Nursery Finance

April 12, 2025 3:57 PM

I am going to propose to a couple local garden/nursery businesses to offer my work for sale. (See website link in bio for pics.) What would be the financial arrangement likely to be used?

If it were an art gallery, it would be a 50/50 split upon sale.
Alternatively, they could buy the pieces outright for $X and sell them for $X+Y
(where Y is whatever they think they can get)
Or ... other?

posted by falsedmitri to Work & Money (3 answers total)

Best answer: I am not sure what is typical, but if i were running one of these local businesses i'd be more receptive to splitting revenue upon sale as that's much better for my business' cashflow than paying up front for inventory that might not sell.
posted by are-coral-made at 6:08 PM on April 12 [3 favorites]

Best answer: It will likely depend on how the local businesses purchase items to sell. I have art in a handful of local shops — some will purchase wholesale outright, others pay me a commission when items sell and I get a monthly check.
posted by sucre at 6:55 PM on April 12 [2 favorites]

Best answer: I think there is a slightly modified 3rd way that would incent the business to sell them. Let's say that you did a 50/50 split and the cost was set at $100 (just picking a random number. I have no idea what they are actually worth.) So, you would net $50 from the sale. While your interests are aligned with the garden/nursery business with a 50/50 deal, it does not incent them to sell them or sell them quicker than they would sell passively.

I would consider explaining the 50/50 deal using as an example the $100 price above then say to them, "I need $50 out of every sale. If you can sell them for $125, you get $75 and I get $50. If you think you can move more of them but for a lower price, say, $80, I get $50 and you get $30. You end up the same as if it were a 50/50 deal and they can decide how much they can make. They may think they can sell twice as many at $80 as they would at $100. So, if they sell 10@ $80, you get $500 and they get $300 versus 5@100 where you get $250 and they get $250. You can make your own estimates in terms of sales at the various price points, but you will not be worse off than if you do a straight 50/50 deal at one set price.

While you will not make as much as 50/50 if they sell them for higher than your suggested price, it will help your art, your design sell for higher prices next time. "False Dimitri sold one similar to this last month for $125. I don't think they can go lower than that this time."

By saying you need a set price for each piece that is 50% of your suggested selling price, you are essentially preselling them with you carrying the cost during the time it takes to sell. You are also incenting them to either sell more at a lower price or at a higher price.
posted by JohnnyGunn at 8:04 PM on April 12 [1 favorite]