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artists retail co-op: by-laws & advice needed

updated thu 9 aug 01

 

sbeach on fri 3 aug 01


I searched the archives and found a few postings related to this topic,
but feel the need for additional help.

I am involved with a group of local artists who are trying to set up a
co-op retail space. We are still in the planning/discussion stages. We
envision a gallery run & owned by the artists who display & sell there.

I'd appreciate hearing from any Clay-Arters who are (or have been)
involved in such an enterprise.

I'm especially interested in comments & suggestions about:

Pitfalls - what to watch out for.

Samples of by-laws, operating rules, etc.

Organizational structure - are you non-profit? How are you organized?

What are your fee structures? Are any jobs paid? Do any positions get
reduced fees because of the amount of work required?

Any help appreciated! This keeps getting bigger & bigger!

Sue Beach
Muncie, IN

Linda R. Hughes on fri 3 aug 01


We have a 39 year old non-profit organization which includes a gallery and
an education facility in Kirkland, Wa. We are just starting to do a
feasibility study to incorporate a store to help boost our income. We will
be watching for this information eagerly !!!!!!!!!
Thanks in advance,
Linda
----- Original Message -----
From: "sbeach"
To:
Sent: Friday, August 03, 2001 7:48 AM
Subject: Artists Retail Co-op: By-Laws & Advice Needed


> I searched the archives and found a few postings related to this topic,
> but feel the need for additional help.
>
> I am involved with a group of local artists who are trying to set up a
> co-op retail space. We are still in the planning/discussion stages. We
> envision a gallery run & owned by the artists who display & sell there.
>
> I'd appreciate hearing from any Clay-Arters who are (or have been)
> involved in such an enterprise.
>
> I'm especially interested in comments & suggestions about:
>
> Pitfalls - what to watch out for.
>
> Samples of by-laws, operating rules, etc.
>
> Organizational structure - are you non-profit? How are you organized?
>
> What are your fee structures? Are any jobs paid? Do any positions get
> reduced fees because of the amount of work required?
>
> Any help appreciated! This keeps getting bigger & bigger!
>
> Sue Beach
> Muncie, IN
>
>
____________________________________________________________________________
__
> 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.

Dwiggins, Sandra (NCI) on fri 3 aug 01


Sue,
We're doing the same thing. If you receive any posts off the list, could
you please forward them to me? Thanks alot.
Sandy

-----Original Message-----
From: sbeach [mailto:sbeach@BSU.EDU]
Sent: Friday, August 03, 2001 10:49 AM
To: CLAYART@LSV.CERAMICS.ORG
Subject: Artists Retail Co-op: By-Laws & Advice Needed


I searched the archives and found a few postings related to this topic,
but feel the need for additional help.

I am involved with a group of local artists who are trying to set up a
co-op retail space. We are still in the planning/discussion stages. We
envision a gallery run & owned by the artists who display & sell there.

I'd appreciate hearing from any Clay-Arters who are (or have been)
involved in such an enterprise.

I'm especially interested in comments & suggestions about:

Pitfalls - what to watch out for.

Samples of by-laws, operating rules, etc.

Organizational structure - are you non-profit? How are you organized?

What are your fee structures? Are any jobs paid? Do any positions get
reduced fees because of the amount of work required?

Any help appreciated! This keeps getting bigger & bigger!

Sue Beach
Muncie, IN

____________________________________________________________________________
__
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.

Cl Litman on sat 4 aug 01


Janet Kaiser said: A commission (% of the selling price) is fairer than
charging a flat rate fee per
person.

One very successful coop I knew of decided a flat fee was most
successful. They wanted only very committed artists who's work was
commercially viable to be part of the venture. When discussing whether
to have the flat fee or do a % of commission, they felt that a flat fee
made them all equal partners in the venture. With a %, people who were
most committed and sold the most, would be carrying those who didn't do
as well. It worked well for them.

Another comment I remember about their structure is that as a group they
assigned points to various jobs which needed to be done. By the end of
the year, everyone should have roughly worked the same number of points.
Some jobs are harder and more time consuming. And as Janet said, some
people have more of an aptitude in one area.

