Business Tips Part 24: Consignment

Have you always wanted to have your products on sale in a physical shop? Well don't be a chicken, approach a store and see if they accept consignments.

When you place your products for sale in a bricks and mortar shop yet retain the legal ownership it is known as consignment. This is a precursor for setting up a wholesale account with a retailer. The shop acts as the sales representative but takes a commission on any sales. The commission could be anything between 25% and 50% but there is usually room for flexibility so barter for a rate you are happy with.

Some shops have a limited buying budget and therefore taking on consignments allows them to try out a range of goods and test the salability before offering to buy outright with a wholesale deal.

It can be really exciting to think that you will be getting your items into a real life shop but you will need to be cautious at first, extra cautious if the store is quite a distance away that you are unable to visit too often in person.

It is extremely important to have a consignment agreement with the shop. At minimum this will include the details of how, and how frequently you will be paid (i.e. monthly or quarterly) and who will cover the postage costs if this applies. More often that not a shop offering consignment will expect you to absorb the postage costs. When you do receive payment, make sure you are given a detailed list as to what has sold, this will ensure that you have been paid correctly but it will also be necessary for your records. If you have any concerns or reservations with a shop, start off with a small quantity until they have gained your trust.

Here are some further points to consider:
  • Is the shop well established and been in business for long? If it is new you will need to be extra careful,

  • Are most of the goods on sale in the shop bought outright/wholesale? If so encourage the owner to do the same with your pieces,

  • Contact other designers/artisans who have pieces for sale in the shop for their feedback on the shop and business practices,

  • Ask if the insurance documents cover consignment items,

  • Find out what will happen if your items are stolen or damaged - will the shop pay you?

  • How long will a product be on the shelf? If they are not sold within the set timeframe how will they be returned to you? It isnt ideal to have items sitting on the shelf for long periods of time as they may become damaged and you will be unable to sell them.

Do any of you do consignment? Have any tips you would like to share?

On the next Business Tips blog: Wholesale Part 1







Friday, 5 March 2010 | 0 Comments

Business Tips Part 23: Craft Fairs part 2

So you've researched and found a craft fair and booked the table but now what? Well, you need to think about how you want to display your items.

A visitor to a craft fair isn't necessarily looking for something specific but wants to see what is on offer on the day. Keep this in mind when you set up your table so that your items can be accessible and ready to be picked up....and purchased! Your stall needs to be inviting, uncluttered, simple and have the prices on display.

Consider using some props so that people can see the uses of your items. This is not so relevant for the cards at Butterfly-Crafts but I could show different ways to use a crochet flower brooch such as on a cardigan, a hat or even on pretty ribbon for wrapping a present. Also think about raising some items up off of the table to eye level or use display boards along the back. No matter what you do however, practice before the big day so that you can tweak the stand until you are happy.

Some additional tips:
  • Keep a record of your inventory before and after the fair,

  • Have a method of recording each sale and if you have an assistant make sure they know how to do this too,

  • Consider tying down items that may appeal to slippery fingers,

  • Bring an assistant to help you package and talk about your products, keep you company when it is slow and let you have a break,

  • Set yourself a target such as make three times your table money, or sell all of one type of product.

But my number one tip: Have fun!

On the next business tips blog: Consignment

Image from EmilyClaireCreations

Monday, 1 March 2010 | 1 Comment

Business Tips Part 22 - Craft Fairs, part 1

With the economy being the way it is more and more people are taking to crafting and all things handmade. This change is evident in the revival of the craft fair. Once typecast as a place you'd take your grandma to in order to find gift baskets and dried flower arrangements, craft fairs are now becoming a gathering spot for the younger generations and those who care about buying handmade.

If like Butterfly-Crafts your craft business is relatively new, a craft fair can be a fantastic introduction into the retail market - a chance to test out product lines and prices. Craft fairs of today are not all about selling as much as you can to make your cover fee back, but they are a chance to congregate with like-minded people and exhange ideas. Summed up, they are a great opportunity to meet, greet and sell.

Craft fairs range in size and so do their entrance or table fee so it is always recommended to research before comitting to have a table. Questions to ponder include does the fair live up to its reputation? Do your products have the right 'fit'? What are the demographics of those who attend? and, can you afford it?

Along with those questions, there is one essential question to ask: Will I be ready on time? If it is going to be your first craft fair it will be hard to judge how much inventory you should take but it is far better to have more than you need rather than too little. Aim to make as much as your time and resources will allow. As you become a craft fair regular you will be able to guage how much inventory to take with you.

Coming next time: Craft fairs part 2

Friday, 26 February 2010 | 0 Comments

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