Why I’m Done with Consignment
Author: Megan Eckman
When 2013 rolls around, I’ll be pulling out of every consignment shop (save one – but more on that later). You probably think I’ve lost my mind but there are 5 BIG reasons why I’m moving on to wholesale to play BIG in 2013.
- Wholesale shops pay you up front. What?! You get paid before the work is even in the mail? It depends on what your contract terms are but at the latest, you’ll be paid 30 days after your work arrives. But, you’re paid for everything at once, not monthly as it sells. Right now, I have the arrangement with my shops where I’m paid after the item reaches the post office.
- Wholesale shops have higher-priced items and generally a bigger customer base. Let’s face it, most wholesale boutiques are better stocked and have a higher reputation than consignment shops. They’re those long-established stores that everyone in town goes to for beautiful things.
- Bigger orders! Since you get to see the minimum order, this might be a really big order. It’s a lot easier to send off a large order every 2-3 months instead of small re-orders every month. It will also be more efficient in terms of time. I don’t know about you, but I’d rather spend less time packaging and more time making.
- They order a greater range of items. When you offer things like note cards or earrings, some consignment shops will ONLY carry those items. And while that may seem like a win, you can’t make enough of a profit off these small items compared to your higher price points products. Wouldn’t you rather have a shop carrying your $75- $150 pillows versus your $5 wool coasters? Since you present your whole, cohesive line to wholesale shops with your line sheet, they’re more likely to purchase some pieces from every price range to make a very nice arrangement in their shop.
- They pay your shipping! I think this one makes me the happiest. You can lose so much money on shipping over the course of a year. With wholesale shops, you don’t have to worry about that!
Are you as infatuated with wholesale now as I am?
I hope so because having your work in a wide range of wholesale shops is a sign that you’re succeeding in your business. What better social proof of your awesome work than having it in stores from coast to coast?
Come the end of December, I’ll be pulling out of all but one of my consignment shops. Why am I keeping the one? The shop owner absolutely loves my work and thus she sells it like hotcakes!
Heck, some months she sells as much as my wholesale minimum! The fact that she’s super nice also makes her one of my favorite shop owners.
So take a look at your consignment revenue stream and calculate how quickly you could make that with wholesale orders. Then start pitching those wholesale shops to get your work out there!
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Megan Eckman is the community coordinator for CreateHype.com, a site that helps female entrepreneurs learn how to market their creative business. She also runs her illustration business, Studio MME, which helps people rekindle their wonder.
Forget consignment, Megan @CreateHype is using wholesale to play BIG in 2012! http://bit.ly/SbGxGt via @flourish_thrive
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