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Thread: Questions re Quilt Consignment policies

  1. #26
    Super Member Quiltgranny's Avatar
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    Quote Originally Posted by Quilting Aggi
    Quote Originally Posted by Moonpi
    Sounds like they are using you. No one charges 100% commission. That's obscene.
    Actually a few years ago I had a piece of mine on consignment and they jumped it up 100%. I took the piece back saying it was highway robbery!!! I nearly choked when I found that one out!

    I ended up giving the piece to a friend's mother for that Christmas. She loved it and I felt better.

    I still sell my things, but lately it's through me. I haven't done the consignment thing for several years now.
    I may end up giving this one away to, to a dear friend if things don't go well next week when I go in there and ask for a contract. Thanks for sharing your story, too. Too bad there are so many folks out there willing to stiff us. What's really surprising, is that some of them are quilters! :shock: I guess it takes all kinds.

  2. #27
    Super Member Quiltgranny's Avatar
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    Quote Originally Posted by Loretta
    It seems to me that you should be the one to set the price of the item. Sometimes quilters are more aware of going prices than people who own the stores. Maybe?
    Excellent point, and I happen to agree.

  3. #28
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    Quote Originally Posted by Quiltgranny
    Quote Originally Posted by PatriceJ
    if it's on consignment, and they get a percentage, then the higher the price they get for it, the more you make, too.

    maybe, after having time to look at it more closely or after hearing some comments from customers cruising the store, they decided it was worth more than the original estimate. that could be a good thing.
    That didn't work with a previous item I sold there. I wanted 'x', they sold it for double 'x', which was 100% commission. They felt I got what I wanted out of it... Obviously, they got a LOT more than the stated commission. I'm still a bit annoyed about that deal.
    Your contract with them should give you a set percentage of the sales price. In other words, they get say, 30% of the sales price, then if it sells for $100, you get $70 and they get $30. If they are buying it from you with the intent to resell it, then you can negotiate your price and not sorry about what they sell it for. you mentioned you like them and they weren't being dishonest, but if you're not getting a percentage, then I think there's problem. Although I am a lawyer, and by nature, I tend to sniff out problems...

  4. #29
    Senior Member judee0624's Avatar
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    Klue,
    I do FMQ on my smaller pieces but I have a teensy machine and am not about to try the big ones that the pros use. I would rather trust the quilting guy I have just started using. It is easier on me and I have more time to produce more product while he does the quilting.
    judee

  5. #30
    Super Member Kyiav10's Avatar
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    Quote Originally Posted by Quiltgranny
    Quote Originally Posted by PatriceJ
    if it's on consignment, and they get a percentage, then the higher the price they get for it, the more you make, too.

    maybe, after having time to look at it more closely or after hearing some comments from customers cruising the store, they decided it was worth more than the original estimate. that could be a good thing.
    That didn't work with a previous item I sold there. I wanted 'x', they sold it for double 'x', which was 100% commission. They felt I got what I wanted out of it... Obviously, they got a LOT more than the stated commission. I'm still a bit annoyed about that deal.
    NOTE: I have never doen this before but here is a suggestion. Have a written contract. When the quilt is sold the store gets to keep X% of the sale and the rest goes to you. So whatever it sells at they only keep the X% amount and you get the rest.

    And have it in writing. When it sells, make sure you are given a receipt and contact info. of the buyer so you can double check what they paid for it. Just my thoughts. Again I have not done this before.

    Kyia

  6. #31
    Super Member Quiltgranny's Avatar
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    Quote Originally Posted by Esqmommy
    Your contract with them should give you a set percentage of the sales price. In other words, they get say, 30% of the sales price, then if it sells for $100, you get $70 and they get $30. If they are buying it from you with the intent to resell it, then you can negotiate your price and not sorry about what they sell it for. you mentioned you like them and they weren't being dishonest, but if you're not getting a percentage, then I think there's problem. Although I am a lawyer, and by nature, I tend to sniff out problems...
    I appreciate your advice and intend to settle this matter next week. I hope you are wrong, and they're just a little business backwards on this issue. I'll let you all know how things go this coming week. This shop has only been open for business since Sept of last year. I imagine some of it is learn as you go. Time will tell. Thanks again.

  7. #32
    Super Member Quiltgranny's Avatar
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    Quote Originally Posted by Kyiav10

    NOTE: I have never doen this before but here is a suggestion. Have a written contract. When the quilt is sold the store gets to keep X% of the sale and the rest goes to you. So whatever it sells at they only keep the X% amount and you get the rest.

    And have it in writing. When it sells, make sure you are given a receipt and contact info. of the buyer so you can double check what they paid for it. Just my thoughts. Again I have not done this before.

