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Need consignment advice

Need consignment advice

Old 09-21-2012, 10:12 AM
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Default Need consignment advice

I tried posting this once, and then got an error. So if this shows up twice, my apologies.

I am looking into selling some of my dyed fabric on consignment in our local Quilt Shop. What is a reasonable consignment percentage?

I am also looking into teaching a sewing class at this same local Quilt Shop, using my dyed fabric. Should the consignment percentage be applied to fabric I am bringing in just for the class? What about to my original pattern, which is not being sold in the shop?

And lastly, they want to offer a student discount for anything in the shop. Should this apply to my fabric on consignment as well?

Seems like I will have to take what I need to get out of the purchase + consignment percentage + student discount in case most of the fabric ends up being sold to students. All of a sudden, my fabric seems expensive.

Any thought would be appreciated.
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Old 09-21-2012, 11:16 AM
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I think you have a lot of questions for the quilt shop. Make sure you are clear on all of the details. It is great that you are thinking this though before jumping in. Around here the consignment % seems to be 40% for the shop.
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Old 09-21-2012, 01:15 PM
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If it looks like the item would be priced too high, you might look at renting counter space instead of a consignment rate per item. Cause there is no point in trying to sell $10 fabric for $14 to cover the consignment fee.

I did this with an antique store several years ago. I rented 2 square feet of counter space with a vertical space of 18 inches. It cost me $40 per month. I could put as many items in that area that I could fit comfortable with out it looking messy. If an item sold, I could come in and replace it with a new one. The store got an additional 25 cents for each item sold as a transaction fee to cover the cost of their employee. By the time I added in the monthly rental fee and the transaction fees they were getting about 20% of the money I was making. A much better rate than the traditional consignment fee. They liked it because they got money every month no matter if something sold or not.

Just a thought
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Old 09-21-2012, 11:24 PM
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discounts are usually not given on consignment items. you could include the cost of the fabric as part of the class fee, but it is best to take all of these questions to the owner of the shop.
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Old 09-24-2012, 02:02 PM
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I have been talking to the shop - I needed advice about whether other shops are doing the same thing. I have taken classes before, but not at a shop and not with something the teacher was selling.

I agree that adding all the fees may just price my fabric out of the market.

I like the idea of maybe just renting space. But that does not get me out of having to add a bunch of fees to the class kit.
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Old 09-24-2012, 02:48 PM
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Did you find out what the consignment fee for your shop would be?

A consignment fee of 40% is much closer to wholesaleing the product than putting it on consignment. The consignment fees I'm familiar with have been in the 15% to 25% range.
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Old 09-24-2012, 03:54 PM
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I agree with 40% as the typical consignment fee, but have seen it go as high as 60% or as low as 25%.
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Old 09-24-2012, 04:33 PM
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The consignment fee is 25%. And the class discount is 10%.

What kills me is that the shop wants both of those to apply to the kit fee.

To me, the consignment fee covers taking up space in the shop and the logistics of making the sale. I had been thinking the kit fee goes directly to me for fabric that I bring in for the class, and my original design. I don't think the consignment or class discount should apply to that.

The shop is new, which is why I am asking for opinions. They don't have a firm policy set up yet. I questioned the fees and haven't received an answer yet.

They have stated the class discount doesn't apply to sewing machines. Do those normally get sold on a consignment type deal?
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Old 09-24-2012, 06:17 PM
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A shop typically doubles the price they pay for merchandise. I think they would have the same expectation from you. You could negotiate a lower but be aware of what they mark up goods from other sources.
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Old 09-24-2012, 07:08 PM
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Who ever is creating and supplying the kit should get to fee for it. It sounds like they need a reality check...

The few classes I have looked at doing where the teacher was selling something involved with the class, the LQS got a percentage of the total sales..but nothing like 40%. usually 10 or 15% because they know they are going to pick up sales from the class either in fabric or notions.

You are helping them promote their new business and draw in new customers. Your deal should reflect that idea.
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