Monterey Peninsula Art Foundation
How to Create An Art Gallery Cooperative
Jan Zeigler
By Jan Zeigler
If you think you know an artist who makes his or her ENTIRE living from their art…you probably don’t know them well enough…there is a trust fund or an investment property that they never mention, grandma left them an annuity, Great Uncle Joe left stock…something.
Probably you cannot make enough money to live on by running your own gallery. I know at least three very capable people who went broke trying it. We have an ideal location, and we make a lot of sales, taking in from 60 to 80 thousand a year. That isn’t profit! The money goes to the artists. We only charge 10% commission, but even if you charge 50% you would not have a living amount after expenses and you would find it harder to keep good people.
Ours is a true co-op, run and maintained by the members on a volunteer basis. We are a 501-c3 but that is a whole other layer. We do pay a website manager and some co-ops pay a bookkeeper. Our bookkeeping is divided among several volunteers, each with a specific task. Filling out and filing of all required government forms on time is probably the hardest of these jobs, keeping track and banking cash (you can’t bank cash with your phone) the next bookkeeping chore is figuring the earnings of each artist and writing checks. Somebody has to collect, keep track of and bank the gallery fees the artists pay. Somebody has to monitor any money spent to be sure you have enough for day-to-day operations.
You need a location. Ideally a location with heavy leisure foot-traffic. Did you miss the keyword there? Leisure! If you are between the hardware store and the grocery there may be a lot of people out there, but they are busy and focused on the task at hand, they are not coming in to look at art. The best location would be in a resort or tourist area. It helps if there is parking available. Near or even in the lobby of a high-end hotel might work…rent will probably be high. You get a place where the rent is low then you will have to advertise more, check out the prices for that in your area.
So now you must figure out how much space you can allot to each artist. When you know how many artists you can work in, you need to add up ALL the expenses. Rent, utilities, insurance, business license, state fees, office supplies, advertising, phone and internet charges, banking fees, charge card fees, website maintenance and domain fees, oh there are a lot of things you may not think of so better include a cushion amount as well. Now divide that figure by the number of artists and you will know how much you have to charge each one, just to stay open. You really cannot count on sales commissions to keep you afloat.
Now you need to find artists…initially we asked folk to commit for a year. This worked well. We were successful and more artists wanted in and we started a waiting list which did not work well. We chose not to vet the art but found that many could create wonderful art, but not everyone could run the shop. An application that lists the duties and asks for references along with an interview might work better. Maybe a temporary, probationary appointment...some way to see if the applicant can do the job.
In our co-op we take a 10% commission…this is very low but keeps the artists happy. We look for members who are going to be able to run the shop and divide the work month among the members. Here we are lucky to have space for enough so that we only work one day a month. Sales need to be double recorded…sales slips and a record book. They need to be filled out legibly, recording the artist’s name so that they can receive their commission.
We learned as we went along that procedures had to be changed to correct errors. We hold an all-member vote for major changes.
Your website really has to be done by someone who has experience and references. We pay a really capable volunteer a small fee and this works well. And to repeat: Who is going to do the banking, pay the bills, keep track of who has paid their gallery fees, figure the sales tax and send it in with proper forms, do the income tax, clean the shop, plan events, send notices to the members, order supplies? We have member volunteers for these tasks, but we also have members who do not help. One of our members acts as gallery manager, taking on such tasks as asking non-conformers to please follow the rules (and we have to have rules).
If you think you know an artist who makes his or her ENTIRE living from their art…you probably don’t know them well enough…there is a trust fund or an investment property that they never mention, grandma left them an annuity, Great Uncle Joe left stock…something.
Probably you cannot make enough money to live on by running your own gallery. I know at least three very capable people who went broke trying it. We have an ideal location, and we make a lot of sales, taking in from 60 to 80 thousand a year. That isn’t profit! The money goes to the artists. We only charge 10% commission, but even if you charge 50% you would not have a living amount after expenses and you would find it harder to keep good people.