    Kyia
    I don't know why a contract didn't occur to me initially. I have MS, and boy have I had straw for brains, lately. I think it was largely the familiarity I feel with management, but still, that doesn't protect either of us. I will go talk to them about a contract early next week. Thanks so much for your thoughts.

  8. #33
    Super Member butterflywing's Avatar
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    Quote Originally Posted by kluedesigns
    sorry for the long rant.

    i just can't stand when people take advantage of artists and their lack of business knowledge.
    they may not feel that quiltgranny is being taken advantage of. she may have underpriced. at any rate, if they sell it for more, then that IS it's value.
    value means whatever someone is willing to pay for an item. that's what determines fair market price. charging less means someone is getting a bargain and i don't think guiltgranny or the store is after that. obviously, if they are asking too much, they'll know soon enough, and they will have to re-evaluate their pricing. for now, let them have their heads. you may be surprised. and after they take they share, you won't be getting that whole amount anyway.

  9. #34
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    the standard consignment agreement is based on %s regardless of price. while value might be different across the country there are standards of practice that exist from coast to coast.

    i find it hard to believe that a shop that takes in business on consignment is completely ignorant of the standard operating procedures regarding consignment products.

    if the store chooses to operate outside of standard procedures they should have disclosed that to her - withholding information is still being dishonest.

  10. #35
    Super Member Quiltgranny's Avatar
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    As an update for you all, the person I need to speak with has been on vacation this week, so I will chat with her first thing next week. Again, thanks for all your dear concerns and replies. No sale yet.

  11. #36
    Super Member butterflywing's Avatar
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    Quote Originally Posted by kluedesigns
    the standard consignment agreement is based on %s regardless of price. while value might be different across the country there are standards of practice that exist from coast to coast.

    i find it hard to believe that a shop that takes in business on consignment is completely ignorant of the standard operating procedures regarding consignment products.

    if the store chooses to operate outside of standard procedures they should have disclosed that to her - withholding information is still being dishonest.
    while i agree that they should have informed her before changing the price, the price may have been tooooo low. that sets a bad precedent for future sales, both hers and for others. but, yes, i concede that the price should not have been changed without discussion.

  12. #37
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    you're missing it - you're stuck on a dollar amount and consignment deals are not based on that they are based on percent regardless of price.

    every store asks you to give them a "floor" this is the lowest price that you are willing to let the quilt sell for. this way when someone wants to discuss price they don't have to keep calling you and risk a sale walking out the door.

    they do not ask you for a "ceiling" because sky is the limit on what you'd like to receive for your work - no one is going to hand back money saying -don't be silly - pay me less.

    how the money is to be divided is where the store went off the tracks. the standard agreement is to base everything on a percentage not on a dollar figure because no one knows what it will sell for.

    for arguments sake we'll use basic numbers. if granny said i want $100 for my quilt and they said i'm going to list it for $200 then they have agreed to a 50/50 split of the money.

    the moment the quilt sold for more money the 50/50 split still should have been honored and granny should have been paid more money.

    instead they pocketed the higher amount and gave her the "floor" price she stated.

    under that circumstance it wasn't a consignment deal any longer - the store felt they purchased the quilt from her for that price and every penny over that was theirs to keep.

    thats an outright purchase situation and then she should have been told and paid up front instead of sitting around waiting for money.




  13. #38
    Esqmommy's Avatar
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    Quote Originally Posted by kluedesigns
    you're missing it - you're stuck on a dollar amount and consignment deals are not based on that they are based on percent regardless of price.

    every store asks you to give them a "floor" this is the lowest price that you are willing to let the quilt sell for. this way when someone wants to discuss price they don't have to keep calling you and risk a sale walking out the door.

    they do not ask you for a "ceiling" because sky is the limit on what you'd like to receive for your work - no one is going to hand back money saying -don't be silly - pay me less.

    how the money is to be divided is where the store went off the tracks. the standard agreement is to base everything on a percentage not on a dollar figure because no one knows what it will sell for.

    for arguments sake we'll use basic numbers. if granny said i want $100 for my quilt and they said i'm going to list it for $200 then they have agreed to a 50/50 split of the money.

    the moment the quilt sold for more money the 50/50 split still should have been honored and granny should have been paid more money.

    instead they pocketed the higher amount and gave her the "floor" price she stated.

    under that circumstance it wasn't a consignment deal any longer - the store felt they purchased the quilt from her for that price and every penny over that was theirs to keep.

    thats an outright purchase situation and then she should have been told and paid up front instead of sitting around waiting for money.


    And I couldn't have said it better. I don't like to think of business folks taking advantage of artists, and when it comes to quilting, so many of the artists do not realize that THAT IS WHAT THEY ARE!!! I think Quiltgranny needs to believe in her value as an artist, and that will help you only negotiate better for your future.

