Jump to content

Recommended Posts

I gather commission in a pottery gallery here in the UK is 120% plus VAT (currently 20%).  I think that adds up to maker's price +164%.   It sounds like quite a lot to me, but is that normal? How about in the States?

 

Apologies if this has been covered before :(

Share this post


Link to post
Share on other sites

Typical is 50%....... gallery pays any sales tax.... (from the money they charged the customer directly FOR that tax).

 

Some consignment galleries take only 40%..... but that is becoming rare.

 

best,

 

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

Share this post


Link to post
Share on other sites

I guess I worked in one of those rare galleries. It was a co-op and the members had to pay "Dues" of $75/month, but the gallery collected a 25% commission for works sold. Some months were good and some not so good.

Share this post


Link to post
Share on other sites

It is common here for the gallery to at least double the artists wholesale price but in high rent areas that can go higher ... matching your 120%. We do not have VAT tax yet but Galleries pay any sales tax.

This is why it is so mportant for the potter to know their costs and price their wares properly so they make money on their wholesale price and leave it up to the Galleries to make their money on retail.

Share this post


Link to post
Share on other sites

gallery pays any sales tax....

 

Galleries pay any sales tax.

 

The (woodturning) galleries I'm in charge the customer sales tax then forward the collected tax to the state.

 

Its common for galleries to double the artist's price for sale to the customer.

Share this post


Link to post
Share on other sites

If you have galleries charging various percentages and they are not great distances apart, for the good of relationships, the retail price should come out close. galleries will not appreciate great differences in retail prices.

Marca

Share this post


Link to post
Share on other sites

I have never used a gallery service. So all this is new to me. Can someone give an example. Starting with how you price your piece. And do you adjust price based on the location of sale?  Is there a book that covers this in detail?

 

You should go to the library and check out books on how to run a small business. Basics are basics no matter what you are selling.

These books will teach you how to calculate your costs so you are not loosing money faster than you can make things.

 

In wholesale you mostly cannot control the price a Gallery will charge for your work.

You sell to everyone at the same price. They mark it up to cover their expenses.

So someone paying big bucks for a high traffic location will likely charge more than someone with low rents and costs.

 

You can set a minimum price they can sell it for.

You can offer to buy it back rather than let it go on sale.

You can negotiate designer/decorator discounts.

 

Consignment is a whole different thing BUT these days consignment Galleries want 50% too ... so you are basically stocking their shelves at your expense and taking ALL the risks too.

Share this post


Link to post
Share on other sites

 

I have never used a gallery service. So all this is new to me. Can someone give an example. Starting with how you price your piece. And do you adjust price based on the location of sale?  Is there a book that covers this in detail?

 

You should go to the library and check out books on how to run a small business. Basics are basics no matter what you are selling.

These books will teach you how to calculate your costs so you are not loosing money faster than you can make things.

 

In wholesale you mostly cannot control the price a Gallery will charge for your work.

You sell to everyone at the same price. They mark it up to cover their expenses.

So someone paying big bucks for a high traffic location will likely charge more than someone with low rents and costs.

 

You can set a minimum price they can sell it for.

You can offer to buy it back rather than let it go on sale.

You can negotiate designer/decorator discounts.

 

Consignment is a whole different thing BUT these days consignment Galleries want 50% too ... so you are basically stocking their shelves at your expense and taking ALL the risks too.

 

Thank you Chris. Your help is truly appreciated, as always.

Share this post


Link to post
Share on other sites

 

 

 

Consignment is a whole different thing BUT these days consignment Galleries want 50% too ... so you are basically stocking their shelves at your expense and taking ALL the risks too.

 

 

I won't do consignment for more than 25%-30% for this very reason! 

Share this post


Link to post
Share on other sites

I have several different non standard arrangements .

I'll start with wholesale

I have a shop with two locations-I just sell my mugs there-they get $5 per mug as well as collect any sales tax. I stock (usually weekly) the mugs and bill them quarterly .-I set the sale price of all sizes (they carry 4 sizes) so say on a 25$ mug I get 20$ they get $5.

I have another wholesale arrangement-I stock the mugs (usually every two weeks) and set the prices- they take 40% and pay me monthly or whenever I bill them.

I have two other limited form outlets-that is I supply only forms I want to sell them not my whole line.Thats a straight 50% markup deal.

On consignment deals I have one at 50/50 and two at 60/40

 

Nothing is fixed in stone and I have found its best to work all the details out at first meeting.

Remember your work is hand made and has value-its not an order from a catalog and the boxes from China show ups in a month.

Pottery sells better than most all other items in most shops I'm in. 

One last note-I have been at this a long time and my product is a solid line with long track record. If you are just starting out you may have less track record but just remember ceramics is hard and you need to make a good living so some outside the box arrangements may be best for both parties .

I turn down lots of business requests every year at this point-learning to say no is also a good tool.

Do not overcommit to to much or unrealistic production.I am known for doing business well and suppling all my outlets well as I do not overcommit to to many outlets.Just start out slow and keep the ones you do well stocked.

Chris Campbell likes this

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

×