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Divinitee · November 12th, 2007

Hello all,

I am in the process of gathering needed info to aggressively begin marketing my line of contemporary Christian shirts for women. My main problem is my cost right now is WAY to high and I am trying to get my costs down but in the meantime I figured I would try to go the route of consignment to try and get my name out there. I am not really sure how the whole consignment thing works and what is the reasonable percentage. Any feedback is greatly appreciated it.

T-BOT · November 12th, 2007

in short,

the buyer takes on the responsability for and selling the goods by a set date with the option to return them back to you of what does not sell.

at this point, you get paid for what sold and re-evaluate the contract and stock-fill.

The set price depends on the item and market.

try a board search, there are a few detail thread topis on this.

peteVA · November 12th, 2007

Consignment is where you put your goods in someone's shop for them to sell and then pay you AFTER the sale. Honestly, I have no experience with clothing, but I would think the shop would want from 25% to 50% of the selling price. Of course, it also depends on the shop.

Many don't want to do consignment selling, some will on occassion and othrs welcome any merchandise they can get in their shop. Unfortunately, this last group dods not do a lot of business.

The biggest problem with consignment is that it's your money tied up, not theirs. So, they have less incentive to push your products. Consigned goods sometimes end up in out of the way places, coerners, etc. Of course, you can pull your stuff out if you are not happy with the sales or the placement.

You do have a number of things to consider and get straight, right from the start. First is who is responsible for your goods. Some shops will only want to pay you for what they have sold. Sounds resonable, but who pays for what is stolen or given away by clerks to their buddies?

You need to have it understood that if it's gone they owe you. Don't let "It didn't show on the register tape, or whatever, keep you from getting paid. Sold, stold or whatever, they owe you.

Also, while this is not a big deal on a half a dozen shirts, it could be - What if the place is broken into and your stuff is stolen or there is a fire any your goods are destroyed?

Here, again, you need a written agreement. Actually, if the owner will make a phone call to their insurance agent you can be named as an "also insured", just like a bank is on your car insurance. It doesn't cost them any more, it just adds you to the list of people to pay, up to the maximum of the value of your goods.

You will want to physically inventory your stuff on a rgular basis. Hopefully you'll have sales each week and can come by once a week to get straight on the money and bring new items. You can also swap out items that don't sell. puttin gin new designs.

Have an accurate inventory at all times. Keep good records.

Some shop owners will try and bulldoze you. Don't let them do this. If you are not comfortable with them or the situation, just move on.

Here's a link to a Consignment Agreement you can copy and edit with any word processor - Consignment Agreement Contract Free Sample

Good Luck!
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ino · November 12th, 2007

If selling by consigment try to give small quantities and only to shop keepers that
you can really trust. one thing to remember if things go sour you are the one to chase after your money.