# What do you think?



## bbqking (Mar 16, 2008)

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.


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## Betsy (Sep 25, 2007)

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


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## doyoulikegumwood (Jun 21, 2007)

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.


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## trifern (Feb 1, 2008)

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


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## mtnwild (Sep 28, 2008)

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.


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## naperville (Jan 28, 2008)

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


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## tenontim (Feb 24, 2008)

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.


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## bbqking (Mar 16, 2008)

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


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## closetguy (Sep 29, 2007)

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.


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## gusthehonky (Feb 26, 2008)

1/2 of everything is below average.


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## Boardman (Feb 7, 2008)

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.


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## jm540 (Jan 14, 2009)

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


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## JimmyC (Jan 31, 2009)

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


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## roman (Sep 28, 2007)

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.


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## NY_Rocking_Chairs (Jul 20, 2008)

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.


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## mmh (Mar 17, 2008)

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.


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## Sawdust2 (Mar 18, 2007)

When I have put items out on consignment it is at 40%. Those that want 50% I tell to take a hike.

Lee


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## jm82435 (Feb 26, 2008)

70/30 is not unreasonable. Typically I will do a 1/3 split with them. It should be a symbiotic relationship we should both make it worth our while. They are doing the marketing and sales they deserve a cut - to me that is the hardest part anyway. It generally takes me longer to sell something than make it and I would rather be in the shop. I agree if it is consignment I always mark it up to include their cut in the sales price. If they were willing to buy it "wholesale" I would cut a my price. If it is really upscale you should be able to mark it up enough that you don't take the hit anyway… my $.02


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## TNWoodwright (Jan 19, 2009)

When ever i did consignment places I found it was a good place to put my furniture so they could fill-it with all the little stuff they sell and decorate their place. Which ended up that it never or seldom sold but was cheap way to decorate for them. All three places ended up bankrupt


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## WIwoodworker (Apr 10, 2008)

Everyone has their price bbqking. For some it's 10% and for others 50% might work. It just depends on what your goals are. Personally, I think 50% is a bit steep but I don't know your cost structure or the desirability of being in this particular shop.

Back up a little and define your goal. Are you trying to make money from this sale or are you trying to get exposure to people who will be able to contact you and you can make more money then? If your goal is advertising to a higher end clientele then maybe 50% is OK if it get's you leads for other jobs. In fact, it might work to your advantage if the piece doesn't sell at all but brings you other custom clients. Then it would be free advertising and you'd be bragging about it.

If your goal is to make money on the pieces sold through the shop then you have to look at your margin and decide if the profits left over are acceptable for you. At a 50% consignment fee you'll probably not make much at all.

I agree with Tom Adamski's post. Negotiate a better deal. And while you're negotiating the % fee you should also negotiate the ability to display business cards/brochures advertising your services along with your piece. You might also try to negotiate how it's going to be displayed so you don't have some doily's and tea cups covering up your work. Anything you can do to separate your quality craftsmanship from someone else's unwanted stuff is a win for you.

Good luck and be sure to let us know what you come up with.


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## toolman409 (Jan 28, 2009)

I have been told by high traffic tourist shop managers that they can't have their clients discover they can purchase your piece direct (like off your web site) for less than the client paid in the shop (on consignment). And they want to mark it up 100% so they have some negotiating room. Actually, they wamt it all on their terms.

I decided I can't afford to tie inventory up in a shop.


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## TopamaxSurvivor (May 2, 2008)

Food for thought: I have been in business since 1985, not a wood shop, electrical contractor. I discovered real early I could go bankrupt working for nothing just a fast as laying in the shade drinking beer. Knowing when and not being afraid to say "NO" is probably the key to long term survival.


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## Digitalwoodshop (Feb 13, 2009)

I played the 50% game and charged what I thought was fair and they doubled it. Nothing sold… A website is a better way to sell when it comes to Wood Stuff. I have a website that only cost $11.00 per month using Yahoo Business and was easy to make MYSELF. I got a nibble for my Fire Tag's that I make from someone searching. I don't really sell through the website but it gives me a place to display my work.

Once you have your website up you can then place fliers at the Community Bulletin Boards and on the back of Church Newsletters to drive your Target audience to the website to look.

I am pulling out of the 50% place and found a 30% place with MORE traffic flow.

Good Luck,

AL


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