What profit margin should I allow retailers on costume jewellery?
I have a website www.penny-dog.co.uk and on average the items are about £15 for a resin pendant necklace. I’ve been offered some space at a local gallery but they seem to have balked at my offer of 20%. They normally stock higher priced items and therefore 20% won’t be as much on my product as 20% on an item that is priced at £100 for example. I personally don’t think that’s fair as I would have thought my items would sell in higher quantities as more of an impulse buy rather than a considered decision that would take place when spending a lot of money. What do you think?
Please see my answer to your other question. What you say about gallery prices bears out my comment that you may not be charging enough for your products. If you want £15 for your necklaces, the gallery probably needs to sell them at around £30 so that they make 50%.
Gallery commission is always a difficult one. Providing they’re working hard on your behalf to promote your work, their commission is worth it. If they just display your work but don’t have private views where visitors are invited with the intention of buying, they may not be doing as much as they could for you.
If everything else in the gallery is fairly highly priced, their customers will expect your jewellery to have a similar value, that is, it will be higher priced than average high street jewellery and they’ll happily buy it.
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