SpunkyMoo Posted December 23, 2011 Share Posted December 23, 2011 I've been selling to one boutique as a wholesale customer. But today she offered to sell my candles as consignment. I must admit that the idea of having to pay for candles supplies, etc. upfront with the possibility that I won't get my money back if they don't sell there is kinda scary. Are there other benefits to consignment? I would love any advice- Thanks! Quote Link to comment Share on other sites More sharing options...
Candybee Posted December 23, 2011 Share Posted December 23, 2011 Why do they want to start a consignment if they are already buying wholesale from you?!! Quote Link to comment Share on other sites More sharing options...
SpunkyMoo Posted December 23, 2011 Author Share Posted December 23, 2011 Well, here is what I'm thinking. She just opened this boutique up this month. Her business has been very slow; in fact, she said the only thing she is selling right now are my candles. So, I think she wants to restock my candles with a much bigger inventory, but does not have the cash to buy 100+ candles upfront. So, I guess this is more of a benefit to her while her business is growing. I'm not sure how much of a benefit it would be to me... Quote Link to comment Share on other sites More sharing options...
HorseScentS Posted December 23, 2011 Share Posted December 23, 2011 The scary thing about consignment to me is if your candles are shoplifted, you don't get paid for them. Is there a way for shop owners, who take your candles on consignment, to contractually agree to compensate you for any missing candles? Quote Link to comment Share on other sites More sharing options...
SpunkyMoo Posted December 24, 2011 Author Share Posted December 24, 2011 The scary thing about consignment to me is if your candles are shoplifted, you don't get paid for them. Is there a way for shop owners, who take your candles on consignment, to contractually agree to compensate you for any missing candles?Agreed! I would love to hear an answer to this question. Quote Link to comment Share on other sites More sharing options...
PAgirl89 Posted December 24, 2011 Share Posted December 24, 2011 I do consignment with my candles and the shop owner gets 25% on each sale. If products are stolen or missing, she keeps 50% and gives me 50% of the retail price on each item missing. Quote Link to comment Share on other sites More sharing options...
CaftCandles Posted December 24, 2011 Share Posted December 24, 2011 Is there a way for shop owners, who take your candles on consignment, to contractually agree to compensate you for any missing candles?To protect yourself from this problem all you need to do is write up an agreement outlining everything, including that the store is responsible for the security of your products and that they will have to compensate you for anything lost, broken or stolen. Some people are nice enough to only charge the the cost of the materials but personally I don't. Full price is the only way I would agree to a selling on consignment because the store owners or workers will sell them to friends and family and tell you that they were stolen. If I put something on consignment it is because I want full price minus any commission that the store gets or I want my products back so I might sell them in another location and not provide some people with discounts or freebies.IMO, the best way is a well written agreement, it dosent have to be written by a lawyer, just needs to be well thought out, specific, written and signed by both parties. Quote Link to comment Share on other sites More sharing options...
Kitn Posted December 24, 2011 Share Posted December 24, 2011 Write up an agreement that states who is responsible for theft, damage etc. Quote Link to comment Share on other sites More sharing options...
Candybee Posted December 24, 2011 Share Posted December 24, 2011 Well, here is what I'm thinking. She just opened this boutique up this month. Her business has been very slow; in fact, she said the only thing she is selling right now are my candles. So, I think she wants to restock my candles with a much bigger inventory, but does not have the cash to buy 100+ candles upfront. So, I guess this is more of a benefit to her while her business is growing. I'm not sure how much of a benefit it would be to me...If the shop is new and has no business why do you think the candles will sell? Personally I don't do consignment. Used to in the past but not anymore. Even if you have a well written contract are you legally prepared to go after her if candles turn out missing or damaged? Also, many shops are closing or going out of business in this economy. If that happens you won't get your candles back no matter what. Something to think about.A shop owner is not invested in consignment items the same way they are in wholesale. With wholesale they will make the effort to sell your candles so they can make their money back.I don't know about you but just reading your post that she has a wholesale account with you but wants to do consignment with your candles sends a red flag to me. Why consignment, why now? Because its a new shop, because she doesn't have enough customers? She's not selling enough inventory? All bad signs. JMO Quote Link to comment Share on other sites More sharing options...
blacktieaffair Posted December 24, 2011 Share Posted December 24, 2011 (edited) Mine clearly states that on consignment, I check inventory at least twice a month. ANY lost, stolen, or broken items are to be paid back to me, immediately, for their wholesale price.And while yes, this does raise red flags to me that she wants to go from wholesale to consignment, IF what you are saying might be her reasoning, is in fact her reasoning... I'd just sit her down and explain that since your stuff is all that is selling right now, while she can't risk investing tons of money into stock , you can't risk purchasing so many supplies upfront with no guarantee. Keep the account as it is, wholesale, and keep making things as needed. If you were larger and could order more stock at a time, great, but if you can't, you can still keep a steady flow in and out. Edited December 24, 2011 by blacktieaffair Quote Link to comment Share on other sites More sharing options...
SpunkyMoo Posted December 24, 2011 Author Share Posted December 24, 2011 Thanks for the input, guys. You all just confirmed my feelings on the subject. It's just way too risky, and while she is a really nice girl just starting out with her business, I have to look after my business too. Wholesale, it is! Quote Link to comment Share on other sites More sharing options...
pleasureridgecandles Posted December 28, 2011 Share Posted December 28, 2011 I won't do consignment any longer. I tried it once and it was horrible. Maybe just the person I was dealing with, but, it was much more of a headache than I care to deal with. Not only did I constantly have to contact the owner as she always seemed to "forget" the pricing agreed on each product and owe me money, I'd have to have her recheck her inventory as her numbers NEVER matched up with mine. The products were always "found in the back stock room" so the numbers would end up working out but I felt like basic math was not a strongpoint with this person. She ended up going OOB and I had to go get the rest of my product. Not a headache I care to ever deal with again. I agree that there's a red flag there if she was doing it wholesale and now wants to go consignment. I agree with you as you need to look after your business first. She may be nice and all but it's your money and your product on the line. Quote Link to comment Share on other sites More sharing options...
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