Tuesday, October 11, 2011

What is Consignment?




What is Consignment?


Consignment is the act of consigning, which is placing a product in the hand of another, but retaining ownership until the goods are sold. This may be done for sale in a retail store or art gallery.

The concept of consignment is also becoming a common practice within the retail and wholesale industry.

As an Artist or designer you do have a choice to go on this path when you first launch your art or design business. Most of the new emerging artists or designers would get into consignment in order to have your products in a retail store or an art gallery. By offering this option to the retailers this will take off the pressure of having to buy the product from you at the beginning as they are unsure whether your product will sell in the stores. Once you have implemented this concept with the retailer, and your product is selling, this will give them the confidence to order more products from you. 

Consignment is a short term concept and you need to draw up a basic contract of agreement to cover the terms & conditions between you and the retailer.

What does this mean to you?
  • Consignment opens a new sales outlet for your products, without the overhead, rent and other expenses of having your own store
  • Before you let others sell your products for you, know the steps to take to protect your business
  • Many retailers are accepting consigned goods, as this arrangement allows them to get inventory without shelling out their own cash. 
  • So this selling channel is a win, win for both parties. Before you let others sell your products for you, know the steps to take to protect your business.
Tune in next week for:

What is Comission? and What it means to you?









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