Discuss the process of getting your t-shirt line into brick and mortar stores and selling offline. Topics include industry tradeshows, events, line sheets, sales reps and other retailing tips and advice.
Hello everyone! How much percentage should a shop owner get from a sale of your consigned T-shirts. I asked my buddy and he told me, "15%". Is this being too cheap? Or will this make the guy wanna tell you, "Get outta here!" What is a reasonable percentage? I put all the expense into making the shirt. The shop gets a cut for his space and marketability that Im using. I feel that 15% is reasonable. What do you guys think?
40% or 50% is normal, with 60% not being unheard of. Were I a retailer and offered 15%, I couldn't get rid of you fast enough.
Isn't there a difference between consignment and retail? If the retailer wants 50%, then they need to buy the inventory and take on the total risk of selling them.
With consignment, the store has no risk other than giving up some shelf space and take there cut when the product is sold. If the product doesn't move, they "give it back".
I think 15% to 20% is about right for consignment but...I could very well be wrong.
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Isn't there a difference between consignment and retail?
Yes. Although the biggest difference is that consignment stores will (or might) take people on who may have trouble finding retail purchasers to buy their goods outright.
Quote:
Originally Posted by treadhead
With consignment, the store has no risk other than giving up some shelf space and take there cut when the product is sold.
Depending on the agreement they also take on the theft risk. They do take on risk though - every square foot of shelf space is costing the retailer money. Overheads suck. Every shirt they take on consignment that doesn't sell does cost them money.
They do take on risk though - every square foot of shelf space is costing the retailer money. Overheads suck. Every shirt they take on consignment that doesn't sell does cost them money.
That is true but it is the same risk they would take if they purchased the product at wholesale....either way they have to display the product. But, with consignment, they don't have to tie up any $$ in inventory or get stuck with slow moving product.
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Personally, I think 30-35% or so is pretty fair for consignment, but that's from the t-shirt side, not the retail side Most vendors will be 40-50% for consignment as stated above, even though full wholesale purchase is still the same 50%.
I just met with a store owner yesterday. We dropped off a sample batch of shirts and they wanted to mark it up 50%. I was kind of surprised, but for thelocation and type of store I guess thats not really that bad.
Isn't there a difference between consignment and retail? If the retailer wants 50%, then they need to buy the inventory and take on the total risk of selling them.
With consignment, the store has no risk other than giving up some shelf space and take there cut when the product is sold. If the product doesn't move, they "give it back".
I think 15% to 20% is about right for consignment but...I could very well be wrong.
This post is standard in my town, which has many high end touristy stores in a down town area. If the store owner wants to buy the inventory then you would charge a wholesale price because they are buying volume and you would make a profit based on volume, so they get the product cheaper. But the consignment works because they want variety of a couple of products. Music store, or pet store can add a couple of shirts to entice people in with minimal costs.
The store owner gets 20% on consignment here. They are adding variety to their shop, w/o the cost and the headache of making the product. They have no loss if it doesn't sell, but I do. If they charged 50% I would make $1 per shirt, not worth my time.
I would sell the shirts outright to retailer for 50%. As a small business person producing the shirts, my profit margin is small. When I do consignment the retailer gets more product in his store w/o purchasing inventory. I lose control of how the product is placed in the store or advertised. If I had to pay 50% I would rather pay rent in the retail shop for a small space, or sell the shirts outright, so I have cash in my pocket to do another design. My retailer gets 20%, and has control over the product. He can call me if he needs more. The fact that I am designing, producing them and keeping inventory at his beck and call, has value. I have to pay for rent and lights, and heat for production and storage also.
Whatever both people feel is reasonable-will work.
I do consignment in my store all the time I charge 50% when I buy it to sell price times 2.5. The rent insurance and paying help all take money. We sell transfers from like pro world and others cost times 3 and t-shirts cost times 2.5 anything less you find your self going backwards.
Percentage? Fair? Consignment? 
Most vendors will be 40-50% for consignment as stated above, even though full wholesale purchase is still the same 50%.
Re: Percentage? Fair? Consignment? 
