SELLING WINE

The company you use should handle all the selling and advise you at the right time, making it as pain free as possible.

The whole market is based around moving equity at the beginning and end; otherwise the companies could buy £1million pounds worth and keep it for 7 years themselves. For obvious reasons that would not be feasible for a working company and misses the point ever so slightly

The investor, the companies and the retail sellers, are all essential to this market.  Try looking at a company that handles retail and investment.

You can sell your wine at auction but this is going to cost 10% of your money. This is called a ‘Hammer’ fee. I have very rarely taken wine to physical auction, there’s no need.  Wine is a liquid asset, it sells instantly to companies that trade and there is a market price, so you can be rest assured on the value.

Also live pricing auctions, allow the seller to trade for as little as 2.7% and most wine companies will sell your wine this way, for free!

If a company charges you an up-front commission, they will sell for free.  If a company charges you a selling commission, the wine is bought without charges but you will pay money at the end sale. This can affect your price, so I would advise paying a smaller fee on the way in, as opposed to loosing a lot more at the end. Many people will disagree with this, but I believe you will loose much more giving away 10% at the end.

If a company charges you no commission at either end, then they will have incorporated a profit on the way in similar to wholesale/retail. These companies are rare but will have profit worked into their sale (usually 10%)

Charges will range from 15% to 30%. As an example I recently learnt that some companies are charging 10% on the way in and 10% on the way out and this could ultimately lead to a rather severe loss in my opinion.

Speak to the company and ask why they believe their structure will work best for you.

Once again, don’t just go to the biggest company or the one with the flashiest credentials, shop around and make your own mind up.

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Lafite Rothschild 2009
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