Consignment Question

[TheWishingElephant]

Hi Guys,
I recently was contacted by a boutique that exclusively consigns with handmade artist. They first asked my consignment rates (I said 40% off) and then haggled me down (to 45%). Then, they send me a request for over $2000 (retail) worth of merchandise. Keep in mind the first month is a trial and they can send back my items at any time. Yikes, I have to say my first impression was to run... fast!

They are reputable and have been in business for a long time - however - I feel like this is super pushy. Especially since they sought me out - not the other way around. I consign with other stores anywhere from 30%-40% and wholesale at 50%. Believe me, I'd love to get a $1000 wholesale order right now. But a consignment order of the heft is scary! I can't help but worry they are taking advantage - What do you think? What would you do?

Thank!!!

[ShopGreyweather]

I would probably try to negotiate a smaller start for a quantity you are comfortable with. Your items are reasonably priced as it is. Once your products are found (and loved for sure because your items are super cute) people will likely try to buy directly from you, which is probably why this shop wants to place such a big order with you. Good luck :)

[Former_Member]

Wow, I wish someone would contact me, I'd work my butt off. You should write down (for yourself) a list or plans of how it could best work out for you and make sure you earn a profit. Also look at their inventory and ask them what sells best...which colors, styles, price range, etc, so you give them what their customers already buy.

[sunshineandvodka]

Great advice Kathleen!
I would also try to negotiate the initial inventory. $2000 is a lot to invest for consignment (my personal opinion).

[WintergreenDesign]

I think since they sought you out that they should be more willing to negotiate with you until you feel comfortable with the deal. Personally I don't know if I would do a consignment deal at that "heft". I would have been more inclined to do a wholesale deal allowing them the option of your purchasing things back at the same price so they're not out any money if your items didn't sell well in the first month.

[Former_Member]

I have my items in 2 consignment shops...I gave them 2 cases of candles worth over $160.00. I also have my candles in a flower shop and they have well over $4,000.00 worth of my candles. (my avatar is part of their display but no where near all) This first month was trial, and they have us on consignment...honestly, I hate it. Because its consignment it leaves us with no money to replenish our supply. We get paid once a month by one consignment store, we get paid weekly by the flower shop. In my opinion, its too much of a hassle. After they sell out, I don't plan on doing consignments anymore. I plan on doing flea markets instead, Its better to get paid upfront so you can continue to buy supply to keep up with the demand

[TheWishingElephant]

Thanks guys! Your insight is really appreciated. I think I'm going to offer a (much, much) lower quantity for the trial period. If they sell quickly, I can always send double. Right??

[Former_Member]

I no longer do consignment unless the rate is more favorable to me and I really want to be in the place. So pretty much, no consignment. I am willing to sell wholesale under other specific conditions. My work is too good to languish and not bring me a worthwhile income. Artists and artisans really need to think these things through.

[Former_Member]

If they want 45% off they might as well wholesale!

[Former_Member]

I do consignment with one shop and wholesale with another, plus craft fairs/markets.

Consignment is good because I get the price I want and they add $ on top, I get paid monthly.

Wholesale is good because I leave there with a check...although it is a much smaller check than I would like.

The fairs/shows tend to be most profitable, but you spend an entire day there hoping for sales.....

They all have their up/down sides. You need to try them all and see what works for you and your family (I have a 4yr old, so shows/fairs are made more difficult).

Good luck!!!