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