Cheryl Litman - NJ
LitmanC@aol.com
cheryllitman@juno.com



On Sat, 4 Aug 2001 00:35:32 +0100 Janet Kaiser
writes:
> Sue. This is what I would advise from what I have seen
> and experienced of co-ops retailing...
>
> > Pitfalls - what to watch out for.
>
> Quality. Do not accept any Tom, Dick and Harry into
> your group. You have to sit down and work out the
> niveau you want your outlet to have. No good having top
> drawer jewellry next to crocheted woollen toilet roll
> covers... The marketing mix is essential if the project
> is to succeed. With a single medium (i.e. ceramics)
> this is not quite so important, although a minimum
> quality should still be required. Whether you chose to
> have a selection committee or other way of deciding on
> members is naturally up to you.
>
> > Samples of by-laws, operating rules, etc.
>
> I cannot help with by-laws (every country is different)
> and where the outlet is located will affect opening
> days/times. Do not forget third party indemnity
> insurance and local health and safety regulations
> (legal requirements here in the UK). Whether you employ
> people or not, the co-op members will also count as
> employees when working on the premisses.
>
> > What are your fee structures?
> The fees you charge will have to cover ALL the costs
> (rent, lighting, heating, insurance, accountant fees,
> taxes, etc), plus a fund for emergencies, unforeseen
> costs, repairs, new displays, etc. so it is important
> you start out right. A commission (% of the selling
> price) is fairer than charging a flat rate fee per
> person. Then at the end of the financial year, once all
> the bills are paid, you can reimburse members from any
> excess funds. This means your accountancy has to be
> accurate, so each person gets a percentage of the total
> they have "paid" in commission.
>
> > Are any jobs paid?
>
> Most co-ops (here) are run by their members, who man
> the venue on a voluntary basis. This is a difficult
> area, because some people just do not like meeting the
> public and do not do the venture much good (Mel's
> smelly, "hey man" dude selling in a high class shopping
> mall is not a good idea). The Craft Makers Guild of
> Wales has a set number of hours (I believe 20) all
> members have to work per year at their shop in Cardiff.
> Those members who live a long distance away are exempt
> from regular stints and can work their quota of hours
> all at once. Organising the rota must be a pain in the
> whatnot... The co-op potters' shop in Bristol has paid
> assistants and a manager, but that has a very large
> turnover. Because the accounts are important, you may
> want one qualified member or a third party to see to
> "the books" and do the banking.
>
> > Do any positions get reduced fees because of the
> amount of work required?
>
> No! It makes much more sence to make everyone pull
> their weight right from the start. A division of
> labour. Then when the business is thriving, you can
> progress to paying an agreed rate (what you can afford)
> for hours worked. There is then (in theory) no
> quibbling about individuals not pulling their weight!
>
> > Any help appreciated! This keeps getting bigger &
> bigger!
>
> When you set up, think about opening hours and then
> stick to them. There is nothing worse for the public
> than reducing the hours/days when they have got used to
> dropping by...
>
> If in doubt, start out small / minimal and grow
> naturally. Write down as much as possible as your
> "constitution" and stick to it. Do not be swayed by
> personalities... It is the work and commitment which
> counts.
>
> Finance: it is absolutely imperative you have a
> fool-proof system in place and 100% financial
> accountability at all levels. Too often co-ops falter
> because money is not being banked correctly, daily
> accounts are not kept and the co-op and/or individual
> makers/artists are not keeping a tally of their work in
> stock. Poor accountancy is a major reason for co-ops
> (and any other business) failing.
>
> A co-op is "all-for-one-and-one-for-all" in theory, but
> in practice it is imperative that it functions like any
> gallery or shop. That means astute business acumen,
> which is sometimes difficult to achieve as a group. The
> integrity of everyone involved is very important, but
> difficult to achieve without a written agreement which
> everyone must adhere to and comply with.
>
> Hope this helps
>
> Janet Kaiser

Janet Kaiser on sat 4 aug 01


Sue. This is what I would advise from what I have seen
and experienced of co-ops retailing...

> Pitfalls - what to watch out for.

Quality. Do not accept any Tom, Dick and Harry into
your group. You have to sit down and work out the
niveau you want your outlet to have. No good having top
drawer jewellry next to crocheted woollen toilet roll
covers... The marketing mix is essential if the project
is to succeed. With a single medium (i.e. ceramics)
this is not quite so important, although a minimum
quality should still be required. Whether you chose to
have a selection committee or other way of deciding on
members is naturally up to you.

