Should i do consignment

She asked me to send her 4 more sets of bibs as well. So I happily did, and waited for my check. ABout 2 weeks later, my check had finally arrived. Not much, but it was something, and I just had to think — something was better than nothing right?!?!

I kinda had a feeling things were going to turn out bad. I just had a gut feeling…that I kept pushing aside.

Naturally her cell phone is out of service and she has not once replied to any e-mail since October 30th. Totally sucks. Can you even do anything?? Is it better just to call it a loss?? Being based in singapore, the craft scene is pretty small.

Breaking into international market will be the obvious move. Have seen many online retailers doing consignment but what should I look out for? Can I trust them? What if they do not pay me? I guess the only way to look out for is what other consignees they have. As someone new in the market, I am definitely on the lookout for new stores to break into but there is always a risk involved. We had a craft guild that operated a retail shop for its members on a consignment basis..

Worked very well because everyone had a vested interest.. I have sold wholesale for quite a long time, have never worked on a consignment basis. If a shop owner is excited about your work they should be willing to purchase it…Maybe start with a few items of a new product to see how it sells but artisans have to make money and even waiting 30 days to be paid can be problematic.

If you are just starting out put some time into your presentation, get a good booth together and go to a wholesale craft and gift show or maybe your local farmers market to test the waters.

Stores will find you if you have something that fits their style. AND they will buy. There is another alternative to the consignment of goods — what about shops that have a variety of different craft based businesses under one roof.

You stock, display and set up your space as you like it. Then the shop provides all of the retail support staff to ring transactions, answer custom questions. You are in your OWN small business for just a fraction of the cost of owning your own brick and mortar store. Usually rental agreements are for 6 months to one year — depending on the big shop owner.

It is a great option for customers too because they get to see a BIG VARIETY of different booths so there is something for everyone and the spaces are maintained and always look fun, fresh and unique! This is a very good point! Now I just want my stuff back, and have e-mailed twice to no response whatsoever. Lesson learned.

I have done consignment in the past and have also dealt with shop owners who have forgotten to send payment for items sold. I have toyed with the idea of doing consignment again in my city, but was wondering if it was even worth the trouble, especially since many stores seem to keep the same merchandise in stock for long periods of time.

Mika, that sounds like traditional retail with terms to me. In traditional retail you would pay the entire invoice 30 days after the items were received. This is a twist on it with the retailer only paying what has been sold. The consignee is definitely getting the short end of the stick there. Having said that, it was the same arrangement I started out with in the second scenario that ended well, but we also agreed that any re-orders would be prepaid, which was fine.

The right fit is key whether in consignment or retail. I almost dealt with consignment shops, but they always wanted me to offer a lower price. I did sell through a local boutique that I paid a small monthly fee and the owner paid what sold each month. I focus my energies on direct sales. I absolutely agree with April in that you best represent your items.

Or what the thoughts on those are. Excellent post! Thank you! Thinking about wholesale and wonder — what is the standard percentage of retail that the owner pays?

Rental space is very common here so I get a little scoop from my friends. They also are concerned about the perceived value of their items if the booths around them are not as well done. I also wonder about deal sites — like groupon.

Is that a good kick starter? I find the whole thing disheartening and think about giving up! Thank you again for such a helpful post. But then she started changing things… and all of the sudden everything we had in stock she had discontinued and was selling off for less than what we paid her wholesale for. She refused to buy back our stock, and because of that we took a hit.

I still have items that she no longer makes and as such no one wants to buy.. So it really works both ways. There are retailers, especially small ones, that are willing to take a chance on locally produced products.

Mostly good. They had put my things in a model apartment. How was it going to sell there? It was there to be sold, not to be put on loan to an apartment building for thier model unit. They also lost a piece. I did get everything back and apid for the items they lost. But what I learned from that was that you really need to check on your items often when they are in consignment shops! This has been fascinating to read, but I feel I do need to make a comment…. I am both a Gallery Supervisor and jeweller who sells in the gallery and online as well.

I know there are a lot of businesses that have a bad reputation for not paying on time etc etc, but A- it is the responsibility of the crafter to research their reputation etc, and B- a lot goes down to experience and learning sometimes the hard way. The Gallery i work in sells work mostly through SOR sale or return, or by consignment , and only a couple of our jewellers and ceramicists are bought in.

Our gallery is reputed and pride ourselves on paying on time, answering queries etc and returning work if asked, keeping stock levels up and selling work well. We want to make money too!

My comment has to do with shoplifting. If The jewelry I have on consignment in a store gets stolen by a shoplifter Can I press charges? I own the stuff that was stolen. If your small business does not have its own shop or physical place to sell goods, an option could be to sell your products on consignment. To strengthen their stock, many retailers are willing to accept new items on consignment. You would effectively be lending a store your products to sell on your behalf.

A consignment contract differs from a wholesale deal in that you are not selling your products to the store. The principle benefit of consignment is that it enables small businesses to sell their goods without the expense of having their own storefront. Consignment gives small businesses the opportunity to sell their goods without having to pay rent on premises and staff.

Instead, the consignee pays the costs in return for compensation when the products sell. As well as being able to sell products on a physical sales floor, a consignment contract puts your products in front of customers and prospective customers, thereby raising awareness of your brand and products. On the flip side, if a small business owns a shop, selling on consignment allows them to sell a wider range of products.

This can attract more customers and help differentiate them from the competition. Any small business that sells products which could be physically placed in another store could potentially use consignment to their advantage.

Businesses specializing in clothing, toys, accessories and other popular store items, can do well with consignment contracts. Moreover, make sure to receive a receipt for the items brought in, as well as a statement at the time of payment showing what sold.

Ask what type of insurance they have particularly if you are selling valuable items like jewelry, antiques or artwork. If the store owner has no theft or fire insurance, think twice about placing your products with that store.

Check if the store has fire alarms and water sprinklers to protect the items in case of fire. Choose a store owner who is willing to protect your items, even to the extent of providing locked cases for valuable products.

Lastly, be sure that you know every little bit about your product. Inspect the quality of your merchandise, making sure that there are no stains or tears if you are selling clothes or cracks for porcelain items. When you hand over your merchandise to the store owner point out that your items are in pristine condition.

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An erroneous code was put on the page and cut off the 11 tips. Your comments are much appreciated. Great Article. I am agree with your point of view, it is important to match your products with store.

Goods are always treated and protected by owner. Awesome article. Great tips for retailers they have to maintain products before their consignment. My wife has been talking about selling some of our old furniture through consignment, and I had no idea what she meant. Now that I understand what it is, I think it would be a great idea!