dixiegal Posted June 19, 2006 Share Posted June 19, 2006 I have a lady that owns a gas station and she wants to carry my injected bears. She wants to sell them and make a 50% profit. I sell them for 15. I dont think in our area they would sell for more, so Id have to lower my price to 10 for her to sell them for 20 so she could make 10 per bear but I would only be making about 5 per bear. I have never done anything like this before but it just doesnt sound right to me. Have any of ya'll sold this way and if so how much profit did the store owner make compared to you.TIA Quote Link to comment Share on other sites More sharing options...
Bunny Posted June 19, 2006 Share Posted June 19, 2006 Totally depends if she wants you to wholesale them to her or to put them on consignment. For wholesale, jump on it, for consignment, barter a better deal. Quote Link to comment Share on other sites More sharing options...
dixiegal Posted June 19, 2006 Author Share Posted June 19, 2006 Totally depends if she wants you to wholesale them to her or to put them on consignment. For wholesale, jump on it, for consignment, barter a better deal.I guess it would be consignment, she wants me to stock the shelves and she doesnt pay till they have sold Quote Link to comment Share on other sites More sharing options...
guppygirl Posted June 19, 2006 Share Posted June 19, 2006 I guess it would be consignment, she wants me to stock the shelves and she doesnt pay till they have sold50% is way too much for consignment IMO. If you decide to do it you may consider finding/putting together a consignment agreement covering things like how she would handle if any of your product got broken (you may assume she would pay for it, she may assume that it's not her problem), or if your product counts don't match up (say she had a shoplifter!) Good luck! Quote Link to comment Share on other sites More sharing options...
dixiegal Posted June 20, 2006 Author Share Posted June 20, 2006 she said she would pay if they got shoplifted. Im thinking about my time,injecting, packaging,driving there to restock or change stock ect. If it was candles they might sell better, but for me to even make 5 pr bear she would have to raise the price and I just dont think they would sell enough to bother at that kind of profit. LIke bunny said if she was buying them outright so I could just drop them off and be done, it might be ok, but even wholesale got 2x the cost of making I thought( maybe Im wrong) With her making 50% and me 10% it just sounds like Id be getting the raw end of the deal. So I guess Ill be calling her tomorrow and telling her no thanks Quote Link to comment Share on other sites More sharing options...
pinetreecandles Posted June 20, 2006 Share Posted June 20, 2006 You doing all the work and her making all the profit....My answer would be no thank you! Quote Link to comment Share on other sites More sharing options...
CSAS Posted June 20, 2006 Share Posted June 20, 2006 Just my 2 cents.If you sell them to her for $10.00 and you are making $5.00 profit from the deal, that is pretty much wholesale pricing. She will be making $10.00 from a sale, which is twice what you are making, but that is how the whole wholesaling gig works. The retailer makes more than the manufacturer (because we, as wholesalers, are selling in quantities). I believe this is what I read in your first post.Also, consignment, is a tough decision. Here's what can and probably will happen. Your items will sit on the shelf and if not taken care of properly will collect dust. (First hand knowledge) If something gets messed up, she most likely will not bring it to your attention. Therefore, this may deter sales. And, if for some reason you have a disagreement or a situation arise, you have to go and pack up your stuff.She is not putting anything at risk, but making all of the profit. If you are still thinking of doing this, I suggest a 25% consignment. That is my rule of thumb. If they want 50%, they need to purchase wholesale and take the risk of the items not selling. You could put it to her like this. You will do consignment at 25%, and if she (the gas station lady) decides that they are selling well enough to purchase wholesale, that's where the 50% comes in. You can then sell to her outright.Consignments, have always been a big pain in the butt for me. Others may have some glory stories here, but I know there have been some horror stories. HTHTracy Quote Link to comment Share on other sites More sharing options...
Saltbox Pantry Posted June 20, 2006 Share Posted June 20, 2006 I agree with Pinetreecandles. You have to at least make 2x your cost. If you don't, let the lady know it's not possible after adding up all the cost and such, your barely making a profit. I have told some store's that on certain items. I can't sell wholesale. I sell it strictly out of store.SP:cheesy2: Quote Link to comment Share on other sites More sharing options...
dixiegal Posted June 20, 2006 Author Share Posted June 20, 2006 thanks everyone, 25% sounds much more reasonable. Ill call her today and run that by her if she says no its no biggy Quote Link to comment Share on other sites More sharing options...
Candlewitch Posted June 20, 2006 Share Posted June 20, 2006 30% is also fair. No more then that though. Quote Link to comment Share on other sites More sharing options...
Crafty1_AJ Posted June 20, 2006 Share Posted June 20, 2006 Another concern of mine would be if they will stay nice. Is this an "upper class" joint? Or are your products going to be picked up with greasy, gasoline-scented hands? Will they start to smell like gasoline? Etc. Hope this food for thought helps. Good luck in whatever you decide! Quote Link to comment Share on other sites More sharing options...
pamperme Posted June 20, 2006 Share Posted June 20, 2006 Ok..I owned a consigment shop and I also live fairly close to Amish Country which is HUGE on consigment and I have checked it out myself to put stuff there..50% is good if the stuff is USEDHOWEVER, most consignment shops in Sugarcreek and surrounding areas of OH charge a monthly fee PLUS 25-35% on top of that. I checked on a space in a huge craft mall and it was $125 a month plus 25% ..NO WAYThe fact that she wants 50% is not that big a deal if you think about the fact that your retail price should be double your wholesale cost which is double your actual cost to make it..so if it costs you $5 to make it..wholesale should be $10 and retail should be $20 or $19.95 (which sounds cheaper even though it is only $.05 difference)DO not put anything in a consigment type shop or agreement without a document of some sort that both sign! It should state who is repsonsible for theft, damage etc. WHEN $$ is paid out..how long the items are to be displayed, and those types of things. COVER YOU BUTT! and protect it as well.Me and another consignment shop owner tried to tell this to another shop owner to help her out and she did not listen and got sued by 3 people for getting rid of their stuff without their permission. She said it was a verbal agreement but both sides said something different..gots to be on paper with signatures.Do not be scared by consignment it can be very profitable just make sure you cover all your bases before you start. Quote Link to comment Share on other sites More sharing options...
boggled Posted June 20, 2006 Share Posted June 20, 2006 I have a few my goods in a few consignment shops. Personally, I prefer the wholesale route. you get the money right away, as apposed to waiting for them to sell, it also ties up alot of your merchandise.I will not do consignment for more than 30%. Quote Link to comment Share on other sites More sharing options...
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