Newsletter - June 11, 2008

The Jewelry Crafter

A newsletter for the home jeweler

This newsletter will be published every 2 weeks, and will include hints and tips for your jewelry business. Any feedback or comments about the topics presented here are always appreciated. Click here to e-mail us.

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Selling Your Jewelry in Galleries or Stores

by Mary Harvey

You have decided that you want to sell your jewelry,but you don’t have time to go to art or craft shows. What are your options? Besides selling on the internet, you can sell you jewelry in local stores or galleries. But how do you begin?  Below are a few tips for selling your jewelry in galleries.

There are a few ways that gallery owners deal with goods sold in their establishments. They either buy from you at a wholesale price, then mark it up and keep the profit, they sell on consignment, or they rent you a space to display your jewelry. I have sold to galleries both wholesale and on consignment. There are advantages and disadvantages to all of them.

1. Sell directly to the gallery. If you choose to sell outright to a gallery, be sure that your wholesale price is enough for you to make a good profit and cover your labor, but low enough that the gallery owner can still mark it up and make a profit. The upside to this is that you get your money right away. The downside is that the owner can mark the piece up as much as they want to and keep the profit.

2. Consign to the gallery. If you sell on consignment, the gallery owner takes a cut of the sale price (usually 30 - 40%), so you have to be sure to mark up your piece enough to cover that, plus make a good profit for yourself. The upside is that you can make more money on each piece, and if it doesn’t sell, you aren’t out any money. The downside is that the gallery owner takes a pretty good percentage.

3. Case rental. Some galleries or stores will have a showcase that you can rent. Usually, the gallery will rent you a case where you can place your jewelry, and take a commission when a piece sells. The pros and cons are the same as selling on consignment, but the percentages may be less.

The main thing you have to remember when selling on consignment or renting a case is to have a WRITTEN contract spelling out all of the particulars. Mainly, but not limited to, what the percentages are, who is responsible for lost or stolen merchandise, how long you will keep your pieces there on consignment, length of case lease, etc. Make sure that both of you sign it, and that each of you have a copy. If there are ever any problems, it is in your best interest to have everything clearly spelled out so there will be no misunderstandings. This is a legal document intended to protect both parties in case there is a dispute. If it isn’t in writing, it can’t be verified. Lastly, make sure that both parties are completely comfortable with the terms of the agreement before signing.

Selling in galleries or other retail outlets can be a profitable way to market your jewelry, especially if you can’t attend art fairs or craft shows, or do home shows. Hopefully, these guidelines will be helpful to you in choosing a gallery in which to sell your jewelry.