Highly unlikely. Most run of the mill auctions only charge 25%, and for a high-dollar item, they will generally charge the consignor considerably less. If you have something like that, it's worth you while to shop it around for the best deal. You can negotiate the deal as there are plenty of auction houses that want to handle items like that. I would guess he was charged no more than 10%.
A big part of the auction house's take is the "buyer's premium", typically 20-25%, which is added to the buyer's bill.
So, the buyer paid at least $1.8 million.
Working both sides, those schmucks got close to a two-thirds cut of whatever was bought and sold.
I’d be very surprised if the auction house took 25% on an item of such value.
You can easily shop an item around and get a competitive rate.
There is a prestige factor to consider when selling something like this rug. It puts an auction house in a certain caliber, its very good advertising and an introduction to certain high end dealers and collectors.
- and don’t forget the buyers premium. More than likely 10% which goes right to the auctioneer.
I have heard of Sotheby’s and even Skinner’s waving all commission charges on important consignments as the buyers premium alone would be massive.
Not many sellers in their right mind would turn down 0% commission.