Galleries and consignment agreements

Marlo:

It seems to me that you are implying that consignment goods are
in some way superior to work that is sold outright. Consignment
does in no way infer a better quality of merchandise. Consignment
is the practice of fronting merchandise for sale and not
expecting payment until that merchandise is sold. I can
understand why some galleries operate on consignment if they sell
expensive cutting edge work. My problem with consignment is that
many stores and galleries want consignment terms for production
work and gift items and at 50/50 terms.

How would it be “professional” to consign to some retailers and
then expect payment from others. To me “professional” is
conducting business consistently, fairly and equitably with all
of my customers in a way that allows us both to prosper. I cannot
afford to offer consignment to all of my customers, so how would
it be fair for me to play favorite with a few?

I guess the consignment issue really gets me worked up because I
see it abused. It furthers the notion that artists and their work
have no real value.

Ken Gastineau

Consignment does in no way infer a better quality of
merchandise. Consignment is the practice of fronting
merchandise for sale and not expecting payment until that
merchandise is sold. 

Two more cents…I’ve only done consignment once or twice, and
when I was just starting out. Now I never ever do it, because, if
I did it with one, all of the other stores that I sell to, would
hunt me down, and parade around with my head on a pike. Another
really good reason not to do consignment, is that I am not what
anyone in their right mind would construe as organized, and I
would probably lose the consignment sheet, and forget what the
store had of mine…or that I gave them anything in the first
place…but then I sell to a lot of places. Stores that don’t
know me, still ask sometimes, and I turn them down politely, but
firmly. Some places think that my work is high end, and cutting
edge, some places think that its a load of ,(expletive deleted).
If they really want it, they buy it no matter what it costs.
Consignment has zero to do with quality, or artistic merit. It
has to do solely with the cash-flow of the store, and the
willingness of the artist to participate.

Lisa, (So when are the rest of you going to post those pictures
on the ftp, so Terry and I don’t look like such geeks up there
all alone?), (Sorry Terry, maybe I’m the only one that looks like
a geek…You look like the Marlboro man…LOL), Topanga, CA USA

 What do you think of forming a cooperative
on-line-for-a-fee-auction to sell quality goods to galleries,
stores, shops and the public that is restricted to jewelry and
jewelry related items?  i.e. stones, findings, rough,
tools.etc.? 

Currently, I am a part of a group called the Flexible Business
Network, we are a group of Mendocino Artisans, in Mendocino
County, CA. We are currently working on a web site together. I
am meeting with the Web Master today…he also is the main
facilitator of our group. The Mendocino Artisans are a group of
artists that have formed to help each other sell their artwork.
We do collective purchasing of materials, and marketing of our
products. We are all pitching in on the web site shopping cart
program, so that keeps our costs reasonable. When our site is
up I will have it posted on my email. We hope to be up and
running in April. We also have a booth at the wholesale show in
San Francisco. Not all of us participate in it, but for some of
the group it works well. We have ceramic, jewelry and card
artists in our group at present. The group is growing and we
feel that numbers will help. Any questions you have on our
network please feel free to email me off orchid. Linda Crawford
Linda Crawford Designs http://www.jps.net/lcrawford
@Linda_Crawford

“People are always blaming their circumstances for what they
are. I don’t believe in circumstances. The people who get on
in this world are people who get up and look for the
circumstances they want, and, if they can’t find them, make
them.” -‘George Bernard Shaw – Mrs. Warrens’ Profession (1893)
–Act II’

I sent this message to the list last week but never saw it
posted. If it is an oversight on my part, please ignore the
repost. Thanks. Steve Brixner

The following was excerpted and adapted from “Business and Legal
Forms for Crafts” by Tad Crawford.

CONSIGNMENT AGREEMENT

Agreement made as of this “???DATE”, between “???ARTIST NAME”
(hereinafter referred
to as the “Artist”), located at “???ARTIST ADDRESS” and “???GALLERY
NAME”
(hereinafter referred to as the “Gallery”), located at “???GALLERY
ADDRESS”.

WHEREAS, the Artist is a professional artist of good standing; and

WHEREAS, the Artist wishes to have certain artworks represented by the
Gallery, and

WHEREAS, the Gallery wishes to represent the Artist under the terms and
conditions
of this Agreement,

NOW, THEREFORE, in consideration of the foregoing premises and
the mutual covenants hereinafter set forth and other valuable
consideration, the parties hereto agree as follows:

  1. Scope of Agency. The Artist appoints the Gallery to act as
    Artist’s nonexclusive agent in the following geographic area:
    "???GEOGRAPHIC AREA", for the exhibition and sales of artworks in
    the following media: “???MEDIA”. The Gallery shall document
    receipt of all works consigned hereunder by signing and returning
    to the Artist a Record of Consignment in the form annexed to this
    contract as Appendix A.

  2. Term and Termination. This Agreement shall have a term of
    five (5) years and may be terminated by either party giving sixty
    (60) days written notice to the other party. The Agreement shall
    automatically terminate with the death of the Artist, a change in
    Gallery ownership or location outside the area of “???GEOGRAPHIC
    AREA”, or if the Gallery becomes bankrupt or insolvent. On
    termination, all works consigned hereunder shall immediately be
    returned to the Artist at the expense of the Gallery.