> Samples of by-laws, operating rules, etc.

I cannot help with by-laws (every country is different)
and where the outlet is located will affect opening
days/times. Do not forget third party indemnity
insurance and local health and safety regulations
(legal requirements here in the UK). Whether you employ
people or not, the co-op members will also count as
employees when working on the premisses.

> What are your fee structures?
The fees you charge will have to cover ALL the costs
(rent, lighting, heating, insurance, accountant fees,
taxes, etc), plus a fund for emergencies, unforeseen
costs, repairs, new displays, etc. so it is important
you start out right. A commission (% of the selling
price) is fairer than charging a flat rate fee per
person. Then at the end of the financial year, once all
the bills are paid, you can reimburse members from any
excess funds. This means your accountancy has to be
accurate, so each person gets a percentage of the total
they have "paid" in commission.

> Are any jobs paid?

Most co-ops (here) are run by their members, who man
the venue on a voluntary basis. This is a difficult
area, because some people just do not like meeting the
public and do not do the venture much good (Mel's
smelly, "hey man" dude selling in a high class shopping
mall is not a good idea). The Craft Makers Guild of
Wales has a set number of hours (I believe 20) all
members have to work per year at their shop in Cardiff.
Those members who live a long distance away are exempt
from regular stints and can work their quota of hours
all at once. Organising the rota must be a pain in the
whatnot... The co-op potters' shop in Bristol has paid
assistants and a manager, but that has a very large
turnover. Because the accounts are important, you may
want one qualified member or a third party to see to
"the books" and do the banking.

> Do any positions get reduced fees because of the
amount of work required?

No! It makes much more sence to make everyone pull
their weight right from the start. A division of
labour. Then when the business is thriving, you can
progress to paying an agreed rate (what you can afford)
for hours worked. There is then (in theory) no
quibbling about individuals not pulling their weight!

> Any help appreciated! This keeps getting bigger &
bigger!

When you set up, think about opening hours and then
stick to them. There is nothing worse for the public
than reducing the hours/days when they have got used to
dropping by...

If in doubt, start out small / minimal and grow
naturally. Write down as much as possible as your
"constitution" and stick to it. Do not be swayed by
personalities... It is the work and commitment which
counts.

Finance: it is absolutely imperative you have a
fool-proof system in place and 100% financial
accountability at all levels. Too often co-ops falter
because money is not being banked correctly, daily
accounts are not kept and the co-op and/or individual
makers/artists are not keeping a tally of their work in
stock. Poor accountancy is a major reason for co-ops
(and any other business) failing.

A co-op is "all-for-one-and-one-for-all" in theory, but
in practice it is imperative that it functions like any
gallery or shop. That means astute business acumen,
which is sometimes difficult to achieve as a group. The
integrity of everyone involved is very important, but
difficult to achieve without a written agreement which
everyone must adhere to and comply with.

Hope this helps

Janet Kaiser
The Chapel of Art . Capel Celfyddyd
HOME OF THE INTERNATIONAL POTTERS' PATH
Criccieth LL52 0EA, GB-Wales Tel: (01766) 523570
E-mail: postbox@the-coa.org.uk
WEBSITE: http://www.the-coa.org.uk

Jennifer F Boyer on mon 6 aug 01


There are all sorts of variations that can happen in any group
of people:
Someone sells a lot but doesn't have good skills/motivation when
it comes to running the gallery
Someone doesn't sell as well as the top sellers, but has
wonderful skills/motivation

Our coop is struggling with these issues even after 22 years.
I've even thought that keeping track of hours worked, and paying
hourly wages for work done might be the fairest way....but we
haven't done it. Right now, we have 8 board members of the
coop and 130 exhibitors(mostly 60/40 consignment. Our coop board
gets 80 percent of their sales(getting 20 percent more than
regular consignment). All 8 clerk some(we have employees too)
and have committee jobs. Some lower sellers do less clerking
than the higher sellers. But we haven't found a way to make
everything totally equitable. Our percent way isn't really
fair : Say person A grosses 20,000 a year through the gallery
and person B grosses 10,000. Person A has 4000 paid to her based
on the 20 percent she gets for board responsibilties. Person B
gets 2000. If person A isn't very committed to working hard for
the gallery or has no skills to contribute, and person B works
very hard and is great financial planner or something, well you
see the problem. The flat fee idea still leaves the problem of
some people having harder jobs than others. Also who in the
group WANTS to oversee the fairness issues, policing the
shurkers...noone. The point system mentioned might be a good
way to deal with all this. We're having a retreat to address
some of this. I'll let you know how it comes out....

