posted on September 5, 2000 11:33:32 PM new
I know there have been discussions about how much to charge for consignments and also the general consensus is to not do it....but I would like to try it and am wondering how do you go about getting customers, other than friends/family. Does anybody advertise, hand out cards, cold calling, etc.
Also do they scoff at letting you have the item in your posession, it seems to me like they might not trust a stranger to take their items, I know there is a contract, is that enough of a pacifier?
I was thinking about charging 40% because of all the work involved, or those that charge that much or more, do you get complaints on the amount being so high.
posted on September 6, 2000 06:20:34 AM new
Good Morning!
While many have argued against doing consignment auctions for others, I have found it to be very profitable. It's just like running any other business; there are pros and cons, ups and downs.
I started out with family members as my only consignees. In the meantime, I worked harder to get to know the "Mom & Pop" shop owners in the downtown district where my husband and I run our own full-time service oriented business. By talking about eBay and my own sales, I managed to pick up a computer store's slow moving inventory and a camera store's equipment that is converting to a professional photography studio. And I'm currently in negotiations with a local antique store to handle their merchandise. All three of the owners of these businesses are older men who all meet at the local downtown eatery for breakfast. Word of mouth has definitely set the precedence for me.
So far I have not had to any form of advertising. I have plenty to keep me busy. But I did make up brochures describing my services should business ever slow down.
In order to succeed, you have to be a people person first and foremost. Secondly, you have to have a business sense about you. My experience with assisting in running my husband's business has been a great plus to conducting this sort of business. The record keeping is horrendous! And, most importantly, you have to have patience. Most of your clients will be those who do not comprehend the time and energy it takes to conduct a good auction. Each and every step must be explained.
As for rates, I also charge 40%. I have had some talk with me regarding consignment who have balked at such a "high" fee. However, I simply explain that they obviously don't want the hassle of selling or can't sell and, if they were to place their merchandise on consigment with a brick and mortar entity, the typical fee is 50%. Don't settle for less. I have been fortunately that my three biggest clients recognize this and appreciate what I do.
I hope this helps you! Consigning for others eliminates having to obtain your own inventory and often you can make anywhere from $70 or more on an item that it took you a total of maybe 2 hours to list, answer questions and pack. I love it!! If I can be of any more help, please feel free to email me at [email protected].
posted on September 6, 2000 06:25:42 AM new
I am doing some selling for a friend as a friend without charge. I would not do this on a business basis unless the circumstances were above reproach. There's enough liability doing it for yourself. How many people do you know that would understand you have a deadbeat, an outage, something got lost in the mail, the check bounced, or......
posted on September 6, 2000 04:14:14 PM new
I too am just getting started doing consignments and I have found that most of the people are more than willing to give me 40% of the profit - one exception - I have one really wealthy client who thinks I only should have about 10-15% of her profit! I totally disagree with her but since she has some high-end pricey items I feel like it will work out and I don't want to loose her and her friends that bring things to me - I have convinced her to give me 20% of the profit and even though she is not thrilled she has agreed to that amount. I might loose her as a customer. On the other hand, my other customers are more than happy to bring me their items - I have been advertising only by word of mouth so far. I did a lot of freebies for clients just to gain their confidence and now they are hooked!! I love doing it and even though it's a lot of work I hope to be able to stay home and not work outside the home by the end of the year.
I love the tips and input I get here - I don't have a contract which i'm thinking about getting. Anyone have one that they use or do you feel like you need it??
posted on September 6, 2000 07:45:01 PM newmssherry said:"I don't have a contract which i'm thinking about getting. Anyone have one that they use or do you feel like you need it??"
I have a contract that I use. I feel it is only necessary. Of course, it could be my past experience as a legal secretary that has instilled that fear in me. LOL
Although it's fine tuned to my guidelines, I don't mind sharing with you and you can change it to suit your needs. Just email me at [email protected]
posted on September 6, 2000 08:24:26 PM new
I know this subject is always referred to here as "consignment"....but doesn't this almost put you in the position of an auctioneer which most states require a license for? That's the reason I've stayed away from it, just curious if anyone has any factual information.
posted on September 6, 2000 08:31:03 PM new
Act2Auctions
Do you sell from distributer also?or just consighnment?I am just starting out and need some MAJOR tips
posted on September 7, 2000 05:05:03 AM newI know this subject is always referred to here as "consignment"....but doesn't this almost put you in the position of an auctioneer which most states require a license for? That's the reason I've stayed away from it, just curious if anyone has any factual information.
I don't know about any other states, but Tennessee defines their auctioneers as someone who auctions others property on site for a commission. What I am doing is the equivelant of those live "barn style" auctions; wherein 90% of those auctioneers are not licensed auctioneers.
Ah, the way I see it, I'll chug along until the State of Tennessee redefines and sends me a cease and desist letter. LOL
Do you sell from distributer also?or just consighnment?
While the main portion of my sales is consignment, I do sell from my own inventory. Although, my distributor for this inventory is the variety of garage/yard sales, thrift stores, and clearance racks at consignment shops here in my small hometown. On any given Friday or Saturday in a September there are no less than 50 yard sales. LOL On a rare occasion, Wal-Mart has acted as a distributor with their clearance isles. LOL
