ABC3 Report post Posted September 27, 2009 What's the general consensus regarding consignment? I have had several retail gun stores lately wanting my belts on "consignment". I've always felt that this was a bad practice & declined for several reasons, inventory, theft, going out of business, ect. I'm not a bank & I've always ask how much of their inventory was there on consignment? Very little...... I just wanted some opinions - I have a couple more retail stores asking again. Quote Share this post Link to post Share on other sites
CitizenKate Report post Posted September 27, 2009 I'm not a big fan of consignment arrangements, and you've already hit on some of the reasons why. I have a problem with the idea of having my money tied up in someone else's inventory. Furthermore, the retailer has no incentive to sell the item, or even take proper care of it while it's in his/her store. I may offer a few samples to sell on consignment, but if they want to sell more of my stuff, they have to buy them from me. But there are some situations where it can be beneficial to sell on consignment. Here are links to a couple of other discussions on this forum on the pros and cons selling on consignment: http://leatherworker.net/forum/index.php?showtopic=18169 http://leatherworker.net/forum/index.php?showtopic=4752 Kate Quote Share this post Link to post Share on other sites
TwinOaks Report post Posted September 27, 2009 I'd have to say it depends on the store and the manager, and how well you know/get along with the manager. I sell the occasional holster at the local gun store on consignment. Typically, it isn't worth my time to try and compete with the store's stock holsters - the time I put into it demands a higher price than the stock items. (It's tough convincing a customer that a $60 leather holster is better than a $20 nylon). However, when they get some models in that the stock holster doesn't fit...well, then it's time to deal. I know the manager well, and trust him to take care of the holster(s) while they're there. I fully expect customers to try it out. If you aren't in the same position.....it's probably not worth the time to put something on consignment. Quote Share this post Link to post Share on other sites
rickybobby Report post Posted September 28, 2009 What's the general consensus regarding consignment? I have had several retail gun stores lately wanting my belts on "consignment". I've always felt that this was a bad practice & declined for several reasons, inventory, theft, going out of business, ect. I'm not a bank & I've always ask how much of their inventory was there on consignment? Very little...... I just wanted some opinions - I have a couple more retail stores asking again. I am glad you brought this up! I am reading Joe Rollings Book "Artisans & Money" It is a MUST have for those of us that make things to sell. The reasons given have all been stated by others in this thread already but the two that are missing that is in his book is... The Product is better off in the trunk of your car and under your control than on somebodys shelf who has not paid for it. People who want to do business using someone else's money give me a rash. Sooner or later we will always fall out over something anyway, so why not make it sooner? The truth is that a lot of "consignment only" stores will buy outright when they see products they know they can sell. They will not admit it to most of their suppliers, but the best of the merchandise in the shop is often bought and paid for. The consignment stuff just fills the place up. Reference, Artisans & Money, Joe Rollings (p.41, 42) Fakahwee Publications, Rodeo NM. 800 840-2434 I am in no way affiliated with this author, I have just got the book and it has helped me in some aspects of my business. I'm a better businessman because of what is in it. Bottom line regarding consignment, don't do it. The product will sell anyway even if you have to sell it else where. Don't let them use your money, artisans are not big banks. We need to think of ourselves and our products not the other guy and his financial situation. Rick J. Quote Share this post Link to post Share on other sites
ABC3 Report post Posted September 28, 2009 Thanks for your comments...The reason I ask this question is, I had an appointment today with a local Gun Store that has only been open for about 3 weeks. I guess one of the guys, that work there gave them my name & they called and wanted to hook-up & take alook at my hand made Gun belts. I could see consignment written all over the conversation. Anyway, I just knew it was a waste of time but thought I would check out his shop and his inventory of guns. To make a long story short: After I made my presentation I walked out with a check, in hand, and an order for 24 belts. Now I ask you, how often does that happen. Now - I've gotta go make belts...... Quote Share this post Link to post Share on other sites
Denise Report post Posted September 28, 2009 Congratulations! You never know. And if your work has the quality and you can explain why yours are as good as they are, then maybe it will happen more often! Have fun making 24 belts!! Quote Share this post Link to post Share on other sites
