Artists Debate Fixed Show Fees vs. Commissions

n a time of economic belt-tightening around the country, small businesses like those of craft artists have a limited number of places to reduce costs. Most do not have large numbers of employees for layoffs, and items like health insurance and energy costs, despite increases, are difficult to do without.

Instead, artists try to stretch their profit margins by scrutinizing variable expenses like fees for jurying, exhibit booths and shows. Artists who make their living by selling at arts and craft shows apply for exhibitions throughout the year, necessitating applications and non-refundable fees to the show promoters.

Artists we talked to indicate that $25 was the average jurying fee around the country. This means promoters who receive 500 applications (about average, according to the Art Fair Source Book) for popular shows with about 100 spaces will pocket $12,500 before they select an exhibitor.

Even if the promoter in this situation pays jurors for their time and expenses, the cost is not likely to be $12,500. And jury fees are seldom returned to those applicants who are not accepted, so the promoter encourages many more applicants to apply than they can accept for the show.

Not all non-refundable fees end up as profits for the promoter. When the show is sponsored by a non-profit organization, these fees usually go to local charities or to benefit other needs in the community.

Fixed-Fee Shows Favored

But aggravating as exhibitors find these upfront fees, the commissions paid to promoters on a percentage of sales at shows are fast becoming the line-in-the-sand for artists that we surveyed in October 2003.

In a survey of 50 artists at retail shows in Arizona, Nevada, Pennsylvania and Vermont, we found 95 percent favor fixed-fee shows. Further, 77 percent of the surveyed artists told us they are attempting to avoid shows with commission fees.

One artist says that “fixed fees level the playing field” and Don Finnell of Canyon Trading Company agrees. “I want to know the price of doing business going into the show,” says Finnell. He and other artists think each exhibitor should pay equally, even if it’s a high cost, for the same exposure to the same potential customer base.

A photographer at the Boulder City Hospital Arts & Crafts show says, “I categorically refuse to pay commissions. Promoters do not take part in the inherent risks of my business and have no right to a percentage of it. Why should I pay more [or less] for a booth fee than the person next to me?”

Among the artists we surveyed, average sales per artist per show are $3,000. With an average reported commission of 15 percent on total sales, these artists are paying $450 in addition to a jury fee. On the other hand, if they pay a jury fee and a fixed-fee of $235, as with the Sedona Arts Festival, their costs are decreased by more than 46 percent.

With an average of 16 shows each per year for the artists we surveyed, exhibitors could retain additional annual profits of almost $3,500 if they only did fixed-fee shows. This amount could mean the difference in maintaining health insurance, which so many artists cannot afford.

“If I’m hoping to make $4,500 and the commission is 20 percent, plus a $150 fee (the cost at a show in Salem, Ore.), then the show costs me $1,050,” says A.B. Petro of Handcrafted Hardwoods. “Forget it!”

Written receipts are the preferred way that promoters hold artists accountable for computing a show’s commission. However, artists feel this policy contributes to lost sales because of the time spent doing paperwork during the show. This is especially damaging for the artist with a high-volume booth and no sales assistant.

In addition, sometimes it is difficult, even impossible, to keep up with concurrent receipt writing and selling craft work at shows. This has led to promoters voicing suspicions that the artist is deliberately concealing revenues.

One show promoter in Idaho raffles free airline tickets to customers who enter a drawing at the show using their original sales receipt. Another artist told us that she was monitored continuously by show staff in her booth at a commission show in Oregon. A fixed booth fee would eliminate the hard feelings and mutual distrust arising in these situations.

In fact, there are many good reasons to be honest about your sales, aside from the obvious ethical ones. Some shows, such as Summerfest in Kirkland, Wash., and the Northwest Folklife Festival in Seattle, invite artists back — without having to go through the jurying process — based on the amount of commissions paid in the previous year.

There are some promoters who support fixed fees as opposed to a commission structure. Sally Washburn of Vermont Craftworkers Inc., has never considered charging commissions at her show, nor does she charge a jurying fee. “That would be an administrative nightmare!” Washburn says.

Some Commission Shows Acceptable

Although we heard few positive comments regarding commission shows, some artists say that jury fees, booth fees, and commissions that go “for a good cause” are easier to accept. And an artist from Stryder & Phoenix prefers commission shows because in those cases, “promoters have to do their job [of advertising the show] if they want to make money.”

Additionally, some artists in our survey say commission shows are more acceptable if the artist does not have to be present to do the selling, thus forcing the promoter to sell for them. Susan Zalkind of Alabaster Gems stopped doing commission shows where she must be present. “Commission shows are a rip-off,” Zalkind says. “I’d rather pay an honest booth fee if I’m going to sell my work myself.”

If exhibitors make concerted efforts to only apply to fixed-fee shows, promoters facing a decline in the quantity of applicants may want to assess their fee schedule. Fewer applicants will inevitably damage the quality of work offered at their shows — and eventually, their revenues.

Ross and B.J. Guderian have traveled throughout the United States for the past eight years selling award-winning beadwork.
You can reach the Guderians at Info@BeadQueen.com.