Wholesale Versus Consignment
Sunday February 24, 2008
Should you sell your products through consignment or wholesale? Many crafters cannot mark down prices enough to sell to
wholesale outlets. There is just too much competition to sell at a lower price. If you cannot cut your prices enough to sell
wholesale while remaining competitive, consignment may be the way to go. By selling consignment, you can keep your retail
prices the same and lose a smaller percentage of your sale price. However, make sure you are still making money! Even when
you are selling though consignment your retail price is affected. Make sure you set your pricing in a manner that ensure your
are still making a profit on each sale.
Comments
Even consignment fees can be as much as 50%. It is hard to make creative, one of a kind artwork for wholesale prices.
Our strategy is to diversify and have a hand in different sales opportunities, even if there is a discounted sale to us. You never know what the future will hold and maybe that consignment sale will be just what you need one day.
What I don’t like about consignment and might add that I never do it, is that if your products can get shopworn or dirtied in any way by handling and trying on, then you are into a situation where you have valuable stock that you have no control whatsoever over
with a shop owner who has no investment involved, except for space, so you are very likely to land up with any number of pieces that didn’t sell because they look shopworn and dirty and the shop owner doesn’t want them anymore because they aren’t selling!!!!!!!
I agree with Linda. In addition, things are broken, misplaced, and stolen, and there is no compensation for the piece. It is very frustrating! I have no choice but to go to craft fairs, and its hard to find one with reasonable entry fees. Can anyone help with that? Im in Clearwater, Florida.
Thanks!
Gail
I am pretty new at this, I have done wholesale and consignment, but I make it clear that I don’t markup my items very much, they are not like assembly line products. If I do either wholesale or consignment, my wholesale price is more than the “rule” of 50% of the retail, and if it’s consignment, I will have to price my items higher than my retail. My latest consignment agreement is great- they just tell me to give them the minimum amount that I need to have, and they mark it up as much as they want above that. I have an unusual item, so they really can’t get items like mine from anyone else, so that helps.
I do production wood items mostly wholesale or on contract for trade missions or special promotions but deal with a few gift shops. I only have one consignment shop left. I have always only done business on consignment when I get 60% of the retail price.