ART GALLERIES 101

Art Galleries accept artists on a consignment basis or buy the product outright.

Initial Contact: Artists should look over the galleries in their area. It is a good idea to check with other artists in the area about the reputation of the galleries that interest them as to their timely payments and care of the artists' art.

When artists find a gallery that appeals to them, they should phone the owner or manager of the gallery to find out the criteria for acceptance of art for sale. Professional etiquette requires the artists to phone to make an appointment before bringing in their art work or portfolio for viewing. If required to bring in sarnples for viewing, these sarnples must be in excellent condition: No chipped pottery, no shabby frarnes with the caveat that the artist "will have the art for sale in a nicer fiame." The gallery deserves to see the art work in the same condition it will be delivered for sale.

The artist deserves to know directly from the gallery about their payment policies (how often do they pay for sales?), insurance coverage or what their policy is for loss or damage, and any other questions the artist deems appropriate.

Commission: Artists usually pay 40% of sales price to the Gallery, retaining 60% of sales price for themselves. When one considers what the Gallery does for that 40%, it becomes a reasonable figure. The gallery handles all aspects of marketing and selling for the artist. For your 40%, you should consider whether or not that gallery can offer a showplace that is well lit, clean, dusted and displayed; access to a loyal, retum customer base; featured artists shows and receptions; advertisement and features in area newspapers; an avenue for special orders and commissions; gift boxes and wrapping as requested; regular daily hours with personnel to assist customers; regular paychecks for items sold (or damaged).

When the cost of selling one's own work is figured, it may very easily be that an excess of 40% is spent in marketing. These hidden costs can be found in art fair participation in the cost of the booth fee, cost of the display (shelving, portable walls, tenting, signs), transportation to and from, value of time spent at the event (just what IS your time worth?), food, cost of housing if out of town. Selling out of one's studio finds there are costs for the building itself, utilities, maintaining display space, insurance, advertising, bookkeeping, etc. Even by selling on one's own website expenses are incurred in set up, annual fees, bank charges for credit card sales, advertising. And don't forget the VALUE of your TIME! If you fail to pay yourself for the time you spend with your customers, then you are marketing your work for free.

PRICING: The professional crafter and artisan realize that they must have both a wholesale and retail price for their work.

The artist's commitment to the gallery must be to sell at wholesale prices only to volume buyers. Retail prices should be the same at all retail outlets - gallery, gift shop, art fairs, home, website in order to keep the market stable. Many galleries will not represent artists who have different "retail" prices (one for shows, and another one for galleries). By inconsistent pricing, the confidence of the customer is underrnined. Once the customers become confused, they will lose trust in the market. An artist's maxim should be, "I hold tight, you hold tight;" the commodity none of us can afford to lose is the customer!

The Wholesale Price includes cost of materials, plus labor, plus profit for the artist. This is the price you sell your work to stores and galleries, or other volume purchasers. The wholesale price is usually 100% (double) the production cost, taking into consideration esthetic value, limited edition, artist reputation, etc.

The Retail Price is the wholesale price, plus the expense of marketing the work, plus profit for the retailer. This is the price all customers pay, whether they purchase work directly from you or through a gallery. The retail price is usually 100% (double) the wholesale price.

The Consignment Price is usually 50 to 70% of the retail price, depending on the consignment rate. If a gallery's consignment rate is 40%, that means the artist gets 6)% of the retail price, and the gallery gets the remaining 40% as a consignment fee. Retail stores buy outright at 50% of the retail price, and consignment stores buy at 50 to 70% of the retail price, which means that retail stores usually pay a slightly lower wholesale price. However, the retail price always remains consistent!

How to determine the wholesale and retail prices:

Cost of goods (materials, tools, machinery)

PLUS labor equals Production Cost;

PLUS Artist profit (usually double production cost) equals Wholesale Price to stores/galleries

PLUS marketing costs (usually double wholesale) equals Retail Price to the public

One reason many talented artists "go out of business" after a few years is that they have failed to properly price their work. They often consider only the cost of goods, neglecting to pay themselves "labor" (which means they are working for free!) or they don't add in a fixed "profit". On top of that, when they market the work themselves at shows, they neglect to add in their marketing costs.

Once artists are accepted by a Gallery, they must agree to the gallery policies. These policies may include:

An exclusive agreement not to sell their artwork within a specified area in order not to be in competition with the gallery

Set a reasonable price for their work. The above forrnula should help with this, but often if a gallery finds if one artist's prices are vastly different than other artists for similar items, the gallery may counsel the artist to reconsider the retail price

Selling artwork for the same retail price in all venues: Other galleries, art fairs, out of their studios, in their homes.

Pay the Gallery a referral commission for any art work done as a special request when the customer has contacted you as a direct result of seeing your work in the gallery.

Deliver art work in a timely fashion.

The artist is usually responsible for all shipping costs involved in delivery to the gallery and return of their work. he gallery will usually be responsible for all shipping costs involved in delivery from the gallery to the customer.

Deliver art work in "pristine" condition - no seconds, no dings in the framing, no stains on the matting

Have price stickers that will not damage the finish of the art work firmly affixed to each piece with inforrnation required by the gallery. This is usually: Inventory number; Artist's name; Retail Price. If the artwork will be displayed in bright lights or outside in the elements, it is the responsibility of the artist to use proper stickers AND pens that will not fade! These can be obtained at most art supply stores. One recommended pen that will not run or fade is Micron Pigma pen.

Be sure there is only ONE sticker on each piece; if two stickers are attached inadvertently, then the gallery will usually charge customer the lower figure.

Accompany art work with a complete and accurate inventory. The gallery may supply inventory sheets for the artists' convenience; it is important that each piece is listed separately and all information requested be where it belongs on this forrn.

Be prepared to keep the gallery supplied with an adequate amount of inventory

Supply the gallery with brochures or a biography and product information that may be copied and handed out to the customers. The customer is not terribly interested in the artist's business card, but does like to know about the individual artists - where they live and the name of their cat - a summary of personal background; art media they work in; philosophy or statement of purpose; any public works displayed; recent awards; etc. In this way the customer buys not just the artist's creation, but a little bit of its background. Product information is quite important - is it food safe? Will it hold water? Special care required (pastels should never be transported face down; raku does not hold water; sculptures may be feather dusted, watercolors should not be displayed in direct sunlight, etc.) Product information insures that neither the artist nor the gallery will be held responsible for damages through improper care or use of the product.

Prepared by Marita McDonough, member of Art Works cooperative in Sandpoint Idaho, and office manager of the Entree Gallery at 1755 Reeder Bay Road, Nordman (at Priest Lake) Idaho wwu .entreegallery.com