Possible Placement Of Dozen Belts On Consignment At Gun Retailer. Tips?

[Tallbald]

A large firearms dealer in my area who wanted me to make and sell holsters through him a few years ago is now interested in maybe carrying between 12 and 18 of my heavy duty belts in his store on consignment. The store is very well advertised in print, on TV and even radio. Folks do travel a distance to visit his store, and he has plans to expand to a larger store in the future. I've been a customer of his since 2003 and he's gotten money over the years in support of my wife's and my "other hobby". I feel comfortable with him as a business person, and a long time friend (retired police officer) is one of his employees. They have even asked me in the past for help market valuing a brand of revolver I am very knowledgeable about. My wife and I are on a first name basis with them.

Anyway, the owner has asked me to bring in samples and to come up with a way to display my belts hanging openly. He wants 25% commission on each consignment sale, which is about what he gets selling a firearm on consignment too. All his products have a computer generated inventory sticker, which I believe he will put on my belts too if he decides to carry them.

Please help me with a few questions. I have read the sticky and understand the need for stock rotation, not under pricing the retailer, and other points made.

- Do I write out and describe each belt on a list and have him sign a receipt for the belts placed on consignment with him?

- Should I advertise on my web page that folks can see some of my products at that store?

-12-18 belts is a lot of money for me to tie up in a store display, but is it an amount to be expected?

-I believe that any referral made to me through him or his store (custom size or features) would be due his 25% commission of sale price. Is that how such situations are done?

-Who pays sales tax collected from a belt sale? Me or the store?

25% consignment commission of sale price is indeed a big chunk of any profits I could hope for, but given the high traffic in his store, I believe that because of the high traffic in his store I will reach a broad market segment of potential customers, which might help me generate some revenue from my art.

Thanks for any experienced input, and please feel free to make suggestions. Don.

Edited September 12, 2015 by Tallbald

[JLSleather]

I don't consign, so I'll say that up front in case you prefer not to read the rest of my thoughts

For that type of thing, I think 25% is actually a little less than some ask for. Still, more than I would want to pay to someone who hasn't done any of the work.

In terms of volume, a dozen belts is actually low. I suppose it depends on the store you're dealing with.

If he's charging you to sell your work, it seems reasonable he would also be paying you for any advertising you're giving him (web site or other).

Consider also, his insurance should cover YOUR property (it's still yours until it's paid for) in case of fire, shoplifters, flood, etc. If the store burns, are you just "out"?

THAT SAID, I would personally prefer to sell him the belts outright. You might come to a reasonable "wholesale" price if he was to purchase - say 25 or more belts. I would probably want like a minimum order of 25 (50 is better), with material costs plus 25% of the labor paid up front.

These things all depend, I suppose, on how close a friend the guy is.

OH, yeah.. while not actually "consignment", I have had people offer to purchase multiple items if they can get a reduced price. This is not particularly interesting to me. Think this ... You sell one belt for $100. Somebody comes along, kinda likes yer belt, and says he'll give ya $75. You might well be insulted if you have considerable time in that belt. You'd think that guy was hustling you, and you might even call him a jerk (or such). WHY then, do people think that if someone offers to buy 50 of them, he's suddenly 'OK' and it's a good deal? Isn't he just hustling you out of $25 - 50 times?!#@%$! I mean, if you're selling belt BLANKS (as some sensitive folks do) and you make $4 each, tehn the more you cut, the more profit. But if you're stamping/dyeing/finishing/setting snaps/stitching/punching..... then you're out all that time ON EACH ONE.

Edited September 12, 2015 by JLSleather

[natenaaron]

I owned a Boat repair shop and was on the other end of your arrangement. A customer came to me with a proposition. He repaired props. He had several high end props that he picked up, repaired and wanted to sell on consignment. He had a lot of hours put into them and did first rate work. You honestly could not tell the difference between the brand new props and his. Not a single one sold. He did get some repair work based on the work done on the consignment pieces but in the end he said he lost a quite a bit of money in time and materials. So, you might want to think about that money tied up in inventory that may or may not sell.

Good luck.

