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wholesale/resale terms

updated wed 18 may 05

 

Ann Baker on mon 16 may 05


I am about to begin wholesaling my sculpture work to retailers other =
than gallery stores as many high end shops will wholesale instead of =
requiring consignment. I'm interested in opinions from potters or =
sculptors who have experience with wholesaling their work. I am =
interested in knowing whether you establish a firm retail price and ask =
stores to stay with it or do you wholesale and let them mark it up as =
much as they want even if it is sometimes much more than double the =
wholesale?

A scenario I've had recommended to me is to set a price for a piece say, =
$200 sell it for 30% or 40% off that amount (instead of 50% so I receive =
what I need) but ask them not to go over the $200 (which seems to be the =
suitable price for the item) even if they feel their city will bear a =
higher price. The reasoning was that many other cities in the region =
won't bear a price higher than that. =20
1) Is this done? =20
2) Can I ask them to stay at my price or will I look unprofessional and =
difficult to deal with? =20
3) Should I just mark up my wholesale amount more to pay me what I need, =
allow it to be marked up to any retail price as the store owner sees fit =
and not worry about price inconsistency between areas?

Ann Baker Studio
www.annbakerstudio.com
331 Old Tory Trail
Aiken, SC 29801

Ken Chin-Purcell on mon 16 may 05


> A scenario I've had recommended to me is to set a price for a piece say,=
=20
> $200 sell it for 30% or 40% off that amount (instead of 50% so I receive =
what I need)=20
> but ask them not to go over the $200=20

In do a bit of wholesale but my neighbors, Dock 6 Pottery, do a ton
(literally),
and I've learned a lot from them. So here is a data point:

In general they treat wholesale as, well, wholesale. Meaning that
they are providing
a wholesale product to a reseller, who then own the product and take
it from there.
Unlike consignment they leave pricing to the retail shop. I know for
example that the
same bowl will sell for double wholesale price in the Midwest but up
to triple at an
east coast gallery.

In my opinion that's OK - location and service matter. The customer
isn't just buying
the object, they are also purchasing the convenience and service that
a shop provides.

Frankly one of the reasons I like some wholesale is that once it
ships, it's gone.
I don't own it anymore and I don't have to care about selling it. I
wouldn't want to
do all wholesale, but some is nice. I wouldn't worry about price
differences - let
the customer decide the best deal.

-- Ken Chin-Purcell
www.bungalowpottery.com

Anne Webb on tue 17 may 05


hey ann...

I am curious why you feel you need to set a retail price for your wholesale
customers to go by... is it that you want ot be fair to all of them or are
you just thinking how you will be percieved by the public?

wholesale price should represent, at the very least, what you need in your
pocket for a piece. There are times when letting a piece go for 50% of your
recommended retail price just isnt feasible. Its business and there is no
reason why the artist should take a loss. and like any business arrangement,
wholesaling needs to be mutually beneficial.

Setting a consistent wholesale price for all the shops and galleries you
deal with is probably something you should be thinking about instead of
worrying about their mark up. The buyer knows what they can get for the
piece in their shop/gallery/market. What they mark it up to if they buy the
piece outright, should rightly be their choice. If a shop sets his prices
higher than the one down the road, its no reflection upon your reputation
nor will it represent inconsistency on your part. As long as you have what
you need and it still be profitable, I wouldnt sweat it.

The wonderful thing about wholesaling is you have the money up front and
none of the retailing worries. Of course I assume that's why you are
wholesaling vs consigning..?

This is not to say that you shouldnt still keep an eye on what your pieces
are actually going for in these galleries. We as artists tend to underprice
our work at times and dont always have as good a handle on the market as we
think. If your pieces are going for more than you value them for, then
perhaps its time to up your prices as well.

Well best of luck :) I hope you do really well. Anne

Ann Baker wrote:

> I am interested in knowing whether you establish a firm retail price and
>ask stores to stay with it or do you wholesale and let them mark it up as
>much as they want even if it is sometimes much more than double the
>wholesale?
>
>.. ask them not to go over the $200 (which seems to be the suitable
>price for the item) even if they feel their city will bear a higher price.
>The reasoning was that many other cities in the region won't bear a price
>higher than that.
>1) Is this done?
>2) Can I ask them to stay at my price or will I look unprofessional and
>difficult to deal with?
>3) Should I just mark up my wholesale amount more to pay me what I need,
>allow it to be marked up to any retail price as the store owner sees fit
>and not worry about price inconsistency between areas?
>

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