Buyer\'s Premium is an additional fee charged by an auction house to the successful bidder, calculated as a percentage of the hammer price. The premium is added to the final bid and forms part of the total amount payable, alongside any applicable taxes, VAT or shipping costs. Originally introduced during the twentieth century, buyer\'s premiums now form a significant part of an auction house\'s revenue and can vary considerably between auctioneers. It is important for buyers to understand the applicable premium before bidding, as the final cost may be substantially higher than the hammer price alone. For example, a successful bid of £1,000 with a 25% buyer\'s premium would increase the purchase price to £1,250 before any VAT or delivery charges are added. Understanding buyer\'s premiums is essential when comparing auction prices with purchasing directly from an established antique dealer, where items are typically fully researched, restored where appropriate and offered at a fixed retail price.