I'll send bylaws to anyone interested....

Check out our web site: http://www.artisanshand.com


Cl Litman wrote:
>
> Janet Kaiser said: A commission (% of the selling price) is fairer than
> charging a flat rate fee per
> person.
>
> One very successful coop I knew of decided a flat fee was most
> successful. They wanted only very committed artists who's work was
> commercially viable to be part of the venture. When discussing whether
> to have the flat fee or do a % of commission, they felt that a flat fee
> made them all equal partners in the venture. With a %, people who were
> most committed and sold the most, would be carrying those who didn't do
> as well. It worked well for them.
>
> Another comment I remember about their structure is that as a group they
> assigned points to various jobs which needed to be done. By the end of
> the year, everyone should have roughly worked the same number of points.
> Some jobs are harder and more time consuming. And as Janet said, some
> people have more of an aptitude in one area.
>
> Cheryl Litman - NJ
> LitmanC@aol.com
> cheryllitman@juno.com
>
> On Sat, 4 Aug 2001 00:35:32 +0100 Janet Kaiser
> writes:
> > Sue. This is what I would advise from what I have seen
> > and experienced of co-ops retailing...
> >
> > > Pitfalls - what to watch out for.
> >
> > Quality. Do not accept any Tom, Dick and Harry into
> > your group. You have to sit down and work out the
> > niveau you want your outlet to have. No good having top
> > drawer jewellry next to crocheted woollen toilet roll
> > covers... The marketing mix is essential if the project
> > is to succeed. With a single medium (i.e. ceramics)
> > this is not quite so important, although a minimum
> > quality should still be required. Whether you chose to
> > have a selection committee or other way of deciding on
> > members is naturally up to you.
> >
> > > Samples of by-laws, operating rules, etc.
> >
> > I cannot help with by-laws (every country is different)
> > and where the outlet is located will affect opening
> > days/times. Do not forget third party indemnity
> > insurance and local health and safety regulations
> > (legal requirements here in the UK). Whether you employ
> > people or not, the co-op members will also count as
> > employees when working on the premisses.
> >
> > > What are your fee structures?
> > The fees you charge will have to cover ALL the costs
> > (rent, lighting, heating, insurance, accountant fees,
> > taxes, etc), plus a fund for emergencies, unforeseen
> > costs, repairs, new displays, etc. so it is important
> > you start out right. A commission (% of the selling
> > price) is fairer than charging a flat rate fee per
> > person. Then at the end of the financial year, once all
> > the bills are paid, you can reimburse members from any
> > excess funds. This means your accountancy has to be
> > accurate, so each person gets a percentage of the total
> > they have "paid" in commission.
> >
> > > Are any jobs paid?
> >
> > Most co-ops (here) are run by their members, who man
> > the venue on a voluntary basis. This is a difficult
> > area, because some people just do not like meeting the
> > public and do not do the venture much good (Mel's
> > smelly, "hey man" dude selling in a high class shopping
> > mall is not a good idea). The Craft Makers Guild of
> > Wales has a set number of hours (I believe 20) all
> > members have to work per year at their shop in Cardiff.
> > Those members who live a long distance away are exempt
> > from regular stints and can work their quota of hours
> > all at once. Organising the rota must be a pain in the
> > whatnot... The co-op potters' shop in Bristol has paid
> > assistants and a manager, but that has a very large
> > turnover. Because the accounts are important, you may
> > want one qualified member or a third party to see to
> > "the books" and do the banking.
> >
> > > Do any positions get reduced fees because of the
> > amount of work required?
> >
> > No! It makes much more sence to make everyone pull
> > their weight right from the start. A division of
> > labour. Then when the business is thriving, you can
> > progress to paying an agreed rate (what you can afford)
> > for hours worked. There is then (in theory) no
> > quibbling about individuals not pulling their weight!
> >
> > > Any help appreciated! This keeps getting bigger &
> > bigger!
> >
> > When you set up, think about opening hours and then
> > stick to them. There is nothing worse for the public
> > than reducing the hours/days when they have got used to
> > dropping by...
> >
> > If in doubt, start out small / minimal and grow
> > naturally. Write down as much as possible as your
> > "constitution" and stick to it. Do not be swayed by
> > personalities... It is the work and commitment which
> > counts.
> >
> > Finance: it is absolutely imperative you have a
> > fool-proof system in place and 100% financial
> > accountability at all levels. Too often co-ops falter
> > because money is not being banked correctly, daily
> > accounts are not kept and the co-op and/or individual
> > makers/artists are not keeping a tally of their work in
> > stock. Poor accountancy is a major reason for co-ops
> > (and any other business) failing.
> >
> > A co-op is "all-for-one-and-one-for-all" in theory, but
> > in practice it is imperative that it functions like any
> > gallery or shop. That means astute business acumen,
> > which is sometimes difficult to achieve as a group. The
> > integrity of everyone involved is very important, but
> > difficult to achieve without a written agreement which
> > everyone must adhere to and comply with.
> >
> > Hope this helps
> >
> > Janet Kaiser
>
> ______________________________________________________________________________
> 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.

