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Another Discussion About Consignment/wholesale


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#1 Roberta12

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Posted 11 February 2014 - 08:26 AM

Recently I was approached by a local business (fibermill) about putting my yarn bowls in their retail space.   We worked out a consignment deal.  Things have been going well.   We are now in discussion about getting a stamp made with their logo that I will use on mugs/yarn bowls.   I realized this morning (in the wee hours), that I will probably have to negotiate a different deal for anything I make with their logo on it.  It would not be an item I could return to my inventory, since it has their brand.   What has been your experience with that?  What are some things I should know about making something specific for a company or business?? 

 

Thank you,

Roberta



#2 JBaymore

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Posted 11 February 2014 - 09:07 AM

That is a custom deal... and should NOT be on consignment.  Wholesale.  You figure out what YOU need to make on the pieces when paid totally upfront.  Then they can set the  price they sell them for at whatever level they desire and feel their market will bear.

 

Initial order.......... paid up front. 50% on order... 50% on delivery.   After that, you can give them terms like Net 30.

 

best,

 

.....................john


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#3 Pres

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Posted 11 February 2014 - 09:10 AM

I do stamped chalice and patens for a non profit organization. I sell, as I have no use for something returning to me. I usually keep a few spares around, but sell everything to the organization and could never do this as a consignment.  I would think that the use of a stamp is an advertisement for the shop also. So make your best deal with these things in mind.


Simply retired teacher, not dead, living the dream. on and on and. . . . on. . . .                                                                                 http://picworkspottery.blogspot.com/


#4 GEP

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Posted 11 February 2014 - 09:49 AM

Agree with John and Pres, if their logo is on the work, they need to buy the pieces wholesale up front. It shouldn't be hard to convince them, since the yarn bowls are already selling well for them.
Mea Rhee
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#5 Roberta12

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Posted 11 February 2014 - 10:46 AM

Thank you John, Pres, Mea.   I appreciate, as always, the advice and knowledge on this forum.   The mill a small business, just starting.  However, it has great potential for growth.  Is it appropriate to re-negotiate terms/price at a later date if there is more custom work involved?  



#6 GEP

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Posted 11 February 2014 - 11:00 AM

Thank you John, Pres, Mea. I appreciate, as always, the advice and knowledge on this forum. The mill a small business, just starting. However, it has great potential for growth. Is it appropriate to re-negotiate terms/price at a later date if there is more custom work involved?

Yes, if the mill is a small but growing business, it is absolutely appropriate to renegotiate terms as their prospects change and grow. But make sure to bring it up now, so they are aware that your expectations will change if their business grows. "These are the terms I can agree to now, but can we revisit these terms in 6 months? And if there will be more custom work involved, please do not assume these terms apply, we'll need to talk about it."
Mea Rhee
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#7 Pres

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Posted 11 February 2014 - 12:31 PM

If you are going to give them a break since they are growing, are others doing the same? I would not do something that would lock you in to a future that hurts you in the end. You want to get into this, and give them a break, make it in writing, 6 months close of contract.


Simply retired teacher, not dead, living the dream. on and on and. . . . on. . . .                                                                                 http://picworkspottery.blogspot.com/


#8 Mark C.

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Posted 11 February 2014 - 04:22 PM

I suggest you write this down in your inital wholesale order Maybe yearly you should state you will  re-negotiate terms/price every year.

One thing you will learn as soon as its stamped with a logo its only good for THEM. This has zero value for anyone else-that will cost more period.

This could be a hard lesson unless you state everything upfront and get the price you need now not in the future.

Mark


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#9 DirtRoads

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Posted 13 February 2014 - 12:17 AM

I've used StazON ink pad with a rubber stamp to stamp corporate logos on several items.   The ink does not come off in a regular oven or by washing.   One of my friends uses this product to personalize their pottery with  customer's store names. .   I've not sure about what temperature it comes off, but if you refire at Cone 5 it's gone if you need to "erase".   My potter friend and myself have used this on customized pottery.     You have the inconvenience of refiring but at least a stamped piece isn't a total loss.

 

http://www.joann.com...earch?q=staz on

 

I like the Timber Brown color.



#10 AtomicAxe

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Posted 18 February 2014 - 10:05 AM

What others have said, first and foremost.  They are effectively hiring you to sell them product that they can sell under their own brand.  This would entirely be wholesale.  Now, the terms of the agreement are important to determine wholesale rate.  Since you are no longer a consignment potter there you would need to make sure it's worth while to you.  Are you going for a 6 month contract? year? etc?  how big are the orders going to be? how frequent? are you going to negotiate rates every contract term? are they going to request different product designs? (because afterall, you're designing their products now ... they might want seasonal ware)  Since what you are doing is entirely custom to them and not returnable or resellable by you ... are they expecting to buy your product for half of what you are selling it for now? a third? because this is wholesale and then they apply their markup to make a profit.  This is important since your work is selling you've established the price, and at wholesale you could lose money on deals where they could profit only to turn around and drop you when they find someone who can do it for less ... it's their brand then.



#11 Roberta12

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Posted 18 February 2014 - 10:07 PM

The whole process of getting the stamp made with the logo has slowed....waiting on the web designer to send the logo to the stamp maker.   So, everyone's comments have given me time to think/rethink the wholesale arrangement.   I really do appreciate all who replied to my question and concerns.   What I take away from this topic is to

  • really think through any arrangement with the mill owners and get everything in writing.
  • put an end time on the contractual agreement
  • understand that it will no longer be my work, but belong to another entity
  • make certain that I am making money on the endeavor
  • because this is a small rural community,(everyone knows or is related to everyone)   pricing needs to be of prime consideration (I bought this mug at the mill for $25 and you are selling a mug without the logo for $18 at a craft fair? or vice versa)

As specific as all of you have been, I think you have also been down this path before.....Thanks for the help.

 

Roberta






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