I suggest that everyone interested in this topic (and many others)
read the LJ article on Barbara Heinrich that just appeared in Tips.
You might decided to re-think the consignment issue.
Lisa Orlando
Aphrodite’s Ornaments
NoCal
(I’ve decided that Fort Bragg and Aphrodite don’t go together…so
I’m fudging)
This discussion of consignment contracts has been very enlightening
to me…I am going to submit 8 peices on consignment to a gallery
shortly. This gallery’s contract states that the artists are
responsible for insurance for their work; is this standard?
Thanks!
Beth Thompson
Cimmaran Designs
I just read the article. However, note the paragraph about the
consignment situation. It differs from what we are talking about
here. Apparently there is a flexible consignment arrangement where
buying the designs is the end result. This is a great situation if
you can get a gallery to agree to this. But it’s basically
consignment transferring into wholesale purchase if the line is
successful. From what I read, it doesn’t sound like a standard
consignment arrangement, which is what I think the topic of
discussion was here. If all consignment was like that, I’d be more
than willing to go about it that way. That’s a very smart business
move on their part. I think it would be an ideal situation and would
be interested to know the percentage of galleries that work that way.
This discussion of consignment contracts has been very enlightening to me...I am going to submit 8 peices on consignment to a gallery shortly. This gallery's contract states that the artists are responsible for insurance for their work; is this standard?
I have insurance for all of my work where-ever it is through Mike
Bergstein @ Capacity Coverage in New Jersey - but I like to have the
gallery responsible for insuring as well so they might feel more
responsible for the pieces. If you feel very comfortable with the
store you can go with your heart … Best, Jennifer
I think this is the correct info - the best plan I have heard of for
starting designers - even covers shipping losses, except $500
deductable and doesn’t allow you to have secondary insurance … And
you don’t have to have a safe if you don’t want to.
HOME OFFICE:
One International Blvd.
Mahwah, NJ 07495
Tel. 201-661-2000
Fax. 201-661-2499
Hi Beth, In my experience, this is not standard (I have consigned
locally in Georgia). Every gallery or store with whom I consign has
the clause in their contract that they will pay me the commission
percentage if an item is lost / stolen / broken while in the shop.
One owner fought me on this, and I told her that I don’t consign
without that coverage in the contract. She acquiesed - and has just
paid me for two “missing” pairs of earrings and one that got broken
while in the store.
HTH
This gallery's contract states that the artists are responsible for insurance for their work; is this standard?
It’s not uncommon, but it is outrageous. Personally, I consider
this unacceptable. If a gallery will not allow me to rewrite this
part of the contract, I will, regretfully, not be able to do
business with them-- on consignment, that it. They are creating an
atmosphere where they could rip off the work, with no repercussions,
just tell you, “Oh, too bad! It’s gone-- your problem!”
I also will not accept provisions that make me responsible for
return shipping if the work doesn’t sell. The gallery has to take
responsibility for the work from the time they receive it to when it
is paid for (to me) or back in my hands. This doesn’t seem like too
much to ask, for their 50%.
Remember, everything is negotiable! If you cannot get a contract
that you are comfortable with, you are almost certainly better off
taking a pass.
–Noel
I sure wish I could find a store on this planet that offered a 70/30
split! 50/50 has been more the norm for consignments. I don’t mind
sharing the risk with the gallery owner over the marketability of a
piece or of myself as new artist at that gallery. It helps a lot if
you’re not living hand-to-mouth, however. If things click, you can
always renegotiate.
Allan Mason
Hi Beth,
This gallery's contract states that the artists are responsible for insurance for their work; is this standard?
No! And you should not accept it. The gallery must be responsible
for the pieces while in their possession. You, however, are
responsible for them in transit. For that reason (and others, like
coverage when you’re doing shows), I also recommend getting your
insurance. I echo Jennifer’s referral to Mike Bergstein. He’s an
insurance man who put together a policy for jewelers after his
daughter Julie (of “Just Jules” jewelry design) made him aware of
the need for it.
Beth
In my experience, this is *not* standard (I have consigned locally in Georgia). Every gallery or store with whom I consign has the clause in their contract that they will pay me the commission percentage if an item is lost / stolen / broken while in the shop.
And will that store continue carrying your work?
Lee Cornelius
Vegas Jewelers
This discussion of consignment contracts has been very enlightening to me...I am going to submit 8 peices on consignment to a gallery shortly. This gallery's contract states that the artists are responsible for insurance for their work; is this standard?
