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consignment goods were stolen

825 Views 3 Replies 4 Participants Last post by  joeshaul
Hey People,

I am about to put a few items in a local store on consignment.
do any of you have any advice if your items are stolen from the store? Should the owner be responsible for the lost?

Does anyone have a sample consignment contract?
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In the short term I eat the losses.....If the situation becomes "chronic" I pull my inventory....If a merchant buys goods outright and is making 50% to 60% margin, they can take the hit....But I only give them 25% to 40% so I am willing to take this risk...
Don't consign anything you cannot afford to loose

I have had two stores go under with consignment merchandise, it is hard to get your stuff back. My best stores buy my stuff out right at a cost cheaper than consigning.

I still do consignment for exposure. I don't consign shirts though...
You should do an inventory of what was initially accepted into the store and keep a copy both parties with signatures. This way when the big question of "what happened to the 100 items I dropped off?" comes up and you say "There was only 50", there's at least some accounting for it. As to the issue of "shrink", theft unfortunately happens, usually the risk lies to the individual willing to part with their inventory by putting it up for display (if a store buys and sells items, they can't go after the manufacturer if their items get stolen). It should be outlined where the responsibility lies before accepting the goods though. I'm sure there are templates you can find, usually I just typed up a quick agreement type thing though.

I have pretty much moved away from consignment in my retail store though, usually if I don't have enough faith in the product to buy it for resale, it's hard for me or my employees to sell it. It also creates less confusion when dealing with store specials/coupons and the like.
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