Chapter: 3712

The sales amount of a single auction event can be tens or hundreds of billions, not to mention if there are super-hot items, with transaction values even higher.

Sometimes, just auctioning off one painting can bring in over a billion US dollars for the auction house.

And the profit margins are also very thick. The auction house's profitability is roughly divided into self-operating or commission-based.

Self-operating means simply buying low and selling high, mainly using the traditional antique market's scavenging model;

While commission-based is the main revenue channel for the auction house.

Generally speaking, an auction company will take a 5% to 15% commission on each item sold, with the commission rate increasing as the auction house's reputation grows.

Under normal circumstances, if a painting is sold for $100 million, the auction house can earn up to $15 million just from the commission alone.

Converted into Chinese yuan, that's roughly ¥1 billion.

So, the bigger the auction house, the more geometrically its ability to make money will increase.

A single auction can bring in hundreds of billions, with intermediation fees alone yielding tens of billions in cash income.

This kind of auction house holds two events per year, and clears a few billion yuan in profits.

Furthermore, once an auction house becomes large and powerful, its profits will far exceed the fees alone, as it drives growth across the entire industry chain.

Generally speaking, a major auction company under its umbrella also has multiple galleries, because the auction house's reputation is big enough, so these galleries have extremely high customer traffic.

These galleries not only engage in ordinary collectible sales but also provide paid appraisal services and consignment sales to individual sellers and collectors.

Many unqualified auctions that still hold certain value often take place privately within these galleries.

Due to the gallery being open year-round, the accumulated transaction volume at the end of the year is astronomical, with intermediation fees making up a significant portion of the auction house's profits.

However, this powerful cash-generating ability is only limited to a few top-tier companies in the industry; even Song Wan Ting's Jiyue Tang fails to clear an annual profit of over one or two billion yuan.

Jiyue Tang is unable to do so not because Song Wan Ting lacks effort but because it cannot get its hands on truly valuable items.

Without sufficient valuable items, there is no capital to compare with those top-tier auction houses.

When top-tier auction houses are auctioning off works by Van Gogh, Picasso, Paul Gauguin, or world-renowned masters like Qi Baishi and Zhang Daqian, Jiyue Tang wouldn't even be able to sell a single piece worth over 10 million yuan.

The reason is that the reputation isn't enough; those collectors wouldn't possibly entrust these items to Jiyue Tang for auctioning.

Song Wan Ting, struggling to find opportunities, was suddenly pulled into a deal by Ye Chen using the Revival Elixir, which filled her heart with gratitude towards Ye Chen and also made her feel exhilarated.

This is because she is well aware of the value of the Revival Elixir, possibly that there isn't any other collectible item in this world that can be compared to it.

So, she almost predicted that the auction of the Revival Elixir would create a historical record.

This, naturally, is a great opportunity for Jiyue Tang to gain fame and wealth. JrNovels.com