Friday, June 25, 2010

Selling Your Products Using a Consignment Shop

Depending on the craft you make, design or create, a consignment shop could be a good way to get your products available to the general public.  Be very selective whom you choose because once you agree to place your items in their shop, it’s very hard to end that relationship without some animosity toward the departing party. Ask around your community to make sure they have a good reputation among the community and among other consignee’s. 

Again.. Go to their shop as a customer first, to see how they treat you.  Do they ask if they can help you?  Offer any suggestions?  Do they favor a particular designer or do they have monthly featured artists? Do they advertise? How’s their customer flow?  Ask the questions now because it will be too late once they have your products.  Typically most consignment shops will have an agreement if they don’t I would draw one up just so that you can define your relationship before any problems come up. Things to include would be how/where your items will be displayed, a begin/end date (even if it is auto renewing), information on your prices (whether you place prices on them or they will) and price increases/decreases (sales), payment terms (how much, when and what form..i.e. check), and have a exit policy or something that states how you will end the relationship. Include a place for both signatures.

Most consignment shops will charge fees ranging from 20-40%. They will be using their own supplies to wrap (bags) your items, pay applicable taxes and advertising to bring in the customers. Remember this:  “Do not consign anymore than you can afford to lose”.  If the consignment shop decides close up shop you could lose everything consigned. I have heard nightmares from other crafters who had their whole inventory wrapped up in one shop only to have them go out of business, taking all their products with them.  You will not get paid until your items are sold.  Track your own items. Do not depend on the consigner to do that.  You both should have your own list of what’s in inventory and what has sold.

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