Consignment Rates

The most common comments about the rates for consignment of pieces to a gallery or gift shop are that they are not fair. They are too high. The gallery is greedy. And so on. How do you judge whether the commission rates are fair?  What are the factors that should be considered?

Time

How much is your time worth?  

Think about the amount of time used to prepare, promote and attend craft fairs, pop up shops, or prepare for and administer online selling. Could you be using that time to make more things, or be with your family?  How much would it improve your quality of life to have to do less selling?

Costs

What are the costs of attending craft fairs?  

    You have to acquire display materials, whether you make or buy them.  You must travel to the event.  You have to be prepared to accept breakage risks from repeated movement of the pieces.  You must pay for the space at the craft fair.

Customer base

Is the shop’s market different than yours at craft fairs or online marketplaces?  

    Shops have a different clientele than craft fairs or online shops.  They spend effort in attracting customers.  They know their clientele and what kind of things will sell to them.  They are aware of the pricing levels needed for their visitors.

Decision

Answering these questions about time, costs and customer base will give you an assessment of whether consignment commission rates being offered are fair. 

Other posts on consignment:

Consignment

Consignment Agreements

Consignment Rates

Consignment Venues

Pricing, 4 - Customer Relations

Good Customer Relations

It is vitally important to keep a customer database and to develop good communication channels with your customers.  It may be that they will not be repeat customers, but they will surely tell others about your good service and excellent quality craft.  Get at least email details of every customer and potential customer wherever you go.

Always remember that trade customers need you as much as you need them, so keep them in touch with news.

It is also advisable, to make sure you allow enough time to deliver orders. It is better to say it will be two weeks and deliver early than the reverse. If you do fall behind, keep in touch with customers and let them know what is happening with their order. Also, remember it is acceptable to have a waiting list if necessary, as part of what the customer is buying is the exclusivity of your work. Always remember who or what else you may be reliant on, e.g., the weather, supply times, length of time for shipping, etc..

If you are contacting new outlets or customers do no more than 10 at a time so you can control or monitor the process. If someone says no to your work ask why, as it is important to know for your future business.

If you are supplying, or want to supply, to different outlets in the same area negotiate with them. Consider customising work for different shops or gallelries or offering them different parts of a range.

Be consistent and professional in the way you manage your relationships with customers.

Listen to customer feedback and develop ways for customers to make suggestions, such as comment cards.  Keep in touch with people who have bought your work before.


More information is available 
Establishing the costs
Creating a pricing structure
Terms and conditions of sales
Customer relations

Payment