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Might have gotten burned on Consignment


crazzie

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I signed up with this shop for consignment. In the contract it stated on the 15th checks will be written. So far no check. Owners cell phone disconnected, home phone disconnected! Finally he called and said he had my check and I ask where. It was at home. It's not much he said you sold a handful of items! I instantly went to the store and gathered all my items. His handful of items comes to 275.00! I told the sales clerk I just wanted to get my check and she said oh you will! I just took my items there December 11! We will see if the check is in the mail! Funny, how when he was hunting me down he had a cell phone and would call me everyday! Another lesson learned - I should have read the reviews on the shop before I went in!

Edited by crazzie
typo
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I am so glad after reading this I told a florist NO to consignment- I feel for you!

I wouldn't mess around with this one- check your states lien laws and put a lien on that store ASAP

In our construction business I have to do them often- people think they can get away with hiring you and not pay which is BS!

If he rents that building he will be in HOT water with the owner when a lien comes thru- it costs very little and all you need is the legal description of the property and amount owed to you- here in MI we have 90 days from last day on the property to file and I only give 45 days before I file

Your products being in his store that he signed a contract for I would think constitutes a right to lien

The florist I told no to consignment was originally supposed to be wholesale and she decided it would be best for her to do consignment just starting up the business- I almost did it but my husband was NO WAY- and the owner got a little pissy about it but agreed- well she ordered 15 melts... That is not even worth my time!

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In our construction business I have to do them often- people think they can get away with hiring you and not pay which is BS!

How true it is! In our state we aren't allowed to take any profit from draws or payment stages but must pay wages of employees and materials. Only on the last and final draw after all sub contractors/materials/permits are paid can the Contractor take his/her profit. Many times that last payment was delayed. I also sent out many lien waivers. It lights a fire and they pay real quick....in most cases. I gave 30 days to pay before filing lien.

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When I enter a new consignment contract I only stock a few items. I tell them it is to see what customers are trending toward. I then will add as I feel comfortable. I keep an eye on the and contact them to check and see if they need more (aka checking up on them). If they are late with payment a red flag pops up and I contact them. I have only had one shop that suddenly was late on a payment. She had complained the last time I was there that sales were slow. I decided to pull my stock. She went out of business the following month.

In your case I would consistently keep contacting the person and ask for your money. Even offer to come to their home and pick up the check if they are too busy.

I have 4 consignment accounts that I do not have any trouble with. They are reputable business owners. They make up the bulk of my sales. So don't cut out consignment all together.

Of course the bad part of consignment is the inventory ($$$) sitting there waiting to sell.

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I'm with NaturallyTru - I have both wholesale and consignment accounts - and both work out well. The only thing I would say about consignment is yes - starting out check up on them regularly - until you form a relationship in which you are comfortable there won't be any problems/surprises. Like she said - don't cut out the idea completely - just use due dilagence and a good contract.

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We dont do consignment either..had a store owner ask me recently here in town...i just laughed..um no....maybe its becuase you steal everyones money and owe all your vendors $$$$$, including me!! She has been in business for over 15 years. Not sure how she stays in business (well i do know why..."snickers" ) But you need to really check refrences I think , talk to the other consigners they had and have now. Basically, do a reference check. You would be surprised how many scams and stealing is out there by business owners, its pathetic and sad. Crazzie, if you dont hear back, maybe make a call to the district attorney and have them make a courtesy call, it has worked for me in the past :)

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Good news . . . I got paid today in cash! I just kept calling and the last time I said I was getting in touch with my attorney. Sad to say I had an $80.00 picnic basket that he sold and now all of a sudden the basket appeared, the basket did make it home with me. So all turned out well. Lesson learned always check online for reviews and also check the circuit court records. Whew!

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crazzie do NOT listen to him! There is NO such thing as dreaming too high! There IS such a thing of people taking advantage (or trying to) of our dreams! Don't you dare stop dreaming!! You wouldn't be where you are now if you didn't follow that dream of yours!

I'm glad to hear everything worked out ok!

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