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Forum topic by JoeyG posted 795 days ago 1307 views 0 times favorited 26 replies Add to Favorites Watch
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JoeyG

1233 posts in 1227 days


795 days ago

Topic tags/keywords: question

I have a question that some of you maybe able to help me out with. I have several stores or shop close to home that would like me to put my boxes in for sale on commission. I live in a small area and all the shop owners know each other. They have set a price at 33% on top of my price. I think them making something is fair. It is their business establishment and all of that. 33% just seems high just to put something on a shelf. They don’t even have to try and sell it, just take the money if someone wants to buy it.

What is a fair commission? Anyone with experience in this that can share their thoughts?

As always, I am most grateful to anyone who has anything to help in my consideration of letting these folks make so much money off of me.

Thanks.
Joey

-- JoeyG ~~~ http://www.facebook.com/JHGWoodWorks


26 replies so far

View Monte Pittman's profile

Monte Pittman

13313 posts in 940 days


#1 posted 795 days ago

That’s a standard here as well. I think it is excessive also. But they don’t negotiate.

-- Mother Nature created it, I just assemble it. - It's not ability that we often lack, but the patience to use our ability

View KoryK's profile

KoryK

229 posts in 1291 days


#2 posted 795 days ago

I’m just starting down this road and negotiated a deal with a shop owner out of Tennessee. We agreed I set my own pricing and we do a 70/30 split (started with a 60/40). The big difference is she pays for all advertising and promotions. She has already scheduled an interview with two of the local papers to highlight my work and in turn her shop. She is also trying to get my work in other shops at a wholesale price, but we are still talking about that. Like I said, this is my first attempt so I don’t know if its a good deal or not. We will see, but it seemed fair and I don’t know if any other shops would be willing to do it. Don’t hurt to ask?

-- If you not making sawdust, your probably wasting your time. Kory

View jaykaypur's profile

jaykaypur

3257 posts in 1010 days


#3 posted 795 days ago

I have 2 places that want me to bring them some stuff. We have not discussed any monies/percentages but I am just honored that they asked me…...........J

-- Use it up, Wear it out --------------- Make it do, Or do without!

View Douglas Bordner's profile

Douglas Bordner

3960 posts in 2665 days


#4 posted 795 days ago

My only attempt at local giftshop placement was a 60/40 split. 40% for me. Couldn’t do that.

-- "Bordnerizing" perfectly good lumber for over a decade.

View kepy's profile

kepy

151 posts in 875 days


#5 posted 795 days ago

I have never paid more than 25%. Also, be careful of the shop. One I was in disappeared along with my pieces.

-- Kepy

View Mainiac Matt 's profile

Mainiac Matt

3838 posts in 930 days


#6 posted 795 days ago

Just surfed your projects again Joey…. you’re really cranking out the boxes and they look terrific.

I can’t comment on what’s a “fair” commision, as my wife’s uncle “taught” me long ago that “fair” is where you take your little pet pig to get a blue ribbon :^) (little dysfunctional family humor there)...

I will suggest that the shops have fixed overhead costs and typically no other way to cover them. And they are actually bringing something very valuable to the party…. a paying customer!

Where I work now, we have several brokers selling products that we manufacture and often they make more on them than we do…. and we have all the material cost, labor and more importantly THE RISK associated with employing people in a factory envirionment. None the less…. they are making the sales.

I think what’s more important, is the question…”are you making what you think you need/want to make?”

If the answers is yes…. I’d suggest you not worry about what they’re making.

-- Pine is fine, but Oak's no joke!

View Jamie Speirs's profile

Jamie Speirs

4095 posts in 1458 days


#7 posted 795 days ago

That is fair

I pay 35%

But make sure you get prominent display as

shipowners will sell the goods first that they

have laid out there cash for

No good your money sitting in the back on a bottom shelf.

Jamie

-- Who is the happiest of men? He who values the merits of others, and in their pleasure takes joy, even as though 'twere his own. --Johann Wolfgang von Goethe

View  Box 's profile

Box

4937 posts in 1910 days


#8 posted 795 days ago

33% seems fair and reasonable. Some wholesalers will want to purchase work at a 50% discount and some galleries want 40% consignment commission. Choose the galleries carefully and get a written contract of their policies. If your state has a local crafts guild and a retail store it can be another option.
there are some co-op galleries also that sell artists work for around 25% commission and you have to volunteer to work in the gallery a few days each month. You have to find the best option for your needs.

