Consignment means you have an agreement to pay a supplier of goods after the goods are sold. Many times, this looks like a commission check to the retailer who sold your goods.
Consignment pros and cons:
- Must be well organized
- Recommended for $70-300 product range
- YOU still own the product
- Products must be switched out frequently (every 6-8 weeks)
- You help sell the product by letting your audience know it’s there!
- You control the commission percentage (usually between 20-40%)
- Do two “meet the maker” shows at the retailer’s location per year
- You set the payment plan (once per month, every 3 months, etc.)
- Renew contracts every year
- Develop a relationship by checking in frequently and asking for feedback!
- Provide them with as many marketing pieces as they need and will allow!
Wholesale means you sell the product to the store (usually at a discount or wholesale price) and they own and sell your products.
Wholesale pros and cons:
- You sell at about 40-50% of the price
- You get paid right away
- Recommended for $5-70 product range
- Provide 3 different options for the buyer (package A, B, or C)
- Store owner will “keystone” it, most likely
- They are fully in charge of sales
- They market the products and do the set-up
- Re-order quarterly or 2 times per year
- Do two “meet the maker” shows at the retailer’s location per year
- Develop a relationship by checking in frequently and asking for feedback!
- Provide them with as many marketing pieces as they need and will allow!
I recommend sending in a “mole” to shop the retail location to see how they pitch your business!
We got this Encouragers!
