Consignment sales

[Richard Grover]

A retail store in a local mall approached me this weekend about having my stuff in their store on a consignment basis. Has anyone done something like this? What should I look out for? How do you keep track of what you have delievered and what they have sold? etc. Any and all hints would be greatly appreciated. Thanks. I have to let them know by Thursday.

DG Dewalt 788

[Cliffo]

why would you have to let them know by Thursday if they approached you?

that kind of pressure would make me a little leery right off the bat, as they are getting the inventory up front without paying

just having a store does not guarantee reliability and being the Christmas season with the need for inventory makes it sound a little fishy
...they approached you

I'd check them out through the BBB or local chamber of commerce before giving them my goods

just imo

[wood-n-things]

Are they a seasonal store are are they established? If they are there just for the season you may come to look at your product and find they have packed up during the night never to be seen again.

If they are an established store that will be there after the holidays, take a contract with you stipulating charges IE 25% on all sales, who is responsible for theft and damaged goods, they should stand good for damages and theft. When you get paid (how often), and a complete inventory of all merchandise you are placing in the store.

You need to discuss pricing of merchandise. Who set the price? If they set the price you need input on how much they are selling the items for. It will do no good for you if they are trying to sell items that you think will sell for 10.00 if they want to price them at 25.00.

You will need to have everything in writing. A handshake will not suffice. If there is sales tax in your state who is responsible for that?
Those are just a few things I have encountered that can go sideways.

I too would wonder why they gave you a deadline until Thursday. Are they going to want your merchandise after the holidays?

Let us know how it goes.

[Richard Grover]

Thanks for the input. I will check this out. Sometimes you just need an objective viewpoint to see things more clearly.

DG Dewalt 788

[Cliffo]

many years ago in our town a gal opened up a consignment used clothing store, she got into pricey wedding dresses then flew the coop and didn't pay anybody.
it made the news but I don't recall the final outcome, probably the blood outa the turnip ending...that old recollection probably fired my skepticism

either way, best of luck and happy holidays

[Steve_S]

I just went into a new local consignment store with 40 pieces. I'm pretty sure they will be around as they bought the building and remodeled the whole thing. That said, they get 30%, I set the retail price, no rent and no working. I didn't raise the retail from my "show" prices. Not sure how this is going to work out, especially after the holidays.

Steve.

[Jan]

I sell intarsia through a consignment art shop that has been around for a long time. He gets 40% but also sets the prices far above those I thought were reasonable. So far he has sold everything I put in his shop and pays as the pieces sell. His shop is downstairs from one of the most popular seafood restaurants in a very posh snowbird town. Approx. a million customers frequent the restaurant throughout the year and many of them visit the art shop as well. His best recommendation came from our lawyer who has her offices in the same building.

Jan

[will8989]

I would add their take onto the price. We have a store in Annapolis that alot of my husband's turners take stuff to and their take is 50% and that is added onto the price. In essence by not marking up your price, you are putting everything on sale for 30%, only you are the one not receiving the money. If it hasn't sold in a month or so, I would either replace it with something different or remove it all together.

[Steve_S]

I sell intarsia through a consignment art shop that has been around for a long time. He gets 40% but also sets the prices far above those I thought were reasonable. So far he has sold everything I put in his shop and pays as the pieces sell.

I think this is the difference between the shops that have a business model focused on renting space and those that are an actual retail business model.

Almost all of the shops around me that are focused on the rent. Usually the actual business owner is selling something and using the others to keep themselves in the store. The focus on selling isn't really there.

One place I am in that isn't consignment has everyone working a certain number of hours a month in addition to their rent. That really doesn't do well since each of the "workers" only really knows their own stuff and a few others. Not a really sales to make money for the store environment.

Steve.

[Magic]

I've been talked into "on consignment" several times and none of them worked. If they think your stuff is so great then they should buy it like the rest of the inventory. Your stuff gets dirty, damaged and often shoved aside for other things. Magic

[Hawaiilad]

I work with a few shops here on the Island. Some of the buy out right and another I place items there on consignment, which I don't mind because most of their customers come from people here on vacation...there is a fine restaurant, and high end art shops in this area. For the past year I place about 6 - 8 items there at a time and tell them what price I want for the item...the mark up from there. This is not always a good way to sell your items, but in this store everything is high priced and for some reason they have sold nearly everything I put in there. Of course they give me ideas of what sells and that has helped. The other stores buy out right at my asking prices and I'm pretty sure since they are in 4 - 5 star hotels, they also raise the prices allot.

[Richard Grover]

Well, I have deceided to wait until February to see if the store is still in business or not. If they are still around in February I will give it more consideration. I did watch the store over the Christmas season. Some traffic, but not super busy; some nice inventory, but again not stocked to capacity. I guess it is better to have lost a few Christmas sales then to lose everything - so we will see in a month or two if they are still around. Thanks for all your input - some very valuable advise.

DG Dewalt 788

[NC Scroller]

Richard why wait? Chances are since they are still in business they made it through the holidays. Start off small with just a couple pieces. In my mind the sooner you get some of your work in the public eye the sooner you will know it is working.

[Catlyn]

Yeah, Richard, do it and see what happens.
Put one or two things in there, that you think might be a quick seller.
See what happens.

[pokeberry mary]

So good to read this thread! I sell online right now, but have been 'toying with' the idea of putting some things in local shops. Exposure is nice but I think-if you want to sell--you also want to think through 'where' you sell. Is it a nice place? Does it do a reasonable amount of business? Will you be proud of your stuff there? As well as all the $/contract details.

As for taxes--I pay my sales tax quarterly but because I sell online I almost never have sales here in NC where I am living, so its really just a matter of filling out a little form and mailing it back 4 times a year--takes me about an hour to total things up. You don't really pay taxes for non-local sales.

Enjoyed looking at your blog.