for those who do consignments

[dixiegal]

Can you tell me if this is about right. I have a local store wanting to sell my products. He said it would me my choice what I can sell, he'll give me the space. He gets a 30% markup.

I'm trying to figure this one out if, I have a product that normally sells for 8.99 which costs me 2.82 to make On my own I'm making 6.17 for it. Do I just drop my price ( kind of like whole sale I guess but less ) to 6.30 making it a 3.48 profit for me, giving him a 30% markup and keeping my product at the same price. What I lose in sales I would be making up for getting more people seeing and buying my product.

I thanked him for the offer and I told him Id think about it and let him know soon. I did tell him I have plans of opening my own store one day so it wouldn't be a permanent thing and he said he was ok with that I could sell there as long as I wanted.

Edited February 25, 2010 by dixiegal

[dixiegal]

Forgot to mention I was thinking of haggling with him a bit and offering him 25% mark up just to see what he says, but I really don't know what the norm is for this kind of deal.

[Jokerjen]

Most places around here are 20% max. If he wants 30% then he should be buying wholesale.

[LuminousBoutique]

30 is high... unless he can prove he has AMAZING foot traffic and sales. I wouldnt sign anything that requires you to stay if the sales arent up to snuff.

I dont consign anymore, just wholesale now...but when I did I always made sure there was a clause where after 6 months I could pull out if I wasnt happy with the sales.