[Tallbald]

Excellent points. I believe I will limit my consignment arrangement with the dealer only through the holiday season, Oct, Nov and Dec. Traditionally that's the busiest season for him as with other retailers. If my art has not sold, then I will have to believe I chose the wrong venue, and will retrieve my belts. If they sell swiftly, I will possibly re-negotiate the consignment percentage rate.Better to sell one art piece with $50 revenue than none at 100% profit revenue. Guns sold with him on consignment are covered by his insurance. I've asked that very question before.

Oh. Mine are finished pieces. Not blanks.I have no interest in selling blanks, nor do I think the dealer has any interest in selling blanks.

How do you inventory the art you sell via a retailer? Don.

Edited September 12, 2015 by Tallbald

[chris33177]

I sell belts online, and I believe 18 units or so is too low of an inventory. The problem with belts is the different sizes. You have to have a big inventory in order to sell many belts. and I believe, that is a lot of money to be tie down in an experiment. However, selling on consigment thru a big or known retailer is just another tool whitin your marketing strategy; and as a tool it depends how you use it. For example, it may give your brand name recognition, website recognition that can lead you to specific orders. so you do not have to invest in a lot of inventory. Maybe what you can have is some samples in the store and take custom orders thru the store, that may work better for you. I hope it helps. Good luck with that. Let us know how it work out for you.

[Tallbald]

Chris thanks for the thoughts. The store owner asked for 12 to 18 belts to have in his store, up to 44 inches waist size. He said that he could refer customers to me for other sizes or special orders, and I'm coming up with a simple order form for such occasions. I will meet with the dealer to show him my belts, making sure he is satisfied with the quality. Again, he had wanted me to make custom holsters for him a few years back, before I had a stitching machine. I really don't like having so much cash of mine tied up in artwork at his shop, but he is the biggest dealer for several counties around, does a high volume, and I believe the exposure will be good for me if he does indeed want to carry my belt artwork. I will continue to offer my work via Facebook and on some shooting forums, and have my cards on display locally. I'm hoping word of mouth helps me develop a following too. Don.

Edited September 15, 2015 by Tallbald

[DoubleC]

Hi Tall. Could you let us know how it turns out for you? I placed some guitar straps at our only music store free and didn't sell a one. And I placed 3 dog collars at the vets and same thing. I grabbed the collars after a year and 1/2 and took them to the farmers market with me and sold one the second week. Neither one were charging a consignment fee but that doesn't matter much if nothing is selling. I hope you have great luck with this. Please let us know. Cheryl

[chris33177]

Chris thanks for the thoughts. The store owner asked for 12 to 18 belts to have in his store, up to 44 inches waist size. He said that he could refer customers to me for other sizes or special orders, and I'm coming up with a simple order form for such occasions. I will meet with the dealer to show him my belts, making sure he is satisfied with the quality. Again, he had wanted me to make custom holsters for him a few years back, before I had a stitching machine. I really don't like having so much cash of mine tied up in artwork at his shop, but he is the biggest dealer for several counties around, does a high volume, and I believe the exposure will be good for me if he does indeed want to carry my belt artwork. I will continue to offer my work via Facebook and on some shooting forums, and have my cards on display locally. I'm hoping word of mouth helps me develop a following too. Don.

I think, you should consider this opportunity as an investment then. This store will be a good outlet for your products and name recognition in the long run. I would suggest you to create a brand name for your belts, easy to remember and with a specific idea, focus what makes your belts special, what makes them different or better than the competition, Also, very important have a website where you become known, as well as your belts. That way everything with your name on it will serve you as advertisement. All these element together will create a synergy that will help you in the long run. I hope it helps. Good luck with that!

[Tallbald]

I appreciate the well wishes very much. As to a web site, I really am unsure where to turn to start out. I understand that some cost significantly, some are free. I'm so busy making belts and smalls that I haven't been able to dedicate time to detailed research on creating a web page. DOn

[kevinp]

For us the worst part about having belts in a shop is that people try them on and they can become marked scratched or even the holes stretched where the buckle goes, and they are also not aways put back from where they came from

If you have two keepers on the belt one fixed and one loose you need to find a way of keeping the loose keeper with the belt.

Are they going to have security tags on them ? we LOST a belt the first week we had them on sale.

One thing we always do when stocking the shop is after taking inventory, isthat we photograph the table and shelves from all angles,