Private investors trade at merchant prices

Private collectors can now buy and sell at trade prices courtesy of a new service from Richard Dawes Fine Wine.

A revolutionary online trading portal allows customers to trade the world’s 100 most sought-after fine wines on live bids and offers from Liv-ex, the fine wine exchange for merchants only. Richard Dawes then charges a 10% commission.

“We launched the trading page to gain exposure with private customers in the UK – those who are looking to buy predominantly as an investment,” Ben Dawes, founder and director at Richard Dawes Fine Wine told the drinks business. “Where we differ from others is that those merchants who already have buying and selling prices are setting the prices themselves but ours are from a data feed from Liv-ex.”

“This means,” he adds, “that the prices bid and offered are those that the market is setting – liv-ex members are trade only. We are offering a great deal of transparency and offering perfect, clean stock that has come through Liv-ex.”

Richard Dawes Fine Wine’s trading portal is in fact one of a number of new pricing initiatives which increase transparency in the fine wine market – reflecting an emerging shift among merchants to charging commission on exchanges rather than attempting to extract a margin.

For example, Berry Bros & Rudd has set up a platform for customers to trade their private reserves which each other for a 10% commission; Bordeaux Index has launched Live Trade, publishing bid-offer spreads on 60 wines, allowing registered customers to buy and sell; Fine & Rare Wines now provides an instant online valuation and allows customers to offer wines for sale through the merchant, and finally, Vinfolio Marketplace in the US, has promised a platform allowing customers to trade with each other for a 15% commission for wines from Vinfolio storage and 20% from other US locations.

“Huge amounts of new money is coming into a the fine wine market place and with money comes responsibility – merchants worldwide have a responsibility to offer the opportunity to buy or sell at the best possible price,” commented Dawes on these new services.

Richard Dawes Fine Wine was founded by Ben Dawes in September 2008. For a profile on Ben Dawes, see August’s drinks business.

Patrick Schmitt, 16.07.09