GetCrafty Craft Facts

Q: A nice boutique is interested in taking some of my hand-designed necklaces on consignment. I know how much I would like to sell them for, so do I just tell them the price I need to receive and let them decide on their selling price, or do I need to lower my asking price so the retail price will not be as high? This is my first experience with consigning items and would appreciate any and all pointers.

A: There's not a definitive answer by any means, but - figure out the very least you should/can make from them as far as your time and materials go; if it seems cheap when doubled, add more. Figure out if you want to sell things quickly, or at a more leisurely pace; add more if you're not terribly worried and think they'll sell well. Make up a list of suggested retail prices for them, and then go ask the boutique owner, who hopefully knows the store's clientelle, what (s)he thinks they can be priced at. 1) You set your own retail price. 2) You and the store negotiate how much of a % each will get. Over here, the rate is 35%. For example, if the necklace retails at $10 (before tax), you will collect $6.50, and the store will get $3.50. 3) Draft a written agreement, and have it signed. Some items that should be covered in the agreement: -When payment should be made (ie 1st of each month). -Responsability of the store to keep the pieces in good condition (ie. in case of damage). -Responsibility in case the items are stolen. I also suggest keeping your own inventory and descriptions - keep a copy for yourself, and give a copy to the store owner. Get everything in writing. I have used a standard consignment agreement. If the store goes out of business or you have problem, at least you can prove that the merchandise is owned by you, and not the store.