Gallery Partnerships

[Ken Barnes <barnestrav@xxxxxxxxx>]

I am not a gallerist, but I cannot imagine a worse business model.
Most businesses have a Gross Margin (sales less cost of goods sold)
that is well above 50%.  The only way galleries survive is by avoiding
having to pay for their inventory up front, instead taking the goods on
consignment. A low-volume business with high cost of goods sold seems a
sure recipe for low margin or no margin business.  I can count 7
galleries that have closed in my city recently due to the recession,
including both of the dealers where I have shown.  I know others on the
verge of closing.  I gladly agree to 50%, and would even give 60% to
keep my favorite but faltering gallery open.  But given the volume they
are doing in this environment, even a 60% split will not help.
Hopefully we'll get lots of new galleries opening when our economy gets
better.

Ken