Ours is a true co-op, run and maintained by the members on a volunteer basis. We are a 501-c3 but that is a whole other layer. We do pay a website manager and some co-ops pay a bookkeeper. Our bookkeeping is divided among several volunteers, each with a specific task. Filling out and filing of all required government forms on time is probably the hardest of these jobs, keeping track and banking cash (you can’t bank cash with your phone) the next bookkeeping chore is figuring the earnings of each artist and writing checks. Somebody has to collect, keep track of and bank the gallery fees the artists pay. Somebody has to monitor any money spent to be sure you have enough for day-to-day operations.
You need a location. Ideally a location with heavy leisure foot-traffic. Did you miss the keyword there? Leisure! If you are between the hardware store and the grocery there may be a lot of people out there, but they are busy and focused on the task at hand, they are not coming in to look at art. The best location would be in a resort or tourist area. It helps if there is parking available. Near or even in the lobby of a high-end hotel might work…rent will probably be high. You get a place where the rent is low then you will have to advertise more, check out the prices for that in your area.
So now you must figure out how much space you can allot to each artist. When you know how many artists you can work in, you need to add up ALL the expenses. Rent, utilities, insurance, business license, state fees, office supplies, advertising, phone and internet charges, banking fees, charge card fees, website maintenance and domain fees, oh there are a lot of things you may not think of so better include a cushion amount as well. Now divide that figure by the number of artists and you will know how much you have to charge each one, just to stay open. You really cannot count on sales commissions to keep you afloat.
Now you need to find artists…initially we asked folk to commit for a year. This worked well. We were successful and more artists wanted in and we started a waiting list which did not work well. We chose not to vet the art but found that many could create wonderful art, but not everyone could run the shop. An application that lists the duties and asks for references along with an interview might work better. Maybe a temporary, probationary appointment...some way to see if the applicant can do the job.
In our co-op we take a 10% commission…this is very low but keeps the artists happy. We look for members who are going to be able to run the shop and divide the work month among the members. Here we are lucky to have space for enough so that we only work one day a month. Sales need to be double recorded…sales slips and a record book. They need to be filled out legibly, recording the artist’s name so that they can receive their commission.
We learned as we went along that procedures had to be changed to correct errors. We hold an all-member vote for major changes.
Your website really has to be done by someone who has experience and references. We pay a really capable volunteer a small fee and this works well. And to repeat: Who is going to do the banking, pay the bills, keep track of who has paid their gallery fees, figure the sales tax and send it in with proper forms, do the income tax, clean the shop, plan events, send notices to the members, order supplies? We have member volunteers for these tasks, but we also have members who do not help. One of our members acts as gallery manager, taking on such tasks as asking non-conformers to please follow the rules (and we have to have rules).
Rules and Procedures for Gallery Artists
BRINGING IN ART
1. Labels: Each piece of art must be labeled twice, on the back showing title, artist, medium and price. PRINT NEATLY. Extra labels are in the white cabinet in the workroom. THEN make a label card for the customers to see with the same information. Stick the customer viewing label on the wall with blue stickum from the small drawers in the back room.
2. Hanging: All work for walls must have a wire for hanging (no eyes or toothed hangers). No wires necessary for paintings displayed on a shelf. All work must be framed or have finished edges. Do not bring in any art with wet paint.
3. Spaces: There are 30 numbered spaces allotted for hanging paintings. Each gallery artist has a numbered space. Some spaces are smaller than others due to the configuration of the walls in this 130 year old building. Every artist gets a chance at various spaces. CHANGE DAYS occur every 3 months when each artist moves 7 spaces to the right. Please do not infringe on neighboring spaces. Good idea to check ahead of change day so you'll know what paintings will fit in your space. In order to keep walls from appearing overcrowded maintain a separation of 2 to 3 inches between paintings (frames). Paintings must be at least 2 inches from edge of space.
Larger paintings with 30 inches or more on a side are being hung in the alcove room. A sign up list for the area is in the workroom. These paintings are also rotated on CHANGE DAY.
