Thursday, October 23, 2008

Article: Marketing Your Art #4

Sales Commission and Consignment Agreements by SKC
No matter what sort of venue you have your artwork on display at, you will want to make sure that the obligations of both sides are clear up-front. Will they be handling sales? OR are will that responsibility fall onto your shoulders? Either way, should the venue get commission from sales, and if so, how much?

It is most common for the venue to be involved in handling sales inquiries and in many cases, handling the actual sales transactions. In either case, you will want to have a consignment agreement signed by both you and the venue so that everyone is clear on how sales should be conducted, the price of the artwork, if discounts are permitted (and how much), and who is responsible for the insurance on the artwork if any.

Below is an example of a simple consignment agreement. You can add to this any special terms, responsibilities, or incentives you wish.


Be sure to include in your agreement the following:
1. The names of the artist(s) and the venue manager/owner
2. The physical address of the venue
3. The date(s) the event will occur
4. Who is responsible for handling sales (artist, venue, both?)
5. What percentage of sales will go to the artist and what percentage will go to the venue
6. Who is liable for the safety of the artwork and at what cost

Then for each piece of artwork, list:
1. Title
2. Medium
3. Dimensions
4. Condition
5. Price
6. Lowest negotiable price
7. Any special notes or information
(for example, you may need to note that some pieces are “NFS,” or “not for sale” if they are on loan from collectors or your own private collection).

You may choose to add in special incentives, say, if the venue is willing to make a sale on artwork not currently on display with them by showing collectors your website. You could offer them a commission for each instance. Another thing that has come up quite often in my own experience is the request from gallery patrons regarding my ability/willingness to do commissions. Whatever your interest is in taking on custom work, be sure to note it.

Deciding on commission:
When it comes to deciding what commission, or percentage of your sales the venue should be able to take, consider how much the venue will bring to the table for your exhibition.
Non-traditional venues: Coffee shops, libraries, etc.

Because the venue is not a traditional gallery, its staff is not likely trained to sell artwork. As a result, you should not be expected to pay the same percentage that you would pay at a brick-and-mortar gallery (if any at all).

This is especially true if the staff does not want to handle sales at all but will instead refer interested parties to you by phone, email, or website (encouraging a potential seller to contact the artist directly often will cause the buyer to back-away and in many cases will lose potential sales). If the venue will not be assisting in catering, promotion (i.e. invitations & printed materials), or hanging, you should not be required to offer a sales commission. You will after all, be reporting your exhibition to the local press and your artist’s mailing list. The venue can expect a bump in patrons thanks to your event.

However, if the venue is willing to handle sales, and take checks & credit card transactions for you, by all means there should be a certain percentage to cover the banking fees and encourage them to place your artwork with collectors. Somewhere between 10 and 25 percent would be reasonable, and more is possible if the venue has experience exhibiting and a record of selling artwork.

Traditional venues: galleries, alternative art spaces, etc.
Gallery commissions can vary greatly. I’ve shown in places where the percentage was a mere 15 percent, and I’ve shown in places where 50 percent was expected — I’ve even heard of 60 to 70 percent, which is beyond comprehension, but does happen.
If you are setting up this event yourself, and you are taking care of the publicity, invitations, food, and all other arrangements, it would be unreasonable for a gallery or any other venue to take more than 30 percent. When negotiating this aspect, remember that you will be bringing the venue some new business as well as some good publicity. Use those facts as negotiation points if necessary.

Signing the Consignment Agreement
Once you have all the details squared away on your consignment agreement, leave a space at the bottom for both your signature and the venue manager’s/owner’s signature and print two copies. You both will sign each copy, and this way you each will have an original document for your records. Most often this agreement will be signed at the time the work is delivered. If the venue requires that you sign an agreement prior to the delivery of the work, exclude the artwork details and deliver an inventory checklist along with your artwork at the time of the exhibition set up. The inventory checklist should include all the information for each piece (as listed above) and a space for the venue manager’s signature to confirm the receipt of the work.

Talking points:
Have you every exhibited at a venue where there was no written agreement? What’s the highest commission you’ve agreed to pay a venue for sales?

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