After rereading this set of posts, I am changing my view. In the beginning of the post I was in line with a lot of people that were stuck on the consignment shop making such a high percentage with only providing a bit of floor or shelf space. I'm now of the opinion that you price it so your percentage/return is adequate for you, take a deep breath and let the merchant go. Roman made a very good point in that the merchant with the right shop is invaluable to the LJ by creating the environment that it can sell for the higher/proper price. Obviously you need to seperate the flea market mentality shops that want the same high percentages from the actual craftmanship ones that will be good for you.

Steve.

 

I know a consignment shop owner here…mostly antiques, and they get 40%. They are always willing to take my stuff, but I cant justify building it for that. I would accept 20% fee, but not much more.

 

If the shop is well managed with good displays in a high traffic area and a loyal client base they are worth a 50% mark up, especially if they buy the piece outright. If it on consignment 50% might be a little high bu not always, it just depends on the other factors.

 

i don't know what kind of relationship you have with these folks but first off it neer hurts to try and get a better percentage with them.

2end i have sold a few pieces with a lady i know and we have a deal i tell here the price tag price and the bottom line price cuz we all know folks like to haggle.

and pricing is very difficult but materials times 2 i don't know if your giving your self the right end of the deal on that one

 

The consignment fee is supposed to cover their overhead and make a reasonable profit….depending on the customary markup of items that could be way high…or way low….take groceries for example…the markup on them is pennies…as the costs are quite high….so asking a 50% fee would be rediculous….now take an item like a plastic flower…the markup on them is typically 140% or higher…so asking a 50% fee might not be too unrealistic….to understand the logistics of what they are doing…you would have to know the cost of their overhead - i.e. do they advertise? whats the rental per sq ft where they are at? etc…etc….They may need to make a high percentage to cover that….and the profit could be pennies….so in other words there is no flat answer here….if you are not sure…do some research…call other consignment stores in the area…or check online. You also should insure that the store sells items close to what you want to sell…i.e. a clothing consignment store would not be a good place to sell woodworking items….

 

I have some items in a shop in a well traveled tourist area. I get 60%. But I know what I want to get out of my items and she marks them up to get her cut. Im not doing this to make any real money. Just kind of an experiment. I have sold a few items over the last year. I use use all free materials so I only have my labor in it, and I dont figure that being worth anything.

 

I've never calculated prices on a multiple of materials basis. I calculate material + supplies + waste + labor then divide the sum by the gross profit I need to determine the wholesale price and double this for the retail price. I try to keep the best records I can so I can make adjustments to my formula as needed. I don't make my living at this just try to pay for tools, supplies for personal projects and some travel now and again. It also means that I don't have to be quite so anal about record keeping which keeps thing more enjoyable.

 

I recently attended a show in my area, and most were selling what I'd consider to be tramp ware. There were a couple guys that did really quality work too, but they had zero customers. The people selling junk beads, and knitted doilies were selling tons of stuff, but the wuality work was just dead. And they paid $250 for a 3 day show.
I doubt I would be into wood working if I wanted to make a profit. I have enough projects in my head that I think I can keep busy till i am pushing up daisies. so it really isn't important to me …

 

to be blunt

it doesnt matter what "mark up" they demand, ask for…..............what matters is your own "profit margin" and if your happy with your own own "profit margin" who really cares what they make…...........all the more power to them.

the projects that are as of yet, those that float around in my head, have little consequence when it comes to feeding my family.

There is one rule in business. ............make more money then you spend.

It isnt rocket science.

 

Well said roman

 

I've never really liked the idea of selling on consignment. If you can do it, see if they'd be willing to buy the products from you to sell at what ever price they want.

 

As long as I get what I need to produce the piece that the gallery is selling The gallery can have whatever the gallery needs to continue to produce sales. Sales are what keeps my phone bill payed.

 

I've had dealers for a lot of years and I've had all kinds of experiences with them. Over the years I developed a system to protect myself and to make my dealers feel like I appreciate the business they do with me.
I have a database for my sites that have secured logins to it for my dealers, builders. vendors, etc. The furniture dealers can log in to their private section and see all of their history with me. They can then go to a secured gallery for dealers only and see new pieces, regular pieces etc. They can pick and choose how they want each piece built for their stores. They then send this information to me via a secured email form so I can contact them with the pricing and or to discuss the product with them or if it's a standard in their shop then they can do the buy me button with their wholesale price. They can also ask me to contact them to build a special piece on commission to one of their customers.I also have a message board in the database so I can leave messages to them. When they send me an order they can login to their account with me and see where I am in the process of their build and when I expect the completion and ship date.
If a shop wants to be a dealer for me then I have a dealer application form on one of my sites for them to complete and send to me that is also secured. After I check out their store then I'll contact them with a phone call.
I don't do consignments anymore unless it's a store or dealer near me and i know them well and then the consignment doesn't last forever with them.
This is a lot of work on my part but it has everything organized so everyone knows what's going on with less frustrations and confusion between myself and the dealers. This is something that took several years of work to achieve but it's paid off for me and my dealers.
I never let a dealer or shop tell me how much they'll pay me for a product, I tell them how much their wholesale cost is and then they can take it from there and make their own personal commission above the wholesale price.

 

I used to have a store that sold some consignment items and I used an uncommon 70/30 split with the crafter of the items getting the higher percentage because I wanted local items in my shop. The 50/50 is more the norm because the store owner has a lot of overhead and each square foot of their retail space needs to produce a certain amount of $ each month to make it worth selling. I used to tell my vendors that they make the item but I have to give it “food, clothing and shelter” until it sells and then pay the credit card fees and sales tax after it sells. I hope that helps.

 

I have been asked by our local museum to consign some of my woodcarvings. Proceeds from the sale of the carvings will be split 60/40, with 60% going to me as the "artist" (carver) and 40% going to the non-profit organization. I suggested that it be split the opposite way, but they insisted on this approach. I'm fine with the plan because I'm a non-profit myself. LOL
The exhibit of the consigned carvings will run from mid-August to mid-October.

 

Here in Kansas City it’s 100%

 

This is an old post... Worth the revisit once and awhile.

With that said, most of the consignment places are 50/50 split. One here in downtown, the percentage split is determined on what the item is. Between 60/40 & 40/60. One place I know off takes 80% from the selling price. This was with paintings & pictures. You need to consider an important factor. The shop owner has overhead; rent, employees and all the bills the come with having a building (electric, water, insurance etc.). So, shelf-space has a price tag. One factor the many don't realize. Many retail stores, have a 100% mark-up over cost. Jewelry for instance, have a 400% mark-up over cost. Auto Parts stores will normally have 100% to 500% mark-up (depending on the part).

 

It’s going to depend on the people it reaches. If you want $1000 for a pieve and they jump it iup to $2000 and it reaches a good clients, it’s a sale..

 

okay great.