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Discussion Starter #1

Everyone recommends avoiding it, but I’m going to ..

so a question on consignment: If a store is going to carry x amount a shirts on consignment what are the usual terms(price already agreed for if/WHEN;) it sells).

Do I have the store owner/and or buyer sign some sort of agreement? If so what should be included?

thanks so much!:)<3
 

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I do consignment when something is time sensitive. Usually, you have a min. number of shirts that they take, basic sizes and they are responsaible while they are in their store. If anything happens to them, they pay for them. For this service you can get higher priceing then if you sold to them. You are taking all the risk. For that, you need to get paid.
 

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An agreement is a must. It should spell out:

How much you will receive for each unreturned item.

Specify that your charges will be based on unreturned items, not sold items. It's not up to the store to tell you how many pieces they show as being sold. If you gave them 10, and got back 5, then they owe you for 5, period. In other words, store is responsible for inventory shortages.

Contract should have a definitive end date. At that point, store pulls unsold inventory, and either ships it back or you pick it up, with payment. Spell out who is responsible for shipping costs and how shipping is to be handled (if by store, no priority overnight :))

Try to limit your exposure (less inventory, more replenishment visits) . Unless it's a well established, financially sound company, bankruptcy could lead to seizure of your property by the store's creditors.

Google has a lot of sample contracts you can use to create your own.
 

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Great info Joe. I do not do consignment very often but when I do, I make sure I cover my a$$ real good.
 

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an agreement is a must. It should spell out:

How much you will receive for each unreturned item.

Specify that your charges will be based on unreturned items, not sold items. It's not up to the store to tell you how many pieces they show as being sold. If you gave them 10, and got back 5, then they owe you for 5, period. In other words, store is responsible for inventory shortages.

Contract should have a definitive end date. At that point, store pulls unsold inventory, and either ships it back or you pick it up, with payment. Spell out who is responsible for shipping costs and how shipping is to be handled (if by store, no priority overnight :))

try to limit your exposure (less inventory, more replenishment visits) . Unless it's a well established, financially sound company, bankruptcy could lead to seizure of your property by the store's creditors.

Google has a lot of sample contracts you can use to create your own.
very helpful!
 

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Consignment is not always the worst way to go. I wouldn't do consignment at a major retail store, but for small boutiques with people you can trust it may be worth it to test the waters of retail. Also, if you ever do consignment make sure the boutique(s) is spitting (figuratively) distance from your Living, Office situations.
 
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