Craft Consignment Selling
Thinking
about craft consignment selling?
Use this information to
find out how it
works
|
Why would you want to consider craft consignment selling instead of supplying your goods to retailers on a wholesale basis, or simply opening your own retail store? There are a number of reasons:
Build proof of sales
Wholesaling
can be difficult to get into if your business and/or products are new.
Selling on consignment builds up your track record and gives you a
reference from which to work your way into wholesaling.
Eliminate cost
Opening
your own retail store is costly and risky, unless you've got the funds
and the experience.
Test products
Selling
on consignment can be a good way to test new products to see how
popular they are with consumers and how well they sell - you get to
concentrate on creating, the store concentrates on selling.
Get a foot in the door
You
might approach a store with the view to selling your goods wholesale,
but they're not certain how well your merchandise will sell in their
store and aren't willing to buy your goods outright - if you offer to
"test" how well your products sell in their store on a consignment
basis, it may be easier to get your foot in the door.
Once you've decided that craft consignment selling is the way to go for you, know what to look for when choosing which consignment stores to work with.
Things To Look For In Craft Consignment Selling
What's
the reputation of the store?
When
looking for consignment stores in which to sell your crafts, begin by
finding established, reputable stores. Ask them for the contact details
of a few of their consignees so that you can get honest references.
Would you shop there?
A
presentable and well laid out store can make a difference to sales.
Look around at how the merchandise is displayed, and also what
comparable items are selling for.
Where is the store located?
It
may cost you more to work with stores in high traffic areas, but the
volume of sales may be worth it.
What marketing and advertising
does the store do?
If
they're taking responsibility for marketing your products and making
sales, find out how proactive they are in this area. It's important
that the consignment store you work with does their share to earn what
they're charging you.
What will it cost you?
Consignment
stores charge in different ways:
* they could take a
percentage of your sales (40% seems to be more or less standard, but it
can vary);
* they could charge you a fixed admin fee per
month;
* they could charge you a rental fee for the
space used; or
* they could charge you a
combination of some of the above.
Be
sure that you know all the charges up front (ask to see a copy of their
consignment agreement) and that there are no "hidden extras", such as a
percentage deducted if a customer pays by credit card.
How much will your goods sell for?
And
who sets this amount - you or the store? Also find out what their
policy is on items that they mark down for sale - are you notified or
asked to agree, or do they simply go ahead and do it?
What record keeping system is in
place?
You
need to be sure that your stock is managed accurately, and a store that
operates a computerised system will be able to do this more accurately.
Also important is who's responsibility lost/damaged/stolen stock is.
Ensure you get a receipt on delivery of stock, and a detailed statement
on the specified payment dates.
What duration is the contract?
Will
your consignment agreement be for 30, 60 or 90 days, or some other
specified time period?
Craft consignment selling can be a lucrative way to sell your crafts if you're able to find established stores with fair terms, and it's often a good way to get started selling your crafts.