My Gallery pricing dilemma

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AnotherDano
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My Gallery pricing dilemma

Post by AnotherDano »

There is a heavily subsidized (SBA) gallery/store here that I keep a small display in. It is well stocked with business cards.
For retail sales of the stuff I keep there, they charge 30% and I have no problem with that - I chalk it up as marketing. My prices at the store are the same as my regular prices, not wanting to compete with myself. 8-)

The problem is;
When a customer takes a liking to something but wants to have it customized, they ask the store manager if I do custom work. The manager directs them to the stack of business cards and tells them to contact me directly. But then expects me to pay them 30% as though they sold a piece from the display. I have a problem with that.

Am I wrong?
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Capstone
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Re: My Gallery pricing dilemma

Post by Capstone »

I say it's a negotiation you should have with the owner.

I think they should get a cut on a custom piece because the only reason it was sold was because they saw your stuff at the store initially, BUT, I think the cut should only be 30% on the portion of the normally non-customized item if sold without custom work. The additional charge to customize the item should be pure "profit" to you.

I would think that's fair given how much time is spent to customize items.
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AnotherDano
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Re: My Gallery pricing dilemma

Post by AnotherDano »

The real problem is that the customer has no idea how this system works - with the commission system.
The 'owner' of the gallery/store is a government sponsored 'project' under several umbrella groups, starting with the Small Business Administration. The main focus of the project is small business development, to include classes in product marketing, jewelry making, fabric manipulation etc. The 'store' is just a sideline.

Most of the time the customers are people familiar with me, who lost their business card from a farmers market or personal contract/referral.

The customization is most likely to be nothing more than a different (powder coating) color or a small multiple of an item - one for each of 3-4 hard to buy for Uncles. Sometimes it's a customer who saw something last summer which has been sold long ago.
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wickedinhere
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Re: My Gallery pricing dilemma

Post by wickedinhere »

I have my stuff setup at a store and if people want a custom piece or something they don't see on my display i just sell to them directly. The store doesn't get a cut of my stuff unless the people buy it from the store.
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Re: My Gallery pricing dilemma

Post by tnbndr »

I agree the store should only get a commission if they sell the piece, not on referrals. If someone comes in and grabs a business card and leaves the store and then contacts you about a piece, the store would not receive a commision on that sale would they?
I have a guy who stocks some of my items and he receives 25% on what he sells. He refers people to me if they want something special and he does not receive a cut of those sales.
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Re: My Gallery pricing dilemma

Post by beefy »

I think the real solution to these situations is to learn everything you can about advertising and marketing, so you don't need blood sucking places like these.

A good website clearly showing what you do and can do, then all your advertising directing potential customers to that website. The more you read on advertising the more ideas pop into your head. You know what I've never actually seen any advertisements for artistic cutting, plenty websites but no actual outside advertising. I'd focuss on wealthy and arty suburbs (to minimise penny pinching tyrekickers), businesses, women, etc.

One of the marketing books I have is, "101 Ways to Adverise Your Business". This type of book is aimed at mere mortals like myself who don't have big wads of marketing cash, and gives lots of cheap & no-cost ideas. The more you can "shout" about your business in every nook and cranny, the less you'll need to use "agents" like that gallery.
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Re: My Gallery pricing dilemma

Post by wickedinhere »

beefy that's some good advice. I am pulling out of the place i have my stuff at because its just not making me any money.
I believe that a website will be the best option for me.
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