Timd Report post Posted September 28, 2009 I have to agree with Ricky, that book is a must read. I can't find the link for it, but someone here posted it. Well worth the money, and it's a real easy read. Quote Share this post Link to post Share on other sites
rickybobby Report post Posted September 28, 2009 (edited) I have to agree with Ricky, that book is a must read. I can't find the link for it, but someone here posted it. Well worth the money, and it's a real easy read. Here is the website I ordered it off of... http://www.thingswestern.com/8.html Very interesting guy, he has lots of talents and is a cheerleader for the self employed artisan. He has made the mistakes and is passing the info to us before we do! Best 25 bucks I have spent in a long time! Rick J. Edited September 28, 2009 by rickybobby Quote Share this post Link to post Share on other sites
Lobo Report post Posted September 30, 2009 I have also had negative experiences with consignments. I now have 4 stores that stock my general production items (holsters for the more popular handguns). I usually have a pretty good idea what they are selling, so I can produce enough on a monthly basis to re-stock each dealer. This way I can simply pull what they need out of a box in my truck, write a quick invoice, and pick up a check. I am also working on permanent display boards with a few sample holsters, belts, pouches, etc. mounted on the display, showing various styles and optional features. I expect to provide the boards at no charge so the dealer can take special orders for my products, then I can produce and deliver to that dealer and pick up a check. The special order items are generally higher profit sales, so I don't mind fronting some expense for marketing purposes. Quote Share this post Link to post Share on other sites
wildrose Report post Posted September 30, 2009 I'll go ahead and add my .02 I'm often asked "would I do some examples for display?" and it goes nowhere beyond that. Usually those shops will pay me for a piece or two, and I've come to expect nothing further. I've been asked about doing consignment, but never really got to the DOING stage 'til a few months back. I sell at craft fairs and our local farmers market. A new store opened up in my town, and the owner saw me at the Farmers Market (right across the street). She asked if I'd do consignment. For me, this is the chance for my work to get daily exposure at a really cool shop. Her rate is 75/25 (YES, I get 75%! That's a pretty good deal as far as consignment goes) I love the shop, it has a variety of hand made products in it, as well as tie dye and fantasy themed t-shirts. I've already sold some things there, and picked up my first check. Quote Share this post Link to post Share on other sites
Daggrim Report post Posted October 1, 2009 I'd have to say I've had a good experience with consignment. I consign a broad range of items to another leathercrafters booth at a large Renaissance Festival. It's too expensive for me to get into, so I'm happy to drop off some things in her booth. My sales are a much lower volume than when I do it all on my own, but it's a good way for me to make sales while I'm busy elsewhere. the 30% fee is very equivalent to what my overhead would be for a weekend show , so it's a win-win for us both. I've gotten custom orders from the exposure, too. I met the right person to deal with, I guess. Or maybe that type of show is very different from a store front. Doug Quote Share this post Link to post Share on other sites
UKRay Report post Posted October 20, 2009 Reference: Joe Rollings Book "Artisans & Money" It really is a MUST have for those of us that make things to sell. Rick, I can't speak highly enough of Joe's book either. Mainly because he put me wise to some stuff about eBay that has saved me a fortune. IMHO, consignment selling is only to be considered if you can't find any other market for your goods at a price you feel comfortable accepting. Whilst I know that Dag has had some good experiences with consignment selling I think it fair to point out that he is a very smart guy and I bet he doesn't take many chances with his stock. I would also wager that he spent a bit of time weighing up the guy before he let him have the goods to sell - and I'd be pretty sure he didn't have to wait long for his money either. Most consignment sales are simply not like that. My own experience is you get all kinds of promises when you leave the stock but somehow there is never any money in the till/ in the bank/ in the store owner's pocket when it comes time to get paid. You end up making several fruitless trips to the store trying to get your money and end up collecting all your remaining stock and either getting nasty with the guy until he pays or writing it off to experience. Neither is a pleasant experience and I'm getting too old for that kind of nonsense. Nowadays, if I get something out of the cupboard I want hard cash - or the online version - in my hand before I part with it. Unfortunately that doesn't please some folk, but that is the way it is. Ray Quote Share this post Link to post Share on other sites
