Consignment Agreement

[TheRogueBaby]

I was approached by a small local children's shop to put some of my wipes cases on consignment with them. We discussed the owners cut, but I would really like something in writing. I have not done consignment before.

Do any of you consign to local businesses? If so, do you have your own consignment agreement? Any advice for me?

Thank you in advance!

[Former_Member]

I managed our family boutique from 10-2007 until 11-2009. We did consignment with local designers. We had a written consignment agreement which I (unfortunately) cannot access right now. However, the way we came up with it was to research consignment agreements on the internet and put together our own agreement from bits and pieces of agreements we found on the net. Some of our designers had their own agreements but they liked ours better. Try it.

[TheRogueBaby]

Do you think I am out of line by asking for an agreement? I will be leaving approx. $150 (retail value) of product with her at minimum, so I am hesitant to not have something in writing. She's a "friend of a friend." But I want to make sure I'm covering myself and my business as well.

[HausofAriella]

Having something in writing is definitely the way to go. It will drastically reduce the chance for misunderstandings on both parts to have it written down so you can both read through it and refer back to it if you have any questions in the future. If she's any sort of business person, she'll agree that having the terms and conditions in writing is a better way to go and won't be offended by thinking that you don't trust her or something.

[Former_Member]

It's a business transaction. GET A CONTRACT.

[TheRogueBaby]

I have a second question, do you think it's wrong of me to get brand labels for my product that I sell there? I have some iron on labels that have my shop name and my blog address (which links you to Etsy shop.)

I was thinking if a client purchased my item at her shop, at least they could come back to my shop to purchase more? Or should I leave them unbranded?

[Former_Member]

I sell at several locations in my area. I have a contract with each one of the shops and I have my own tags on most of the products or I atleast have business cards where my items are. All of my shops encourage the seller to use their own tags so that they can find them outside of the store.

[Former_Member]

I think if you've already shown her your items and they are not branded, you're going to have to ask her if her shop allows it.

[HausofAriella]

I think that branding your items is an excellent idea! That way you'll not only be able to get the consignment sales, but you'll get your brand out there and hopefully have some follow-up business.

[BrushStrokeOrnaments]

NEVER leave your products anywhere without some type of paperwork/agreement. It doesn't need to be formal, but you want something you both can refer to if need be.

I"ve done consignment at several different places. At 2 shops, they both had already prepared agreements that spelled out things like
- consignment period
- % the craft shop took (of agreed upon price); % you would get maybe 25%/75%
- if items hadn't sold in a given period of time, will items be placed on sale?
- how will you get paid - monthly? when you drop in? etc. will they give you a check, cash, etc?
- what happens if items are lots, damaged, or stolen? - most shops say they'll do their best to ensure the safety of your items, but will not be responsible if something happens...

Now, most importantly, log what you are leaving, quantity, etc.
I've actually left items somewhere so long that we both forgot how many items I had left in the first place (and I lost my paperwork) - not a smart way to make $!!!

Have the shop owner (and you) sign and date - and make sure both of you have a copy. If the shop doesn't "do" paperwork, just come with 2 copies of whatever you pull together...both of you sign both...and each gets a copy.

Good Luck!