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Forum topic by bbqking posted 2004 days ago 1909 views 1 time favorited 22 replies Add to Favorites Watch
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bbqking

328 posts in 2322 days


2004 days ago

Just got an offer this afternoon to sell my stuff in a nice, upscale ATL shop. Wants me to cut my prices by more than 50% to get it in there. It’s a consignment thing but it would be good exposure. I’ve never done this before and I’m interested on anyone’s take on this. Till this time I’ve just had private orders.
bbqKing.

-- bbqKing, Lawrenceville


22 replies so far

View Betsy's profile

Betsy

2913 posts in 2494 days


#1 posted 2004 days ago

50% sure seems like to much to me. Are you prepared to cut your paycheck by 50%? I couldn’t do it.

-- Like a bad penny, I keep coming back!

View doyoulikegumwood's profile

doyoulikegumwood

384 posts in 2591 days


#2 posted 2004 days ago

hey bud first off i have know clue ow much you charge for stuff but if hes asking you to sell stuff for ikia prices then it might be in your best intrest not to sell thier it may be hard to pass up but if your going to take a loss then thats what you have to do your other option and i hate to say it is cut your costes if you really want to sell their if this person wants a fifty doler end table then bring on the partical board and cheap vanears thats my 2 cent its harsh but its the truth ive heard will i can get it at ashley for half that more then once and have told more then one customer well if thats what you want then go get it if you want something to pass down to your great grand children the you talk to me.

-- I buy tools so i can make more money,so ican buy more tools so I can work more, to make more money, so I can buy more tool, so I can work more

View trifern's profile

trifern

8132 posts in 2365 days


#3 posted 2004 days ago

Might be alright if you can mark up your pieces 200% before taking 50% off.

-- My favorite piece is my last one, my best piece is my next one.

View mtnwild's profile

mtnwild

3474 posts in 2126 days


#4 posted 2004 days ago

Good point trifren, they cost what they cost, if not there, move on, they loose. Got to believe in yourself. Personally if I’m going to loose money on something, ( almost everything), I give it to where it will be best appreciated. To a friend or a charity, or I hold on to it myself. I mainly make the things I would own anyway. My two cents, thanks.

-- mtnwild (Jack), It's not what you see, it's how you see it.

View Tom Adamski's profile

Tom Adamski

306 posts in 2369 days


#5 posted 2004 days ago

BBQ,
Remember, negotiating is the easiest way to make money. Of course they want you to sell your work to them for half off. I would reccomend that you counter with a 75/25 or 70/30 split of the agreed selling price. If they really want your work, they will work with you.
If they ask you to pay any money up front, like a “membership fee” or “initiation fee”, tell them to pound sand and then walk out.

Good luck…

Tom

-- Anybody can become a woodworker, but only a Craftsman can hide his mistakes.

View tenontim's profile

tenontim

2131 posts in 2343 days


#6 posted 2004 days ago

I wouldn’t go 50%, unless they buy my stuff outright. 40% is the norm, and it’s bad enough, for consignment. And if you have you pieces already priced, then a lot of these consignors won’t let you mark them up to make a better profit. In my case, since I have a web site, they are able to research my prices before offering to sell my products. I’ve done as well as I want by doing my own marketing and getting sales on my own. Good luck.

View bbqking's profile

bbqking

328 posts in 2322 days


#7 posted 2004 days ago

Thanks for all the advice, guys. Keep it coming. bbqKing.

-- bbqKing, Lawrenceville

View closetguy's profile

closetguy

744 posts in 2490 days


#8 posted 2004 days ago

I wouldn’t do it. You have two way to sell; wholesale or consignment. I have never seen a combination of the two. The normal wholesale rate is 50% of list. There is an advantage to both parties. The shop has maneuvering room to generate enough of a margin to support their high overhead of operating a brick and mortar store. You get the advantage of volume sales along with order minimums. It’s a good fit for those who have a reasonable list price. The problem is that if you have a low list price, you may not make any profit, or the store owner will make much more than you. But bottom line, you make sales immediately when the store orders from you.

With consignment, you place your product in the store and hope it sells, then split a percentage with the store. The advantage for the store no investment in inventory and no risk. You on the other hand assume all the risk. Unless you have a good contract with the store, if the item is shoplifted or damaged, you are out of luck. Also, there is no incentive for the store owner to push the product or display it appropriately because they have no investment, or risk. My big issue with consignment is that your inventory is tied up. This is product that cannot be marketed or sold via other avenues.

