The consignment rule is to price the item at 25-40% of the original paid price. Take into account the brand and condition. The goal is for the consignor to make money without having to take items back.
Consignment Shop Types
Consignment shop types include clothing, furniture, antiques, and collectibles. Benefits of shopping at consignment stores include discovering unique items at discounted prices. Higher-end designer items that sell for 80-90% below retail tend to sell best at consignment.
Understanding Consignment
Consignment is an agreement whereby a dealer sells goods on behalf of the owner/supplier. The dealer does not own or purchase the goods. Payment terms involve the dealer keeping a percentage (typically 40-60%) of the final sale price as a fee. The remainder goes to the supplier. Popular items to sell via consignment include clothing, furniture, antiques, and collectibles.
When evaluating a potential consignment store look for higher-end brands that may fetch strong resale value. The condition and perceived value impact what percentage the dealer will pay the supplier.
Consignment contracts outline key terms: the consigned goods, buyer and seller info, duration, payment details, item pricing, return of unsold goods, and more. Delineating these upfront is prudent to protect all parties. Software can streamline multi-party consignment arrangements by tracking inventory across locations, automating accounting, and providing real-time sales data.