Consignment, do any of you do it?

[QTsmum]

(Sorry for my many, many posts on this board lately!!!)

There's a lady semi-local to me that had a little rustic, cute home based store. Sells handmade items. She is having a 'home party' for her store and was interested in getting product. She will consign but she also will take 20% (And requests 10% off any purchases from me, by her).

Wholesaling (which this is not, but it's a step, right?!) is definitely something I want to get in to. She has NO wax products (candles, nothing. I just do melts & bears)...

Is 20% a reasonable amount? Anyone with any experience with this? It'd be a good way to get my stuff out there a little further. (she's a bit out of town from me but not too far)

[PAgirl89]

I have product in a couple of consignment stores right now. 2 of the shops are on a 25/75 split, 1 shop is on a 30/70 split and the other shop, I pay a monthly space fee and I collect a check of all my sales.

[SuzyK]

I have done consignment in the past and was burned. I wasn't ever going to do it again. I was approached a couple of months ago by a shop near the Oregon Coast. I decided to try again and I am hoping it works out. She takes 20% and that's it. No monthly fee which I think is awesome. I haven't been paid yet but I missed the pay period so I should get my first check from her at the end of this month.

It is kind of weird that she asked you for a discount but other than that, it sounds good. If you can afford to send the products upfront than it's worth a shot. Make sure you read all of the contract before signing it and keep a good inventory of what you send.

[ksranch]

Is the store close enough that you can go there? Is she only wanting to have your items for the 'home party' or permanently?20% is less than most stores expect. Just be sure your stuff is priced right, as in, it should cost more in the store than it would to buy from you - thus the 20% won't hurt you or pull you below what you would wholesale for.

[QTsmum]

She is close enough to drive for sure. I wrote to her suggesting she come here to pick what she would like and I can make an inventory sheet and bring it to her. (This way I can check it out!) I'm asking for more details too! From online, the shop looks cute! In a farmhouse near a bigger city than mine, which is a positive!!

I totally don't mind the discount but find it odd that she suggested it! Lol

I sell clamshells so I don't think there's much of a markup she can do...I guess I'll make more than wholesaling this way though so hopefully it works out! I might be back with some tips on a contract!

Edited September 17, 2013 by QTsmum
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[SherriLynn]

20% is very reasonable. Our consignment stores here charge 25% to 35%. I consign with 2 of my crafting buddies at my store.. I charge them 25%.

[SliverOfWax]

Re: Consignment, do any of you do it?

No way, no how. Long ago I did consignment and the store owner moved my display to a west facing, sunny window. In the summer.

Never again.

[TallTayl]

Everyone needs to do consignment at least once so you can forever remember how suckish it tends to be.

[SherriLynn]

Oh gosh... sorry to hear so many have had problems with consignment. I have consigned for years with 2 large boutiques in the state,,,each of the boutiques last for 2 - 2 1/2 weeks in length. Great experience... great sales... and I'm able to have my product at my store and 2 other places all at the same time. Chaching... I LOVE the month of November

[Candybee]

Another 'no way' would I do consignment again. Been there, done that. Got burned. Never again.

Having said that, I would suggest you do more than have her come to you to select items and browse her store online. You absolutely need to go out there and walk around and take a good look at the shop. See if everything is neat, tidy, and looks fresh and good enough to sell. Is there dust on products? Stuff out of place? or set up helter skelter or in an untidy manner. Ask where will she place your items? What happens if something is stolen or damaged? Who is responsible? When do you get paid? Are you able to pick your product up and cancel the consignment at any time?

Just remember if her shop fails and closes, you may be out of product. Lots of stores, even cute ones, go under and close. If that happens don't expect her to have the money to pay for what she already sold. You need to keep a sharp eye on consigned items and have a plan, contract you are happy with, and a very good relationship. Good luck.

[ksranch]

lots of good advice - but I wouldn't say no way. I know a lot of people have been burned, but not everyone. I started with 2 stores on consignment and am still working with them. But - they are within driving distance so I check on them regularly, and I have a good contract. Granted the contract wouldn't be worth much if they went under - but - when you're first starting out sometimes you have to trust your gut and take a chance - it can turn out well just as easily, especially if you do your due diligence. I contracted for a certain space, set it up myself, and checked on it weekly - pain, oh yes - but you have to start somewhere, and in my case at least - it worked out well. Will I still do consignment - no - but, by the Grace of God, I don't have to anymore. But, I'm glad I did!! JMHO

[deb426]

I've done it a couple of times and have never been "burned" per se but I've never come out ahead either. Between ruined and lost merchandise, stock that sits and sits (my money and time), and the store's inevitable closing, the consignor doesn't stand much of a chance. However, if you happen to find the magic combination, it can work. It is a learning experience, that's for sure. I will never do it again but I am glad that I did try it.