It appears to me that this store wants a 50% discount wholesale price without the normal wholesale requirements, and then eliminate all risk by getting you to consign it. I would give them 20% for consignment, or 50% on a wholesale purchase if the item is $100 or more. If it’s smaller dollar items, I would require a minimum purchase.

Its a great thing to sell out of a store, but don’t allow yourself to get into a lopsided deal.

-- I don't make mistakes, only design changes....www.dgmwoodworks.com

View gusthehonky's profile

gusthehonky

130 posts in 2340 days


#9 posted 2004 days ago

1/2 of everything is below average.

-- Ciao, gth.

View Boardman's profile

Boardman

157 posts in 2360 days


#10 posted 2003 days ago

I had some stuff in art galleries – they usually want 40% or retail so it’s about the same. Never sold anything, and it not a real good option. You have to either be OK with the making more on your efforts than you, or end up pricing it so high in order to get a fair price for your labor, that not many would buy it.

It’s a great deal for them – no cost, no risk, and they can take a shot at just about anything since they have no investment per se. Not so good for the artist though, unless your providing a “stock” type items that will sell over and over, and you can minimize your labor by the economy of scale.

View jm540's profile

jm540

150 posts in 2017 days


#11 posted 2003 days ago

I want to know what yo make out of what that you can discount 50% and still afford to buy wood and supplies in atl. becase if I can make 50% over cost I killed it. maybe I need help

-- jay Rambling on and on again

View JimmyC's profile

JimmyC

106 posts in 2000 days


#12 posted 1998 days ago

50% is ridiculous, you could take some money off for not having to do the actual task of selling it, which allows you more time in the shop, but anymore than 10% is ridiculous. He seems to want you more than you want him, I see that as a distinct bargaining advantage point for you.

Good Luck, Jimmy

-- -JimmyC...Clayton,NC- "Just smile and wave boys, smile and wave"

View Moron's profile

Moron

4666 posts in 2492 days


#13 posted 1998 days ago

I put a piece in a store on consignment asking $75 dollars (50%) selling it for $150 dollars

after months and months of no sale

I put the same piece in another store on consignment and asked for $350 dollars…......and it sold for $750 dollars the same day!!!!!

I put another piece in another store on consignment and never saw the piece or the money again…..it just vanished.

-- "Good artists borrow, great artists steal”…..Picasso

View NY_Rocking_Chairs's profile

NY_Rocking_Chairs

495 posts in 2195 days


#14 posted 1998 days ago

I do the majority of my sales through a consignment gallery. She takes my price and makes that 66% of retail. So if I am getting $2000, the selling price is $3300. She has never asked me to price anything down. Also whenever a custom order comes in she usually has all her woodworkers quote it but doesn’t necessarily go with the cheapest. Some she knows will take 2-3 months while I have a reputation for setting a date and sticking to it.

Even though the gallery owners and I are friends I always get a receipt listing the item and its value to me. So if the piece ever just disappeared I would have a receipt showing she owes me so much money.

The key is finding galleries you can trust and then building a solid reputation with them.

-- Rich, WNY, www.nyrockingchairs.com

View mmh's profile

mmh

3322 posts in 2320 days


#15 posted 1998 days ago

Consignment is risky on your part because the shop does not have anything invested in your product except the space it takes up. If you do put a piece in, it is good advertisement, but I would do as suggested, raise the selling price to cover your needs. Make sure that the shop has insurance to cover damages, lost or theft of your piece. Take good photos of all angles of the piece to document the condition it is in when delivered and get in writing what the sales, insurance, terms of showing are. Will they promote the piece reasonably or will it sit in a dark corner? How long will it be on consignment? Can you remove it before the said date of termination? Make sure the terms are reasonable to you. Pick up and deliver times should also be determined before you find yourself in an awkward time schedule. Will they advertise your name on the piece or keep it a secret so that patrons will not know who made the item? Sometimes shops may not disclose this in fear of patrons contacting the artist directly for a cheaper price. Make sure the shop shares your name, you could tell them if someone sees the piece in the shop you would give them a % if contacted within 6 months. That’s just an option to make sure the shop advertises your name.

-- "They who dream by day are cognizant of many things which escape those who dream only by night." ~ Edgar Allan Poe

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