Trade Prices?

Howdy everyone,
I've recently been contacted by someone who wants to stock some of my work at trade prices for resale. Can't say I know much about that at all, so I would love some advice.

Thanks
Bob

Any opinions?
Lets say I charge $50.00 for an 8x10 print, does anyone know what a fair trade price for that would be? If I tell him that's what I charge normally, do you think he'd expected the "trade" price to be like $5.00 or more around $35.00?

Thanks in advance,
Bob

Is this a gallery? And IF so do they have a standard gallery fee structure? Also are they going to pay up front for the photographs or is this going to be a consignment type of arrangement?

So many Questions, so little information.

Wayne

Bob . . . don't know exactly what you are contemplating, but I have often wondered if a working relationship between members here would be workable. I was thinking that if I were to set up a sales booth at a very popular art show, and populated some of my inventory with prints from other photographers (as a sort of agent), then they could do the same with some of my prints elsewhere. This could help each of us have a wider variety of styles and photo content available. I never went further than bring it up from time to time around the forums.

WMS wrote in post #8971704
Is this a gallery? And IF so do they have a standard gallery fee structure? Also are they going to pay up front for the photographs or is this going to be a consignment type of arrangement?

So many Questions, so little information.

Wayne

Actually he just contacted me through email and was quite vague on the details. I'll get back to him asking for some more info on exactly what he was thinking. Thanks

golfecho wrote in post #8971828
Bob . . . don't know exactly what you are contemplating, but I have often wondered if a working relationship between members here would be workable. I was thinking that if I were to set up a sales booth at a very popular art show, and populated some of my inventory with prints from other photographers (as a sort of agent), then they could do the same with some of my prints elsewhere. This could help each of us have a wider variety of styles and photo content available. I never went further than bring it up from time to time around the forums.

That wasn't what I was thinking, however that sounds to be a really neat idea. If you ever wanted to go further with it, just let me know.

Thanks
Bob

I got a response email, here is what it said.

"I would like to sell them from a gourmet food shop/restaurant I am hoping to open, along with local produce and crafts,etc.
I would like framed prints as decor as well as for sale,etc.
I visualized a selling price, like for like, similar to what I have seen for sale at Whisby so hopefully assuming they had a mark up I would be happy with the same!
I also will be selling items from my website (under construction), which is being launched in December to coincide with my book. I will sell unique items , mostly cooking related but hope for some home related.
I will be publishing a monthly magazine in the new year and rather than chase advertisers for this (to help with costs,etc), I am hoping for revenue from own ads for own products for sale."

Sounds interesting.
Any feedback on general pricing for this would be great (trying to find out what sizes he wants etc). He said he'd like them framed, so it's not going to be that cheap...

Bob, one critical thing you should find out is whether you or the gourmet food shop/restaurant is going to assume the cost of having inventory. IE are you going to be paid on delivery, net 30 etc, or whether you will be paid after the art sells. There is a big difference here. IF they want you to carry the cost of printing and framing on the hope that the photographs sell there is far less incentive for you to discount nearly as much as if they are buying several photographs then carrying this as inventory themselves.

I am a jeweler there are a lot of places which would just love for me to stock there shelves at my cost, then keep a significant percentage of what sells, all at my risk. Guess how much interest I have in this proposition?

Wayne

Thanks WMS

All I know for pricing now is that I wouldn't be sending anything out unless everything was covered in advanced. Nothing will be coming out of my pockets, not like I have the spare cash even if I wanted to lol.
I've since sent him a reply, so we'll see where it leads.

Thanks
Bob

Assuming that he is planning to pay for product in advance, from what I can find on the web gallery discount commissions seem to be in the 25 to 50% range.

I've also noticed several sites which recommend strongly that you offer yourself and the prices that you offer through another vendor should be the same.

Wayne

Hi Bob,

I've developed a pricing structure for my work...

In your case it sounds similar to the limited edition, fine art prints I sell... with a choice of matted & framed or mat-only. I.e., no "bare prints", except for the occasional bulk wholesale, in which case we'd discuss how things were going to be finished as part of the deal. In the retail outlets I've been using in my area, framed and matted work outsells mat-only by a huge margin. I would have expected the opposite because when I buy art I prefer bare print or print+mat, so I can choose a frame myself. But that's not been what sells, in these particular retail locations.

I sell limited edition prints at retail for a set amount... Let's take for example an 11x14 print, numbered and signed, matted & framed, for $120 US (might vary a little depending upon the price of the framing... and some day I hope I can charge what Tom Mangelsen does... www.mangelsen.com ).

For what you want to know, this might be a starting point. Now for a retailer who is selling it on my behalf, I'd work out an agreement that essentially splits the profit on the piece. That works out to about 25% of the selling price (before taxes, shipping, etc.). So an agreement might be based upon this, but leave them some flexibility to discount a little if they wish, perhaps out of only their portion of the proceeds, without any further agreement. That way they can put things on sale with the rest of their inventory.

Another approach would be to outright sell them bare prints in bulk, or prints w/mats, or prints w/mats & frames. If you know your cost, you can target a net price to you that's similar to the above "commission on sale" arrangement. However, there would likely be some additional discount(s) to the retailer, since they are taking on more risk and you are getting paid for your product in advance and in volume. Just how big that additional discount might be would depend upon the number of items they would be purchasing, etc.

I think it more likely in the type of store you describe that they would work on a commission-per-piece basis, since that avoids them purchasing a lot of stock and having to expend a lot of money in advance. So, I'd be prepared to hear that sort of offer. It's more profitable to you, anyway.

If you go forward with this, there should be some sort of written and signed agreement in place to work out the details. It might call for your to rotate images every so often, specify how things will be finished (such as mats-only or mat + frame), who pays for insurance, who is responsible for promotion and marketing, how closely the store has to follow your suggested pricing, etc. You need to check out their facilities, meet them and get a feel for them as a business partner, etc.

If you have to work with someone unfamiliar who is located some distance away, where it's impractical to go and meet and check things out, then you might have to insist on outright purchase, at wholesale prices, and get payment in advance.

There is a coffee shop/restaurant with a nice, attached gallery space in my area (N. Calif., SF Bay Area). Sounds like a similar idea to what you described. It's a half block from Keeble and Schukat photography stores in Palo Alto (or at least it was the last time I was there). I don't know the details about their business, though.

I am in talks right now with a small shop that might handle some of my stuff on a commission basis. I work with another that already does so. More outlets is better!