--
~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*
Jennifer Boyer mailto:jboyer@adelphia.net
Thistle Hill Pottery
95 Powder Horn Glen Rd
Montpelier, VT 05602 USA
802-223-8926
http://www.thistlehillpottery.com/

Never pass on an email warning without checking out this site
for web hoaxes and junk:
http://urbanlegends.about.com/science/urbanlegends/cs/nethoaxes/index.htm
~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*

Morgan Britt on wed 8 aug 01


I'll try and answer as much as possible. You may want to email me off
line for more details unless a number of the group are interested.
Here's a few answers in short:

>We envision a gallery run & owned by the artists who display & sell
there.

That's the name of the game. I am on the board of directors for a
co-op, mostly 2 dimensional so it give me a lot of space to display and
sell and I do quite will. While the idea is that the gallery is run by
the members, there are always the few that try and do absolutely
nothing, and the few who do way more than they should. Get used to it -
it's the nature of the human animal.

>I'm especially interested in comments & suggestions about:
> Pitfalls - what to watch out for.

Like another post I saw about granny's toilet paper roll covers, quality
is the top issue. You are establishing a reputation and one bad show
can bring down the whole group. Decide as a group what you want your
image to be and stick to it. Profits go up and down. Keep your
overhead low so you can ride out the bad times. We do have craft items
in our gallery (please don't engage me in the art vs. craft war. Art is
defined in our gallery as handmade sculpture, original paintings, etc.)
but we designed our space to include a gift shop where craft can be
displayed and sold, including nice quality prints and ceramic
dinnerware. Your goal is not to collect a monthly membership fee to pay
for the rent but to sell enough art for the gallery and the artists to
turn a nice profit. Keep this first and foremost in mind. We have a
detailed vote in system where an application fee is submitted along with
works for review. 6 sample pieces are brought in to the monthly meeting
for the group to review and vote on by simple majority. The rules for
an incoming member are clear and specific in the original application,
namely: Are you able to keep up with supply and demand; You work 2 days
per month and must volunteer for at least one committee each year;
Monthly meetings are mandatory; If you miss your day to work there is a
$35 charge; 3 unexcused absences is cause for dismissal; Your
membership is open to a review and vote if the majority feel the caliber
of your work is falling; You will have one show per year (2 people for
each show) where new work is mandatory; the list goes on and on with
the point being it is clear and specific from day one.

>Samples of by-laws, operating rules, etc.

I can email you these off line if you want them.

>Organizational structure - are you non-profit?

Yes

>How are you organized?

A board of directors consisting of President, VP, Secretary, Treasurer,
Past President and 2 advisory members. The board can vote on many
issues independently of the group (this saves having long drawn out
meeting every month) and the general items are voted on by the
membership as a whole. The board meets one hour before the monthly
meeting to discuss agenda items.

>What are your fee structures?

Each member pays $65 per month. The gallery receives 20% of any work
sold. We also have an annual fund raiser which brings in about $3000
per year.

>Are any jobs paid?

No.

>Do any positions get reduced fees because of the amount of work
required?

Board members are allowed to work 1 day per month instead of 2

Let me know if I can help with more info.

Morgan Britt
FireArt ClayWorks
www.fireartclayworks.com