Consignment Pricing Structure

[azrider]

One of the big disconnects I still have is what I think something should be priced at for retail, and what people are willing to pay. When I broke down all my prices I was wanting to sell stuff at, I realized I was doing the work for under $3 an hour. There is a great series of articles in the Leather Crafter's and Saddler's Journal right now about how to properly price your products. They are based on a book, and it is worth getting. I found if I have my retail prices set correctly, I can sell at 50% of that for wholesale, and still make money from it. (Not that I am there yet, but I am getting closer.)

[Kcinnick]

One of the big disconnects I still have is what I think something should be priced at for retail, and what people are willing to pay. When I broke down all my prices I was wanting to sell stuff at, I realized I was doing the work for under $3 an hour. There is a great series of articles in the Leather Crafter's and Saddler's Journal right now about how to properly price your products. They are based on a book, and it is worth getting. I found if I have my retail prices set correctly, I can sell at 50% of that for wholesale, and still make money from it. (Not that I am there yet, but I am getting closer.)

I could sell my products at 50% off and still make money, but I won't work for that little of money! By time you figure out I have two Herman Oak straps, 2 Chicago Screws, dye, thread and a buckle I would only be getting paid around $15-$20 to make a belt, and the guy selling it would be making $35-$50 for selling it. I have plenty of interest in my products, and don't need to sell wholesale, but I wouldn't mind a steady order of product even if it meant giving a 25% discount, a 50% discount is a little too much.

[DoubleC]

I just saw this topic, and it's so relevant to what I'm trying to do. When WinterBear, Bruce, and oh dag forgot first one, they mentioned items not being displayed right, or properly taken care of. People here and my VOW worker said I would want to be especially conscious of where and how my things were displayed. I made up two floor displays, two counter top displays, and WinterBear, always modest, didn't mention that she made me two hanging displays. If you do consignment, try and gently convince the shop owner you'll do them the time saving work of making the display. Two examples, counter and one of Winterbear's hanging displays.

[horsewreck]

I saw this topic revived and would like to give a few scattered thoughts on the subject. We have some consignment stuff in our store, some wood work, candles, western art, and we also take saddles on consignment from regular customers. We charge from 20 to 40% commission and don't charge shelf space rental.

On some our consignors, we are their main source of sales even though they do shows and have stuff in other stores. One couple we've have been selling for along time will bring in their stuff price tagged at their usual markup, (which is to cheap) my wife will reprice it and put it in stock. We have been charging this couple 20% because they have been with us a long time, but the long and the short of it is they net more on their products when we sell them than when they do.

When a craftsman considers consigning as a sales method they need to take their time, find a place where their stuff "fits" and be willing to pay a fair price for someone marketing their product. Never ever pay rent on a space in a shop because the owners are in the space rental business not the sales business.

Taking consignments allows shops like ours to have a well rounded stock to sell from without having our money tied up, and I would never consider charging a craftsman storage or floor space. A good set of consignors make us look better and improves our bottom line, while doing the same for the consignor. Plus they can stay busy making stuff and don't have to maintain a store front, which is a whole nother can of worms.... JEFF