Wholesaling one-offs

First off, maybe I like my britches in a twist. The tension keeps me
motivated. So my response to your comment about buyers. My wife
spent years as a buyer for a gallery, and most of the time she wasn’t
buying according to her taste, she was buying for the taste of the
public that shopped in that store. That is the store buyers’ job, to
buy the product that the store can sell and make money off of that
sale. I see plenty of horrible things, whether it is jewelry, art,
clothes, you name it, out there. I hold the consumer responsible for
that. If the average person had a little more imagination and taste,
it would be a much prettier world. But as long as people buy “crap”,
people will manufacture it.Zales will stay open, “every kiss will
begin with a K”.

I guess I am just trying to get across that none of us are entitled,
which is the attitude I feel artist (people in general) often have.
The world owes none of us anything. It takes hard work,
determination, sacrifice, and some time in reality to be in any
business and be successful. Too much time blaming other people, it’s
the stores fault, it’s the buyers fault, not enough time taking
responsibility. I am not trying to discourage anyone from following
there artistic dreams, or to “sell out” their passion. Just as I hear
some of the whining and the blame game, I think people need to step
back and look at it from all perspectives. Making art, and making a
whole salable product Are two different things. Being in any store is
defiantly a partnership, with both sides sharing risks of capitol
investment. If someone doesn’t like how a store does business, well
don’t blame the store, find a different one. Is it hard at first,
yes, hence the sacrifice? But with time, good business practice, and
a sellable product your consignment days should be short lived. I am
a strong believer in capitalism (despite my little wise crack), which
means nothing is a hand out, and everyone has a choice. I am just
trying to help point out that it’s not a free lunch, and just
because you make it doesn’t mean you deserve to sell it.

My hope is none of us fall flat on our face, if I can offer any
help, support, suggestions, advice at all that will help you or
anyone succeed, I am glad to. Granted I will almost always play
devils advocate, I will even argue a point I don’t agree with, just
to help stimulate thought. We do lots of shows, if you need some
advice or just another opinion, feel free to e-mail me, obviously I
like any excuse to gap and get all wound up. Hap is a wonderful
photographer, so you should be pleased with his work, and in my
opinion it will be money well spent. And trust me, I am a stand up
guy, I will only laugh at you in your presence.

Last comment, I won’t light any matches today, and how can we get
tickets to the goat wrestling.

Eric (still a flood zone) Sonoma County

Forclosure/ bankruptsy. I've dealt with consignment galleries
before opening my own. When they went bankrupt, all the artists
were informed to pick up their work that the store was closing. If
you were stupid enough to not comply, I guess you'd lose your work,
but that would be your fault, not the fault of the gallery. 

Unfortunately there are many well documented cases of a business
going bankrupt and the consigned goods being seized by the
bankruptcy court and sold to pay the secured creditors. As a
unsecured creditor you are the last in line for payment. Without a
contract that states that the consigned remain your property the
court sees them as if they were sold to the store on net terms.

James Binnion
@James_Binnion
James Binnion Metal Arts

360-756-6550

Richard, once again, I have to agree with all that you’ve said! It’s
a shame that consignment has gotten such a bad rap!

There is NO COST to the artists - unless of course, they are
involved in a coop consignment gallery - that's a horse of a
different color. 

This is where you are not thinking straight. There is the cost of
the goods. If I have a piece sitting in your gallery my cost of the
materials, overhead and profit are sitting there doing nothing for
me. This is why consignment is like a loan. I have spent the capital
to make the item but I am not being paid for it till you sell it. It
is exactly like if I loaned you the cost of that item without
interest for the length of time it takes you to sell it. This is the
reason that I do very little consignment. It takes a very good
gallery for me to put thousands of dollars out on loan with no
promise for when I will be paid.

James Binnion
@James_Binnion
James Binnion Metal Arts

360-756-6550

Consignment offers both risks and benefits for the craftsman and
just benefits for the gallery it is an unequal relationship.Yes I
know of the costs the retailer has but they exist whether it is
consignment or direct purchase it is a part of being in retail
business. While Richard and others stress their ethical nature and
practices there also many out there who take advantage of this
unbalanced relationship. I would not suggest that as a craftsman that
you never consign but I do suggest that you be very careful with who
you consign. Just because a gallery has a big name does not mean that
you will be treated with respect in your relationship them. It is
unlikely that a gallery would mistreat an artist of say Michael
Zobel’s stature because an artist of that level brings in traffic
and can easily find another venue for their work. But that doesn’t
mean you will be treated with the same level of respect. Do your
homework find out about the gallery and how they treat their artists
before you send your hard work to them on loan. I have one gallery
that I do consignment with, they are wonderful to deal with and I am
very pleased with the way we work together. I used to do a lot more
consignment but had too many problems to make it worth the effort.
To be fair there can be payment problems with galleries who buy
outright so there is not any way of selling your work that is trouble
free but consignment has been less rewarding for me than direct
sales.

