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wholesale pricing

updated sun 18 jul 99


Michael R. Wardell on sun 21 jun 98

we set our wholesale and retail prices independent of each other. our
wholesale prices are not 50=25 of our retail prices, as we could not sell =
pots at craft shows for double what we want to get for them wholesale. we
do consider that a shop will double our wholesale price when they sell
them, and set our wholesale price so the final retail price (in the shop)
will still be affordable and reasonable. our retail price (at craft shows)
is usually 75-80=25 of what full retail (in a shop) would be.

michael and lorrie wardell
wardell pottery

amy parker on tue 20 oct 98

Jonathan Kaplan wrote:

We are so involved with other issues in ceramics
that the one of "what does it cost you to make it" seems to go un-noticed,
until tax time and you may realize that you worked at a loss all year
because you just didn't care to figure it out. ANd IMHO there is a thread
that runs thoughout potter's lives that" figuring this out is too
complicated," or "I'm financially challenged," whatever.

I''m willing to posit that most potters are clueless about what their
costs are to produce a mug. In fact, I'd like to encourage those on the
list to post to the list what it costs them to make a mug. And I'll do the
same to start it off when I get to the shop this afternoon or tomorrow.

I'd like to mention that my husband & I were just discussing
a large local corporation that made the mistake of looking at "cash flow" and
not "profits". We are talking millions of dollars a year. Yeah, they "made
money". Millions & millions. Every month. BUT - they did not consider their
expenses, and their little hidden costs - and suprise to them & their
stockholders!!! - bankruptcy. So, if major corporations, with highly
compensated accountants & CFO's can screw this up, it should certainly be
easy for those of us not so well trained!

I am not making mugs at this time, but bowls instead. I just figured out
that cost of clay, glaze, firing bisque & glaze for one of my "average"
bowls is about $3.40. If I sell said average bowl for $25, and I can make,
say 25 bowls, in a part-time week, including cleanup time, of about 25
hours, in theory I am "making" $21.60/hr. Sounds great, huh? In reality,
there is the cost of the kiln, wheel, bats, tools, mileage, and a horrible
array of other initial expenses (just got serious about trying to make a
living in the past year, so there was a lot of stuff to acquire). All of
this other overhead has to be
included in the cost of goods sold, somehow. At this point, I am so far
in the hole, I look like a charitable cause!

I've been self-employed as a programmer for 12+ years, so I am familiar with
most of the forms & procedures IRS wants. BUT - all this material cost,
and averaging out over each item made, is so complicated that I think that
Jonathan is definitely right in his observations! I have been considering
some of the Job Cost software that I have worked with as being necessary now
for my new endeavor!

So - Jonathan you are right! Until tax time, when I attempt to add all of
this up, I am "clueless" as to what I am making - I just know that this
year it is a negative figure!
amy parker Lithonia, GA

Wade Blocker on sat 17 jul 99

I have been selling my ware mostly through galleries for the past three
decades. Assuming the sale price of an item is $l0.00, in the typical
consignement situation the split would be 60% to the artist i.e. $6.00
when the item is sold, and the gallery keeps 40% or $4 .00. The same item
sold wholesale for $l0.00 would give $5.00 to the artist, and the gallery
would make $5.00 on that transaction. The artist gets less than on a
consignement basis, but receives the cash immediately, rather than having
to wait for a sale to take place. The occasional gallery has wanted a
50-50% split. In that case I would add 20% to the sale price to arrive at
my share . I have always tried not to undersell any of my galleries, it
simplifies my book keeping to charge the same for a particular item. I am
not a production potter, but make one of a kind pieces, nor am I dependent
to make a living from my output. I found it necessary to discuss the
eventual sale price with the owner whether it is on a consignement basis or
a wholesale arrangement , so that the sale price agrees with what I expect
the item to be sold for. Hope this helps. Mia