 Re: selling in stores
Consignment basically means you own the stock, they only pay you for what they sell. That should give you an idea of why this can get very messy very quick.
The only real advantages (from your point of view) for having a consignment "deal" (which needs to be in writing so there are no misunderstandings) that I see are;
You can charge higher price for your items (They don't have to pay for them and you carry the "stock cost" so they can't expect the same margin)
It can be a way to break in to a new market (or that of competitors)
It can also help sway a store to stock your products.
Generally I would avoid it but there are situations where it can be used to build your business, especially if it is "unknown". Used carefully and with contracts in place it can be a great tool to grow your business but does have risks. (Eg no payment, garments gettting shop soiled/stolen and stores not wanting to pay)
If you were to use it I would suggest everything is signed for (eg when they recieve stock they SIGN for it as checked, put a timeframe on it (eg after 3 months they will know if it is going to work in their store or not) cover what happens with returns (How long can they have it before you expect it handed back, who is responsible for stolen/missing/soiled goods, they should be) How much space will they allocate to your lines (your giving them something and want to make sure it is going to be given a fair chance to sell) at the end of the trial period how long do they have to pay for the stock? When and who will conduct audits? (eg once a week/fortnight you call pass, check off what has sold and invoice it and top up stock) again they need to sign for it.
Hope that helps |