This means that they buy stock and, after a certain length of time, they can exchange unsold items for new or different pieces of work. A retailer may request the courtesy of exclusive right to sell the product in a given geographic area. A retailer may decline the opportunity to handle the product if the artisan is to be a competitor. Both parties should agree on the amount or percentage of price the artisan receives and how much is due the retailer as commission. 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.