Locked glass shelves in the alcove room are marked A thru T and artists move their miniatures 7 spaces to the right on CHANGE DAY. If space in this area remains empty for one week, it is considered available and artists may check with the Gallery Manager to an empty space.
4. Replacements: If some of your work is sold, please bring in a replacement of the same or smaller size.
5. Shelf Space: Each artist may place 3 paintings on the shelves in the main room. Paintings cannot exceed 80 square inches including frame. Please respect the space that is needed for placement of sculpture and other 3-dimensional pieces.
6. Keys and Cash Box: Information about keys and cash box is available in the white binder on the shelf in the sales area.
7. Housekeeping: Each member shares in the maintenance and cleaning of the gallery. On your work day, dust shelves, vacuum floors, clean toilet, sink, refrigerator, microwave, etc. Cleaning materials are in the back room.
8. Opening: Upon arrival, lock the front door behind you, check the cash box, make a reminder call to the next day's worker. Put out the "Open" signs, open the doors to the public.
Greeting Customers: Welcome customers with a smile and let them know we are a co-op gallery of all local artists. A good attitude goes a long way toward making sales. No fees are charged by the organization beyond the expenses for operating the gallery. Members share rent and expenses. A 10% commission is taken on each sale. You could mention that other galleries take a 50% commission. This is how we are able to keep our prices moderate.
Lunch Break: If you are in the workroom or eating lunch, please come out to greet customers.
9. Recording Sales: We must charge sales tax on everything we sell. The only exception is for merchandise we are packing and shipping out of state. We can take Mastercard, Visa or personal checks made out to Monterey Peninsula Art Foundation. When taking checks, be sure to get name, address, phone number and driver's license number. Directions for making a sale are printed on the sales desk.
A sales slip must be made out for each sale. Be sure to record the name of the artist and the title of the artwork. When selling cards, prints or ceramics, the names of the items are not important (you can just write "card" or "print" or "jewelry") but the name of the artist is always needed.
Charge receipts go in the bottom of the cash box until the end of the day. Then place them in the designated folder at closing.
Phone Credit Card Sales require that you get the name of the card holder, their address, zip code, phone number, charge card number, expiration date, and code number on the back of the card.
Log Book: Once the sale is made and the customer has left, record the sale in the log book with all the details: artist name, title of work, price, tax, and total. Enter all sales in a VERY CLEAR AND LEGIBLE FASHION in consecutive order. Do not go backwards in the log book.
10. Shipping: Encourage the buyer to take their purchase to UPS at the corner of Lighthouse and Irving (not far from the gallery). However, we can ship. Get the buyer's information: name, address, phone, zip code, charge card number, expiration date, number of the back of card. Tell buyer we'll charge cost of shipping and packing to their charge card. Artist who created the work will take this information to UPS. To get an estimate on packing, shipping and insurance, weigh and measure artwork (there is a scale in the workroom.), get customer's zip code, call UPS and give UPS the information. Be sure to write down all this information for the artist. Call artist to inform of the sale and that artist must pick up the work and bring it to UPS to ship.
11. Closing: Put large bills and checks in the safe box. Charge receipts go into the designated folder. Full detailed instructions regarding money are on the office desk in the workroom.
12. Bios and Business Cards: There are bios and business cards from the artists who wish to provide them to customers. They are in folders on the shelf in the sales are. Let artists know if they are running low on bios and cards. If a customer wants to communicate with the artist you may give out the artist's phone or offer to have the artist call the customer.
13. Breakage: If you break or damage something belonging to another artist, please offer to reimburse them for the damage.
14. Payment for sales: Each month artists will receive a check for their pieces that have sold less a 10% commission. Checks will be places in artists' folders. The Gallery Manager is in charge of checks at this time.
15. Rent: A share of the rent and basic expenses of the gallery in the amount of $65/month must be paid in advance by each artist. You are encouraged to pay up to a year in advance if you can afford it. If your rent is not paid by the 5th of the month in which it is due, your artwork will be removed and place in the workroom. Rent checks are to be placed in the designated folder in the workroom.
