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Wine and Auction Terms

   

Appellation

The Appellation of a wine refers to a specific geographic region where the grapes from which the wine was made were grown. In France alone more than 400 different appellations have been officially designated. In California the appellations are referred to as AVAs, or American Viticultural Areas. In WineBid.com auctions the appellation of a wine is identified on the lot detail page.

Appraisal

The appraisal of a wine denotes its value, given within an estimated range, as determined by prices recently paid at auction for a comparable wine and taking into account the condition, rarity and desirability of the wine. The appraisal is the first step in the auction consignment process. At WineBid.com experienced appraisers value wines after a list is submitted by the consignor.

Bid

A dollar value offered by a potential buyer (bidder) for a specific lot during an auction. With Internet auctions, "bids" are accepted by the website software, assuming they are higher than previous bids. Subsequent bids increase in predetermined increments during the auction.

Bottle sizes

Size Name Description
375ml Half bottle equal to half the amount of a bottle
750ml Bottle a regular bottle
1.5ltr Magnum equal to two bottles
3ltr Double Magnum equal to four bottles
3ltr Jeroboam equal to four bottles (in Burgundy and Champagne)
4ltr Jeroboam equal to six bottles (in Bordeaux)
6ltr Imperial equal to eight bottles (In Bordeaux and California)
6ltr Methuselah equal to eight bottles (In Burgundy)
9ltr Salmanazar equal to twelve bottles
15ltr Nebuchadnezzar equal to twenty bottles

Buyer's Premium

Bidders are reminded that the purchase price represents the final bid plus a buyer's premium, plus any applicable sales taxes. At WineBid.com, the buyer's premium is 14%.

Consignment

A collection of wines from a single source put up for sale by an auction house.

Consignor

An individual who offers a collection of wines for sale at an auction house. At WineBid.com, every consignor has a personal account manager who works with them from the initial appraisal process through the settlement.

Estimate

A value range that identifies the expected, though not guaranteed, hammer price of a given lot. Estimates are set by experienced appraisers who are familiar with the current wine market, and are published along with all other information for an auction lot. At WineBid.com, the estimate for a wine is determined by the current market value and the account manager's assessment of the condition of the bottle.

Futures

Wines sold prior to their release from the winery. In the past Bordeaux futures were sold only to wine brokers. But in the last 20 years, Bordeaux and other wine futures have been available to consumers. At WineBid.com, the world's first commercial Internet auction of wine futures took place in March 1999.

Hammer Price

The final price, or winning bid, for an auction lot.

Horizontal Collection

A horizontal collection includes a number of wines representing a single vintage. For example, a horizontal lot from Turley Wine Cellars might include all the different vineyard-designated wines from the 1995 vintage. A horizontal collection must be bid on in its entirety.

Increment

The predetermined amount each bid is raised. At WineBid.com, the amount of the increment depends on the lot's initial reserve value, according to the following schedule:

Initial Reserve Value Bid Increment
$5 - $95 $5
$100 - $295 $10
$300 - $999 $20
$1,000 - $2,999 $100
$3,000 - $4,999 $200
$5,000 + $500

Labels

The condition of a wine's label is often taken into consideration in determining value. Inspectors at WineBid.com make every effort to describe in detail the conditions of labels by using a number of different terms. For more information on labels click here.

Lot

The organizing unit of all auctions. Each lot may hold any combination of bottles and bottle sizes of a particular wine, or may hold a combination of different wines. At WineBid.com, each auction consists of thousands of lots. Unique at WineBid.com is the buyer's ability to bid on parts of a lot. Buyers can choose, for example, to bid on 10 bottles of a favorite wine, or a vertical collection of bottles, within a larger lot.

Original Case

The original container in which wines were packed at the winery. At WineBid.com, description of lots will note if the wines in the lot are presented in their original case.

Provenance

The ownership history of a particular wine. Such a history would include not only how the wine was acquired by the current owner and under what circumstances, but also in what conditions the wine was stored. Provenance is particularly important for establishing the estimated value of very old, rare and valuable wines. At WineBid.com, the provenance of each and every bottle offered in the auction is determined prior to the start of the auction. In some cases, depending on the quality and value of a consignment, trained representatives from WineBid.com will inspect a consignor's cellar to determine storage condition of the wine to be sold. For more information on provenance click here.

Reserve

The reserve is the price below which a lot will not be sold. Reserves are set by mutual agreement between the consignor and the auction house. At WineBid.com, the minimum bid that will be accepted is set as the reserve price. No bids below that level will be accepted.

Seepage

Wines that show signs of past seepage are sold "as is." All normal WineBid.com terms and conditions apply.

"Signs of past seepage" in the item description of any lot indicates that our inspectors found sticky areas around the capsule in the form of crystals or "legs" of residue.

Seepage is usually a result of one or more of the following:

  • Excessive heat during transport
  • Imperfect storage conditions, including rapid temperature changes
  • Overfill during bottling, which is sometimes intentional
  • Faulty cork

When seepage is visible it may affect the wine in these ways:

  • Oxidation, which can result in color and taste changes
  • Loss of wine, meaning a lower fill level

Most wine with signs of past seepage is not included in WineBid.com auctions. However, with some wines, most notably dessert wines and wine from certain producers who are known to overfill during bottling, past seepage may not have yet affected color or taste. Such wines should be purchased with the intent to drink them relatively soon rather than to store them for long periods.

Seller's Premium/Commission

Listing wines is complementary. However, once we have accepted a bid on wine which is at or above the stated reserve, the wine will be sold and WineBid.com will retain a Seller's Commission, which shall be calculated as a percentage of the final accepted bid of any wine sold according to the Seller’s Commission rate described in your Seller’s Agreement.

Please note: All lots of wine are subject to an additional 1% Insurance charge for coverage while stored at one of our facilities.

We also deduct any expense we incur on your behalf to ship the wine to one of our facilities, or to return any unsold wine to you. All costs, terms, and conditions are detailed in your Seller's Agreement, which represents the entire contract between you and WineBid.com.

Settlement

The process of finalizing the auction contract between a seller and the auction house, with payment to the seller of total hammer prices less the seller's commission. At WineBid.com, settlement is made within 30 business days of the close of the auction.

Spotlights

A collection of wine in an auction currently in progress that, for any number of reasons, deserves special mention. The Spotlight Collection will always appear on the homepage, and can be accessed with a single click.

Ullage

Ullage or "fill level" is the space in a wine bottle not occupied by wine. A low ullage can indicate seepage and oxidation of a wine, and affect its value considerably. At WineBid.com, a low fill of any degree on a bottle is noted in the lot description. Excessive ullage will lower the bottle's estimate. For more information on ullage click here.

Vertical

A vertical collection consists of several consecutive vintages of the same wine. For example, a vertical of Opus One might include a bottle of each vintage from 1990 through 1995. A vertical collection must be bid on in its entirety.