Expert: - 12/3/2009

Question
What is the going rate of percentage for a store to take to have my jewelry on display in their store?  10%  20% i have no idea.  Any help would be greatly appreciated.

Answer
Hi Phyllis,

In reading your question, I think you are asking about consignment where you have your jewelry at a store and they pay you after the piece is sold.

Each store is different and will have different specifications.  So it may be as as 20% or up to 60% - it really depends on the type of store, the clientele and the status of the location. Typically they would want 50% which is why you need to calculate your pricing based on a retail model. This means you price for retail, that way when an item sells you receive essentially the amount that you would sell for wholesale. In some cases a store may ask what you want and then mark it according to what they feel they can sell the piece for.

Sometimes with consignment you actually own (lease) a space, you take care of it and then the store keeps track of what your sales are. You are then paid on a monthly basis - but it is your obligation to take care of the space and make sure it is stocked, just as you would in a retail location.

The advantage to the store is they do not have to pay for items that are not sold. It is to their advantage to sell the pieces and it is a good way for them to test the market to see what will sell. It can give you a foot in the door to sell to the store outright on a wholesale level.

The disadvantage for you is that you create goods that are not sold immediately. You can have a lot of money invested in pieces with no return on your investment. The more inventory you have that is not sold the less money you have in your pocket.

Additionally when you consign your products it is very important to have a written agreement with the store. You want to designate a length of time - include a photo of the piece and you also must have a clause in the agreement about the condition of the goods should they not be sold. I have seen many people get burned by stores when the goods are returned damaged.

I do hope this is the question you were asking.

You may want to read more articles I have on my website for more information:  http://design2marketsuccess.com/Articles.htm


Best of luck to you,

Jane Button
www.design2marketsuccess.com