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another gallery question

updated mon 29 jan 01

 

Lana Reeves on sat 27 jan 01


I know the 50% seems high. But don't forget the gallery also has =
operating costs: rent, insurance, utilities, phone, credit card fees, =
wages. Even if the employees are just "sitting... sipping cappucino" =
they still must be paid. They don't make much, either.

Lana in Somerville, MA
kilnkat@rcn.com =20
"The genius of cats, really, is they can make both rejection and =
acceptance equally annoying. No wonder we love them so."
=
-Jon Carroll

Snail Scott on sat 27 jan 01


At 09:49 AM 1/27/01 -0500, you wrote:
>I know the 50% seems high. But don't forget the gallery also has
operating costs: rent, insurance, utilities, phone, credit card fees,
wages. Even if the employees are just "sitting... sipping cappucino" they
still must be paid. They don't make much, either.
>
>Lana in Somerville, MA

My gallery has never failed to pay me accurately
and on time. They have, however, bounced their
payroll checks more than once. I'll let the chippie
drones have their cappuccino.

The point of my post was that you must decide whether
a given gallery is earning its percentage and treating
you fairly. A bad gallery is _not_ better than none
at all. It's up to you to define 'bad', though.

A good gallery can do tremendous things for your
career, by giving you exposure through a reputable
dealer to a suitable clientele who relies on the
dealer's taste to guide their own. Ideally, _you_,
not just a specific work of art, is what they are
representing to the world.

They should also handle the 'nitty-gritty' of daily
business - sales, mailing lists, overhead, shipping
to the buyer, 'talking the talk'. These are services
I am happy to delegate for a price.

A rotten gallery may delay or 'lose' payments, display
your work poorly, communicate disinterest or amateurism
to potential clients, have stupid open hours, inconven-
ient payment arrangements, not return phone calls,
promote other of their artists in preference to you,
store work carelessly, or simply do no business.

Only you can decide when a gallery crosses the line
into the 'unacceptable' category.

My current gallery has slid from the 'acceptable' side
to a point rather close to the line. I am looking for
another, closer to where I now live. (Shipping can kill
your margin.) Galleries are like boyfriends, though...
It's easier to get one if you've got one already.
(Probably for similar reasons - it gets that look of
desperation out of your eyes! ;-))

-Snail

Earl Brunner on sat 27 jan 01


The point is that standard wholesale is 50% of the expected retail, This
gets especially dicey if you both wholesale and retail. The people you
wholesale to often don't want you underpricing them.

So, If standard wholesale is 50% and you get paid up front (they then
carry the inventory). Then they assume the liability of ownership. (The
quicker they sale it, the quicker they get paid).

On consignment, you retain ownership until sold, they don't have to be
as urgent in promoting your work, they don't have as much vested
interest in the sale. This is ESPECIALLY true if they both accept
consignment and purchase or make inventory. They are the most
interested in selling what they have already paid for.

It's a complex market, but I believe the bottom line is that if they
aren't paying for the goods up front then they should get a smaller
percentage of the "retail" price of the item than if they had bought at
wholesale.

Lana Reeves wrote:

> I know the 50% seems high. But don't forget the gallery also has operating costs: rent, insurance, utilities, phone, credit card fees, wages. Even if the employees are just "sitting... sipping cappucino" they still must be paid. They don't make much, either.
>
> Lana in Somerville, MA
> kilnkat@rcn.com
> "The genius of cats, really, is they can make both rejection and acceptance equally annoying. No wonder we love them so."
> -Jon Carroll
>
> ______________________________________________________________________________
> Send postings to clayart@lsv.ceramics.org
>
> You may look at the archives for the list or change your subscription
> settings from http://www.ceramics.org/clayart/
>
> Moderator of the list is Mel Jacobson who may be reached at melpots@pclink.com.


--
Earl Brunner
http://coyote.accessnv.com/bruec
mailto:bruec@anv.net

Anita Rickenberg on sat 27 jan 01


"I know the 50% seems high. But don't forget the gallery also has =
operating costs: rent, insurance, utilities, phone, credit card fees, =
wages. Even if the employees are just "sitting... sipping cappucino" =
they still must be paid. They don't make much, either."

A retail operation traditionally marks up 100% which means that the =
supplier is being paid 50% of the retail value. Out of this mark up, =
all expenses and operationg costs are paid and the store, if run well, =
makes a profit. When working on consignment, there is no expense or =
carrying costs for their inventory. This, in my opinion, should be =
reflected in commissions of more than 50% to the craftsperson. When =
your work is in a gallery on consignment, you are providing their =
inventory and paying (either directly or indirectly) the carrying costs =
of that inventory.

Any aggreement with a gallery should also include a clause that items =
broken are covered under their insurance policy and your inventory does =
not become a part of their assets in the event of bankruptcy. Of =
course, any agreement is only as good as the gallery and the owners.

Anita

Paul Lewing on sat 27 jan 01


Lana Reeves wrote:
>
> I know the 50% seems high. But don't forget the gallery also has =
> operating costs: rent, insurance, utilities, phone, credit card fees, =
> wages. Even if the employees are just "sitting... sipping cappucino" =
> they still must be paid. They don't make much, either.

