Do You Consign Any Goodies In Your Store?

Business By 282513 Updated 14 Apr 2009 , 11:09pm by OhMyGanache

282513 Posted 13 Apr 2009 , 12:57am
post #1 of 8

And if so, how does it work? I make chocolates and a bakery would like to have my chocolates on display. I can make chocolates to sell and to order. We are trying to come up with the best way for me to pay her. Would a monthly fee be more appropriate? if so, how much?
Would a percentage of sales be more appropriate? if so, how much?
I could really use any advice you have to offer.

7 replies
282513 Posted 13 Apr 2009 , 11:58am
post #2 of 8

hello... anyone? You must all bstill be reading the addictive stop payment day of wedding thread! icon_lol.gif

MikeRowesHunny Posted 13 Apr 2009 , 12:11pm
post #3 of 8

I used to sell decorated cookies & sweet treats like chocolate caramel shortbread through a savoury baker's store (until he shafted me over - still owes me 400+ euros - grrrr!). He took a percentage of whatever was sold, and what didn't sell was returned to me when it went out of date (which my family then ate!). If you are going to do a percentage (and I think anything up to 20% is fair), then make sure you get what is owed to you at very least once a month. I didn't and it got to 6 months before I got annoyed about not being paid what was owed and then he pled poverty - hence why, 12 months later I'm still waiting. It's a shame because I was going to hire out half his shop and work from there, but now I'm not taking the chance. Good luck with whatever you decide.

learnincakes Posted 13 Apr 2009 , 12:12pm
post #4 of 8

This is something I would be interested in knowing too. Sorry I cannot help. But I'll be waiting to see what answers you get.

poohthebear Posted 13 Apr 2009 , 12:42pm
post #5 of 8

Hello.....you're right was still reading the "very angry", what a mess! But yes let's talk about consignment. I live in a small community that has a donut shop, I put all of my bakery items in there. This is because my shop is way out in the country. So I thought for the exposure it would be a good idea. There have been pros and con but today I decided that for now it's just not working. They charged me 25% of each item sold, but anything that went out of date I had to eat. (that was expensive) They did the advertising on the radio, but they didn't have many of their customers come in to the shop because they had a drive thru. Most of the special orders were only 24 hour notice so that didn't leave time to do much but make cheap cakes.
So you should really think about consignments, however I do think it can work, but you better have the money to back it up. Oh yeah, I only got paid every 2 weeks.

indydebi Posted 13 Apr 2009 , 10:34pm
post #6 of 8

I would never sell perishable items on consignment, just for the waste factor mentioned above. You are taking ALL of the risk and you can't even have a sale on overstock items because of the expiration date.

Nope. Sell 'em flat out at a wholesale price, if their volume merits wholesale pricing.

282513 Posted 13 Apr 2009 , 11:15pm
post #7 of 8

I am not worried about the perishable factor. The baker is generously offering to display my chocolates, take orders, answer questions etc. I do not feel right by not compensating her. I am just trying to figure out what would be the right thing to do to compensate her for her time.

OhMyGanache Posted 14 Apr 2009 , 11:09pm
post #8 of 8

If there is sales tax on these items, that makes it a little more difficult on the store owner as she now has to do more bookkeeping.

I think it would be easier all around if the store owner just bought them at wholesale prices from you and then worried about inventory and staling herself.

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