4. Write up on Rationale of Expenses for Exhibition of
Added on - 16 Sep 2019
1Write up on Rationale of Expenses for Exhibition of 12 artworks that needs to be maintainedfor 3 years.The Costs involved in setting up the Exhibition and maintenance of the same has been summarizedin the table below:Purchase of Artworks and its installation1,16,26,594Annual Maintenance25,13,336Total Costs1,41,39,930I. Purchase of Artworks and its InstallationThe artworks being 12 in numbers is purchased from Hong Kong (7 no’s) and China (5 no’s). Thepurchase price of the same being varied based on its dimensions like height, length and width.Freight and Insurance Premium:As the artwork would not be in frames while importing it from China and Hong Kong, the packingand weight of the same would not be bulky. We would prefer the express delivery options availablewith the various courier providers. We opted for DHL Express because it is one of the trustedbrands worldwide. Also, comparatively the freight prices are economical. We did not choose searoute to get the imported goods to save time cost as the plans for exhibition needs to be executedimmediately. The Freight and Insurance costs has been arrived at from the company’s rate chartgiving the basic details like destination of goods, weight of the article and box package size.However, the calculations excluded the applicable taxes.Import Duty and VAT:In United Kingdom, the Import Duty on Artworks is not applicable. However, VAT at the rate of5% is applicable. The VAT is applicable on the Landed Value which is sum of Purchase Cost,Freight and Insurance Premium.Handling Fees:The broker handling the consignment charges a fee for rendering services of clearing the goodsfrom port, paying import duty on behalf of the customer etc for which he charges a service feepopularly known as handling fees. This is incurred to ensure smooth clearance of the consignmenttakes place. 2000 is the average charged by the handling agents for consignments of this size.
2Framing and Installation Charges:The consignment of artworks is received in painting form. It is not framed as it increases the weightand also chances of breakage is high due to possibility of mishandling. Therefore, after taking thedelivery of goods, the artworks is to be framed as it cannot be displayed without framing. TheFraming cost has been estimate based on the online vendors prices in UK. The best and most sellingframe’s cost has been considered based on the dimensions.Art Consultation Fees:Art Consultation Fee is the most important component as the success or failure of the venturedepends on it. All the art work right from placing of the frames to the lighting is designed by the artspecialist. The cost has been taken at 1000 per frame.II. Annual Maintenance of Artworks:After the installation of artworks, its maintenance needs to be taken care as the exhibition isproposed for a time period of 3 years. The expenses can be divided into 2 parts:1. One time Cost2. Recurring CostOne Time Costs:This includes the cost which are incurred only once. There is no recurring cost involved year onyear. All the furniture and fittings comes under this category of expense. This play an important roleas the exhibition’s view depends on the beautification of the premises as well. A café is alsoplanned to attract the customers of exhibition to taste different flavours. It needs to be made surethat good quality and high attractiveness is met. All the furniture and fittings are proposed to bepurchased from one of the leading supplier of furniture for restaurants/café. The prices are based onthe quotes provided by him. Also the same is verified on the website of other suppliers to concludeon the best offer price.Recurring Costs:a.Advertisement Cost: Advertisement Costs are important in modern day scenario. It givesinformation about the classified to its intended audience. It may be through various meanslike newspaper advertisement, radio and television advertisements, digital means like socialnetworking sites, mailers and many others. However, it is not economical and generally