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Photo Forum / General Photo Topics / Australian Photography / August 2006

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Commission percentage?

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Ron - 26 Aug 2006 16:14 GMT
When submitting framed photos for sale in a gallery what is the usual
rate/percentage paid as a commission to the gallery owner?

Thanks for your help

Cheers
Ron
Dave E - 26 Aug 2006 17:15 GMT
> When submitting framed photos for sale in a gallery what is the usual
> rate/percentage paid as a commission to the gallery owner?
[quoted text clipped - 3 lines]
> Cheers
> Ron

Hi Ron,

recently I was asked if I'd like to sell some images I had framed here in
Chatswood to interested customers.  They wanted me to cover framing costs
(at a 'reduced rate') and then they wanted 40% of the sell price.  Double
dipping - their frame costs are clearly going to be very small, far less
than the ~$120 they offered me (20"x30").

So:

Sell price: ~ $800
- Frame: $120
- Print: $100
- 40% of sell price $320
---------------
My cut: $260

Anyway, I wasn't interested but that's fairly common I'm told.

Get the framing details and work the numbers before selling your soul if you
ask me!  :-)

Cheers,
Dave E (Sydney)
carbon based life form - 27 Aug 2006 05:01 GMT
> When submitting framed photos for sale in a gallery what is the usual
> rate/percentage paid as a commission to the gallery owner?
[quoted text clipped - 3 lines]
> Cheers
> Ron

Ron,

I've been exhibiting for a number of years and I have found the usual
percentage to be 30%. I only mount my photos preferring to let the
client frame according to their own desires/decore. I cost my prints to
return 200% on the cost of production (darkroom/lab/processing &
mounting) and then add the gallery's percentage on top as a cost to the
client. Many galleries also stipulate that any sale for a couple of
weeks after the show a gallery percentage is applicable (so as to
amortise advertising etc.) Good luck!
sam
Ron - 27 Aug 2006 07:55 GMT
Thanks Dave and Sam for your input. I recently did my first exhibition here
in Canberra which was run by a Church charging 20%  commission on any works
sold which they were going to use for the homeless and mentally ill. The day
of the exhibition it was pouring with rain - the outside area of the gallery
was surrounded by work trucks etc (lot of new buildings being constructed
next to the gallery). People could only buy using cash or cheques. Out of 11
framed 18" by 12" photos I never sold one. However, feedback was extremely
positive (had one of my sons circulating around listening to people's
comments). All in all that day the most expensive piece of artwork sold was
no greater than $100. Now left with 11 beautifully framed photos that I
still have to pay back off my mastercard for cost of printing and framing.
Ya live and learn. In your case Dave it sounds like the ultimate sting -
attempting to charge you like a wounded bull. As a matter of interest does
anyone know how much you can earn from a hobby like photography whilst
working in another job (employed, part time as a registered nurse) before
running afoul of the taxman?

Thanks for your input.

Cheers
Ron

> When submitting framed photos for sale in a gallery what is the usual
> rate/percentage paid as a commission to the gallery owner?
[quoted text clipped - 3 lines]
> Cheers
> Ron
Chris D - 28 Aug 2006 12:50 GMT
From memory you don't require an ABN until your making over $50k from it but
still need to keep records of everything you earn regardless and add those
figures in your tax return.

> Thanks Dave and Sam for your input. I recently did my first exhibition here
> in Canberra which was run by a Church charging 20%  commission on any works
[quoted text clipped - 25 lines]
> > Cheers
> > Ron
grumpy@mailinator.com - 28 Aug 2006 22:25 GMT

> From memory you don't require an ABN until your making over $50k from it but
> still need to keep records of everything you earn regardless and add those
> figures in your tax return.

I think you will find an ABN is required but registration for GST is not required unless the
turnover exceeds $50,000
Alan K. - 29 Aug 2006 09:48 GMT
>> From memory you don't require an ABN until your making over $50k from it but
>> still need to keep records of everything you earn regardless and add those
>> figures in your tax return.
>
>I think you will find an ABN is required but registration for GST is not required unless the
>turnover exceeds $50,000

Not exactly. You have to get one if you're required to register for
GST (which, as you correctly stated, is if your turnover is > 50K),
but "hobbyists" aren't entitled to an ABN because they aren't
"carrying on an enterprise". The largest down side of not having an
ABN is that some businesses are reluctant to deal with you since you
can't issue them with tax invoices (which, by definition, must include
an ABN), however in the circumstances that Ron was describing, where
the sales are retail, this probably won't be much of an issue.

Of course, the murky question, as Ron alluded to, is where the line
between "hobbyist" and "business" is; and unfortunately (aside from
the 50K turnover rule) it isn't black and white.

Ron, you may find the following link ("Am I in business?") of
interest:

http://www.ato.gov.au/youth/content.asp?doc=/content/66884.htm

Actually, getting the Tax Office to consider that you ARE in business
may be the hard part unless you're making a substantial proportion of
your income from your photography. Why?

Because if they assess you on your photo income (which I'm sure they'd
LOVE to do, being tax vampires and all), they ALSO have to allow you
to claim deductions on any expenses incurred in earning that income.
That would include things like framing... but also depreciation on
your camera gear. So I could, in theory, sell a couple of hundred
bucks worth of photographs per year, and offset depreciation on a new
5D and a couple of L series lenses against that and, of course, my
other income. Which, in my tax bracket, would be a verrrrry nice
little rort indeed. Except, of course, that there's no way in hell
that the ATO would accept that I was in business. But hey, I can
dream. 8^>

If you're in doubt, the safest way is to approach the ATO and get a
written ruling on your own circumstances. At least that way your
backside is covered.
Ron - 29 Aug 2006 13:54 GMT
Many many thanks Alan for your most informative post. I appreciate all of
you giving me your advice and opinions.

Thank you

Ron

>>> From memory you don't require an ABN until your making over $50k from it
>>> but
[quoted text clipped - 43 lines]
> written ruling on your own circumstances. At least that way your
> backside is covered.
 
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