Retail

This section looks at the key areas to consider when developing or purchasing retail products for a touring exhibition. Some factors need only be considered by the exhibition organiser, but some will be relevant for both organiser and venue(s).

The first decision is whether or not it is viable to offer merchandise as part of the touring package. This may not be viable for the following reasons:

• Budget: developing or sourcing a range of products can be costly in terms of stock and design costs
• Staff resources: there may be limited staff with the relevant skills to source or develop merchandise
• Subject: might not lend itself to associated merchandise
• Target audience: the expected customer profile for the exhibition might not be one which is likely to have any interest in purchasing associated products

Once the key decision has been made whether to develop a range of merchandise to support the exhibition, a budget should be decided upon. If there has been a previous exhibition with a similar product range to the one proposed, it can be useful to know what budget they have worked to and how this was compiled.

Forecast income: How many of the venues are likely to purchase the range of merchandise, and what are the expected visitor numbers? This should help to estimate some sales volumes. Will each venue order their own stock from a list of recommended suppliers, or will stock be purchased in one go and then dispatched and sold to each location with the exhibition itself?

Design costs: If developing special merchandise to support the exhibition, how much is available to spend on designing the range? Will an external designer be used to develop the range or is the expertise available in-house?

Stock budget: How much is available to purchase the stock?

Profit: what profit is expected from the sale of merchandise, or is the exhibition just expected to break even?

Other expenditure: Are there any other costs associated with the project, e.g. warehousing costs, transport of stock, origination charges and display equipment?

Below are some factors to consider when selecting merchandise:

Visitor profile: The most important consideration is to tailor a range of items and prices to the visitor profile forecast for the exhibition. Ideally a range of price points should be offered. If the customer profile for the exhibition is likely to be families, then the product and price points selected should reflect this.

Theme: The subject of the exhibition should be reflected as closely as possible in the product sourced. Visitors like to purchase something directly associated with what they have just seen and experienced. If the subject area is difficult to translate directly into associated product, it may be possible to source something whose design has been inspired by the subject.

Retail prices: Unless large volumes are being purchased and it has been possible to secure a discount from a supplier, it is usual to double the cost price and add VAT to calculate the retail price (except for books, most products are VAT-able). Some suppliers give recommended retail prices, and in some cases it may be possible to charge a higher price than normal if the market allows.

Volumes: The volume of a particular product line to be bought is determined first and foremost by the forecast visitor numbers. The second factor is price; it is obvious that a postcard at 50p will sell more than an item of stationery costing ?5. In many cases it is possible to secure a discount for a higher volume of stock, but if this means you are left with most of it at the end, this is a false economy.

Storage and transport: If you know that stock is to be transported from one location to another, it is worth considering the packaging the item comes in, and it is advisable to avoid delicate or high value items that may get stolen or damaged en route. It should also be established who is responsible for the cost of storage and transport, and who is liable for goods in transit.

Merchandise that already exists and can be sourced from suppliers is a safer option than specially-developed products. Books and other items that are concerned with or reflect similar periods, styles or subject areas can all be introduced as merchandise. The organiser can locate and order such stock via publishers’ catalogues, book and gift fairs, wholesalers and the internet.

The organiser will normally come across a wide variety of published material whilst researching an exhibition. As a matter of course, loan forms should ask the lender where any reproduction can be obtained, if the exhibit has been reproduced in poster, postcard, video or other published formats. All this information should be carefully logged, so that venues can be provided with full details of existing publications and other merchandise.

For each potential supplier, check:

• Minimum quantity for an order
• Value of a minimum carriage-paid order
• Lead times, to ensure that it is possible to have stock in time for the exhibition and that repeat orders will be fast in order to make the most of any runaway successes
• Ethical or Fair Trade policy (if appropriate)
• Quality of product, by obtaining a sample of the item(s)

Unless there are appreciable economies of scale which make central buying possible, it is preferable for arrangements for the supply and return of merchandise to be made directly between suppliers and venues. With sufficient warning – two months is adequate in most cases – publishers and distributors are generally happy to supply such material at normal discount rates (generally about 35% for books). It may be possible to secure a sale-or-return arrangement with the supplier for the duration of the exhibition, since it enhances the possibility of sales for publisher and gallery at no extra financial risk for either party.

Sale-or-return is the preferred option for temporary exhibitions where maximum impact has to be achieved from the outset. A supplier provides an agreed quantity free of charge at the outset, and takes back any unsold stock within an agreed period and invoices the gallery only for the amount sold.

Operating instead on a consignment basis means that the institution must pay up front and only afterwards does the supplier reimburse it for any unsold stock. An exhibition already represents a significant capital outlay, and an organiser may find it impossible to spend more on stock, especially where there may be a commercial risk.

The budget will determine how far it is viable to develop a range of merchandise specifically for the exhibition. The volumes needed for a range specifically designed for an exhibition will be much larger than quantities for products already available from a supplier. The manufacturer will specify what a minimum, viable, production-run is. The cost of origination will also need to be considered as this comes straight off the bottom line profit. New developments in printing processes mean that some suppliers are able to develop product at lower volumes, but this is sometimes (but not always) at a higher cost.

A specially-developed product represents more of a risk, as it may mean unsold stock at the end of the exhibition?s lifespan that can rarely be sold elsewhere due to its very specific nature. Large stocks of unsold and forgotten exhibition catalogues and related material in store-rooms of museums and galleries show that merchandising for exhibitions is a careful balance between stock and sales. Not only does it cost money to store this material, but also the income-earning potential of the exhibition has been miscalculated. Even for the disappearing breed of galleries that treat publications as part of expenditure on exhibitions, from which any income is a bonus, it must be a disappointment that many visitors have gone away without the souvenirs or information that the organiser has spent valuable time and money on preparing. In the final analysis, organisers have no excuse for ignoring gallery shops that help to pay for their exhibitions.

For permanent collections, related merchandise has a long period of commercial viability. In contrast, exhibitions are temporary and purely ephemeral high points in a venue’s year, and merchandise reflecting an exhibition will have a similarly ephemeral viability at this location. A tour extends the period of viability and puts the merchandise in front of the diversity of visitors that different venues attract, but it also brings its own problems in gearing up each venue in turn to promote and sell unfamiliar material. Merchandise should be marketed in a way that enables the exhibition’s visitors and any other potential buyers to be aware of its existence. Ensure that any press release about the exhibition also mentions its merchandise.

Authors: Kathrin Bisgood (2005), updated by Charlotte Dew (2015)