The Framers Forum

Hi All

Have had an offer agred on a shop and am now waiting for the solicitors to do their thing.

A couple of questions:

1. do you have any recomendations for insurers for a gallery / framing shop? Are there any well known pitfalls to look for?

2. what are the normal sort of terms for buying / displaying art work? Is it best to buy, if so what percentage of retail? if selling on commision basis, again what sort of percentages?

Dave

Hi Dave
congratulations and good luck

no particular recommendation for insurance, but we use AXA.

pitfalls: apart from anything your lawyer tells you to look out for in the lease, the biggest pitfall we mostly all make is mistaking a big turnover for making money.
remember, profit is sanity, turnover is vanity - specially in this game;)

More of an ad-hoc tip, but one of the best things we ever did a computer at the counter with a pricing program on it, then hardly anyone will pressure you into discounting. "the computer says no"

Don't go direct to any insurer - find yourself a good broker who deals with business packages and can tailor the best cover for your premises and situation with the best company/for the best price or a compromise of each.

Then, in the future, if you need to claim or adjust, the broker will sort it all out for you. The beauty is that the premium you pay is the same as if you'd managed to sort it all out yourself - the broker sorts his cut out with the insurer. If you need to claim the insurer may send a loss adjuster around - his aim is to minimize the claim - to £0 if he can! The broker will sort him out - no cost to you - takes all the pressure away. No broker? The loss adjuster will have orgasms!

Artwork? Minefield! At least if artists are involved.

If buying - a 2.35 (100% + VAT) markup should be minimum, if you are VAT registered.

Commission?????

Your call I'm afraid - but one thing that some don't realise is that if you take goods on sale-or-return - you only need charge VAT on your commission .......... if and when you are VAT registered.

I add 33% commission (ex Vat) to whatever the artist wants and take the artwork only - no mounts, no frames. After that it's a bit silly - I frame it at no charge to the artist and if it does not sell I give the artist a sale or return option on the frame so he can try and hawk it elsewhere. But I don't take just any artist on - I know what I can and can't sell - found out the hard way mind!

Many thanks for taking the time. Sounds like being a loss adjuster is a lot more exciting than picture framing.

I'd recommend Besso (London) as a good broker. These guys are specialist and although might seem expensive, Insurance is one thing not to skimp on.
I had a fairly big claim several years ago and although I thought I was completely covered Norwich Union didn't see it that way!

Do you have any contact details?

Hi dave
Besso Limited, 8-11 Crescent, London, EC3N 2LY
near America Square

Tel: 020 7480 1000
Fax: 020 7480 1280

Thanks again, will give them s try.