ScrollSaw Information and Resources #15: Consignments Stores - Are They Worth It?

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Blog entry by jerrells posted 10-08-2011 02:53 AM 1040 reads 0 times favorited 3 comments Add to Favorites Watch
« Part 14: First Craft Show - It Was Fun Part 15 of ScrollSaw Information and Resources series Part 16: Going to do the Consignment Store »

I have been scrolling for some time and have sold by word of mouth and at a few Arts & Craft shows. All with a fair amount of success. Now I have found an opportunity to be involved in a Consignment Store to sell my product. However, my question is, are these worth the effort.

The arrangement for this consignment store is the rent/least space by the shelf. You pay $20 per month for a shelf that is three foot wide and about 18 inches deep. All of the basic fixture items are provided like stands, pegs and hooks. All you do is make the items, tag them with your price and provide the shop owner a running inventory list.

Once per month you would get a check for all items sold minus a 15% shop fee. The shop will pay all sales taxes. Several times per year the shop will purchase spcae in a local Arts and Crafts show and by lottery drawing you could be invited – FREE. The shop does all advertising and staffing of the shop.

This seems like a winning arrangement however I would like input for wiser ones that I. What do you think.

Thanks for any input.

-- Just learning the craft my Lord and Savior Jesus Christ practiced.

3 comments so far

View Michael1's profile


403 posts in 2681 days

#1 posted 10-08-2011 04:12 AM

On the surface this sounds like a winning arrangement. Some people are reluctant to do consignment, however when it is an agreement where the craftsman is allowed to set the retail price then to me is a strong plus. I avoid consignment agreements where you give a wholesale price and the merchant sets the retail price because often times the merchant will set the retail price too strong and price the item out of the market. The merchant doesn’t have the risk other than the rent of the store and your work can sit there for months before it is purchased.
Also when the merchant has products that they had to purchase and they have yours on consignment, they have a natural interest to push the items that they have the investment in and use your consigned product as a back up. The problem with this arrangement is lets say you make a product that is similar to 20 other items they have in inventory. When some one comes into the shop to select that type of product, you only have a 5% chance that your product is going to be selected.

With what you are describing sounds like everything in the store is on consignment so you wont have to worry about your product playing second fiddle. Secondly, by renting your shelf space, you can place several items on the same shelf giving customers a larger selection. Just be careful not to set too many to make it difficult or an eye sore where people do not pay attention to your display. And as far as the 15% commission, that is a really good rate as most consignment shops demand 40 to 60% of the sale price. I would look at it this way. If you rented your own store, staffed it with sales clerks, paid the neccessary occupancy permit fees, purchased the display shelves etc and took care of the book keeping and tax filings, I seriously doubt you could do all this at 15% overhead.

I say go for it!! In fact, does this store only accept products from local craftsmen or will they display work from sources out of sate?

-- Michael Mills, North Carolina,

View ChunkyC's profile


856 posts in 3276 days

#2 posted 10-08-2011 04:27 AM

At $240 a year how many pieces do you have to sell just to pay the rent? That’s a rhetorical question but it’s something to think about. Can the shop sell enough of your wears to cover the rent, pay for the materials and still have something left over for you?


-- Chunk's Workshop pictures:

View longgone's profile


5688 posts in 3330 days

#3 posted 10-08-2011 05:47 AM

$20 a month is nothing much and the 15% sales fee is extremely reasonable. I would look at this as $20 a month for exposure of your work and any sales will be an added bonus.

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