Consignment Dos, Don'ts, and Must Knows

Just wanted to share this post I originally wrote and posted over here http://www.handmadeology.com/consignment-dos-donts-and-must-knows/

Here is the post!

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Selling at consignment shops can be pretty scary for first timers. Horror stories of how inventory disappeared or how monthly fees went down the drain and nothing sold circulate through many social circles.

I have good experiences consigning, and I'd like to help you decide if consigning is for you, and how you can avoid mistakes and make the most of your experience.

When looking for a consignment shop the first thing you should do is a background check. How long has this shop been around? How long the shop has been running will tell you a lot about it's success. Shops that have been open for several years are usually still open for a very good reason.

Try to meet the people who are behind the shop. I enjoy meeting these people and finding out how they feel about the economy and what their future plans for the shop are.

If possible get in contact with some of the consignors and ask what their experiences have been with the particular shop of interest.

Next you need to determine if the shop is right for you. What kind of products are in this shop, do yours fit the theme?

How about the location? Does it get plenty of traffic? Ideally there would be plenty of shoppers in the area, with tourists coming in. In my case, I sell in Downtown Franklin TN where lots of people from all over the states come for the festivities and music. It's a great place for artists to sell!

What are the costs? Do those costs fit into your budget? (Remember sometimes it is necessary to experiment and find out how well you are able to sell before making a decision.)

Roughly 30% plus $15 a month is pretty typical for consignment shops. You should remember that these shops are putting a lot of money into marketing and displays, have a high overhead cost, and need to make a profit as well.

Doing all of your own selling can be the best way in many circumstances, but remember how much it cost to advertise! I have found that I spend no more in consignment fees than I do on my own advertising, and I do virtually no promoting or advertising on anything I put into consignment shops.

For me, I have found that a balance between consignment and my Etsy shop is perfect, but it can be very different for different individuals.

Some DOs DONT'S.

DON'T just put your goods into any shop. Brand new shops that are looking for inventory are often where the worst things happen. In fact, most horror stories come from people who tried selling in shops that had been open only a few months and had no credibility.

It's only safe if you know and TRUST the shop owner. Many shops like this can get their start by investing in the products and paying for them beforehand, or maybe they know enough people who trust them and are willing to give it a shot.

DON'T go for shops that will accept anything. The best ones are juried! If you have to come up with a new product line because your current one is already taken, go for it! Shop owners know that their sellers will be more successful if they are not competing with each other. This means they care about their sellers and the success of both them and their business.

DO look for shops that sell your genre. This means if you sell handmade crocheted bookmarks, a shop that consigns mostly vintage is probably not best. Find shops that best suit your type of product. (In fact, the shop I sell at sells ONLY handmade).

DO look for shops that have beautiful and creative setups. I hate it when shops designate their sellers with certain spaces or “booths”. One sellers product stays at the front of the store all the time, and another's stay at the back of the store.

Good shops will put things where they think they will best be noticed, rather than categorizing them by seller. This also allows the seller to put virtually as many products as they want into the shop, and also have more than one product line without having to sell them side by side.

I hope this article has given you enough information to be helpful to you!
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Former_Member
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Re: Consignment Dos, Don'ts, and Must Knows

joyoustreasures thank u for the info for selling at consignment shops can be pretty scary and this info helps.
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Re: Consignment Dos, Don'ts, and Must Knows

Your welcome jotaysgel!
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Re: Consignment Dos, Don'ts, and Must Knows

Thanks for these great tips!!
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Former_Member
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Re: Consignment Dos, Don'ts, and Must Knows

Great tips! Thanks so much!
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Former_Member
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Re: Consignment Dos, Don'ts, and Must Knows

Great information! Thanks
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Re: Consignment Dos, Don'ts, and Must Knows

Most welcome everyone!
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Re: Consignment Dos, Don'ts, and Must Knows

thanks for help!
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Re: Consignment Dos, Don'ts, and Must Knows

thank you for the info!
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Former_Member
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Re: Consignment Dos, Don'ts, and Must Knows

