[Jewelry making - Article 00924] - Re: [Orchid] Wholesaling one-offs

[lee]

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>     If I have a piece sitting in your gallery my cost of the materials,
>     overhead and profit are sitting there doing nothing for me. This is
>     why consignment is like a loan. I have spent the capital to make
>     the item but I am not being paid for it till you sell it. 

    Absolutely. What you have tied up at the gallery is not the just
    cost of the materials, it is your anticipated reimbursement. If a
    gallery purchases your work, it is they who have their capital tied
    up in it, they who must track it in their inventory, etc. With
    consignment, the artist shoulders the burden of carrying the burden
    of the receivable not only until the item is sold, but until the
    gallery gets around to cutting them the check. 

    I have on at least a couple of occasions been told by gallery owners
    that "I charge 50% on commission because my accountant says that i
    should treat it the same as a wholesale purchase, my overhead is the
    same and there is no difference." I don't know whether they are
    idiots, their accountants are idiots, or whether they simply take me
    for an idiot, but the costs of consignment are much less for a
    gallery than the cost of a wholesale purchase, because with
    consignment they do not take the risk, do not carry the receivable,
    and in fact from the time of the retail sale to the time I receive
    and cash their check, they have the benefit of money in the bank
    which is not rightfully theirs. 

    I have resolved that, the next time a gallery owner says "my
    accountant told me I should charge 50% on commission because there is
    no difference between commission and a wholesale purchase" I will
    seize on that and demand that they purchase my work outright since
    they were willing to consign it and they themselves claim that there
    is no difference. I 

Lee

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