Jim

James Binnion
@James_Binnion
James Binnion Metal Arts

360-756-6550

Dear All,

I have sold outright. I have consigned. I have done shows. I have
done retail and wholesale. There is a place for all of these
options. We must each find what works best for us, while
understanding that our path may not work for everyone- it probably
won’t even work forever for us without changes and modifications!

I think it bears reminding that different situations are
better/worse/appropriate for different individuals and different
markets. If we can glean any amount of knowledge from another’s
experience, it will have been worth the time to read the post.
Please remember, however, that the entire post may not be helpful or
pertinent or meet your approval. Take the part that is helpful and
let the rest slide by. And let us all be open to the possibility that
someone else’s experiences and methods are valid, even it different
from ours.

Good luck to all of us selling, consigning, or whatever in the
coming year!

Take care.
Brenda
david lee jeweler
Mason City, Iowa

James had the right tack. Consignment is a loan. If you can afford
it, and you trust the store, then go for it. I sell to too many
places to do any consignment. I do not have a large studio with
multiple employees, so keeping track of my loans would be left up to
the individual stores/galleries. No doubt I would forget where the
heck I had the stuff., but then that’s me.

As I said…sigh…and will say again…sigh…no buyer can
successfully and continually buy outside of their own personal style,
taste or experience no matter what they think they are doing. Why on
earth would they want to?? I am never going to be able to accurately
buy for Zales, because that is so very removed from my sensibility.
Nor could I accurately buy for the Serbian Gallery store down the
road. Same problem. I might be able to fake it up to a point, but
unfortunately, I bring ME along with me to buy. Can’t work with style
variables I have never met and might not love. Just a fact. People
are more successful dealing with what is pleasing to them, and
especially successful with a style that they have a true passion for.
Buying for what you think someone’s style might be is exquisitely
limited.

Not sure where the “entitled” thing came in, I seem to have missed
that aspect in virtually everyone’s post. Most of us are just
hardworking, be it store or artist. Selling is always a partnership,
you are right, but I am still not in a position to make loans. In
consignment, the r i s k, is mine alone. I for one, am not
sufficiently organized to do it.

I love Hap…he has done my photos for the past 12 years give or take
a few months. Thanks for the offer of help, I guess after 14 years of
making stuff, winning a few useless awards, paying off my house and
staying ever so marginally afloat for this long, I can always use
another shoulder to collapse…I mean lean on…lol…

Goat wrestling tix available next spring. I will add you to my
growing list. In the mean time, have the wife untwist those britches
for ya…Sorry about the flood thing…I can relate.

Lisa, (so why am I spending time working on a web site instead of
grinding out more work before the shows???) Topanga, CA USA

Forclosure/ bankruptsy. I've dealt with consignment galleries
before opening my own. When they went bankrupt, all the artists
were informed to pick up their work that the store was closing. If
you were stupid enough to not comply, I guess you'd lose your
work, but that would be your fault, not the fault of the gallery. 

As a unsecured creditor you are the last in line for payment.
Without a contract that states that the consigned remain your
property the court sees them as if they were sold to the store on
net terms.

In our business, 100% cash in advance. Nothing leaves until its paid
for. Another way of saying “nothing leaves here until you are really
sure that you are buying it”.

You see, we use the criteria of payment to distinguish between real
transactions, and everything else. If you have a transaction on your
end of the deal, and you are not sure enough about it to put your
money into it, that speaks volumes about your own attitude about
your own end of your own transaction.

Don’t get me wrong, if you need to think about your end of the
transaction, that’s fine, think about. Call me when you are ready.

So, if you approach me with a weak transaction, and we decline it,
consider yourself “distinguished”

Mark Zirinsky, Denver

As usual, there are good points to both sides of the consignment/
nonconsignmet argument. One point that has not been
addressed–perhaps I missed it–is that consignment can be a
stratedgy that enables an emerging artist or craftsman to get their
work out there and begin to get exposure and recognition. When people
are starting out, it is not always about immediate sales. A career
and recognizable style are something that often has to be built up.
Consignment may be way to get your feet wet and can be phased out as
sales increase and circumstances change.

