Consignment Rates

[Candybee]

A friend of mine and I went out this past week to check out consignment shops for her craft items. Many of the shops had the split at 60/40%. 40% going to the shop. I thought the going rate was 25-30% to the shop with 30% being on the high end for consignment.

Am I wrong? Has the consignment rate gone up or is this something local. The shops we went to were in neighboring townships up and down the local state highway.

40% seems so high to me. When you think about it that is only a step away from wholesale pricing.

[Lorrie]

The most that I have seen in my area for consignment is 20%. But I have heard some places depending on your craft can take up to 50%. Yes I know it is wholesale but when each party is happy then I guess who cares. I personally wouldn't do more than 30% but that's me.

[Candybee]

I'm canvasing for retail accounts and she is too but she is willing to do consignment. So we started going out together and when we came across consignment shops that was the split they were taking. I wouldn't do it as I am only looking to sell not consign. But I don't want my friend to get gouged.

One shop mentioned that they had recently raised their consignment and that all the new ones get the 40%. I am thinking that these shops may be contacting each other to find out what each is charging and then raise their rates to match.

[Lorrie]

What does your friend make?

[TheWickedWick]

I have one shop were it's 25% for the shop. I sell so-so there but it's only tarts as she makes her own b&b products. In the fall & winter my tarts sell great but now that the weather has warmed up here, it's only so-so. However, where I can sell my soaps, lotions, scrubs, gels, etc. I do really, really well and it's a 50/50 shop. I make more $$ there but it's because of volume and my prices are higher. The shop that sells my tarts retail them for $2.50.

When you're just starting out and trying to get your name and products out there, I'm trying to concentrate on that aspect and not worrying too much on the split. The 50/50 shop has been great as I have been getting special volume orders for bridal showers, bridesmaid gifts and welcome baskets so it's paid off for me.

As I become more "known", I feel I'll be able to negotiate splits with other shops. This is my plan anyway.

[deb426]

My main consignment shop is 60/40. I am the only candlemaker. I do very well there and I just adjust my prices to make sure I get the amount I want.

[LynnS]

I have my candles and tarts in one place.It is 20% and I am happy.

In this area I would go 25% but sure not 40%.

LynnS

[Jane42]

I am only in two shops. Our first shop was 25%, but the second shop wanted 30%. When I mentioned that the other shop I was in was getting 25%, she agreed to 25%. (Apparently, she was carrying a few items that were also in the other shop we were in, so she had agreed to a lower percent to match with the other consignees as well.)

Edited April 26, 2010 by Jane42

[Candybee]

What does your friend make?

This woman is disgustingly talented. She sews, paints, and draws. She sews vintage costumes, does embroidery work, makes adorable tea cozys, and makes the cutest hats. She is also the doo-rag queen making doo-rags for notable rock band artists and biker clubs all over the US. She also draws, sketches, and paints native artwork, christian art, and started handpainting glassware and windows. She does these fabulous window and mirrors with plastic paints and finishes them with leading. They look exactly like stained glass are are gorgeous. She has been commissioned for her stained glass windows in homes and businesses around the area.

We have been getting offers for a lot of her glassware and vases. She has some beautiful handpainted wine glasses and we have been hitting the vinyard and winery circuit along with tourist shops, gift shops, and consignment shops.

[LuminousBoutique]

I wouldn’t generally pay more than 25%.... here I don’t do consignment because there are so many "boutiques" (they are large shows run in model homes, empty retail spaces, so on and so forth.. with a central checkout) they take 15% of the sale.. but in the future I might look into it. It’s funny because I've been living in Utah for almost 3 years but still haven’t actively looked for more local accounts. I guess my brain is still in Washington, lol. If you can raise your prices, 40% wouldn’t be so bad...

Say you are selling an 8oz for 8.95, 25% of that is 2.23 to the store... and that’s not bad, that leaves you with 6.72 which for me is a nice profit if I am selling enough of them... but at 40% you are paying them 3.58 per candle and coming home with 5.37. Almost 1.50 less.. so you could raise your price on the 8oz candle to 10.50 and come out about the same as the 25%. Of course, then your prices are higher and you may lose a sale. Its something to think about.

Edited April 27, 2010 by LuminousBoutique