16. Arranging a work-day trade: If a member is unable to work on their scheduled day, it is their responsibility to make arrangements to trade days with another gallery member (all members have calendars with phone numbers). You can call members for yourself or send an email to everyone. If you cannot find someone to trade with you, call the Gallery Manager. Some members will work your day for $65 without trading.
17. SABBATICALS:
Non-medical sabbatical: The member asking for leave must make a request in writing to the Gallery Manager. That member will relinquish space on the walls, racks, bin, and shelves. The time of the sabbatical shall commence on the first day of the month and end on the last day of the month requested. Sabbaticals shall be for a minimum of 6 months up to a maximum of one year at which point the member may choose to return or resign. The person on leave will not be expected to pay the monthly rent but will be expected to maintain their membership in MPAF.
Medical Leaves of Absence: This generally involves illnesses of such a serious nature that they prevent the member from being able to work in the gallery. Medical leaves are handled on a case by case basis.
Artist Replacing a Member: This person will take full responsibility of a member spot and shall be considered a "temporary" member. He or she will pay the monthly rent. Taxes and commissions will apply to their sales. They will hang their work in the space that was vacated by the member on leave. The temporary member will work one day each month. The temporary member should be the next person on the waiting list in the event that the member on leave chooses to resign. The temporary member automatically becomes a full member of the gallery.
1. Labels: Each piece of art must be labeled twice, on the back showing title, artist, medium and price. PRINT NEATLY. Extra labels are in the white cabinet in the workroom. THEN make a label card for the customers to see with the same information. Stick the customer viewing label on the wall with blue stickum from the small drawers in the back room.
2. Hanging: All work for walls must have a wire for hanging (no eyes or toothed hangers). No wires necessary for paintings displayed on a shelf. All work must be framed or have finished edges. Do not bring in any art with wet paint.
3. Spaces: There are 30 numbered spaces allotted for hanging paintings. Each gallery artist has a numbered space. Some spaces are smaller than others due to the configuration of the walls in this 130 year old building. Every artist gets a chance at various spaces. CHANGE DAYS occur every 3 months when each artist moves 7 spaces to the right. Please do not infringe on neighboring spaces. Good idea to check ahead of change day so you'll know what paintings will fit in your space. In order to keep walls from appearing overcrowded maintain a separation of 2 to 3 inches between paintings (frames). Paintings must be at least 2 inches from edge of space.
Larger paintings with 30 inches or more on a side are being hung in the alcove room. A sign up list for the area is in the workroom. These paintings are also rotated on CHANGE DAY.
Locked glass shelves in the alcove room are marked A thru T and artists move their miniatures 7 spaces to the right on CHANGE DAY. If space in this area remains empty for one week, it is considered available and artists may check with the Gallery Manager to an empty space.
4. Replacements: If some of your work is sold, please bring in a replacement of the same or smaller size.
5. Shelf Space: Each artist may place 3 paintings on the shelves in the main room. Paintings cannot exceed 80 square inches including frame. Please respect the space that is needed for placement of sculpture and other 3-dimensional pieces.
6. Keys and Cash Box: Information about keys and cash box is available in the white binder on the shelf in the sales area.
7. Housekeeping: Each member shares in the maintenance and cleaning of the gallery. On your work day, dust shelves, vacuum floors, clean toilet, sink, refrigerator, microwave, etc. Cleaning materials are in the back room.
8. Opening: Upon arrival, lock the front door behind you, check the cash box, make a reminder call to the next day's worker. Put out the "Open" signs, open the doors to the public.
Greeting Customers: Welcome customers with a smile and let them know we are a co-op gallery of all local artists. A good attitude goes a long way toward making sales. No fees are charged by the organization beyond the expenses for operating the gallery. Members share rent and expenses. A 10% commission is taken on each sale. You could mention that other galleries take a 50% commission. This is how we are able to keep our prices moderate.
Lunch Break: If you are in the workroom or eating lunch, please come out to greet customers.