When I began to make work, I saw consignment as an opportunity to
gain exposure and begin to build a name for myself. This exposure, in
my eyes, is quite different than that offered by auctions. Auctions
offer exposure for a very short time and, I believe, their value is
neglegable at best.

I have consigned for years and, for the most part, it has been a
positive experience. It continues to be part of my economic picture.
Many people consign some larger or riskier pieces along with items
that are purchased outright.

I have found that there are no iron clad rules governing how we sell
our work. Jim is right in that even outright purchase can be fraught
with problems. I think that there is no substitute for doing your
homework, asking around about galleries and sales venues and relying
on good 'ole gut feelings.

Just my opinion.
Andy Cooperman andycooperman.com

Unfortunately there are many well documented cases of a business
going bankrupt and the consigned goods being seized by the
bankruptcy court and sold to pay the secured creditors. As a
unsecured creditor you are the last in line for payment. Without a
contract that states that the consigned remain your property the
court sees them as if they were sold to the store on net terms. 

Several years ago I had some consigned pieces caught up in a divorce
suit under similar circumstances. I eventually got everything back,
but it took more than a year. Definitely review your contract
carefully.

Janet Kofoed

Back in the day I sold my work through stores/galleries. My work was
(is) different than what owners normally carried; but one gallery
owner took some pieces on consignment. After perhaps eight to ten
weeks the work began selling and then really started selling. Even
after it was established that there was an audience he would not buy;
he would only take work on consignment. I must say this, he paid on
time and did not make jewelry himself ; I consider this a plus. Store
owners who make or design their own jewelry are more problematic.

Doing business with galleries is like marriage: sometimes it works
sometimes not. It’s a difficult road. I don’t do wholesale shows. I
do “art fairs”. Ocassionally gallery owners approach me at these
shows. If what they are after is something I do mutiples of and the
price is right I will do business with them. But I will not do
consignment.

A personal thought on consignment: if a gallery owner can get work
without paying anything upfront why would he purchase? If you’re
just starting out you may feel happy just to find someone who will
show your work. One alternative is to show your own work. I chose to
do retail shows and it has worked. You have to establish or find your
market; and you have to be willing to travel and figure out the
logistics. If you’re willing to do retail shows you have more
opportunities to sell one-offs. At the art fairs I do people I
encounter come to buy things they don’t normally see at regular
venues. They want to buy from the person who makes the work.

As to the very narrow question of wholesaling one-offs: jewelry
store owners like production work because if something sells they
want more of the same.

Kevin Kelly
www.kevinpatrickkelly.com

Richard:

I am glad to hear that you and the other post-er are insured and do
pay the artists for damage/loss/theft. But your original post made it
sound like that is the industry norm and is a slap to the face to
those who have had a not so splendid time with it. You also make it
sound like we are all spoiled little artists who overvalue our art.
Do you know any of us? The fact that we provide negative experiences
and opinions based on those to those who ask is one of the very
reasons why this website exists. It’s great that you have had nothing
but excellent experience with it, but I believe it was an artist
asking for feedback to which other artists provided their negative
feedback. You however, provided positive feedback from the retailer
perspective only. I would like to think that people who read these
are smart and mature enough to weigh this forum feedback against
their personal situations and apply any acquired -if they
so choose.

     My perception is that here seems to be some unjust prejudice
from some posters unhappy with their experience with consigning.
If the poster has any responsibility for why they had problems,
you would not know from what is posted. 

…which is what I am trying to point out. Is it possible that you
are more of the exception rather than the rule? For the record, I am
not trying attack you on a personal level, it’s just business issues
that we are here to share. The issues I raised are serious ones that
even trade magazines address from time to time so I am under the
impression that it’s not just Lisa and I who are having these
experiences.

Forclosure/ bankruptsy. I've dealt with consignment galleries
before opening my own. When they went bankrupt, all the artists
were informed to pick up their work that the store was closing. If
you were stupid enough to not comply, I guess you'd lose your work,
but that would be your fault, not the fault of the gallery. Let me
also add... Just because someone thinks their art is GREAT doesn't
mean it will sell (anywhere) And while consigning in a gallery,
you're not paying fees to show your work for more than a weekend -
consigning contracts are generally for 6 weeks or more. There is NO
COST to the artists - unless of course, they are involved in a coop
consignment gallery - that's a horse of a different color. 

