Questions about selling in local shops

[LadyMaggies]

I just made a great contact today - a shop owner of 2 franchise dog bakery/boutiques saw one of my custom dog coats when I was at his store today and loved it. He asked if I only sold online and I told him I did but would be interested in being in local shops. He took my card and gave me his and said he would be very interested in talking to me about setting something up.

I'm beyond excited because this could really open doors for me, but I'm really naïve on how this works. I know it can vary from store to store, but can you guys tell me how you've worked out the details when you've done this? I'd like to have some ideas before I talk to him.

My main questions are:
Do you sell the items wholesale to the store, or do you sell your stock as consignment?
Do you provide the set up (models, racks, etc) or does the store handle the display?

Anything else that I should be thinking about when I talk to him?
Thanks!

[Former_Member]

Hi Rebecca,

I do not have much experience in this area, but I believe the answers to your questions would vary both by the store's interests and your own interests. You may even want to visit one of his two shops to see how your products might fit.

Here is an Etsy link on wholesaling: http://www.etsy.com/blog/en/2013/success-series-wholesale/

And here's a team that might offer more tips on consignment/wholesale accounts: https://www.etsy.com/au/teams/7686/wholesale-consignment-tips

Good luck to you!

[Former_Member]

Rebecca,

Anytime I sell to local shops I do via wholesale sales. That way the shop has their product and is responsible for reselling it in order to get their profit and I've completed the sale.

I don't do consignment simply because its too much of a pain in the butt. Many shops don't look after the pieces and there really isn't any incentive for them to sell YOUR particular items.

With my soap dishes I'll give the shop the option of purchasing a display unit from me as part of the contract.

Just be sure that when you set your prices that you remember that your Etsy price is the retail price and the price that you will sell at wholesale is approximately 50% of your retail price.

Make sure that you get the terms of the contract in writing as well.

Good luck and congrats!

[rhodyart]

I have no advice for you but I hope that more people weigh in with info because this is an area I'm considering going into. I asked similar questions and more specific questions about my own situation on another team that was supposed to be about this very subject and was basically laughed off the team.

[Former_Member]

My headbands are in one local-ish shop (she's about 1.5 hrs away). She sells all locally made stuff. Pottery, soap, maple syrup, jam, her own handmade items, etc. Everything is on consignment. She takes 25%. She's only been open since May. I've sold 4 headbands. Not wonderful but not terrible either. She did all the display stuff. I provided the items, the prices, and a bio on myself/Abigail's Attic.

It's been a good experience. I am hoping more items sell as we are getting into the holiday season and her shop is more established now.

[NancyBags4U]

I have sold in local shops. It's always been on consignment. The consignment fee has been anywhere from 15% - 25%. I look at it as another opportunity to get my items out in the public. My bags move slowly, but my hats have been going pretty quickly.

Good luck!!

[AuntBsAttic]

I only sell wholesale - WON'T do consignment for many of the reasons Crochetgal stated. Most retailers are set up for a Net/30 payment schedule - be sure you are comfortable with this and can afford the upfront supply costs going in. I wrote one contract for an out of state boutique I wasn't too familiar with where first small order was paid on delivery - then Net/30 days. Each of my contracted boutigues have different stipulations as to whether their items are listed on line in my shop, display, and hang tags. All but one are a yearly contract - as I lock in their wholesale cost for specific items for a year. The other is open ended - as it is owned by friends where I use to live -

I do not wholesale to local shops. I do most of my local (within 30 miles of my town) business via private home show parties - and preview events that I schedule. No purpose in cutting profits when I can sell directly myself.

Good Luck!

[Wildarabesque]

My experience is that the shops want 50%. That can make your item really expensive to purchase if you want a decent price for your hard work.