9. Recording Sales: We must charge sales tax on everything we sell. The only exception is for merchandise we are packing and shipping out of state. We can take Mastercard, Visa or personal checks made out to Monterey Peninsula Art Foundation. When taking checks, be sure to get name, address, phone number and driver's license number. Directions for making a sale are printed on the sales desk.
A sales slip must be made out for each sale. Be sure to record the name of the artist and the title of the artwork. When selling cards, prints or ceramics, the names of the items are not important (you can just write "card" or "print" or "jewelry") but the name of the artist is always needed.
Charge receipts go in the bottom of the cash box until the end of the day. Then place them in the designated folder at closing.
Phone Credit Card Sales require that you get the name of the card holder, their address, zip code, phone number, charge card number, expiration date, and code number on the back of the card.
Log Book: Once the sale is made and the customer has left, record the sale in the log book with all the details: artist name, title of work, price, tax, and total. Enter all sales in a VERY CLEAR AND LEGIBLE FASHION in consecutive order. Do not go backwards in the log book.
10. Shipping: Encourage the buyer to take their purchase to UPS at the corner of Lighthouse and Irving (not far from the gallery). However, we can ship. Get the buyer's information: name, address, phone, zip code, charge card number, expiration date, number of the back of card. Tell buyer we'll charge cost of shipping and packing to their charge card. Artist who created the work will take this information to UPS. To get an estimate on packing, shipping and insurance, weigh and measure artwork (there is a scale in the workroom.), get customer's zip code, call UPS and give UPS the information. Be sure to write down all this information for the artist. Call artist to inform of the sale and that artist must pick up the work and bring it to UPS to ship.
11. Closing: Put large bills and checks in the safe box. Charge receipts go into the designated folder. Full detailed instructions regarding money are on the office desk in the workroom.
12. Bios and Business Cards: There are bios and business cards from the artists who wish to provide them to customers. They are in folders on the shelf in the sales are. Let artists know if they are running low on bios and cards. If a customer wants to communicate with the artist you may give out the artist's phone or offer to have the artist call the customer.
13. Breakage: If you break or damage something belonging to another artist, please offer to reimburse them for the damage.
14. Payment for sales: Each month artists will receive a check for their pieces that have sold less a 10% commission. Checks will be places in artists' folders. The Gallery Manager is in charge of checks at this time.
15. Rent: A share of the rent and basic expenses of the gallery in the amount of $65/month must be paid in advance by each artist. You are encouraged to pay up to a year in advance if you can afford it. If your rent is not paid by the 5th of the month in which it is due, your artwork will be removed and place in the workroom. Rent checks are to be placed in the designated folder in the workroom.
16. Arranging a work-day trade: If a member is unable to work on their scheduled day, it is their responsibility to make arrangements to trade days with another gallery member (all members have calendars with phone numbers). You can call members for yourself or send an email to everyone. If you cannot find someone to trade with you, call the Gallery Manager. Some members will work your day for $65 without trading.
17. SABBATICALS:
Non-medical sabbatical: The member asking for leave must make a request in writing to the Gallery Manager. That member will relinquish space on the walls, racks, bin, and shelves. The time of the sabbatical shall commence on the first day of the month and end on the last day of the month requested. Sabbaticals shall be for a minimum of 6 months up to a maximum of one year at which point the member may choose to return or resign. The person on leave will not be expected to pay the monthly rent but will be expected to maintain their membership in MPAF.
Medical Leaves of Absence: This generally involves illnesses of such a serious nature that they prevent the member from being able to work in the gallery. Medical leaves are handled on a case by case basis.
Artist Replacing a Member: This person will take full responsibility of a member spot and shall be considered a "temporary" member. He or she will pay the monthly rent. Taxes and commissions will apply to their sales. They will hang their work in the space that was vacated by the member on leave. The temporary member will work one day each month. The temporary member should be the next person on the waiting list in the event that the member on leave chooses to resign. The temporary member automatically becomes a full member of the gallery.