# Selling on Consignment



## Maroonram (Jul 10, 2012)

I had a lady call from San Francisco who has a gift shop. She has seen some of my Peppermills and would like to try some in her shop. I live in Oklahoma.

It would be one thing if she were local, but it seems that I have a lot of front end risk; my product, my time and shipping and I still don't know if anything will sell.

Have any of you had any experience with anything like this? I am open to all ideas and suggestions.


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## kp91 (Sep 10, 2004)

Bob,

I would try to sell a small batch to her directly first. Give her a good enough deal to make it worth it for both of you, and see if there is a market, but share the risk evenly between the two of you.

Congrats on having your talents recognized!


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## Quillman (Aug 16, 2010)

Determine your risk in $.
Lend her a few; see what happens.
Expensive case work and stuff? Not on your life.


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## flockshot (Mar 15, 2012)

I sold aerial photographs on consignment for a couple years in a gift shop. It was ok, and sales were modest. 
If you are a busy person and your time is very valuable to you, then perhaps it's not a good idea, but if you enjoy making them and you can earn a few bucks for some nice wood or a new tool, why not.


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## JOAT (Apr 9, 2010)

If she saw them, and likes them, I'm betting they'll sell, and selling in San Francisco will probably bring in more than you'll get locally.

I know a guy in NY who regularly sells in three shops, besides craft shows. He does well. Well enough to upgrade his sailboat to a considerably larger one. 

If you're nervous about consignment, I'd ask her if she'd flat out buy some for resale, and I'd bet she'd do it. Anytime you have someone with a store, that wants to sell your product in that store, you can bet that they believe your product will have no problem selling.


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## mgmine (Jan 16, 2012)

With shipping and insurance and her cut how much will you make? If you sold it for that much yourself then it might sell faster than with all the markups. Have you tried Etsy which is a site for homemade stuff.


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## Knothead47 (Feb 10, 2010)

I would never sell on consignment. If a business goes under, where does that leave you? Walmart, the local Ford dealer, Conoco gas station, do not sell on consignment. It's "show me the money."


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## BernieW (Sep 12, 2006)

Bob I have been there done that. What I do now is figure what I want for the piece, shipping costs to them and then they can buy it outright. Then they can put whatever price they want on it. I have did this a couple of times. I get a check which must clear first or paypal then I send the pieces. 

I sent a couple of Norfolk Island pine vases (read expensive wood), 5 peppermills, 10 mini birdhouses and 10 pens to a lady in North Carolina. Sounded like a great deal getting my pieces out there. Well she closed up shop. I never saw my money or my pieces. Tried to call, email, sent registered letters and to no avail. I talked with my lawyer and he said it would cost me way more than what I had in those pieces so just dropped it. I only do consignment locally where I can keep a eye on things. Had a friend of mine (lives in Wyoming) put some pieces on consignment in a gallery in California and he had the same problem. They went under and he never saw his pieces or money. With the way this economy is and the way money is I will never do a consignment out of town again. They can buy it or forget it. Just my $1.298.


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## Maroonram (Jul 10, 2012)

I really appreciate so many of you taking your time to relate your thoughts and experiences. For these out of town sales arrangements I think I'm going to follow your suggestions and get my money up front.


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## Knothead47 (Feb 10, 2010)

Yep, show me the money.


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## Mapzman (Nov 26, 2012)

I would be careful, Does anyone use or have a Consignment agreement?


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## BRAVOGOLFTANGO (Oct 11, 2012)

BernieW said:


> Bob I have been there done that. What I do now is figure what I want for the piece, shipping costs to them and then they can buy it outright. Then they can put whatever price they want on it. I have did this a couple of times. I get a check which must clear first or paypal then I send the pieces.
> 
> I sent a couple of Norfolk Island pine vases (read expensive wood), 5 peppermills, 10 mini birdhouses and 10 pens to a lady in North Carolina. Sounded like a great deal getting my pieces out there. Well she closed up shop. I never saw my money or my pieces. Tried to call, email, sent registered letters and to no avail. I talked with my lawyer and he said it would cost me way more than what I had in those pieces so just dropped it. I only do consignment locally where I can keep a eye on things. Had a friend of mine (lives in Wyoming) put some pieces on consignment in a gallery in California and he had the same problem. They went under and he never saw his pieces or money. With the way this economy is and the way money is I will never do a consignment out of town again. They can buy it or forget it. Just my $1.298.


Excellent information, I'm not at that point, yet at least, but great advice. Those kind of financial losses really force a hardnosed approach to business these days, just to protect buyer and seller. Long gone are the good old days of a man or womans word being a contract of honor so to speak.


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## BernieW (Sep 12, 2006)

The thing of it is most people say oh all you lost is a little wood. I sell the NIP vases for $120 ea. All totalled I probably lost about $1000 in sales. So all my consignments are in a couple of galleries and a couple of craft stores where I can I keep tabs on them. I have a list of every piece and my price for each piece that is in each place. I go to each craft store about every 3 weeks and do inventory. The Galleries are really good. If pieces sell I get a check the first of every month. The consignment is on a 70/30 split. They take care of the sales tax so the 30% they get is well worth is because I don't have to mess with it. The two galleries I have been with for 4 yrs and the craft stores for about 2 yrs. I also was approached about putting some of my woodturnings in a travel center. They wanted 50%. I told them 30% or forget it. They wouldn't budge. Anyway I guess what I am saying is you do have to be somewhat hardnosed and don't let anyone talk you into anything. Set your rules and stick by them.


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