A Little Gallery in ID

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tomas

tomas

Member
Joined
Jul 12, 2010
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482
Location
Rio Rancho, NM
We are currently vacationing in extreme northern Idaho about 50 miles Southwest of Bill Youngs place. Every year I make it a point to visit local galleries here at Priest Lake and also in Sandpoint, ID. At the gallery in Sandpoint a fellow turner has been displaying his pens. He has a full multi-tier display right in the entryway. The turning on his pens is very good and he has a nice variety. His most common price is $49.50 for a nice pen and a wooden box to keep it in. I have no idea how his sales are but he has been displaying in this gallery for a number of years. I am not sure how he makes any money on a nice kit, a nice blank, a pen box, and gallery commision. My only complaint (this is just my bias) is that it appears that he exclusively uses a wax finish. I started out using Carnuba wax but found that, although it looked good initially, it dulled in a couple of months. I switched to medium CA and Micro Mesh(wet) and wouldn't go back.

My question is this: What kind of profit margin can you have with this type of arrangement?

Tomas
 
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Not a good or large one Tomas, but, some people are satisfied to sell pens as long as they break even. And if not to just break even, to make just enough to say that he made a profit. Because, with the gallery mark-up being what it would be, there's no way he could make much. Did you talk to anyone there, do you know if any pens are being sold? He may have them there just to get rid of them, so he could have money to buy more kits.

Len
 
I did some simple math using the following assumptions.
Gallery commissions: Low 25% High 40%
Kit cost for nice pen: $10
Blank cost: Low $5 High $10 (could be zero for reclaimed wood)

Without considering the cost of the box, the profit margin range ran from 20% to 45%. Not a lot of money for a small item, considering the time and effort that even an experienced pen turner would put in. However, unlike those of us who sell at A&C show, His effort ends once he hands the merchandise to the gallery owner.
Larry
 
I will say 1) some people are OK with a little profit and not doing Shows. 2) This person might have items spread around in a few other Galleries/Shops. 3) It's possible he has been getting a good amount of Commission work from people that see his pens.
 
I'm not experienced, only have sold 6 pens, all word of mouth, but I also see lots of low prices on Etsy and wonder how some pen turners can break even.
 
George883 said:
I'm not experienced, only have sold 6 pens, all word of mouth, but I also see lots of low prices on Etsy and wonder how some pen turners can break even.
Click to expand...

You can sometimes make a bit more if you buy your pen kits at the lowest list price but then you have a bunch of pens that might not sell. I also try to wait to get them on sale. I've also noticed on Etsy that some turners sell their pens for just about break even, at best. Just the other day I was looking at Etsy and came across a turner selling Trimline pens for $12.95. He made a little bit on it but basically covered his costs. It doesn't make much since to me to push the market down for everyone else. Others who were selling the basic Trimline pens were selling them in the mid $20.00 range which makes a lot more since than the first example. This is one of the reasons I don't sell on Etsy, I don't want to get in a pricing war and end up giving my product away, I can't justify it.
 
wolf creek knives said:
You can sometimes make a bit more if you buy your pen kits at the lowest list price but then you have a bunch of pens that might not sell. I also try to wait to get them on sale. I've also noticed on Etsy that some turners sell their pens for just about break even, at best. Just the other day I was looking at Etsy and came across a turner selling Trimline pens for $12.95. He made a little bit on it but basically covered his costs. It doesn't make much since to me to push the market down for everyone else. Others who were selling the basic Trimline pens were selling them in the mid $20.00 range which makes a lot more since than the first example. This is one of the reasons I don't sell on Etsy, I don't want to get in a pricing war and end up giving my product away, I can't justify it.
Click to expand...
I feel exactly the same. I'd rather start a pen collection and display them in my den than give them away.
 
I sell on Etsy When I first started I sold for lower prices and would change my price till I found what I was comfortable for me. Now a bunch of sellers are selling similar items and they would sell 20%+ lower to my items. Then their prices would go up after a while. I believe in competition and makes for better products. That the ones who price right and offer quality will out last others who don't. It takes time and patience.


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It could be that the seller doesn't care what it sells for as long as he or she can buy more kits and blanks.. If they enjoy going into their shop and spending a few hours making something and then almost giving it away, it is their right. Not mine to question why.
 
Could be that's all the market will pay for pens. I live in a relatively poor community in west Texas and very few people here are willing (or able) to pay $40, $50, or $75 for a pen that's worth that based on the materials, kits, and time put into them. I give away more than I sell so I'm not trying to make a living on my pens. But the seller has to know his/her market or there's going to be a pen museum in the house, much like I have. That's ok, I love pens.
 
I sell my pens in a gallery in Biloxi Mississippi and do very well. I charge double what the materials and kit cost. I pay $50 per month plus 10% commission. I have a variety of styles with prices ranging from $25 up to around $150 for a higher end fountain pen. No more festival booth set up and tear down! I am not in it to make a living but this way I can keep buying kits and supplies and make more pens, which is what I love to do.
 
A guy who works for me routinely sells his pens for 2x cost putting most of his sales on n the $25-$30 range. That is often $20-$25 less than I sell the same pen for. His finish is not a high but takes him 5 minutes or less, he has gotten rid of his misc equip and only makes a couple of styles. He gets orders of 10-30 pens every 2-3 months. I sell 10-30 pens per year, have stuff to cast and stabilize and dye and stain and everything else. He puts no real effort into selling because his is mostly legacy business from a few years ago. I put no effort into selling because I enjoy the process. We are both happy with our outcomes.


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