  3. Commissions. The Gallery shall receive a commission of
    fifty (50) percent of the retail price of each consigned work
    sold. In the case of discount sales, the discount shall be
    deducted from the Gallery’s commission. The Gallery shall
    receive a commission of forty (40) percent of the retail price of
    each commissioned work sold.

  4. Prices. The Gallery shall sell the works at the retail
    prices shown on the Record of Consignment, subject to the
    Gallery’s right to make customary trade discounts to such partners
    as museums and designers.

  5. Payments. The Gallery shall pay the Artist all proceeds
    due to the artist within thirty (30) days of sale for all work on
    consignment. No sales on approval or credit shall be made without
    the written consent of the Artist and, in such cases, the first
    proceeds received by the Gallery shall be paid to the Artist
    until the Artist has been paid all proceeds due. Payment for
    commissioned work or special order work is due and payable upon
    delivery to the Gallery.

  6. Accounting. The Gallery shall furnish the Artist with an
    accounting every month in the form attached hereto as Appendix B,
    the first such accounting to be given on the first day of July,

  7. Each accounting shall state for each work sold during the
    accounting period the following the Artist’s
    inventory number of the work, the date of sale, the sale price,
    the amounts due the Gallery and the Artist, the location of all
    works consigned to the Gallery that have not been sold and if the
    retail sale price is over five hundred dollars ($500), . the name
    and address of the purchaser. An accounting shall be provided in
    the event of termination of this Agreement.

  8. Inspection of Books. The Gallery shall maintain accurate
    books and documentation with respect to all transactions entered
    into for the Artist. On the Artist’s written request, the Gallery
    will permit the Artist or the Artist’s authorized representative
    to examine these books and documentation during normal business
    hours of the Gallery.

  9. Loss or Damage. The Gallery shall be responsible for the
    safekeeping of all consigned artworks. The Gallery shall be
    strictly liable for loss or damage to any consigned artwork from
    the date of delivery to the Gallery until the work is delivered to
    the Artist or a purchaser. In the event of loss, the Artist
    shall receive the same amount as if the work had been sold at the
    retail price listed in the Record of Consignment. In the event of
    damage that in the opinion of the Artist, cannot be repaired, the
    Artist shall receive the same amount as if the work had been sold
    at the retail price listed in the Record of Consignment. In the
    event of damage that in the opinion of the Artist, can be
    repaired, the Artist shall receive payment for his time and
    materials used to make the repair.

  10. Alterations. No alterations of any kind may be made to
    consigned artwork by any person other than the Artist without the
    written consent of the Artist. In the case of alteration without
    written consent of the Artist, the Artist shall receive the same
    amount as if the work had been sold at the retail price listed on
    the Record of Consignment.

  11. Returns. Returns of sold work to the Gallery more than
    thirty (30) days after the original sale date, without the written
    consent of the Artist, become property of the Gallery and the
    Artist shall receive payment therefor if not already paid.
    Returns of Commissioned work are possible solely at the
    discretion of the Artist and may require a service charge.

  12. Insurance. The Gallery shall insure the work for fifty
    (50) percent of the retail price shown in the Record of
    Consignment.

  13. Copyright. The Gallery shall take all steps necessary to
    insure that the Artist’s copyright in the consigned works is
    protected, including but not limited to requiring copyright
    notices on all photographic or electronic reproductions of the
    works used for any purpose whatsoever.

  14. Security Interest. Title to and a security interest in any
    works consigned or proceeds of sale under this Agreement are
    reserved to the Artist. In the event of any default by the
    Gallery, the Artist shall have all the rights of a secured party
    under the Uniform Commercial Code and the works shall not be
    subject to claims by the Gallery’s creditors. The Gallery agrees
    to execute and deliver to the Artist, in the form requested by the
    Artist, a financing statement and such other documents which the
    Artist may require to perfect his security interest in the works.
    In the event of the purchase of any work by a party other than
    the Gallery, title shall pass directly from the Artist to the
    other party. In the event of the purchase of any work by the
    Gallery, title shall pass only upon full payment to the Artist of
    all sums due hereunder. The Gallery agrees not to pledge or
    encumber any works in its possession, nor to incur any charge or
    obligation in connection therewith for which the Artist may be
    liable.

  15. Assignment. This Agreement shall not be assignable by
    either party hereto, provided, however, that the Artist shall have
    the right to assign money due him hereunder.

  16. Arbitration. All disputes arising under this Agreement
    shall be submitted to binding arbitration, before a mutually
    acceptable arbiter in the County of San Diego, California and the
    arbitration award may be entered for judgment in any court having
    jurisdiction hereof. Notwithstanding the foregoing, either
    party may refuse to arbitrate when the dispute is for a sum of
    less than five hundred dollars ($500).

  17. Modifications. All modifications of this Agreement must be
    in writing and signed by both parties. This Agreement constitutes
    the entire understanding between the parties hereto.

  18. Governing Law. This Agreement shall be governed by the
    laws of the State of California.

IN WITNESS WHEREOF, the parties hereto have signed this
Agreement as of the date first set forth above.

Artist_________________Date________________

Gallery________________________________________________Date________________
Authorized Signatory, Title