Is Consignment a bad word?

[Former_Member]

Hi everyone - hope you don't mind but I need to vent a little.

I recently opened my new shop online (http://www.pulpsushi.com) and I've been looking for more handmade vendors to approach about consignment but it seems challenging as a lot of sellers will do Wholesale only.

I totally know and understand how it feels to be on the other end of things and being approached by strangers asking for my stuff to sell. I really wish I had the budget to purchase all of my inventory Wholesale. My long-term goal is to eventually turn it into a B&M store but launching online first I felt was a good starting point for me but I'm still faced with this challenge.

How do other business owners do it?

[simplysparkledesigns]

HI...

Just joined this group in hopes of getting sample wording...I haven't consigned my jewelry yet, but did a lot of Google searching for some wording and tips for what to include...

If you are considering consignment, always make sure that the shop owner has a consignment agreement or you should have one available. It saves you from all confusion and lays everything out and both parties sign them.

I've Googled "Consignment Agreement" and "Consignment Contract Sample".

I also went on Amazon.com and found a couple of books I'm hoping will be of great use...I received one of them today, but haven't started reading it yet so I can't tell you if it is good or not, but at Amazon.com you can peek inside the book. It comes with a CD (and the tech staff of Nolo said that the CD works on WIndows 7).

The book is called "The Craft Artist's Legal Guide" Protect Your Work, Save on Taxes, Maximize Power. By Attorney Richard Stim.

[Former_Member]

pulpsushi congratulations on starting your online store.

I have had great experiences consigning my candles but I do not send anything out on consignment unless I can actually visit the store.
But, I had an idea(I have been thinking about this myself)…since it is online could you just ‘consign’ the space – meaning the people would still physically hold their own products but it would be listed on your store website. When it sold they would be responsible for shipping it out themselves. You would be paid for the item (and to have it shipped) then you would pay the consignor at the discounted price.

It could open a whole other can of worms but you would have a disclaimer on your website that they are being shipped from the creator or artist themselves, everything must be mailed with a tracking or confirmation number and of course some sort of an agreement that all items must be shipped within a certain period of time.

This option may give people a chance to get familiar with you and your store and as you grow people will eventually feel comfortable enough to consign.

I hope all that came out right and good luck :)

[Former_Member]

Your website is completely adorable, so I think you'll be very successful.

Personally, I never do consignment. Tying up my inventory, no upfront payment, and the possibility of my items being stolen and / or damaged is not something I want to get involved with. Am strictly wholesale. I'm not hardcore against consignment, if it works for other, that's obviously fine, I'm not going to talk anyone out of it, it's just not for me or my business.

If you ever decide to go wholesale, I'd be very happy to work with you.

[Former_Member]

Thanks for the kind words everyone!

Fourteen77, I have thought about that but to be honest I feel like if I'm not in control of shipping an item out myself as soon as it sells then I will panic. I have dealt with flakey people in the past - I know people mean well but they get caught up in things and will forget to do things ya know?

[TheHomespunLoft]

Well I Love to do Consignment. (yes, wholesale is great as you get paid then and there- but in this economy a lot of places just don't have the extra money).
I have my things in quite a few shops on consignment. It works for me. I get about seeing the shop in person.. but I got over than when a shop across the US contacted me. I went with it and it has been fine.

[1AEON]

i don't mind consignment as long as they DO pay on a certain date like on the 1st or the 15th. Also there is 30 net, and wholesale obviously the best..
That sucks when a store can't keep they end of the deal. Unfortunatelly it happens a lot.

[Former_Member]

It is unfortunate and i have been burned but I've also had relationships with great consigners. But yes, the bad ones ruin it for those of us that have sincere intentions.

[normasbath]

I have done both, mainly wholesale. it's hard for the shop owner and for the seller.

[Former_Member]

I agree, terms and contracts are very very important with consignment and wholesale. Especially if they are not local and cant meet them in person. Maybe I will start a thread for consignment contract wording and the like.

[Former_Member]

As a maker, I will stick only to wholesale in the future. I've found that consigned items aren't treated with the same respect as wholesale items, which the buyer has had to invest money (and perceived value) in. Of course this isn't always the case, but it was enough for me not to do consignment again. But I wish you luck!