Do you sell your pens on Consignment?

[KKingery]

Just a quick poll - Do you sell your pens on consignment? I've been asked to display some of mine in a shop for sale on a consignment basis. Any comments good or bad would be appreciated.

 

[DCBluesman]

At this point I do not sell on consignment. I say at this point, because a local jeweler is mulling over adding my pens. He is discontinuing the other pen lines as he is dissatisfied with the service of his destributors. Might be fun to have the only pens in his store!

 

[dougle40]

I don't do this right now , but I'm trying to build up enough stock to take my pens around and try it .
This COULD be a very interesting post if we get enough answers both PRO and CON !!!
Looks like Lou and I were typing at the same time , I intend to hit the Jewelery Shops too .

 

[KKingery]

Thanks for the initial input guys. The store that wants to consign mine is not just a consignment store. Actually, it's a sewing & craft store. It would not have been my initial idea of a great selling place, but their majority customer base is women. My main concern is that it is not local. It's up in Kentucky where my mom-in-law lives. She works and teaches classes there. She showed the owner the pens I sent up for Christmas, and the owner loved them. In fact, I have 2 orders for cigar sets from them right now. The owner thinks they would sell very well there, so I'm just curious wether folks think it worth the time & effort of doing consignments.

 

[woodscavenger]

I have been looking at something similar. For those who do this how do you deal with theft. Who is the responsible party? Do I take it in the teeth or do they? To sell, these pens really need to be handled and yet security may be an issue.

 

[Fred in NC]

I had an arrangement like that in the Fall of 2003 with an antique store. They did sell some of my pens. It was OK, nothing spectacular.

 

[jwoodwright]

I don't right now, consignment fees are out-of-sight... average 45%...

 

[Woodbutcher68]

I've got some things in a craft store that charges 20%. I figure it's better in a store than in my garage!

 

[DCBluesman]

45% is unreasonable. In my opinion, if they have none of their money in the inventory, they should be happy with a 20-25% discount. The jeweler I'm talking to seemed to take the 20% in stride.

 

[jrc]

If the quality is good and the price is right do it. I sold 80 pens this December on consignment at my local gallery. I work there 4 1/2 hours a month and get 70%

 

[melogic]

I just sent in an application to Bob Evans Farms. They jury you in and if accepted they charge 20% plus $15.00 a month. They handle all of the displaying, taxes and everything. All I do is send them the merchandise and they do everything else. If accepted, I think I'm going to try it for a few months. There is another craft barn that is kind of close to me that charges 25%. They pretty much handle everything as well. All I do is take the items to them and they set it up. I think this is because of the items I have.

 

[Rudy Vey]

I sell some of my pens through a very upscaled crafts gallery and their consignment rate is 50%. As far as I have heard all good galleries like this have about all the same 40-50% rate. Just adjust your price accordingly. My sales are pretty good in this gallery, so i cannot complain.

Rudy
SE MI

 

[Gary]

Rudy...what does this gallery sell a Jr. Statesman for, say a rollerball in amboyna burl?

Originally posted by Rudy Vey
<br />I sell some of my pens through a very upscaled crafts gallery and their consignment rate is 50%. As far as I have heard all good galleries like this have about all the same 40-50% rate. Just adjust your price accordingly. My sales are pretty good in this gallery, so i cannot complain.

Rudy
SE MI

 

[Rifleman1776]

That's the problem with consignment. The dealer has no responsibility or accountability. Any losses, you eat it. And the dealer really has no motivation to sell your product since they don't have an investment. As a former retailer, I would always take in consignments, no responsibility and it kept the competition from getting the products in their store. I made no effort to sell the stuff, but it kept the traffic in my place of business. Dirty pool? Probably. But it was business. [}] BTW, I would not operate that way today. Different person back then.

Originally posted by woodscavenger
<br />I have been looking at something similar. For those who do this how do you deal with theft. Who is the responsible party? Do I take it in the teeth or do they? To sell, these pens really need to be handled and yet security may be an issue.

 

[Fred in NC]

Originally posted by DCBluesman
<br /> . . . I say at this point, because a local jeweler is mulling over adding my pens.

I would love to sell my pens through jewelry stores!!

Merchandise is usually kept under glass. I know people need to handle the pens, but in this case there is a clerk present there. In my opinions losses would be minimized.

