Wendy Rosen on wed 2 dec 98
The recent discussion on galleries has prompted me to provide some
information that may help you understand the world of galleries in
financial terms...
If these numbers ring true... smaller consignment galleries are much like
smaller
artist studios... providing only a very small income (if that)... this is
an inside look
at production gallery cash flow, spreadsheets and P&L's.... they ain't
makin' a fortune,
it looks like they do this out of love ... sound familiar ???
According to our most recent statistical survey on craft galleries...
(compiled by the Univ of FLA Center for Retailing Research and Education)
Most of these types of galleries are in business for about three years
--then gone. (Three years is the term of most retail leases)
Here are just a few of our findings...
Under $250,000 in sales............ 41%
250-750,000 in sales ............... 34%
Over $750,000 in sales ............. 25%
23% of galleries reporting sell primarily one-of-a-kind work.
50% of galleries reporting sell primarily production work.
Galleries sell $234 per square foot of retail space.
Each employee is responsible for $110,000 in sales annually.
Inventory turnover of 3.7
Median sales $347,000 (1,800 Sq Ft)
Average sales $621,000 (2,650 Sq Ft)
Inventory level at cost $167,000
21% have multiple locations.
Average Profit as % of sales.......... 9%
Geographic Region Distribution
29% Mid-Atlantic
18% Northeast
15% Southeast
15% Midwest/West
12% Pacific Coast
11% Southeast
Sales By Quarter
Jan-Mar 15%
Apr-Jun 21%
Jul-Sep 26%
Oct-Dec 38%
Type of Customer
Tourists...................... 37%
Local Residents........... 63%
Pay Scale
Average hourly employee $6.89
Highest paid employee $10.49
Average Income for owner............ $50,000
----------------------------Original message----------------------------
Date: Tue, 1 Dec 1998 14:05:05 EST
From: Ray Carlton
Subject: Re: Galleries and now from my soap box...
I concurr with the previous post by Joy Holdread....I also consider Clay
Artists crossing the consignment picket line as being scabs....I am afraid
i take a very hard line on this isssue and refuse to deal with any gallery
that wants my work on consignment...how many other areas in manufacturing
are there where the retailer wants product on a sale before payment basis??
I will tell you...NONE!...and the reason why [rant, rant, rave, rave,] is
that it is bad business practise to put your product out there [pots are
products despite what the precious ones say] for some shifty gallery owner
to run away with. the only way pieces leave this studio are as a sale or as
a gift...Consignment is not in my sales vocabulary...
Wendy Rosen
The Rosen Group
AmericanStyle Magazine
http://www.americanstyle.com
The Buyers Markets of American Craft
Niche Magazine and Awards Programs
Artist Mentor Program
Market Insider Newsletter (FREE)
Emerging Artist Internships/Scholarships
Craft Business Institute
http://www.americancraft.com
3000 Chestnut Ave #304
Baltimore, Maryland 21211
410.889-3093
410.243.7089 fax
**************************************************************************
John Rodgers on thu 3 dec 98
-- [ From: John Rodgers * EMC.Ver #2.5.02 ] --
Wendy, you just did me a HUGE favor by posting this information. And I do
appreciate it!!! And I will bet that there are many others on our list
that will appreciate it as well.
It gives enormous insight into the financial side of galleries and reflects
insight back onto artists and art studios. Gives a basis for doing our own
planning and marketing.
Thanks very much.
John Rodgers
Birmingham, Alabama
-------- REPLY, Original message follows --------
Date: Wednesday, 02-Dec-98 04:14 PM
From: Wendy Rosen \ Internet: (wendyr@rosengrp.com)
To: Multiple recipients of list CLAYART \ Internet: (clayart@lsv.uky.
edu)
Subject: Gallery Sales/Profit Statistics
----------------------------Original message----------------------------
The recent discussion on galleries has prompted me to provide some
information that may help you understand the world of galleries in
financial terms...
If these numbers ring true... smaller consignment galleries are much like
smaller
artist studios... providing only a very small income (if that)... this is
an inside look
at production gallery cash flow, spreadsheets and P&L's.... they ain't
makin' a fortune,
it looks like they do this out of love ... sound familiar ???
According to our most recent statistical survey on craft galleries...
(compiled by the Univ of FLA Center for Retailing Research and Education)
Most of these types of galleries are in business for about three years
--then gone. (Three years is the term of most retail leases)
Here are just a few of our findings...
