If you’ve been selling to stores at all you’ve likely been asked to consign your jewelry.
Robin and I are hosting this episode together today because we get asked “All Of The Time” for our opinion on consignment.
I’ll give it to you in a nutshell…
We aren’t totally sold.
I’ve been burned by it in my own jewelry biz a few times and I’ve seen many talented designers come to the edge of almost losing their businesses because of a bad consignment decision or two.
But…I’ve also seen strong consignment relationships turn into profitable, successful wholesale accounts.
Just like everything else in life and business, there are pros and cons to everything!
So on today’s episode we are giving you a 360 degree view of consignment to help you think strategically and make the best decision for your business.
To consign or not to consign, that is the question.
Let’s get to it!
Pros of Consignment
Okay…so even though Robin & I aren’t huge fans of consignment, there are some pros to it. Selling this way gets you exposure by being in stores that have an audience you would otherwise never reach.
It also allows stores to test your jewelry…which is a great thing if you’ve been trying to get into your dream store for years with no success. Consignment also can possibly open the door to negotiate wholesale if your jewelry sells well for that store.
Cons of Consignment
The biggest reason that we don’t love consignment is because more often than not we see that store owners are not invested in selling your jewelry in their store because they don’t own it. Plus their sales people may not know enough about you and your product to make good sales.
It’s also tough to build a business with consignment because it’s financially limiting to have inventory that you own tied up in a store that you have little to no control over.
How to Consign Successfully
If you do choose to consign your jewelry, there are a few things that you should do in order to ensure a positive experience. Most importantly – communication is key! It starts with a solid contract and continues on through your relationship with the store owner and all of their sales people.
Second, you’ve got to be involved. Consignment is a relationship. Show up in the store and do your monthly inventory, educate the sales staff about your store and your products, and take ownership of making sure that your display meets your standards.
So there you have it!
Before we sign off though, we really want to hear from you. Do us a massive favor and answer these questions in the comments below:
– Do you have any consignment accounts at the moment?
– If you are successfully consigning, what are you doing to make it work well?
– What isn’t working for your consignment strategy? ?
Alright, answer away!