Consignment?

[dogspaw]

I had a new client come in today that use to own a pet boutique, but closed when she moved or something like that. She still has a ton of retail, and I would love to have some of it here to sell, but really cant afford to just outright buy it from her. Just curious if anyone has ever doen consignment on this kind of stuff and if so how did it work out? Anything I should watch out for or be prepared for? She had said something about "goin in partners" on one of the spaces next door but that is not even an option for me. I dont want a business partner by any means, but would love to do some retail out of here, and she wants to get rid of it.

[dbarcreations<3westies]

I use to own a children's consignment shop. I was over 14 years ago and if I recall right, it was a 40/60 split with the 40 going to the shop and 60 to the consignor. You might also want to consider renting some wall space by the month with your shop also getting 10%. So you can charge a monthly fee plus a percentage of what sells.

[kats_melody]

We sell gourmet pet treats on consignment, and the bakery also bakes us courtesy packs with our business logo on the package for distribution after a grooming session. It works well. What doesn't sell gets credited back and distributed to shelters. Our only expense is for the courtesy packs. We get the difference between the wholesale price and the retail on all we sell. No risk to us so it's a no-brainer. We also get a plug on the bakery's web site.

[RPS]

At one of my previous shops I had a really cool idea. I had many 'senior' clients (the owners that is but yea... some had senior pets too, LOL) Some churches in the area would have craft fairs and they would sell things there, so I thought... Hmmmm! I approached a few choice clients who I knew well... they contacted several of their friends and off we went!
I rented space to people each month, they organized who wanted what months & space they wanted (they asked if I could bring in shelves) etc... They rotated about once a month and my only request was..... pet related items.
I had some of the coolest hand-made things! customers loved them, they made money, I had my rent plus I looked very good too in that I supported the elderly... a win-win situation!
I had hand made sweaters, dog coats, collars, bows, toys, dog beds, cat tree's, cat toys, christmas ornaments galore, 'puppy' & 'kitten' books, every holiday was covered with love of wonderful elderly folks making something - for special pets - it was a wonderful thing. They felt good about themselves and kept very busy, all I did was change my blackboard to the names of who was doing what/when... all checks were made out to them. I found it to be a wonderful thing for my salon, customers and the crafters.

If you are considering a rental situation it could be a very good idea for you both, consignment? you could be held responsible for state taxes and that 'can' be a real headache, you could be held responsible if anything goes 'missing' etc... going in half with someone you could be held responsible if things go badly... not good! All in all, I think you have a great opportunity to 'begin' letting your customers know you want to expand into retail but if you play your cards right and keep the rent, you could put it towards the future retail in your salon. JUST make sure you get a standard lease from an office supply store and have it on file... cover yourself!

[poodlelover]

i am considering consignment for my shop, i don't know the best way to go about it. right now i do not sell a whole lot of retail, i like the idea of charging rent plus a small % but i don't know that it would be worth it for the renter. is 40/60 typical otherwise? i am sure i would have to cover the sales tax right? i think i will check with my accountant...

i don't know if i can ask, but any idea on what a rent charge might be say for a small corner of the shop?

[neanea]

i am considering consignment for my shop, i don't know the best way to go about it. right now i do not sell a whole lot of retail, i like the idea of charging rent plus a small % but i don't know that it would be worth it for the renter. is 40/60 typical otherwise? i am sure i would have to cover the sales tax right? i think i will check with my accountant...
don't know if i can ask, but any idea on what a rent charge might be say for a small corner of the shop?

I think you'd want to base it on your cost per square foot. If your not sure what you pay per sq.ft, divide your sqft by your rent. that should be what you pay. Then you'd want to figure up how much space each "renter" would get and then multiple your cost/sqft, by how many sqft the renter is getting. Make sense? I think I confused myself, rofl.

Personally, I've considered doing this same thing, but came to the conclusion, I'd rather just PAY the people what it's worth and put it in myself. That way, I'd be sure they weren't trying to sell a bunch of garbage in "their" space. That would only make your shop look trashy. Some people think much more of their stuff than everyone else would, so I can see it getting junkie looking. Lately, I've had client bring me in used stuff and I just recycle it. If there is a client that needs something I have and they can't afford to buy it, then I just give it to them. I have several older clients, that can't really afford grooming, let alone a sweater for their "precious", so if I have one and they need it, I send it home with them. Collars are the same way. I sell collars and leads and some times, people will just say, "just throw the old one away" and I ask if they mind if I put it in the "till" for those who may need it (after it's washed of course). Most agree wholeheartedly!

[dogspaw]

I decided against this for some of the reasons neanea stated, as well as a few others. I decided it would be better for me to have complete controll over what was in my salon, and I did not want to be responsible for someone elses things.

[poodlelover]

thanks, and i am a bit concerned about what this person will bring in, i could use some space filled up, but at the same time i do not want to carry things they sell at the discount stores.

it is just one person that has recently asked, and if he comes back in i will tell him that i am picky about what i have in my shop, and the way it is displayed. that is another reason i am not sure if i could charge rent, cause then he should be able to bring in what he wants (at least to a degree)