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Paying Rent AND commission to a craft centre - is this normal?

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  • Paying Rent AND commission to a craft centre - is this normal?

    Hi all, I've had a crazy and emotional 6 months or so and haven't posted for a while but we are now beginning to get back to a normal life part of which is picking up the pace for Christmas. We've got a circumstance and would be grateful for any thoughts before we make a decision.

    For the last few years we have sold our products through a local craft centre in the final 3 months of each year - it has been just another outlet and we still sell at local fairs, markets and our website. Initially they charged us a straight 20-30% commission but last year this changed to a flat £30pcm rent and we provided our own display equipment. We've just had an email with this years charges and now they want a monthly rent at a higher figure than last year PLUS an effective 20% commission on sales by the craft centre putting a 20% mark up on our prices. This will consequently make our products on sale there more expensive than compared to purchases direct from us elsewhere in the town.

    We are looking at not going with them this year but just wondered if anyone out there had experience of selling through an outlet which charged rent and commission.

    Any and all comments welcome!

    David
    www.panachegifts.co.uk

    http://www.facebook.com/pages/Panach...60271863992797

    Twitter @PanacheGifts

  • #2
    There are so many ways that craft centres work, one near me charges 50% comm but no rental. Have known others to charge rental according to the size of the shelving you have and a commission on all credit or debit card sales. Some a straight forward rental only.

    The only way is to work out is it viable as you said making your products more costly at the centre is probably not the way to go. I went down the rental route once but never again and prefer to do the new Home & Vintage fairs (vintage and artisan products).

    Take a look at how much you have sold with them in the past, then work out the extra and see if you can justify it.

    Comment


    • #3
      We did a rental with a gallery but even though it was very low compared to most it still wasn't a viable option. We have items in a Wood only gallery and they take our wholesale price and add on about 80 - 100% to get to their retail. Seems to work. As long as we get our base wholesale price they can charge what they want to, they do after all have all the overheads that running a gallery entails. People expect to pay more in a gallery. No idea on craft outlets though.

      Mo.XX
      Mo. Bodrighy Wood.
      Being deeply loved by someone gives you strength, while loving someone deeply gives you courage..Lao Tzu.
      www.bodrighy.co.uk
      https://twitter.com/#!/AuntieMornie

      Comment


      • #4
        Wow this is wht I was abt to post. Iv been offered some space in a few local craft shops to sell some Xmas items but only over the weekend . I was wondering wht commission I would give them from the sale . Or rent a table or maybe be there painting maybe . Would I be rite in. Guessing tht would have to be something to work out with the shop owner .

        Comment


        • #5
          Thanks for the comments and after much discussion we've decided to give it a miss. The overall result could be that we end up selling against ourselves or having to reduce our profit margin to less than what we would accept. Mo, we have done similar to you in the past supplying either local (and not so local) shops and galleries at reduced prices but this is usually in return for a volume order which is purchased by them to resell at whatever price they wish. In the situation we face no sales are guaranteed yet we are expected to give up possibly 30% extra compared to last year (as well as the increased rent). Don't mind one or the other but not both.

          Onwards and upwards!

          David
          www.panachegifts.co.uk

          http://www.facebook.com/pages/Panach...60271863992797

          Twitter @PanacheGifts

          Comment


          • #6
            Hi David, three near me all offer space...first was a large craft centre, 6ft space, supply your own table, £50 pcm plus 10% comission, one was no rent, 30% comission, the other was £40 pcm, no comission. I have heard that some actually put item prices up by more than you asked for to increase their cut.....

            Dave.

            Comment


            • #7
              Originally posted by 3dDave View Post
              Hi David, three near me all offer space...first was a large craft centre, 6ft space, supply your own table, £50 pcm plus 10% comission, one was no rent, 30% comission, the other was £40 pcm, no comission. I have heard that some actually put item prices up by more than you asked for to increase their cut.....

              Dave.
              Good morning Dave, found your way back onto the forum LOL

              Mo.XX
              Mo. Bodrighy Wood.
              Being deeply loved by someone gives you strength, while loving someone deeply gives you courage..Lao Tzu.
              www.bodrighy.co.uk
              https://twitter.com/#!/AuntieMornie

              Comment


              • #8
                Originally posted by MornieG Jewellery View Post
                Good morning Dave, found your way back onto the forum LOL

                Mo.XX
                Yes Mo, message in a bottle time, both me and Stef were stranded in the ozone for a while...bit like being aboard Apollo 13...lol

                Dave x.

                Comment


                • #9
                  Originally posted by 3dDave View Post
                  Yes Mo, message in a bottle time, both me and Stef were stranded in the ozone for a while...bit like being aboard Apollo 13...lol

                  Dave x.
                  You didn't happen to see my lost photographs there did you ? LOL

                  Mo.XX
                  Mo. Bodrighy Wood.
                  Being deeply loved by someone gives you strength, while loving someone deeply gives you courage..Lao Tzu.
                  www.bodrighy.co.uk
                  https://twitter.com/#!/AuntieMornie

                  Comment


                  • #10
                    I'm sure they are up there somewhere Mo haha

                    Dave.

                    Comment


                    • #11
                      Hi,

                      I had quite a similar experience as you but with pop-up shops in London. They tend to charge the rent and on top of that there was 12% commission. To be honest, it was not worth paying all the money as we did not sell as much as we expected but it is just my very own experience.
                      Agnes
                      http://www.mydesignstation.co.uk
                      https://www.facebook.com/Mydesignstation2

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