In my opinion, one of the advantages of working on a consignment
basis with a retail venue is that it creates a "firewall’ between the
maker and the customer.
Dealing with returns and particularly this sort of return scenario
is, to my way of thinking, part of that firewall.
As others have pointed out: a gallery’s (or store’s) return policy
(and how it relates to an how and when an artist is paid) should be
clearly understood before the artist/gallery relationship begins. It
can play a significant role in that relationship…
Her side of the story was a bit different...customer purchased
it...called and said she was having second thoughts after a couple
weeks....took another couple of weeks to really decide she didn't
like it.....
In my gallery we usually pay the artist 30 days after the sale to
allow for returns, especially if it is a gift. If the piece is high
dollar and a person buys it for themselves we usually pay the artist
within 2 weeks. If someone calls and wants to return the piece within
a week we ask them to bring it in or mail it back immediately and not
to wear it anymore. If we have already paid the artist and a piece is
returned that piece is now ours, I would never ask for money back
from the artist. It is not the artists fault the store took the piece
back, that is part of running a business. I have not read every post
but I am sure others have said to add it in to the agreement you
have. Don’t be scared to stand up for yourself (to all artists not
just Laurie), if the gallery sells a huge amount of your work that is
one thing, if they don’t you can always find other venues if they
don’t want to agree with your terms. Of course it also works the
same on my side, I can always refuse the artist because of the terms
or prices he or she sets. Business if tough all over but, if the
store does not have the funds to eat the return I would consider
pulling my pieces it may be a sign of things to come.
Since it was your piece of jewellery and you were technically
responsible for it since the store didn’t buy it from you…
Sorry, that makes no sense to me. ... but it's the store that made
the sale...
There are two ways to do business in such a setup:
The instant the customer wants to buy, the store buys from you and
resells to the customer. This is wholesale with delayed payment, if
you will.
The store is just an agent who never owns the pieces, but touches
a commission for establishing a sale between you and the customer.
This is the same setup as a property sale.
Either way is bad for the artist, and I would love to understand why
makers accept consignements.
You know, it’s all well and good to only do business with friends
and/or make friends with the people you do business with. However,
the easiest way to lose a friend and business is to mix the two
without a clear cut written agreement of responsibility.
What you said and what you meant might not always be the same as
what someone else heard. As so many have already stated here… Get
it in writing! If your friendship can’t survive a written agreement,
then it wasn’t much of a friendship to begin with, was it?
Either way is bad for the artist, and I would love to understand
why makers accept consignements.
I haven’t wanted to say anything about the whole idea of consignment
in our business. It’s like the old definition of a consultant - I
believe coined by a consultant originally:
Someone who borrows your watch and then charges you to tell you what
time it is…
Either way is bad for the artist, and I would love to understand
why makers accept consignements.
I am a sailor, and anytime sailors get together the conversation
usually turns to the bad situations that we have had, storms, mast
breaking, falling off the boat etc etc etc. (It hardly ever goes this
way)… I had the most beautiful trip this weekend, no problems,
perfect weather, and fantastic sunsets. It is the same way with
consignment, we always hear the bad. I would say there are thousands
of transactions made every week with a small percentage of bad ones.
My gallery is full of consignment pieces, work that IF I had to buy I
would not have. If I invest my money, I am going to buy what I know
will sell.
Consignment gives the artist a chance to be in galleries and have
their work shown and hopefully sold. We have three artists that on
average I send $500 to $800.00 a month each. I wonder if they would
rather have a check each month or be out trying to find galleries to
buy their work. Also, if a gallery has to purchase, who are they
going to go with, no name designers or designers that have a
following and advertise themselves. (OK guys “no name” is not a put
down, just terminology). Not saying this is the only way, just the
other side of the coin to look at. Every argument has another side.
Either way is bad for the artist, and I would love to understand
why makers accept consignements.
I took consignment work as a gallery, because it allowed to me show
and sell work I would not otherwise have been able to offer my
clients. As an artist, it allows me to have my work seen in venues
that would not/could not purchase outright. I am just selective in
where I put things on consignment. I prefer established galleries/
stores that have a good business track record. I have absolutely no
objection to those checks from consignment shops showing up every
month! I check with each place on a regular basis - how often depends
on the store. I periodically pull all the old work out and replace it
with new. Keeps their shop fresh, keeps my work selling. Win/win.
Also, if a gallery has to purchase, who are they going to go with,
no name designers or designers that have a following and advertise
themselves. (OK guys "no name" is not a put down, just
terminology).
There’s an additional point to this, if I may. The ‘regular’
manufacturers often offer terms. 30 Net, 30-60-90, post dated checks,
January 10th…there’s a bunch of different types. I have one who
just gave me EIGHT MONTHS! Now that sure beats a poke in the eye with
a sharp stick.
This is why, imo, consignment sales exist at all (differentiated
from a diamond memo). No cash outlay til it sells. Sure, it gets you
in the door but some places use consignment just to ‘fill in’ the
cases for a fuller look and specifically steer customers AWAY from
the memo stuff. I suspect they are the same type who insist on 60 day
refund rights.
If I were a young whippersnapper starting out I might be forced to
consign. But as things progressed I’d try to switch from strictly
consignment to offering memo WITH purchase…Buy a thousand, get a
thousand in memo, something like that. If you do this, the pieces
have to be clearly defined, don’t let them switch a bought piece to
the memo list or vice versa. Try to have the two categories in
separate displays, don’t let them cherry pick all your best goods
into the memo pile(you’ll never make money). Some of you folks might
want to think about approaching more jewelry stores as opposed to
art galleries. Its not an insult to galleries, just something that
might be in your better interest as a jewelry maker, in certain
cases.