Also, jewelers sell higher priced merchandise than craft stores. So higher priced pens would fit in.

In general, people who walk into a jewelry store expect the sale to be handled differently from a craft place.

Just my opinion!!

 

[Woodbutcher68]

"And the dealer really has no motivation to sell your product since they don't have an investment."
I'd think that a dealer would want to sell consignment items. No investment, sometimes no records...just profit!

 

[DCBluesman]

Here's a couple of well-written protective clauses that I <s>stole</s> borrowed.

<b>Promotion.</b> The jeweler shall use its best efforts to promote, display and sell artworks. The jeweler shall clearly identify the artist’s name with all artworks and shall include the artist’s name on the bill of sale for any artwork sold by the jeweler.

<b>Loss or Damage.</b> The jeweler shall be strictly liable for loss or damage to any consigned artwork from the date of delivery to the gallery until the artwork is returned to the artist or delivered to a purchaser. In the event of loss or damage that cannot be restored, the artist shall be paid the same amount as if the artwork had been sold at the retail price. If restoration is suggested or pursued by the jeweler, the artist shall have veto power over the choice of the restorer. The artist shall be responsible for all repairs to artwork necessitated by artist’s faulty workmanship.

 

[Darley]

I don't do consignment as here the art galery charge 45% who I think is a litle bit efty, I didn't check other place as I sell everthing through my work place.

Serge

 

[Darley]

Originally posted by DCBluesman
<br />Here's a couple of well-written protective clauses that I <s>stole</s> borrowed.

<b>Promotion.</b> The jeweler shall use its best efforts to promote, display and sell artworks. The jeweler shall clearly identify the artist’s name with all artworks and shall include the artist’s name on the bill of sale for any artwork sold by the jeweler.

<b>Loss or Damage.</b> The jeweler shall be strictly liable for loss or damage to any consigned artwork from the date of delivery to the gallery until the artwork is returned to the artist or delivered to a purchaser. In the event of loss or damage that cannot be restored, the artist shall be paid the same amount as if the artwork had been sold at the retail price. If restoration is suggested or pursued by the jeweler, the artist shall have veto power over the choice of the restorer. The artist shall be responsible for all repairs to artwork necessitated by artist’s faulty workmanship.

Lou I think yoyospin did a consignment contract for is site of bottle stopper who is very good, maybe he can give the link to this forum like that everyone will look at it, My own opinion is this consignment contract is great .

Serge

 

[DCBluesman]

Thanks for reminding me, Serge. THAT's where I stole this!

Originally posted by Darley
<br />Lou I think yoyospin did a consignment contract for is site of bottle stopper who is very good, maybe he can give the link to this forum like that everyone will look at it, My own opinion is this consignment contract is great .

Serge

 

[Darley]

No worries mate

Serge

 

[authentic]

I have done consignment in the past, but don't do it now and probably won't consider it in the future. As someone else mentioned, the consigner generally does not promote the product well because they have no investment in it. Also, some places take very poor care of the product. I have had some product returned to me which obviously was handled a little roughly and just was no longer in sell-able condition. The other drawback for me was, waiting for the sale and money. I weighed my options of having the stock tied up in a consignment shop for a long time, or to try selling it online with a faster turn-over rate and lower % rates. I have opted for either total wholesale (the shop pays for the whole lot outright) or online sales.

 

[Rifleman1776]

That's what most folks would think. But when you have an investment in your inventory, you also have a bank loan that needs repayment and, for most retailers, another buying season looming. Every sale you calculate mentally how much closer you are to the 'break even' point. What you pay for must go out the door, or you do. Retailing is an ulcer, heart attack business.

Originally posted by Woodbutcher68
<br />"And the dealer really has no motivation to sell your product since they don't have an investment."
I'd think that a dealer would want to sell consignment items. No investment, sometimes no records...just profit!

 

[wpenm]

I am looking into a consignment deal for bottle stoppers at a local wine shop. He has two stores and would like to have them. The fee would be 35%. As for my pens, I have not found an outlet other than my web site. Still looking though.

 

[jdavis]

We have no problem selling our pens to fellow teachers and students. We make alot of blue and black Aquapearl pens as this is our school colors. Presently we are involved in the Freedom Pen Program. WE also make many teachers pens. Pen business is good here at Spring Hill High.

