If you’ve ever looked at gallery or shop commission rates with an "ouch" then you’re not alone.
The costs of selling through a shop or gallery are one of the most common sticking points for artists, especially when starting out.
This post isn’t here to argue about what's fair or unfair, it's simply to explain what that commission is really paying for, so you can make informed decisions about how and where you sell your work.
What's normal
When it comes to the commission a gallery will charge, there isn’t a single standard rate but most galleries and shops sit somewhere between 35% and 60%, with 50% often used as an average guide.
That level of commission can feel like a lot, especially when you have done the work to create the piece being sold.
However, the percentage isn't just about the sale. It's about all the cogs involved to make the sale possible.
Working with a shop or gallery is a partnership
A good shop or gallery isn't just somewhere your work sits waiting to be bought.
Instead, they are taking the job of getting your work in front of the right people, presenting it, talking to potential buyers about it and selling it.
This allows you to do what you do best, which is the making.
Overall, you're not just placing your work somewhere but placing it into a setting that helps it sell.
And that kind of visibility, in the right retail environment, is often more valuable than it first appears.
What the shop or gallery is actually doing
A good shop or gallery will be doing all the things that are time consuming, difficult or just too expensive to do on your own.
These include:
- maintaining a physical presence in a location that people will come to
- building trust with customers over time
- curating work that sits well together, so that customers don't have to filter it themselves
- presenting your work, alongside other well made products
- talking to customers, explaining the work and handling the sale
- managing marketing, displays and day to day promotion
A well run shop does all of this every day.
What it costs to run a shop or gallery
It's easy to look at a commission rate and think that the shop or gallery owner is making that level of profit.
In reality, the commission earned has to cover the cost of running the business, before anything is left over. This includes:
- rent
- business rates
- staff wages
- packaging and materials
- card fees and systems
- insurance
- utilities
- marketing and general running costs
If the shop is VAT registered (which many are), then they are also swallowing this cost on the commission, which lowers it further.
Once all of the costs are accounted for, what's left is often far less than many expect.
Most independent shops and galleries aren't running a high margin business. They work at a level that just about sustains itself, while providing a space for good work to be seen and sold.
Sale or return versus wholesale
Commission isn't the only retail structure that shops or galleries and artists might use to work together.
With wholesale, the shop will buy your work upfront at a lower price and then sell it on at a full retail price.
Most shops will expect a retail price that is around 2.2 to 2.5 times the wholesale price. Therefore if something wholesales at £20, it will retail at £44-50.
These margins exist for just the same reason that commission rates are what they are. They have to cover the costs of the shop.
The true difference between sale or return and wholesale is where the risks sit. With wholesale, the shop takes on the risk of whether the product will sell or not. When it comes to commission, the risk remains with the artist.
Pricing matters
Where things can come unstuck isn't the commission but the pricing of the product.
Whether selling through your own channels or through a retail environment, pricing your products with retail in mind is what matters, if you are considering selling through retail either now or in the future.
Yes, that means that if you are selling in person at a market then you are making more profit on a piece than if it was sold in a gallery. But that additional profit is there to account for your time selling at the market, the market fees and other overheads of selling in person, not to mention the stress that might come from such events!
Why consistent pricing matters
One of the most important parts of working with shops or galleries is keeping your pricing consistent.
That means your work should be sold at the same retail price whether it’s bought directly from you or through a shop.
If a customer sees the same piece they have seen in a shop or gallery priced lower elsewhere, it can undermine confidence, not just in the shop, but in the work as well.
For shops, it becomes difficult to justify the worth of a piece and sell it properly if it can be found cheaper elsewhere. For customers, it then creates uncertainty about what the work is worth.
Consistent pricing protects both sides and protects relationships between a shop or gallery and the artist.
Not all products are suited for retail (and that's ok)
This is the factor that few say out loud. That is that some work is:
- too time intensive for the price it would need
- too inconsistent
- not aligned with what customers are buying
That means that there will just be some products that are not suited to a retail environment. Shops and galleries often have to make decisions based on what will sell, not just what they might like when choosing whether to stock a particular product or piece of work.
When starting out
If you are early on in your journey as a working artist, selling through a shop or gallery might not be the best place to begin.
Markets, fairs and selling direct to customers can be be a useful starting point. These allow you to get a feel for:
- how customers respond to your work
- what sells and what doesn't (this can be harder to predict than you might think!)
- how your pricing holds up
In the early stages, your pricing might not support retail. That can be normal. However, avoid the common trap many in the early stages fall into of undervaluing your work. Be bold and charge what it's worth from the outset. You might be surprised what customers are willing to pay and pricing it right increases the customers perceived value in your product too.
Overall, gaining initial experience outside retail can provide valuable insights to help you when you are ready to move into retail relationships with shops or galleries.
What to expect in return for the commission paid
The commission you pay only makes sense if the shop or gallery is doing its job properly.
At a basic level, that means:
- presenting your work to sell
- actively selling
- handling customers professionally
- paying you on time
- being clear about terms
That way, you have a good working relationship in which both sides are satisfied.
Overall...
Selling through shops or galleries can be a route that will give you additional exposure, take the time, cost and stress of the selling process from you and get your products into the homes of more people.
If you do choose to sell through a shop or gallery, understanding the model you are entering is important. When it works well, it's not about one side taking from the other. It's about both sides contributing something different and building something that neither could do alone.
At Just Makers, we work primarily on a sale and return (commission) based basis and aim to have fair, open and friendly relationships with all our artists.
If you are an artist interested in selling with us, please see our artist application page.
