Businesses that specialize in the resale of artistic creations under a consignment agreement provide a unique service. These establishments display and market artwork on behalf of artists or owners, who retain ownership until the piece is sold. Once a sale occurs, the business receives a pre-agreed percentage of the sale price as commission. This system differs from a direct sale, where the owner relinquishes title immediately upon selling to a buyer.
The practice of entrusting valuable items for sale has a long history, evolving from simple trade arrangements to sophisticated business models. Consigning artwork offers several advantages. For artists, it provides a platform to reach a broader audience without incurring upfront marketing costs. For owners, it offers a low-risk avenue for selling pieces, particularly if unsure of the market value. The arrangement can also benefit potential buyers, who gain access to a curated collection of art.
The following sections will delve into various aspects of this business model, including legal considerations, valuation methods, marketing strategies, and tips for both consignors and consignees to ensure a successful and mutually beneficial relationship.