 

[YoYoSpin]

Dial into our Yahoo bottle stopper site and then click on the "Files" link for the generic consignment contract: http://groups.yahoo.com/group/stopper/. Feel free to use it as you see fit.

Just set up my 12th consignment shop today...pens and yoyos. It will take me on average about 20 hours per week to keep them all stocked. Commissions for me run anywhere from 25% to 40%, with the norm being closer to 40%.

Here's a couple rules of thumb that I follow: 1) Make it easy for the shop to sell your stuff...keep them well supplied, tag each piece with descriptive info like type of wood used and refill requirements, supply some form of display system and always provide an interesting bio on yourself. 2) Never do consignments without a contract.

 

[melogic]

Ed,
Do you have any pictures of any of your displays in one of your consignment shops?

 

[YoYoSpin]

Sure, here's an example...it's always cool to display your turnings in more turnings:

 

[Gregory Huey]

Ed thanks for the tips as I have been thinking about doing some consignment. Good to here the pros and cons.

 

[mik]

I like others started with consignment orders - collecting money afterwards was always a problem - especially when large distances were involved, hassle factor and cost of securing. I now have a formal wholesale structure and a fixed recommended sale price, published publically ie on my web.
Having said that I think consignment is good to get into new prestigious locations or countries. I now have stockists in many countries including a new one in Winsconsin!
I am now considering a structure for other pen turners, like you guys, to sell their pens for them at my stockist outlets - I guess this is somewhere I would have to do a consignment deal as to buy in a large stock would be prohibitive in cash flow terms.

Originally posted by KKingery
<br />Thanks for the initial input guys. The store that wants to consign mine is not just a consignment store. Actually, it's a sewing & craft store. It would not have been my initial idea of a great selling place, but their majority customer base is women. My main concern is that it is not local. It's up in Kentucky where my mom-in-law lives. She works and teaches classes there. She showed the owner the pens I sent up for Christmas, and the owner loved them. In fact, I have 2 orders for cigar sets from them right now. The owner thinks they would sell very well there, so I'm just curious wether folks think it worth the time & effort of doing consignments.

 

[Travlr7]

I currently have my work at two galleries. They get a commission for anything sold. In this case, sold means that if it is not there when we do our periodic inventory , usually quarterly, it is considered sold, whether actually sold or pilfored.

Each of my items is documented with a picture and item number, so there is no confusion about what has sold.

Since I do not get paid for them till they are sold, I consider them on consignment

Bruce[]

 

[Scottydont]

Originally posted by Rifleman
<br />
That's the problem with consignment. The dealer has no responsibility or accountability. Any losses, you eat it. And the dealer really has no motivation to sell your product since they don't have an investment. As a former retailer, I would always take in consignments, no responsibility and it kept the competition from getting the products in their store. I made no effort to sell the stuff, but it kept the traffic in my place of business. Dirty pool? Probably. But it was business. [}] BTW, I would not operate that way today. Different person back then.

Let me preface this with stating that I used to own a consignment art gallery in an upscale area in the Seattle area. I charged 50%. Something that should be considered in judging the equity of the consignment commision percentage is what liabilities are taken on by the store owner? Insurance, taxes, advertizing etc. The percentage should be relative to the level of commitment the store will make. I am sure there are store owners that will consign items and do not care if they sell. In my case I consigned only items that I felt would sell and I sold them with every bit of effort as merchandise that I owned. That 50% was well deserved in my case.

I sometimes consign pens as an initial offering to businesses to get my foot in the door. When they sell well, I offer them to be purchased outright at a discount.

In ALL cases make sure and use a consignment agreement laying out the terms. For obvious reasons it is in your best interest to have your own consignment agreement rather than use theirs. This assures that all of your inetrests you have outlined are covered. If they insist on using theirs, make sure that your interests are covered as well as theirs. A good consignment agreement does both.

 

[Daniel]

I have sold pens in a total of two Consignment shops.One charges next to nothing and also sells nothing. the next actually had a contract we spent nearly a month negotiating fine points. and requirments for my items being displayed. one big snag was I required they be responcible for my pens if they where lost or stolen. I finally won. But I got the impression the store owner was far more serious with a larger pay day at stake. In a since you get what you pay for. and stores are not cheap to run. I can still sell my pens faster on my own though. I now have the opinion that I put my pens in someones store as a favor to them not me.