Contrary to your implied belief, this isn’t about artists impression
of how great their art is. My art cost money to make and loan to you
for consignment so I wouldn’t say it “no cost”. BTW, of all the
retailers I talked with, nobody consigned for under 30 days. I guess
they weren’t as fortunate as you have been to have high turnover –
or they were too busy with other things to constantly interview new
consignees and change their jewelry displays. Additionally, most
weren’t too thrilled when I started asking about whether they had
proper insurance, alarm systems, locks on cases, and the like.

There is a system that exists, that all my consignees have been a
part of with other venues where they consign, they were doing it
before I worked with them and when we talk about consigning they
have no problem with it. Why do you if they don't? All your
theoretical ponderings and assumptions are not as valid as the
cash I produce for the artists that work with me. 

So, if you had an artists who said they wanted a written consignment
contract, you’d still work with them?

When I write my post, I am pretty aware of what I will get in
response. If you have issues, try to be aware and don't put them
on me. 

Once again, I’m not, but it seems like you assume consignment is a
win-win situation for everyone. Regardless of how good or bad an
artist’s product may be, there are retailers and galleries that
really take advantage of their consignment artists and their
products.

    I have worked on their masters before I mold them so they come
out the best quality possible, and I did not charge for my time or
skill. I knew I would make it up in the volume of castings they
ordered, as they sold more having better castings. * Try finding
someone that will do that for you. * 

See bulleted area. Thanks for finally making my point. Consignment
isn’t a win-win for everyone. I know of people who even had to buy
the displays for their art and give them to the consigning retailer
otherwise their art just laid flat in a case somewhere.

One point, those of you who have posed that if I invest money
in work that I would have more desire to sell it, or I would make
more effort, be more motivated...you are as wrong as you can be
and you just don't know it.. Trying to explain why would be a waste
of time, you have your opinion or prejudice about my motives, and
you have not met me, have not done business with me. I have earned
respect from the people I do business with by being honest and
ethical and consistent. I have learned how to connect with my
customers, have a dialogue, find out what they are looking for,
and help them by meeting their need. ****I am never short,
frustrated, or anxious in front of my customer. ****And if they
apologize for taking up my time, I tell them that I am happy to help
them and they can take as much time as they want. It is not about
how I feel, it is about how my customer feels. About 80% of
customers make a purchase. 
This is not a selling technique, it is a spiritual principle, and
it just really helps me get over myself. ***I am always surprised
at how I prejudge,*** and them something unexpected happens that
shows me that acting as if you expect a good outcome, that's what
happens far more often than not.

No one is perfect and perception is in the eye of the beholder.
Everyone has off days and that’s perfectly fine but you seem to not
want to admit to even that. That is what my problem was/is with your
refusal to accept that their have been artists that have really been
crapped on by the whole consignment thing. In my heart, I don’t
believe that the only people having problems with it are just the
artists who have an over-inflated value of their work. OK so you are
an exception to the rule and have the right to point it out, but that
doesn’t mean that you should deny that many people do encounter
problems/risks associated with consignment or assume that they are
all unjustly prejudiced

And for the record, I still consign.
Another .02 to the pot.
Kennedi

If I have a piece sitting in your gallery my cost of the materials,
overhead and profit are sitting there doing nothing for me. This is
why consignment is like a loan. I have spent the capital to make
the item but I am not being paid for it till you sell it. 

Absolutely. What you have tied up at the gallery is not the just
cost of the materials, it is your anticipated reimbursement. If a
gallery purchases your work, it is they who have their capital tied
up in it, they who must track it in their inventory, etc. With
consignment, the artist shoulders the burden of carrying the burden
of the receivable not only until the item is sold, but until the
gallery gets around to cutting them the check.

I have on at least a couple of occasions been told by gallery owners
that “I charge 50% on commission because my accountant says that i
should treat it the same as a wholesale purchase, my overhead is the
same and there is no difference.” I don’t know whether they are
idiots, their accountants are idiots, or whether they simply take me
for an idiot, but the costs of consignment are much less for a
gallery than the cost of a wholesale purchase, because with
consignment they do not take the risk, do not carry the receivable,
and in fact from the time of the retail sale to the time I receive
and cash their check, they have the benefit of money in the bank
which is not rightfully theirs.

