Retail
Collections-holding organisations undertake a wide variety of retail activity. In the majority of cases, this activity is used to drive income back into the delivery of services by the museum, library or archive, which itself remains a non-profit organisation.
There are legal and tax implications for charitable organisations conducting primary-purpose trading, and you should always ensure that you seek appropriate advice before entering into commercial retail.
Basics of Retail
Retail can be defined as the exchange of money in return for goods and services. the key piece of legislation in this area is the Sale of Goods Act, which holds that:
The Sale of Goods Act and the Supply of Goods and Services Act make it a legal requirement for every business to ensure that the products or services it sells meet minimum standards.
All goods you sell must:
- correspond with any description given - verbally, in writing or in an illustration
- be of satisfactory quality
- be fit for their purpose
All services you supply must:
- be carried out with reasonable care and skill
- be carried out within a reasonable time and for a reasonable charge, unless these matters have previously been agreed with the customer
Source: BusinessLink
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Types of Activity
A majority of retail activity in collections-holding organisations involves the re-selling of products direct to customers through an onsite retail outlet such as a museum shop or kiosk. These products fall into two broad categories:
- 3rd party products which are sold to the organisation, and then sold on by it to visitors
- Products which are developed by the organisation for retail
The type of activity you are likely to undertake depends to a great extent on the scale of your operation. Product development requires significant resources and supporting expertise (such as marketing and project management), and so many smaller organisations tend either to re-sell 3rd party products or to work in partnership with external companies to develop site-specific products.
AIM Focus Papers
The Association of Independent Museums publish a number of hard-copy papers on retail and related activities. These include a paper called 'Retail Guidelines for Small Museums'. To obtain a copy, contact Diana Zeuner.
Museums Association Guidelines
The Museums Association publish a set of guidelines to ethical practice in Commercial and Trading Activity for museums.
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