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GordonJ
August 22, 2007, 04:59 PM
YES, I have "rack jobbed". And know that 98% of the business people you deal with won't rip you off, why would they?

7-11's and Circle K convenience stores operate mostly by "rack jobbers", everything from their beer and milk, to the chips, candy, etc. etc.

A lot of stores have "racks" or displays in them. I used to sell KRISTEE products this way, my best seller was The DEFENDER OF WOMEN, a pepper spray. And another hot item, although to this day I don't know why, was a little kitchen spatula that sold like nuts. Other products I have "consigned" have been Victory Miralce Polishing Cloths and Dyna-Glaze.

The way it works is you have a set number of products, just like the HOSTESS cupcake people...

10 cupcakes, 24 twinkies, 10 donuts, etc.

Then when you make your stop, you count up how many have been sold, replace them and submit your invoice. There are a FEW that still pay you that day. MOST that I've seen now a days want a float time, maybe every other week, and if it is a corporation, like Circle K, then they may cut checks from the "home office" or something like that.

What sells off racks? Well, snacks, candy, trinkets-especially little toys and LIGHTERS, any 'impulse' item. And it depends where they let you set your "rack" up in the store too.

NOVELTY Co. is one of the larger "consignment" placement places. If you have secured your source, you simply approach the owner/manager with your offer...and they aren't in business to rip people off. MAYBE you will bring them some fresh profits.

Yes, some of your products could be stolen and the store won't pay you for loss...it depends on the store you are dealing with.

As for profits, most want 40 to 50% profit. But it varies. And you get to test out which price sells best and how much of it goes to the host.

The guy your parents dealt with was one of these "rack jobbers"...and they are still out there. Some still selling from the back of their cars even.

You'll need an agreement form of somekind. Insurance on your own, but you'll find that if you have a good line of products that your customers can sell, they will welcome you back week after week after week.

But HONESTLY, you have to get your mind right. IF you go into it with the idea there are LOTS OF POTENTIAL problems, chances are you'll find a lot of problems.

Now the downside might be an investment on your part to your supplier, unless you can get credit for say, 30 days, and if you collect from your distributors every other week, or once a week, the supplier "float" on your merchandise will help you out.

At KRISTEE, I got to the point where I got an extra CASH discount...the old boy really liked me...I'd pay him in cash, and drove away. He didn't have to repack, ship or bother. And I was young and strong, didn't even need any help putting the boxes in my car. I was paying far less than people who were buying through the mail...and KRISTEE had plenty of customers back then too. PLENTY.

Check when your local store gets the "TRADER PUBS" in...and be there and talk to that guy who works on commission, on CONSIGNMENT, and get a feel for how hard it is...of course, he has an advantage, a well known disposable product that people keep coming in for week after week.

Start with ONE. Figure out how to do it. A simple invoice and an agreement work for most of these people. Heck, I still see people using the old carbon copy receipt book.

Don't overcomplicate it, do your due diligence, make sure you're legal (biz license, wholesale lic. etc) whatever your city or state requires from you and go get em. Thar's money in them thar racks.

Gordon


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