I have resolved that, the next time a gallery owner says “my
accountant told me I should charge 50% on commission because there is
no difference between commission and a wholesale purchase” I will
seize on that and demand that they purchase my work outright since
they were willing to consign it and they themselves claim that there
is no difference. I

Lee

This is where you are not thinking straight. There is the cost
of the goods. If I have a piece sitting in your gallery my cost of
the materials, overhead and profit are sitting there doing nothing
for me. 

If your work is sitting in your basement, how is that making money?
At least in a consignment gallery, you stand the chance of selling
something. Or are you selling wholesale directly to the public?!?

Jim,

How do you suggest doing homework concerning a gallery. There is a
gallery close to where I live that I was considering working with.
You happen to be one of the people this gallery handles so I decided
to email you concerning them about 6 months ago. I never received a
reply from you after several attempts. If you can not get information
from people that have experience with a gallery how do you suggest
people find this

Greg DeMark
email: greg@demarkjewelry.com
Website: http://www.demarkjewelry.com
Custom Jewelry - Handmade Jewelry - Antique Jewelry

Hi Mr. Binnion:

This is the reason that I do very little consignment. It takes a
very good gallery for me to put thousands of dollars out on loan
with no promise for when I will be paid. 

I was wondering about your thoughts on artists who are new in their
careers. Your name carries a lot of weight with galleries and I was
under the impression that between you and someone just starting, you
would have more say in who carries your work and what the terms are.

How do you feel about consignment for someone who wants to get the
maximum exposure?

One other point, it was mentioned earlier that an artist showed up
at galleries with a contract and the gallery owner backed off on the
deal. This (to me) would be a sign that the gallery was not right for
me in the first place. There are galleries out there professional
enough to deal in contracts, right? I don’t do anything on a
handshake anymore (unfortunately).

Thanks,
Kim Starbard
Cove Beads

WOW, have I enjoyed reading these posts! Now for my 2 cents, for
what that’s worth.:slight_smile: I used to consign primarily, and unfortunately
have been screwed. One gallery went bankrupt, and no, they did not
call and ask me to pick up my pieces, I found out about if after the
doors were closed and the building was empty. Another time, I was out
of town when a local gallery was getting ready to do the same thing.
I had the good fortune of a friend finding out about the upcoming
closure (she worked there), and she got my pieces out for me.
Unfortunately other artists weren’t so lucky. I’ve also had gallery
personnel feel that my jewelry was there for them to wear whenever
the occasion arose, when I requested that the jewelry be returned it
looked like it had been thrown on the bedroom floor and stepped on a
few too many times. That’s not to say there aren’t wonderful
galleries out there to consign to. I still consign to a couple
galleries that provide me with a decent income. As far as new
galleries, I request that they buy pieces and I will consign a more
expensive piece to them which hopefully will sell, and then they will
feel more comfortable buying the more expensive pieces. I’ll also
swap out pieces they’ve bought (providing it’s in it’s original
condition) that aren’t moving, and replace them with something that
hopefully will. By the way Lisa, I’m going to the American Craft
show for the first time, so I can’t wait to see your work. Looks like
you’re a double Niche finalist, congrats!

Lisa Hawthorne
@Lisa_Hawthorne1

Greg,

I went back through my email archives and don’t show any from you,
maybe they got caught in my spam filters. Anyhow asking people who
are in a certain gallery is one way. Dun & Bradstreet and for
jewelry stores JBT are both good sources of info, the BBB. Also talk
to the staff at the store, the buyer and sales staff to get an idea
if they are knowledgeable and helpful. You may find that it is hard
to get info from craftspeople about their business relationships with
galleries and stores this is understandable. It is a smart thing to
get references (and call them) from a store or gallery before you
send them work especially if it is for net terms or consignment.

James Binnion
@James_Binnion
James Binnion Metal Arts

360-756-6550

One further consideration that I don’t think has been covered in
this thread.

A gallery/store you do business with and has previously purchased
your work is going to do a special presentation. They would like some
special things so you consign some work to them on a limited basis.
But I would consider that to be “on memo” rather than strict
consignment.

None of these things are universals; there are always exceptions. As
has often been said ‘your experience may vary’.

I think Liza did a cogent presentation on this topic; but if one
disagrees, disagree with things she said not what you take as her
“tone”. For those with limited experience in this area, take what
you feel might work for you and disregard the rest.

The Romans had a phrase: Cui bono. Something to remember when making
your decisions

Happy Chinese New Year.

Kevin Kelly
www.kevinpatrickkelly.com