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Gallery opening Questions


#1

Hi All Yes I am undertaking the analysis of opening a gallery in a
small but affluent town in NJ. The Gallery will include paintings,
pottery, jewelry, fiber arts, handmade furniture, glass, &
“photo-collage”. I’m looking at 2 great buildings, 1st floor, 1100
sq’, center of town with modest traffic, no gallery like it for
miles etc… Is there someone out there that can help me estimate
sales and perhaps review my expenses worksheet. I’m finding the
expenses part easier than the sales estimate. Would someone be able
to share some data on their gallery sales, or average sales per
square foot??..monthly sales cycle. I have financing for 3 years
of rent & artists willing to let me sell their work on a 50 -50%
consignment basis (Bless these souls; but I’ll work my tail off to
sell).

Appreciative of any help. Thanks!
Debbie


#2

Debbie Man, tough call! You’ll need to see if there is a "gallery"
association or some type of organization for galleries who can give
you this In the jewelry industry "Jewelers of America’
has it for retail jewelry stores.

If you have a loan then ask your bank (even if you don’t have a
loan) to give you a “Robert Half” report. It’s a report (costs about
$200 or could be free from the bank) that lists what you want to know
how others in your business are doing.

Your question is “somewhat simple” though. If you’re going to split
profits 50/50 and you have an idea of expenses, DOUBLE your to know
how much profit you need from sales.

If your expenses are $10,000 per month (not including the cost of
merchandise) then where do you get the $10,000? From PROFITS!

So if you sell $20,000 in merchandise and you keep half, you keep
$10,000 and that pays for expenses, thus a break even. If you want a
10% net profit then you’ll need sales of $24,000.00:

$24,000          	Sales
-$12,000		Cost of sales
$12,000		Gross Profit
-$10,000		Expenses

$2,000		Net Profit

So yes you’ll need to geustimate sales, but I just did it for you.
So now the question is “HOW CAN I GENERATE $22,000 PER MONTH IN
SALES?”

Now your salesmanship and advertising must click in.

And you have a post from Wayne Emery. He also knows what he’s
talking about.

If you do like other galleries and pay only when sold, don’t take
this as a 100% plsu. If it doesn’t sell, you don’t get any profits.
Find out the price ranges that dos ell and don’t let the artists
stick you with the wrong price ranges.

Good luck
David Geller