Consignment

[TheBeadHaus1]

Hi Guys,

I'm new to the team but had a quick question for those seasonal wholesalers. Is it profitable to place your merchandise on consignment with a store that is requesting 50% of your profit. I've been in business for over five years and normally do arts & crafts events. I found this local consignment store who's been selling my merchandise and everything been going great sales (good) but in the beginning of the New Year wanted to do a 50/50 split. I design and create my own merchandise and found that way to high and removed my merchandise. What is a good percentage for consignment stores to receive seeing that all the work is coming from the designer. Any advise, suggestions, etc is appreciated.

[Former_Member]

I consigned in two stores, both were a 60/40 split. I sold my items slightly higher than I did on my online shop, so it worked out decently.

However, one store changed the split to 50/50 after two years. I hear this split is more typical.
The problem I encounterd was in order to make a profit, I needed to raise my prices again. The customers didn't like that, and my sales of course suffered. After about three months of selling at a 50/50 split I chose to stop consigning in that store.
Do what works best for you and if you don't want to raise your prices, then find another place to consign.
Personally, I like renting a space for a set price each month. Start off small and if it works for you, look into moving into a larger space. See if any shops around you offer rental vs a split. Good luck!!