A common arrangement is 60 percent for artisan and 40 percent for retailer before sales tax. Terms do vary and are often negotiable. The retailer pays the sales tax. Monthly payments are the traditional way to handle compensation. It is the artisan's responsibility to keep track of expenses and payments for income tax purposes.
Special orders require a deposit from the purchaser, which is immediately passed on to the artisan.
The balance of the payment is passed on when the item is delivered. Damage, loss or theft. The agreement should clearly state who is responsible for insuring items on the shop's premises or being transported by the retailer. Artisan and retailer should have a mutual understanding about damage or loss of merchandise from fire, theft, breakage or soiling. The retailer may stipulate that he or she will assume no product liability and that the artisan will hold the retailer harmless in action arising from the use and sale of that product.