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Posted by Marilyn on April 15, 2008, 3:50 pm
I'm opening a shop in May, probably more like June depending on how
much prep work we need to do with the site, and we are thinking of
having people provide quilted items to sell besides the fabric I will
be selling. We are in a touristy spot and now think we need another
draw into the store. Actually, my husband thinks this. So now he is
giving me the task to find out what people are getting for commission
on their works that they put out into local businesses to sell for
them.
I'm thinking it is probably 10-15%. The creator sets the price and
then I would add on an additional 10-15% above what the creator
wants. Is that too low, too high. For those of you who put work on
on commission in stores, did you sign an agreement of some sort?
And while on the topic, does anyone have a spreadsheet of sorts that
would work to calculate the cost of creating a quilt for someone who
comes off the street asking how much a quilt would cost if it was
custom made for them? I just saw the tail end of Ginger's post but
didn't find the original post so if I am duplicating a question, can
someone direct me to the original post? Thanks.
Marilyn
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Posted by Kathy Applebaum on April 15, 2008, 4:32 pm
Having been in retail for years, 10% is WAY too low. You can count on 2-3%
just in credit card fees, and most people will pay with a card. You'll need
to be able to talk up the item, it will take your employees time to sell it,
it will take you time to track it for accounting, it will take up space you
could be using for selling more profitable stuff (i.e. more profitable than
10%), and you'll have all the other costs associated with sales.
Art galleries that deal with fiber arts generally charge 25 - 40%. When
we've sold home dec items on commission before, we've had commissions in the
same range. In return, the gallery is expected to keep the item in good
condition, insure it while it's in their possession, deal with all sales
costs (including credit card fees, filing tax returns, etc.), etc.
What does your accountant say is typical for your area? And if he/she
doesn't know, should you consider using someone more familiar with retail?
And yes, you absolutely, positively need a written agreement that spells out
*exactly* what you are and are not responsible for. If you ask over on Quilt
Art, I'm sure someone there will share a sample agreement you could modify
for your needs.
--
Kathy A. (Woodland, CA)
Queen of Fabric Tramps
mailto:KathyA@KayneyNOSPAMQuilting.com
remove the obvious to reply
show/hide quoted text
> I'm opening a shop in May, probably more like June depending on how
> much prep work we need to do with the site, and we are thinking of
> having people provide quilted items to sell besides the fabric I will
> be selling. We are in a touristy spot and now think we need another
> draw into the store. Actually, my husband thinks this. So now he is
> giving me the task to find out what people are getting for commission
> on their works that they put out into local businesses to sell for
> them.
> I'm thinking it is probably 10-15%. The creator sets the price and
> then I would add on an additional 10-15% above what the creator
> wants. Is that too low, too high. For those of you who put work on
> on commission in stores, did you sign an agreement of some sort?
> And while on the topic, does anyone have a spreadsheet of sorts that
> would work to calculate the cost of creating a quilt for someone who
> comes off the street asking how much a quilt would cost if it was
> custom made for them? I just saw the tail end of Ginger's post but
> didn't find the original post so if I am duplicating a question, can
> someone direct me to the original post? Thanks.
> Marilyn
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Posted by Jane Kay on April 17, 2008, 1:21 pm
We used to have a consignment shop here that had 2 pricing contracts. One
the seller set the initial price & the shop added it's cut. Every month the
item didn't sell the price dropped by a certain amount. If the item was
still unsold at the end of the contract the seller was notified & if she
didn't pick the item up in 30 days it was donated to Goodwill. The other
contract for bigger ticket items the shop got a fixed amount per month for
displaying the item plus a percentage if it sold- say $5/month display fee
and 5% of the sale price, but the sale price didn't change. The seller paid,
say, $15 up front for 3 months display. If the Item sold right away the
store counted the 2nd & 3rd months payment as part of their percentage- so
if the item sold for $300 their share was $15, ten of which came out of the
display fee. This was almost 20 years ago, so the amounts may need to be
changed for modern costs.
Jane in NE Ohio
show/hide quoted text
> I'm opening a shop in May, probably more like June depending on how
> much prep work we need to do with the site, and we are thinking of
> having people provide quilted items to sell besides the fabric I will
> be selling. We are in a touristy spot and now think we need another
> draw into the store. Actually, my husband thinks this. So now he is
> giving me the task to find out what people are getting for commission
> on their works that they put out into local businesses to sell for
> them.
> I'm thinking it is probably 10-15%. The creator sets the price and
> then I would add on an additional 10-15% above what the creator
> wants. Is that too low, too high. For those of you who put work on
> on commission in stores, did you sign an agreement of some sort?
> And while on the topic, does anyone have a spreadsheet of sorts that
> would work to calculate the cost of creating a quilt for someone who
> comes off the street asking how much a quilt would cost if it was
> custom made for them? I just saw the tail end of Ginger's post but
> didn't find the original post so if I am duplicating a question, can
> someone direct me to the original post? Thanks.
> Marilyn
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Posted by Susan Torrens on April 17, 2008, 3:06 pm
Years ago, I used to sell smocked dresses at a shop in town. Had to sign an
agreement that they were not responsible for loss or damage. I think their
commission was around 20%. For most items, they marked the price down after
30 days, or you picked up your item. Because the dresses were a specialty
item, they agreed not to mark the price down, and I also took orders through
the shop, as many customers wanted a different size or colour.
Good luck with consignments.....
--
Susan in Kingston ON
back to quilting, as usual
http://community.webshots.com/user/sbtinkingston
show/hide quoted text
> I'm opening a shop in May, probably more like June depending on how
> much prep work we need to do with the site, and we are thinking of
> having people provide quilted items to sell besides the fabric I will
> be selling. We are in a touristy spot and now think we need another
> draw into the store. Actually, my husband thinks this. So now he is
> giving me the task to find out what people are getting for commission
> on their works that they put out into local businesses to sell for
> them.
> I'm thinking it is probably 10-15%. The creator sets the price and
> then I would add on an additional 10-15% above what the creator
> wants. Is that too low, too high. For those of you who put work on
> on commission in stores, did you sign an agreement of some sort?
> And while on the topic, does anyone have a spreadsheet of sorts that
> would work to calculate the cost of creating a quilt for someone who
> comes off the street asking how much a quilt would cost if it was
> custom made for them? I just saw the tail end of Ginger's post but
> didn't find the original post so if I am duplicating a question, can
> someone direct me to the original post? Thanks.
> Marilyn
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> much prep work we need to do with the site, and we are thinking of
> having people provide quilted items to sell besides the fabric I will
> be selling. We are in a touristy spot and now think we need another
> draw into the store. Actually, my husband thinks this. So now he is
> giving me the task to find out what people are getting for commission
> on their works that they put out into local businesses to sell for
> them.
> I'm thinking it is probably 10-15%. The creator sets the price and
> then I would add on an additional 10-15% above what the creator
> wants. Is that too low, too high. For those of you who put work on
> on commission in stores, did you sign an agreement of some sort?
> And while on the topic, does anyone have a spreadsheet of sorts that
> would work to calculate the cost of creating a quilt for someone who
> comes off the street asking how much a quilt would cost if it was
> custom made for them? I just saw the tail end of Ginger's post but
> didn't find the original post so if I am duplicating a question, can
> someone direct me to the original post? Thanks.
> Marilyn