[OP]
Member
I have visited SMC for almost a year now as a spectator, and now I'm ready to get my feet wet with my first question.
After filling every empty space in our house with a variety of bowls and platters, and also giving them to all my family and friends, I contacted a local gallery today about selling some of my turnings that are stacking up. They were very interested and wants me to leave some with them. My question is about their 40% commission.Is that in line with other galleries? Tony
Member
I would say 40% is about the standard for most galleries now. But keep in mind that you should price your work accordingly. Some galleries have an association that you can join and they'll offer reduced commissions for members.
Contributor
That is in line for our area! Philly. PA.
Member
Tony, 40% is actully better than most galleries. 50/50 seems to be pretty common.
Member
Tony,
Curt mentioned pricing accordingly. My opinion is, set a retail price which includes the 40% commission for the gallery. This is the price that you quote whether it's selling through the gallery or you're passing it out your back door. That way, you're not competing with your gallery. They appreciate this and your collectors aren't confused when they see a similar item for 40% less at some other venue. You're paying the 40% for the gallery to promote you and give you space on their displays. You've got to do some homework and in most cases build the relationship to determine if you're getting your moneys worth.
If someone wants to buy numerous items for resale in their gallery/gift shop/coffee shop/wine bar/juke joint then you can quote a wholesale price to them which is a negotiated price. At that point, it's up to them what kind of margin they want to make on the item but, it's still a good idea to discuss your retail pricing with them to avoid confusion.
Make sure you read any consignment/gallery contract to determine your exposure should something happen to your pieces or the gallery. If they don't have one, offer one of your own. This includes who carries the burden if they decide to have a "Sale". In my case, any discount comes from the galleries commission unless agreed upon in writing. In other words, if it's a $100 item and they discount 20% I still get $60 and they take $20.
40% margin is standard for most retail items so sounds about right.
Last edited by Raymond Overman; 01-09-2009 at 1:46 PM.
Raymond Overman
Happiness is a warm chainsaw
"Do not wait, the time will never be just right. Start where you stand, and work with whatever tools you may have at your command. Better tools will be found as you go along." Napolean Hill
Member
Just a note to consider since you didn't mention anything about the gallery. I have some stuff in a new Kansas City area gallery at 20% because they are only open part time and special events. Just something to think about if you already haven't checked it out.
Last edited by Ken Fitzgerald; 01-09-2009 at 5:49 PM. Reason: removed direct advertising link - against TOSs.
Member
60/40 is common. The best I found was a 70/30. ..Bill..
Member
60/40 is about average for consignment. 50/50 is typical for wholesale.
Member
Hhmmm when I wholesale an item its sold right there, there is no percentage. I give them a price and they pay me for it. To me in a broad sense commission consignment, its all the same principle but wholesale is a direct sale between the buyer and the supplier. IMHO of course.Originally Posted by Stan Cook
By the way where in WV are you Stan??
If at first you don't succeed, look in the trash for the instructions.
Member
I think what Stan means is the wholesale price is usually 50% of what you believe it will sell for..Bill..
Member
I guess I am doing alright then with my percentages being paid out! My cousin owns the gallery that I have a bunch of things and I still give her 35%, the little shop in town here they take 25% and if there are lots of sales and more paperwork they charge me $10 more for the month. Last month I sold 35 things so lots of tags to keep track of! Some places ask for your price and then add what they think they can get for it or add the percentage on top of your price.
Good luck!
Jeff
To turn or not to turn that is the question: ........Of course the answer is...........TURN ,TURN,TURN!!!!
Anyone "Fool" can know, The important thing is to Understand................Albert Einstein
To follow blindly, is to never become a leader............................................ .....Unknown
Contributor
My Art Gallery gets 30%. Nice thing is she does all the paperwork, etc. I just take it down and tell her the price. She prices it with their 30% and put it up for sale.
Bernie
Never put off until tomorrow what you can do the day after tomorrow.
To succeed in life, you need three things: a wishbone, a backbone and a funnybone.
[OP]
Member
I had no idea commissions where that much. Maybe I should replace all those dust-making machines in my shop with money-making glass displays and start selling other people's stuff. (just a thought) .........Tony
Member
GMP's are a tricky thing, most retailers shoot for 40% as the better ones have only so much display space( sq footage wise ) and must pay the " rent " on each sq foot available and only want to place the items that will " pay " for that sq footage~ meaning " turn over" .... if they think your item will turn but may take a while ,they have to balance the time vs the $( sale price) over so many sq ft and amount of time they are open and the kicker is traffic flow.Only when traffic flow is up does the time/sq ft thing reduce in say for instance a ... grocery store versus a furniture store, pet shop ~ art gallery , doing market research for my company... I find that stores that provide " needs " will have higher traffic flow than stores with " wants" so the " needs " stores turn over their product more
~ reducing the sell price as goss margin of profit is actually up when turning the same item 19 times a month versus 1 time in 4 months.. so the item has to pay the rent for ... yep ... 4 months instead of 2 days or less, hence the higher GMP. And in galleries .. well the gallery has to pay for the space / overhead and the sales persons pay check and that would be commission , plus they know the big expense you have is time ... (not materials which demand a minimum margin) so 40 to 50% is typical and like the others ... price it with this in mind ~ the gallery knows how much some items will bring what you need is a niche / reputation that can get higher $ for your name ... not your item. One example is famous people here on SMC vs average Joe ( like me) who can do nice work but a piece by so and so who is published etc could get 500% more for the same thing due to his " name recognition " status.... Good luck Tony and keep at it
John 3:16
Member
35 things!!!!
At least in my experience that is outstanding. What kind of items were they?
I wish I could sell that many.
Good job.
Toney
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