Sale or Return & Pricing advice

Hello!

I'm new to the forum, but have been making jewellery for a few years following a jewellery design degree. However so far I have been selling independently through markets/events etc, with the exception of a friends shop where I had some work on a sale or return basis, at a 20% commission. I have been asked by a someone I met via a workshop to stock some of my work in her shop on a sale or return basis with a 50% commission. The shop is only just opening and not in a particularly busy area of town, she has told me that this is what the other SoR makers are happy with, but to me it seems like a lot!

I would love some advice on this, as to wether this is a reasonable amount of commission to be being asked for by a new business.

Many Thanks,

Becky

100% markup from wholesale to retail price is pretty normal. Higher still for some areas, depends on the market.

The real problem for you would be getting paid for work sold, or even getting your work back.

From shop owners opening on a shoe string, this could be like drawing teeth and not a pleasant experience for you. Typically if you persist they will accuse you of harrassment.

Unsold work could also be returned in a less than ideal condition, or never, if they suddenly close down. It is flattering to be asked, but think hard whether you are up for this. Dennis.

If your item is upped in price for this shop, I take it you then have to up your price in all other outlets to have a uniform price across the board?

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Originally Posted by Sheen

If your item is upped in price for this shop, I take it you then have to up your price in all other outlets to have a uniform price across the board?

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It's not so much that the price has been upped but that the percentage of the selling price taken by the second shop would be higher as they'll always state that work has to be uniformly priced in all outlets

If purchasing from an actual brand, wholesale markup is 250%. As Peter says 100% for SorR is quite normal, so your friend has been very generous. You are clearly moving on from the world where things are nice and between friends to a real commercial step, where everyone wants a slice of the action and don't forget a shop has overheads to take into account. If it were me, I would probably offer an alternate collection to the former as sold through shop one, showing enough differentiation and added value, allowing you to to take into account the higher retail price and still feel your are in a win:win situation. Ensure you discuss when payments will be made, mostly they will only settle up every quarter. Also every time you take a consignment have photos and descriptions documented and both parties sign this document, clearly stating the percentage of the retail price both parties are entitled to.

At the moment I'm costing my items as: materials+ hourly rate then the retailer is adding her percentage. This means no leeway for different commissions. Should I also be adding a small profit for myself to my sum? To act as a buffer? Pricing is one of my most hated activities but I think that's common with most people starting out.

There is more information here:
http://www.cooksongold.com/forum/sho...cing+your+work

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Originally Posted by Dennis

There is more information here:
http://www.cooksongold.com/forum/sho...cing+your+work

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Thanks Dennis will check it out

Legal minefield
who insures the pieces? Who gets the payout if they are lost /stolen?
clarity over ownership - to stop the sheriffs seizing if the shop owner has a judgement debt for eg
pitfalls over the shop disappearing one night with all your stock
how do you make sure that there is an effort in selling your stuff?
Personally I would avoid like a plague of plagues