on average 15% (15.6% at Idealwine)
- Price of the wine at IDealwine : This is the hammer price plus the fees paid by buyers in auction sales. For example, the price of a wine at Idealwine is € 121.6 this price corresponds to a hammer price of 100 and a net selling price of € 84.6.
- Results of sale : the results are given at hammer price, without the auction fees.
- This selling option can have its advantages but it generates significant costs, which are not negligible. The delay between the moment you decide to sell your wine and the moment when you receive your money, is very long. Not to mention that you don’t have any certainty that your lot will be sold.
- A selling option like VinsGrandsCrus allows you to have an estimate price of your wines in the best conditions. Thanks to our 40 years of experience, our numerous tools of estimation, our history of purchase and sale, we are able to propose you purchasing prices that stick to the real value of your bottles in the market.
- Once the estimate is accepted, we offer a cash payment, that is to say, we buy your bottles of wine with a payment upon delivery and without any additional fees.
- If you want to sell your wines or your wine cellar, do not hesitate to contact us through our page “sell your wines”.