Great info, thanks so much! I'm just starting out with consignment before I start selling online and this was very helpful.
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Former_Member
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Re: Consignment Dos, Don'ts, and Must Knows

Thanks for sharing your advice, I am going into my first consignment agreement this week and am a little bit nervous, but your advice is helpful!
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Re: Consignment Dos, Don'ts, and Must Knows

Thanks for the great tips!
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Re: Consignment Dos, Don'ts, and Must Knows

great!! thx for sharing!!
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Re: Consignment Dos, Don'ts, and Must Knows

Another really helpful tip I was given by a shop owner:
Create a "line sheet" - with descriptions of your products, photos, and prices. This sheet shows the shop owner what you would offer them, and you can email it to them for review rather than dropping in when they may be busy with customers.

I had a great experience lately when looking for a new consignment shop - I emailed a line sheet with about 25 items on it to a shop owner, and followed up a week later. She asked me to come in and show her the items - and she took them ALL!
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Re: Consignment Dos, Don'ts, and Must Knows

Thank you. Great info!
(Everything I have seen has been 50/50... some 60/40 for the store owner! Needless to say, I did not go for it.) The store owners in my area say that they are doing all the work and paying for all the bills so that is why they get more. They do not make items themselves; they just sell others' wares. I don't think they understand that the seller has expenses, too, and also promotes their store.

Still looking for some great shops in the SF area and the peninsula.
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Former_Member
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Re: Consignment Dos, Don'ts, and Must Knows

Wouldn't it be better to try to sell your stuff wholesale to shop owners? I'm thinking about doing that so that I don't have my products sitting in stores meanwhile I'm helplessly hoping that they will sell. Wholesale sounds better because the shop owner buys it from you and just marks it up. So then you are done. Smaller profit but it's a guaranteed sale.
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Former_Member
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Re: Consignment Dos, Don'ts, and Must Knows

joyoustreasures wonderful tips! Would you message me with shops that you've had success with? I've never consigned before and am a little leary...
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Former_Member
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Re: Consignment Dos, Don'ts, and Must Knows

Great tips! Thanks for sharing.
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Former_Member
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Re: Consignment Dos, Don'ts, and Must Knows

These are some great tips! I wish I would have read this a few months ago, when we were first trying to get our name/products out there!
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Former_Member
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Re: Consignment Dos, Don'ts, and Must Knows

This is a good start thanks for your wisdom!
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Former_Member
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Re: Consignment Dos, Don'ts, and Must Knows

Great tips. Unfortunately alot of shops do have to pay rental and other overheads. Small ticket items like cards just have to give 50% in order to motivate the shop owners to consider our items.

DivaKami, do you have a template for the line sheet? Is it possible to send to me if I give you my email address?
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Former_Member
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Re: Consignment Dos, Don'ts, and Must Knows

Hi team. I am in the Sacramento area. How do you find consignment shops and how do you approach businesses such as wineries with gift shops to propose consignment or wholesale? Thank you.
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Former_Member
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Re: Consignment Dos, Don'ts, and Must Knows

Thanks for the post. It's very informational. This is just what I was looking for after given thought to having my products in a consignment shop.

Thanks again!
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Re: Consignment Dos, Don'ts, and Must Knows

Currently I'm consigning my items in 2 shops. Used to be in 3 shops, but unfortunately one of them is out of business.

I am terrible at talking about business to strangers. My sister in law helps me talking with shop owner and she's very good at it. However this one shop owner hasn't called me yet since I met her and put my jewelry in her shop about 2 months ago. She said she will call. Is it ok if I call just to check out how things are going with my items?

Thank you for the great info on the OP.
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Former_Member
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Re: Consignment Dos, Don'ts, and Must Knows

It's unfortunate, but I learned the hard way. I didn't do my research beforehand. It's real important to do this and your post was very informative, Thank you.
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