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ronfire

Wholesale Pricing

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I had a shop interested in carrying our pottery. They would either take it on consignment or would consider buying at a wholesale price. The shop is far enough away that it does not compete with the sales studio we have. 

I was wondering how much discount most people give for wholesale accounts?

 

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Guest JBaymore

When you sell wholesale... the gallery. shop can price the pieces at any amount they see fit for their audience.  HOPEFULLY you have "done your homework" and know what your work would be worth in the market.    The TYPICAL markup (retail price) is 100% over the wholesale price in the art/craft field.  Meaning that if you sell it to them for $50... they will sell it for $100.

 

If you sell it to them for $25... and they can sell it for $100....... YOU are leaving $25 on the table.

 

Don't think of the wholesale price as a "discount".  The wholesale price is the price you'd be happy to get for the work you've made. 

 

When you yourself then sell retail.... you have costs in doing that.  The difference between the wholesale price (you pay to the potter.... yourself) and the retail price, is what you pay to the retailer (yourself) to do the selling activity.

 

best,

 

......................john

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Ronfire:

 

You had the meetings, and already have initial instincts about rather to do business with them. An alternate perspective: if you start off with a consignment, it will give you a chance to figure out if it works for you, or produces the revenue to justify the travel. The consignment shops around here mostly put up signs that say "antique store" that specialize in rare 1960's tupper ware pieces.

 

Nerd

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My wholesale prices are 50% of my retail prices.

 

If at all possible, work with them on a wholesale basis. Consignment is not a favorable deal for the artist, and it is fraught with possible bad outcomes. Here is a previous post by Chris Campbell that explains what to be aware of if you choose to consign:

http://community.ceramicartsdaily.org/topic/5539-consignment-reasonable-expectations/?p=51318

 

Wholesale is a much simpler and common sense way to go. You get paid up front, all responsibility shifts to gallery. Boundaries are clear.

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That said, there is another issue I have been wanting to ask about. I know most if not all know how much clay, glaze, and firing costs of the pieces they produce. I have wondered how many have done a time study? From the time you take the clay/ or pug, make the form, finish, bisque, glaze, load and unload, pack and ship per piece.

Would you mind starting a new thread, so we can keep this one about ronfire's question?

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The order size should make no diffferance and you should have a minimum order like $500 or what feels right for you. I would make the this figure more than you may originally think so the orders are worthwhile.

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25 to 30% off is what I was thinking of, maybe a little more if they order a large amount.

I agree with Mark ... The only time quantity reduces price is when pieces are machine made. When you are making things by hand you still have to make 500 of them yourself, one at a time.

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What are they retailing your pots for? If you wholesale and they go for 25-30% off your retail prices but are then doing what most stores do and adding 100% to that figure that is going to make the pots they sell far more expensive than what you sell the same pots for. I wish you luck getting them to agree to just 25-30 points off retail. The only places I know of that have sweetheart deals like that are through co-ops or art centers.

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With wholesale you need to think about what the end price will be and will that work for the shop?

It does you no good to sell to them once and they cannot sell the work if it's overpriced

It needs to work for both parties

Mins post above eludes to this idea

I think about the final price and work down from there.

I have a very lucrative wholesale gig going where I set the final price and they take 1\3

I bill them quarterly and I do the stocking for them

This only works if you are close and I hammered out the deal years ago and it works for both parties

It's turned into a 8 k deal a year for me they get another 1/3 on top of that

Sometimes creative thinking works for everyone as this deal is very unusual.

I,m working on another like deal in a new store that opens soon and is close to me.I,ll propose the same deal as above.

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Wanted to share a story about consignment from a friend of mine who does crystalline pieces in CA. He had entered into a consignment agreement with a well known, and long established shop in Orange County. They had agreed on splits, costs, etc. He did however overlook a clause that gave the owners right to reduce/clear out inventory that had sat for over 90 days. He came through on his usual 30 day restocking trip to find almost his entire inventory cleaned out and a check for less than half of the agreed amount. The owners had a "clearance" sale and it cost him a bundle. Needless to say he cleared out completely. Just wanted to share it, given the discussion going on about wholesale- consignment.

 

Chris.. my friend has also had big issues with breakage; and shops refusing to pay for it. His pieces run in the 200-500 range.

 

Nerd

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Guest JBaymore

California Artwork Consignment Law:  http://www.leginfo.ca.gov/cgi-bin/displaycode?section=civ&group=01001-02000&file=1738.5-1738.9

 

Most states have them.

 

Consignment is still a bad deal for the artist though.  An interest free loan to the gallery.  And with the potential for it to easily "go bad"... and leaving the only recourse then some litigation work...which will cost lots to pursue....and in the end likely not be financially worth it.  So really it is more like an interest free unsecured loan to the gallery.

 

best,

 

................john

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Mark ... Who pays for breakage, loss or theft in the store?

Chris once I drop off the mugs(this is a mugs only deal) they are billed for them no matter what happens

We have been thru breakage and theft and it's not been an issue in past decade as its not on my nickel

All this needs

to be covered in original agreement

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My beloved is in the book publishing biz so I asked her what the parameters are about wholesale vs retail. Unrelated- but interesting:

 

1. Established, well known writers give the max of 35% off retail.

2. 50% off retail is the standard.

3. 40% off retail if you agree to a return policy.

4. If large orders are placed- inventory and stocking fees can be charged if contract canceled and product returned.

 

Unrelated field I realize- but some interesting parameters to consider.

 

Nerd

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