But don't forget I also have operating expenses: rent, insurance,
utilities, phone, credit card fees, materials, shipping. And I don't
make much sometimes, either.
Paul Lewing, Seattle

T.B.Pots on sat 27 jan 01


And just to add a bit to this: the galleries are also expected to give gift
boxes and tissue paper, maybe even free gift wrap. This can all add up to
an additional 5-10%.
----- Original Message -----
From: Lana Reeves
To:
Sent: Saturday, January 27, 2001 9:49 AM
Subject: Re: Another gallery question


I know the 50% seems high. But don't forget the gallery also has operating
costs: rent, insurance, utilities, phone, credit card fees, wages. Even if
the employees are just "sitting... sipping cappucino" they still must be
paid. They don't make much, either.

Lana in Somerville, MA
kilnkat@rcn.com
"The genius of cats, really, is they can make both rejection and acceptance
equally annoying. No wonder we love them so."
-Jon
Carroll

____________________________________________________________________________
__
Send postings to clayart@lsv.ceramics.org

You may look at the archives for the list or change your subscription
settings from http://www.ceramics.org/clayart/

Moderator of the list is Mel Jacobson who may be reached at
melpots@pclink.com.

TERRANCE LAZAROFF on sat 27 jan 01


I believe that it is up to the artist to point out to the gallery that
increasing the consignment percentage up to 50% is not advantageous for the
gallery. The rational is as follows.

I, the artist wishes to have in my pocket $100.00. If I sell my work
wholesale the gallery gives my my $100.00 and then goes about putting what
ever price they want on the piece. The suggested retail price given by me is
$200.00. If the store wishes to increase the retail price the go to it. If
for example they price my work at $220.00 and the piece sells easily and
other work sells easily using the same price increments, I will naturally
increase my wholesale price the next time around to read $110.00.

If the gallery wants to play at 40% consignment for them and 60% for me,
then the $100.00 piece will have to be retailed at $166.66. When the
gallery goes for the 50% each then in order for me to get $100.00 for my
work the gallery would have to price the art at $200.00. My work may sell
at that price and if it does the good. If it doesn't, then the gallery is
storing my work for me until I find a gallery that can sell the work. If
the gallery starts with the bit that the work can't sell because it is too
expensive the respond that they can reduce the commission taken from sales.
Let them know that you know how to price your work and the you will not go
broke for their benefit. If your $100.00 piece does not sell at any
gallery then don't make anymore of those objects. Find another object that
will sell.

My friend went broke trying to reduce costs in order to sell something that
could not be made inexpensively. He had lots of orders and couldn't keep
up. Yet he went out of business.

The key word is cover your costs or don't make it.

For what it is worth.
Terrance


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Earl Brunner on sun 28 jan 01


Fine, you've convinced me.
I agree, we should all make pottery full time to donate to these
wonderful charities.

They are in business for sombodies sake. That's part of the business.
If they can't do it the way every other business does it they shouldn't
expect us to donate to their "charity" or hobby.

T.B.Pots wrote:

> And just to add a bit to this: the galleries are also expected to give gift
> boxes and tissue paper, maybe even free gift wrap. This can all add up to
> an additional 5-10%.
> ----- Original Message -----
> From: Lana Reeves
> To:
> Sent: Saturday, January 27, 2001 9:49 AM
> Subject: Re: Another gallery question
>
>
> I know the 50% seems high. But don't forget the gallery also has operating
> costs: rent, insurance, utilities, phone, credit card fees, wages. Even if
> the employees are just "sitting... sipping cappucino" they still must be
> paid. They don't make much, either.
>
> Lana in Somerville, MA
> kilnkat@rcn.com
> "The genius of cats, really, is they can make both rejection and acceptance
> equally annoying. No wonder we love them so."
> -Jon
> Carroll
>
> ____________________________________________________________________________
> __
> Send postings to clayart@lsv.ceramics.org
>
> You may look at the archives for the list or change your subscription
> settings from http://www.ceramics.org/clayart/
>
> Moderator of the list is Mel Jacobson who may be reached at
> melpots@pclink.com.
>
> ______________________________________________________________________________
> Send postings to clayart@lsv.ceramics.org
>
> You may look at the archives for the list or change your subscription
> settings from http://www.ceramics.org/clayart/
>
> Moderator of the list is Mel Jacobson who may be reached at melpots@pclink.com.


--
Earl Brunner
http://coyote.accessnv.com/bruec
mailto:bruec@anv.net

Snail Scott on sun 28 jan 01


At 12:49 PM 1/27/01 -0800, you wrote:

>It's a complex market, but I believe the bottom line is that if they
>aren't paying for the goods up front then they should get a smaller
>percentage of the "retail" price of the item than if they had bought at
>wholesale.
>

You production-pottery folks have a wide
variety of outlets available to you,
including the wholesale market, which
allows for the sale of work outright to
the retailer. This option is rarely
available to the practitioners of fine-art
sculptural works. Must be nice!

(Just jealous. ;-) ) -Snail