Under $250,000 in sales............ 41%
250-750,000 in sales ............... 34%
Over $750,000 in sales ............. 25%
23% of galleries reporting sell primarily one-of-a-kind work.
50% of galleries reporting sell primarily production work.
Galleries sell $234 per square foot of retail space.
Each employee is responsible for $110,000 in sales annually.
Inventory turnover of 3.7
Median sales $347,000 (1,800 Sq Ft)
Average sales $621,000 (2,650 Sq Ft)
Inventory level at cost $167,000
21% have multiple locations.
Average Profit as % of sales.......... 9%
Geographic Region Distribution
29% Mid-Atlantic
18% Northeast
15% Southeast
15% Midwest/West
12% Pacific Coast
11% Southeast
Sales By Quarter
Jan-Mar 15%
Apr-Jun 21%
Jul-Sep 26%
Oct-Dec 38%
Type of Customer
Tourists...................... 37%
Local Residents........... 63%
Pay Scale
Average hourly employee $6.89
Highest paid employee $10.49
Average Income for owner............ $50,000
----------------------------Original message----------------------------
Date: Tue, 1 Dec 1998 14:05:05 EST
From: Ray Carlton
Subject: Re: Galleries and now from my soap box...
I concurr with the previous post by Joy Holdread....I also consider Clay
Artists crossing the consignment picket line as being scabs....I am afraid i
take a very hard line on this isssue and refuse to deal with any gallery
that wants my work on consignment...how many other areas in manufacturing
are there where the retailer wants product on a sale before payment basis??
I will tell you...NONE!...and the reason why [rant, rant, rave, rave,] is
that it is bad business practise to put your product out there [pots are
products despite what the precious ones say] for some shifty gallery owner
to run away with. the only way pieces leave this studio are as a sale or as
a gift...Consignment is not in my sales vocabulary...
Wendy Rosen
The Rosen Group
AmericanStyle Magazine http://www.americanstyle.com
The Buyers Markets of American Craft
Niche Magazine and Awards Programs
Artist Mentor Program
Market Insider Newsletter (FREE)
Emerging Artist Internships/Scholarships
Craft Business Institute
http://www.americancraft.com
3000 Chestnut Ave #304
Baltimore, Maryland 21211
410.889-3093
410.243.7089 fax
**************************************************************************
-------- REPLY, End of original message --------
Steven Rushefsky on sat 5 dec 98
--------------------------------ORIGINAL MESSAGE-----------------------
Wendy Rosen
Subject: Gallery Sales/Profit Statistics
Average Gallery Profit as % of sales.......... 9%
------------------------------------REPLY------------------------------
I feel better knowing that even though they take 50% of the sale, a Gallery
seeks to make approximately a 9% profit after expenses.
(Previously I only thought of MY expenses)
StevenRu@aol.com in NYC
-----------------------------------------------------------------------
the cat lady on sun 6 dec 98
Am I the only one who noticed that owners take on average
$50,000 in take-home pay? Must be nice.....
sam
At 11:04 AM 12/5/98 EST, you wrote:
>----------------------------Original message----------------------------
>
>
>--------------------------------ORIGINAL MESSAGE-----------------------
>Wendy Rosen
>
>Subject: Gallery Sales/Profit Statistics
>Average Gallery Profit as % of sales.......... 9%
>------------------------------------REPLY------------------------------
>I feel better knowing that even though they take 50% of the sale, a Gallery
>seeks to make approximately a 9% profit after expenses.
>(Previously I only thought of MY expenses)
>StevenRu@aol.com in NYC
>-----------------------------------------------------------------------
>
>
sam - alias the cat lady
Melbourne, Ontario
SW Ontario CANADA
http://www.geocities.com/paris/3110
scuttell@odyssey.on.ca
"Thousands of years ago, cats were worshipped as gods.
Cats have never forgotten this."
Fay & Ralph Loewenthal on fri 11 dec 98
Sam aka The Cat Lady, perhaps there is a mix up
between take home pay and turnover. The
$50,000 could have been annual turnover then
they are not doing so great. I read in Wendy
Rosen's book that there is some shows where
one can do $25,000 turnover. That boggles my
imagination. Karl Platt once mentioned that he
had done a six figure turnover at some event in
New York, that means more than $99,999.99,
WOW!
I think we have to check whether it is take home
pay, which would be great, or turnover, which is
not great. Just a thought or 2 from Ralph in PE
SA.
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