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Gallery discount?

I got a call today. A lady told me that her customer, some bank with HQ in LA, found some of my pictures on the Net and would like to purchase one or few for their offices.

Then she asked if I offer "gallery discount".

I was at lunch, so we agreed to talk later...

In the mean time, I would like to ask you guys: what's the gallery discount, how big it normally is and why shall I give it at all?

TIA!
 

Asher Kelman

OPF Owner/Editor-in-Chief
Nikolai Sklobovsky said:
I got a call today. A lady told me that her customer, some bank with HQ in LA, found some of my pictures on the Net and would like to purchase one or few for their offices.

Then she asked if I offer "gallery discount".

I was at lunch, so we agreed to talk later...

In the mean time, I would like to ask you guys: what's the gallery discount, how big it normally is and why shall I give it at all?

TIA!
Hi Nikolai,

This is an important issue. First to be genuine she needs a tax resale number, at least in the U.S.A.

It could be that she has future customers, so giving a discount is in principal fine for wholesale sales to get goods into retail outlets or to private clients. It is normal for many builders to get building supplies at a hidden discount, charge the invoice price plus the usual and customary 10% mark up.

However, for art the pieces are few in number and often are on consignement from the artist or collectors and when the sale occurs, the gallery keeps from 40% to 60%.

Galleries that support new local artists specifically may only take only 25%.

In this particular case, the sale is intended for a Bank. They expect to pay market prices. For sure your 16x20 or $150 picture will be framed for say $50 to $300 and sold for $400 to $950.

I find it hard to imagine that the bank would expect to pay merely $150 for the print and just the price of framing.

I know designers charge a mark up for all furniture and decorations installed. So her profit will be

Anyway, here's my opinion, if you have a regular discount price for say 10 prints or more, then she would get that discount. However, this is not a bazaar where one haggles about price. you have a website. you have set the price, she has to pay that price.

Otherwise, you'll have undercut your already low prices.

She is going to frame the print and get $200-$500 profit plus say 15%-$20% on top of that for her markup. So it is pretty cheesy to get you to take of anything from you posted price.

I'd decide whether or not you will have discount for multiple copies or previous customers. If you do then you could give her that discount.

She will be making more than you on the print anyway!

My wife regularly sells to such clients and your print would be about $500-$900, or maybe even $1200 framed if you are not well known.

I hope this helps.

Asher

Asher
 

Kathy Rappaport

pro member
Sales Tax in California

Nik,

Make sure if you are selling it to her that you get a resale number in writing if she is selling it to someone else. I assume that you have a resale license and are registered with the State Board of Equalization. They have a form at www.ca.gov/sbe that you would have signed and completed by her so that you'd be off the hook for sales tax. I often will ask for a copy of their resale permit too.

If you need more information, please feel free to call me (I think you have my telephone number) and I can get the form for you.
 

Asher Kelman

OPF Owner/Editor-in-Chief
Actually, Nikolai, you are neighbors!

You probably live 10 minutes from each other LOL

For a print you are selling at a give away price, discount is inconsiderate to you as an artist. See if she can get a faucet fixed for that price!

In fact, if you have to talk to someone, you should up the price! The idea of online sales is that it doesn't involve the time of selling.

Asher
 

Kathy Rappaport

pro member
Asher,

Nik and I met on a quickie sunset outing in the neighborhood a little while back. Yes, we are neighbors - he works very close to my house too!
 

Asher Kelman

OPF Owner/Editor-in-Chief
So, Nikolai,

What have you decided to do? Have you contacted her to find out what shae actually wants? If the client wants the picture and you already sell it fo such a bargain price, then I'd think you should not sit on this but make the sale.

If she is American she will accept the idea of fixed prices. However, this is a cultural thing and some places, there are no fixed prices. Remeber Casablanca and Rick getting into the purchase price of a table cloth and the dealer says, "For Rick, there's a special price!" (I paraphrase).

So update us!

Asher
 
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