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Trying to figure out craft show/consignment vs. wholesale


Dana

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I have a huge 3 day show that I have a prime spot rented. I really am tired of doing the shows but this one is a really big money maker. I have a wholesale customer in that area who has shown interest in sitting in for me. My thought was that she would sell her inventory (some of it anyway, she has a whole room filled with product) and then place another wholesale order according to what she needed. That way we wouldn't lose out on the customers that count on me being there every year. I have always plugged her store with every sale and let them know where to purchase more of my candles throughout the year, so it seemed fitting to have her work the show. I thought, that way she could do a quick turn around with inventory and I would at least make some by filling another wholesale order. I would make a lot more by doing the show myself, but like I said I am getting burned out. The store owner thought that I should bring all the stuff I would normally bring, and she would "purchase" only what sells at wholesale cost. So, in other words double her money on a consignment type basis for the weekend. Sounded like a lot of work to me for just wholesale profit. Has anyone else done something like this and have someone else work the show and what type of profit do they make?

Edited by Dana
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Hi Dana,

 

Not sure I understand what you are saying.

 

You mean the things you have made up for your show what ever sells she is going to give you your wholesale price of whatever you charge her and she is keeping the rest of the money?  If that is what you mean...what kind of deal is that?  You know my answer would be "NO WAY".....Just pay her to man your booth.  How would you make out if you did this?  You still have the cost of paying for your booth, so you would be in the hole the way I see it.

 

Trappeur

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Guest OldGlory

I wouldn't allow anyone else to sit in for me at a craft show. If I can't go or don't want to go I would try to find someone to "buy" the space from me and be out of it entirely. And if that doesn't happen I would just let it go. It seems to me that there are a few opportunities for things to go wrong with a situation like you described.

Many years ago I got into a great show at the last minute. I had 4 days to make my product - and it was the most lucrative show I've ever done. If this is a "big money maker" and you have a prime spot, surely the hosts can find a replacement for you if you can't.

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If she wants to sit at your booth and sell her merchandise she should pay you the booth fee.

 

If she sits in for you and sells her stuff along with your stuff, then you can waive the her portion of the booth fee because she is helping you with sales. Anything of yours she sells you keep because you have already compensated her generously for not paying for the booth and for the opportunity to sell her stuff for free.

 

I've done this before and I still got the worst deal. Turns out the girl who ran my booth focused on selling her stuff She ended up making 3 times as much selling her stuff. On top of that she lost some of my display stuff. I was pee-ooohd!

 

Like Old Glory said, this is one of those situations where things can go wrong and you can get burned.

Edited by Candybee
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Hi Dana, I have never done a huge show like this but I have heard they are expensive to enter. If she has shown interest to sit in for you, I think it should be just that, sitting in for you. If sounds as if she will has the opportunity to attend this show without having to pay the cost associated. I'm not sure how you all came to an agreement for her to sell her stuff. However, I think I would've gotten someone else to work the show for me. Someone who I don't do business with in this manner.

 

When you say, she will double her money on a consignment type basis, do you mean she will sell  some of your product as her own, keep the money but then you will make the products for her that she will purchase after the show. Or will she have the option to sell some of your stuff as her own and pay you once the show is over. I'm asking because it was a little confusing.

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Hi Dana,

 

Not sure I understand what you are saying.

 

You mean the things you have made up for your show what ever sells she is going to give you your wholesale price of whatever you charge her and she is keeping the rest of the money?  If that is what you mean...what kind of deal is that?  You know my answer would be "NO WAY".....Just pay her to man your booth.  How would you make out if you did this?  You still have the cost of paying for your booth, so you would be in the hole the way I see it.

 

Trappeur

Yes, Trappeur. You have it correct. AFTER the show, she would "buy" what had sold for the weekend at her regular wholesale price. She was going to pay the booth fee. I originally was thinking she would just sell the stuff she already had in her store...THEN after the show she would need more product in her store so she would probably place a wholesale order. She said NO WAY to that, and came up with this "proposal" of selling product I bring and THEN paying for only what sold. She thought I was crazy, I thought she was crazy. To bad we are friends to boot, lol. I left her a voicemail on Friday (she didn't answer) and explained I didn't think it would work out so I would just do the show and I hoped there are no hard feelings. I have not heard back from her yet...My husband said I never should have mentioned it to her, but she has always wanted to try that show and couldn't get in and since I didn't really want to this time around (really freezing cold and rained last year) thought since I was already signed up she could sell the candles. She has strict guidelines she follows of doubling her money no matter what so to her that was the only way she could see it being profitable. I explained it is a very fast turn around of money so sometimes you just give an inch to make more in a weekend than you would seriously in a month or 2! I was being very generous but she didn't see it that way I guess. I made a mistake and will not ever offer the space to her again!

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