Deborah Jj Wildenberger on thu 30 jan 97
What is the percentage difference between wholesale and retail. Does it
change depending on the quantity ordered? How much is asked for a down
payment on an order? Does the same apply?
Feedback will be appreciate.
Thanks in advance,
Deborah
"Practice random kindness and senseless acts of beauty."
(thanks for the correction Joseph)
Michael kline on fri 31 jan 97
Deborah,
This is how I would think about wholesale vs. retail:
(1) Begin by establishing a retail price for your work.
(2) Wholesale price, then, is determined by discounting to someone with the
understanding that they are buying your work to resell.
___For interior designers I discount 25% from the retail price.
___For galleries and shops I discount 50% from the retail price.
For new accounts I require a minimum order.(this helps to weed out those
who are masquerading to be buyers, but are just using their credentials to
buy pots for themselves or their friends. ) Also I find it easier with my
work to deal with serious buyers than with a multitude of mildly commited
buyers .
(3) ALWAYS get credit references and a list of artists that the gallery
represents, with those artists phone #'s. If there is a question of the
legitimacy of the account, ship COD, or pro forma. My rule of thumb is
that if I agree to do business with someone I find out who they are and
how they do business. If they are legit they probably will have plenty of
references and are open about their business practice.
I then decide whether I will extend credit (net30) or ship COD. In many
cases artists automatically require a first order to be shipped COD.
I hope this is helpful. GoodLuck.
Michael Kline
Okra Pottery
P O Box 614
Worthington
Ma 01098
413 238 0321
okra@crocker.com
WHampton@aol.com on fri 31 jan 97
In a message dated 97-01-30 07:49:38 EST, you write:
<< What is the percentage difference between wholesale and retail. Does it
change depending on the quantity ordered? How much is asked for a down
payment on an order? Does the same apply?
Feedback will be appreciate. >>
Hi Deborah,
The retail price can be determined by the artist or the buyer. If you set
the retail then you would sell the piece at the retail price minus the
galleries commission. I have galleries that charge from 25 - 50%. When I
sell wholesale I sell at 50% of what I have determined as retail. If the
gallery adds the 50% back on is their choice.
I request 50% down payment upon order and the balance when finish but I have
yet to get it. Most galleries don't have the cash flow and they end up
paying everything when the order is done. I have chosen to accept their
terms in most cases because I can always place the pieces in other galleries
if I were to get stiffed.
Some artists give volume discounts but I have not had to face that issue yet!
Wendy from Bainbridge island WA
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