  14. #39
    Super Member Quiltgranny's Avatar
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    Quote Originally Posted by Esqmommy
    And I couldn't have said it better. I don't like to think of business folks taking advantage of artists, and when it comes to quilting, so many of the artists do not realize that THAT IS WHAT THEY ARE!!! I think Quiltgranny needs to believe in her value as an artist, and that will help you only negotiate better for your future. [/quote]

    WOW! Thanks for the encouragement! :) I am very new at this, as you can tell. I appreciate you both trying to drill this artist concept into me. I'm sure I will become more comfortable with it and my talents as time goes on.

  15. #40
    Super Member butterflywing's Avatar
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    okay. so if i want $100 for my work and i've agreed on a 50/50 split, then we each have to get $100, because i want mine and they want an equal amount, right so far? the item has to sell for $200, right? no one is being taken advantage of so far.

    that's the base price.

    if they can get more, they do. it not only brings in a higher dollar amount to them, in the form of commission, but also to me. 50/50, remember? so, as i figure it, nobody is being taken advantage of. as you said, there is a floor price, but no ceiling.

    so, if they sell the item for, say, $400 then at 50/50 i should get $200 instead of the $100 BASE PRICE i wanted. as i understand it, win/win.
    i'm no math whiz, but on a commission basis, it pays for them to make more dollars FOR ME. as long as they tell the truth about the actual selling price. whatever that price is. at any dollar amount. that's what commission means. they get a percentage of the total selling price. in this case, 50/50. or whatever.

    am i getting this wrong? isn't that what happened?


  16. #41
    Super Member ghostrider's Avatar
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    Quote Originally Posted by butterflywing
    am i getting this wrong? isn't that what happened?
    No, using your scenario, what happened was Quiltgranny got the $100 she said she wanted and the store owner got the balance, or $300. Klue is right, the store actually purchased the quilt for $100 and there was no 'commission' involved.

  17. #42
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    thats what should have happened butterfly but the store didn't give her $200. the store gave her the $100 floor and they kept $300 for themselves.

    this is the problem - they didn't honor the 50/50 split and their explanation is you only wanted $100 so anything more is just more for the store.

    its being dishonest on a terminology level and this is why we're all telling her to draw up an agreement in writing based on percentage terminology instead of a dollar figure.

    at a minimun the agreement should address a floor price, a % of split based off of total price, length of consignment, and how the quilt will be displayed.

    since this is a teaching shop i would also address reproduction (selling of patterns) of the quilt and any classes should be taught by her and no one else.


  18. #43
    Super Member butterflywing's Avatar
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    i misunderstood what the problem was. i thought they were giving her the agreed upon %, but that the figure was much higher than she thought the market would bear and they would price her out of the market.

    in this case, if the quilt has not been sold yet, she ought to remove it from the store until the owner returns. after all, she has no contract with them to leave it there. if it has been sold, all she can do is tell the owner and hope that she will do the honorable thing.

    EDIT: yes - she should teach the class, or be paid in advance for their right to use the quilt for educational purposes. but handing the quilt by anyone will decrease it's value.

  19. #44
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    thats why you have to have a display clause like i mentioned in the contract.

    no one can touch the quilt without wearing gloves and it can never be placed in direct sunlight nor can it be displayed outside in a sidewalk sale.

  20. #45
    Super Member Quiltgranny's Avatar
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    Quote Originally Posted by kluedesigns

    at a minimun the agreement should address a floor price, a % of split based off of total price, length of consignment, and how the quilt will be displayed.

    since this is a teaching shop i would also address reproduction (selling of patterns) of the quilt and any classes should be taught by her and no one else.
    Thanks so much, Klue!! I will take this info with me next time I'm in the shop to compare with what if any guidelines/criteria they're operating with. I really appreciate those of you who've been 'around the block' helping us newbies out with these kinds of important issues! :)

  21. #46
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    granny

    feel free to ask us anything and don't be shy with asking questions at the store.

    if you don't know how to respond to their answers just take notes and then come on the forum and we can discuss it and then you can go back and talk to them some more.

    i don't know how much time you can devote to this new career but if you could sell patterns at the store and teach some classes its a good way of making some pocket money for very little time devoted.

    when i teach its a 60/40 split on the class fee (i get 60) but i don't take any commissions on things that are sold for the class.

    some people take less of a split and ask for a commission on the products sold. this is a good deal if the store insists that you must buy fabric to do the project. they put in the class description NO OUTSIDE FABRIC.

    if they would be willing to do that then it might be a good deal to take a commission especially if its a large quilt.




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