View Nate Meadows's profile

Nate Meadows

1074 posts in 808 days


#9 posted 795 days ago

Joey,

Remember that they have to pay rent, utilities and their employees. That money helps them. Sure they are not actively selling your product but it is taking up space so you are renting space and when the clerk rings it up, you are paying the clerk. You are also paying the employee to keep it clean and presentable. Your paying to keep the store nice and comfortable, the lights on, etc. It seems high but anything around 35% is fair, in my modest and humble opinion. Now if they try and go above that, they are eating into your money!

Very Respectfully,

Nate

-- "With a little bit of faith, and some imagination, you can build anything!" Nate

View MyChipCarving's profile

MyChipCarving

463 posts in 1726 days


#10 posted 795 days ago

I think Nate has hit it right on the mark. 33% is fair as it helps to put yourself in the store owners shoes.

-- Marty, https://www.MyChipCarving.com, 866-444-6996

View crank49's profile

crank49

3338 posts in 1573 days


#11 posted 795 days ago

As a retailer I’ve always expected key (100%) markups to be standard.
That’s the posted price, before discounts or sales.

Applied to the terminology being used here that would be a 50/50 split.
I have always, on any product I made for someone else to sell, expected I have to be able to make it and sell it for 1/2 of what it will be retailed for.

As far as 35% being excessive, I don’t think so.
In my retail store, If I can’t make a 27% margin I don’t even break even.
The cost of doing business has increased over 12% in the last 3 years due to paperwork and regulations.
Just had gubmint snoops in the store twice in the last month.
Got cited for not having a “No Smoking” sign on the back door.
My back door is only an exit. Can’t be entered from outside.

-- Michael :-{| “If you tell a big enough lie and tell it frequently enough, it will be believed.” ― A H

View Puzzleman's profile

Puzzleman

328 posts in 1546 days


#12 posted 795 days ago

I second crank49. I sell to over 500 retail stores, website and catalogs and they all at least double the price that I sell to them at. As long as they can sell it at that price, i don’t care as I make the price that I need.

Another way to look at is that if you didn’t have your product in their store, how much time and expense would it take for you to sell that same item? Does it take time away from the shop? Would you rather be making product or selling it?

They will reach people that you don’t know about as they have a clientele that will buy from them. I would also continue your direct selling to customers as well. This way you can make full price from your customers and the extra sales from the stores will be extra money for you.

-- Jim Beachler, Chief Puzzler, http://www.hollowwoodworks.com

View learnin2do's profile

learnin2do

866 posts in 1453 days


#13 posted 795 days ago

If they can sell your items at a high enough price that your percentage is satisfactory, then all is okay!

I get 40/60. One store doesn’t seem to be able to fetch enough to get us both what we need. The other is just too high end -i don’t think people want to pay that much for my things. I enjoy seeing the check i get in the mail. I just need to figure out what sells there that i can make fast enough to actually fetch me a decent hourly for my work.

-- christine

View Earlextech's profile

Earlextech

905 posts in 1292 days


#14 posted 795 days ago

It’s really not your concern how much they make “off me”. As long as they sell your wares and you are getting the money you need. But to that end I would hold them to a reasonable schedule. Maybe, after three months with nothing sold, the commission changes or you change items. You can’t let them run your business any more than they should let you run theirs.
There is no fair.

-- Sam Hamory - The project is never finished until its "finished"!

View JoeyG's profile

JoeyG

1233 posts in 1227 days


#15 posted 795 days ago

Thanks everyone. You guys have opened my eyes to look at it from a different point of view. I think I will give them the price I need and if it sells with their mark up that is great. If not then I will try something different. I have had a few pieces in a local shop with this set up and it worked fined for me, and they made theirs as well. Sometimes it just takes someone else saying what we already know. What does it matter what they make as long as I am able to make what I need to.

-- JoeyG ~~~ http://www.facebook.com/JHGWoodWorks

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