[Jewelry making - Article 00731] - Re: [Orchid] Design royalties

[Neilthejeweler]

========[ Invite a Friend - http://www.ganoksin.com/invite.htm  ]========

    Hema, I read that several times and I still don't have a grasp of
    exactly what's happening. 

>     A We are asking of you to invest 50% into sampling, by giving us a
>     50% discount. 

    A discount off of what precisely? If the sample costs $125 to make
    are you to pay them $62.50 or will they pay you $62.50? It quite
    unclear who is paying who here and when. 

>     We pay you 50% upfront, and the remaining 50% we will pay you when
>     we receive our first order. So we would pay you 50% of the costs
>     right now. 

    Sounds like, as written, they pay $125 to make the sample(since they
    are in essence the manufacturing liaison), then pay you $62.50 now,
    and $62.50 later. Or are you to pay the manufacturer directly and
    receive reimbursement at 50% from this new company? This doesn't make
    sense to me. 

    So the manufacturer they had in mind can't take the business? This
    is not a good sign. They should have had their ducks in a row before
    making a proposal to you and other artists. I strongly urge you to
    look into just who these people are, their jewelry
    manufacturing/marketing/financial/legal experience, and so forth. 

    What plans do they have to get these samples out in front of the end
    customers? If they do not already have a concrete plan for marketing
    I'd be very cautious about proceeding, because apparently they did
    not have a concrete plan for manufacturing. 

    The fact that they have not named their company tells me there IS no
    company (the first step in business is to incorporate or LLC or at
    least register a DBA with the State)...says to me they are putting
    out feelers and as yet have no capacity. 

    My own feelings here, and I admit they are very subjective and based
    on slim facts, is that you have four hands in the pie. The
    manufacturer, this unformed company, you, and the end buyer(which I
    assume is to be a retailer, since they will be taking orders from
    samples. Retailer are used to sometimes long lead times to get the
    goods, consumers won't wait weeks/months). That's a pretty complex
    recipe. 

    A suggestion would be for this company to arrange a meeting of all
    parties involved..manufacturer, the company and you along with other
    artists propositioned. All questions could be aired and hopefully
    answered and everyone might get a feeling of legitimacy. 

    Don't be put off by my skepticism, I've found its best to anticipate
    problems before committing. Keep an open but analytical mind.
____________________________________________________________________
T h e   O r c h i d   L i s t
Open Electronic Forum for Jewelry Manufacturing Methods and Procedures
____________________________________________________________________
Orchid FAQ:
~ http://www.ganoksin.com/orchid/faq.htm
Orchid Archives:
~ http://www.ganoksin.com/orchid/archive
Orchid Galleries:
~ http://www.ganoksin.com/orchid/gallery.htm
Invite a Friend:
~ http://www.ganoksin.com/invite.htm
____________________________________________________________________
Tips From The Jeweler's Bench - Article Archive
~ http://www.ganoksin.com/borisat/tip_sear.htm
The Jeweler's Selected Bibliography List
~ http://www.ganoksin.com/jewelry-books
Buy Orchid Jewelry:
~ http://www.ganoksin.com/shop
____________________________________________________________________
-Unsubscribe:
-Email: orchid-request AT ganoksin.com Body=unsubscribe subject=blank
____________________________________________________________________