Lancer Gallery LLC is a firm that sells South American and African artifacts, jewelry, and pottery. They began as a trading post in the early 1900s and now rank among southwestern’s best-known traders.
The company has a rich history, and their sales representatives are very knowledgeable about the products they sell.
The company has a sales department that is responsible for making sure that all of the products are sold properly and that customers are satisfied with their purchases. The Sales Department is divided into two divisions: the Retail Division and the Wholesale Division.
Lancer Artworks, Inc. is an art supplies manufacturer based in Phoenix, Arizona, with distribution throughout the United States. Lancer decided to expand its product lines in 2001 by creating replicas of genuine artifacts. Finally, Lancer is doing very well financially, with gross sales of $35 million and a 20% year-over-year increase. The main issue the Lancer Gallery has faced is whether or not it should convert into a company that mostly produces replica goods.
The market for art is very unstable and can be quite fickle at times. Lancer needs to decide if they want to stay true to their original mission, or if they want to venture into unknown territory.
The Lancer Gallery is a successful business, but is facing a decision about how to move forward. The company makes replicas of artifacts, and is considering whether or not to focus more on this aspect of their business. The market for art is unstable, so Lancer must decide if they want to stick to their original mission or take a risk in a new direction.
Jan 2010, Lancer was approached by a large department store chain with an offer of $4 million/year to replicas triple the amount of artifacts. The head gallery owner, Andrew Smythe is now in a huge dilemma as this would be a great addition of sales due to their growth during the recession.
However, the Vice President of Sales, Jessica Smythe-Smith, has brought up some interesting points. She states that if they take on this project, it will cut into their current profit margins by 30%. She also argues that the $4 million is not worth sacrificing their current relationships with other clients and vendors.
The Lancer Gallery was founded in 1985 by Andrew Smythe. It is a replica art company that sells to museums, art galleries, and private collectors. The company has been doing well, but due to the recession, their sales have decreased by 5% over the past two years. Their main source of revenue is from replicas of paintings and sculptures. In 2009, they had $16 million in sales. If they take on the new project, their sales will increase to $20 million. However, their profit margins will decrease from 20% to 14%.
However, if they choose to become a firm that simply copies items, it will have a significant influence on their current dealers and clients, since Lancer has built a name for producing high-quality relics over time. Accepting this agreement might damage their reputation and eventually lose their existing distributors. There are also secondary issues; Lancer has a limited stock of artifacts, competition has risen in recent years, and revenues have been dropping owing to the economy.
Lancer Gallery is a successful company that has been in the art business for many years. They supply high quality artifacts to dealers and customers around the world. However, they are now considering accepting a contract to create replicas of famous artifacts for a department store chain. This could be a great opportunity for them to increase their sales and division, but it could also have a negative effect on their reputation and business.
What should Lancer Gallery do?
There are several options that Lancer Gallery could consider in this situation. They could:
– Accept the contract and create replicas of famous artifacts for the department store chain. This would increase their sales and division, but it could also have a negative effect on their reputation and business.
– Reject the contract and continue to supply high quality artifacts to dealers and customers around the world. This would maintain their current reputation and business, but they would miss out on the opportunity to increase their sales and division.
– Try to negotiate with the department store chain to create replicas of less famous artifacts, or to create replica products that are clearly labeled as such. This would allow them to increase their sales and division without sacrificing their reputation.
For example, if you own a chain of restaurants and want to sell your products online as well, simply create a new division in which you exclusively replicate items. They may keep loyal to their current distributors while also honoring everything stated in the contract. Another option would be to simply renegotiate the contract again. If Lancer Gallery refuses to establish themselves as a business that mostly creates and sells replicas, there are only two more options: close down the firm or change and make modifications.
Lancer Gallery is currently in a bit of trouble. Sales have been declining steadily over the past few years and they are now at risk of being forced to close their doors for good. The main reason for this is because their main source of income comes from selling high-end art pieces to wealthy buyers. However, as the economy has begun to decline, fewer people are willing to spend large amounts of money on art.
One way that Lancer Gallery could try to increase sales would be by creating a replica division. This way, they could sell copies of their most popular art pieces for a fraction of the price. This would allow them to reach a wider market and potentially increase sales. However, doing this would go against everything that the company stands for.
If Lancer Gallery is unwilling to make replicas, then their only other option would be to close down the business. This would be a shame, as the company has been a staple in the art world for many years. However, if sales continue to decline, it may be inevitable.