I’m not sure if it’s “standard”, but it’s wrong. If you give your
work to this gallery, you might as well just have left it on the
street. In this case, the gallery has no incentive to take any
precautions to avoid it being lost, stolen, or damaged. When you ask
what’s become of it, don’t expect more than a shrug. Even if you did
have an insurance company willing to cover your work while it’s there
(not likely, under the circumstances), they won’t pay off on a claim
of loss without seeing a police report. You won’t be in a position to
file that; it would be the gallery’s responsibility. But it doesn’t
sound like this gallery would be likely to do that, seeing it could
well implicate the gallery’s employees or management. Taking
responsibility for your work while it’s in their possession is (or
at least should be) a minimum requirement for any consignment
arrangement with a retailer. If you’re not getting that, you’re
getting nothing. Don’t walk away from this one; run…
Andrew Werby
www.unitedartworks.com
When a retailer buys insurance for the store, he/she answers three
questions to the agent:
A. How much Inventory do YOU own?
B. How much inventory is in the store on consignment?
C. How much of customer’s goods do you have in house (repairs &
such)?
The store covers all 3
You need a signed agreement to this
David Geller
JewelerProfit, Inc.
510 Sutters Point
Atlanta, GA. 30328
(404) 255-9565 Voice
(404) 252-9835 Fax
david@JewelerProfit.com
This discussion of consignment contracts has been very enlightening to me...I am going to submit 8 peices on consignment to a gallery shortly. This gallery's contract states that the artists are responsible for insurance for their work; is this standard?
Yes, this is standard for Galleries. Their insurance will only insure
for COST OF MATERIALS, Not selling price. Sorry, Guys, but that’s how
it is. Inland Marine insurance will cover art, and other valuables
for replacement cost. Most galleries cannot afford this type of
insurance, but individuals can get it through their
homeowner’s policy.
If you give your work to this gallery, you might as well just have left it on the street. In this case, the gallery has no incentive to take any precautions to avoid it being lost, stolen, or damaged.
Wrong! In most cases, the galleries do all they can to protect the
work left by consigning artists. As an artist and a gallery owner, I
truly resent the statements you make! Ok, I know I’m not supposed
to “take it personally,” but you’re accusing galleries of not taking
precautions to protect the work of artists. I have 60 plus artists
in my gallery and I do all I can to protect their work. I have even
paid up when the inventory doesn’t match up with what I
have. If something broke, I paid. If something is missing, I paid.
Hi, Catherine,
I just went back and read the paragraph. Heinrich clearly states
that she has worked with galleries, via consignment, for 1-3 years.
Then, after they’ve started to do well with her pieces, she asks
them to buy something outright. So, her strategy is to turn
consignment accounts into wholesale accounts–it has nothing to do
with the policy of the galleries.
I think that article is full of ideas. She’s as brilliant a business
woman as she is a jeweler. In fact, I confess, she’s my idol.
And, non-US Orchidians, please note: she purposefully seeks non-US
apprentices.
Lisa Orlando
Aphrodite’s Ornaments
within the sound of the surf
I don’t see why it wouldn’t. So far I’ve had one store pay me for
missing / broken items (2 items) and they have not requested that I
come and remove the remaining inventory.
One thing to look at is the state laws about who is responsible. I
was told by a lawyer for the arts in California that the law there
is what he called portal to portal. That the gallery was responsible
for the work from the time it left your door to the time it was
returned to you. His example was a painting out on loan from the
gallery to a client where the clients child damaged the painting.
The gallery said hey it was not here so we are not responsible , the
client said hey it is not ours so we are not responsible and the
galleries insurance company said that it was not on the premises so
they were not going to cover it. The final court ruling was that the
gallery had to pay as it was consigned to them and therefore they
took responsibility for the work.
Disclaimer
I am not a lawyer and this was California only the attorney said it
varied from state to state
Jim Binnion
James Binnion Metal Arts
Phone (360) 756-6550
Toll Free (877) 408 7287
Fax (360) 756-2160
@James_Binnion
Member of the Better Business Bureau
A. How much Inventory do YOU own?
B. How much inventory is in the store on consignment?
C. How much of customer’s goods do you have in house (repairs &
such)?
When consigning, the store owns NOTHING Customer goods, may or may
not be repaired.
My agent asked none of these questions. . .
I am going to submit 8 peices on consignment to a gallery shortly. This gallery's contract states that the artists are responsible for insurance for their work; is this standard?
Yes, this is standard for Galleries. Their insurance will only insure for COST OF MATERIALS, Not selling price. Sorry, Guys, but that's how it is.
“this is standard for galleries” On what do you base this statement?
IMHO and from some experience (I have say a few decades past); that
statement is incorrect.
"this is standard for galleries" On what do you base this statement? IMHO and from some experience (I have say a few decades past); that statement is incorrect.
I AM a gallery owner.
Continue from:
Yes, this is standard for Galleries. Their insurance will only insure for COST OF MATERIALS, Not selling price. Sorry, Guys, but that's how it is.
I have to say it’s not standard for my gallery either. We have
insurance on the inventory which will pay the artist his/her usual
percentage if any item is damaged, stolen etc.
Lisa in NY