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Setting up a local consignment route [Archive] - SOWPub Small Business Forums

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hockeycoachdoug
August 22, 2007, 04:03 PM
Has anyone had any success, or lack of success doing consignment deals with small to medium sized local businesses? Specifically, any problems placing items, best kinds of businesses to work with, best types of items to consign, problems or pitfalls getting paid or getting your merchandise back, etc. What type of markup is usually needed to entice merchants to let you leave things with them. I can see a very cheap distribution channel to sell items, but lots of potential problems if the merchants try to rip you off. Would it seem to make sense to make your first approach simply as an intro to get a feel for the business owner and his honesty, and not even try to place any items at first. I remember as a kid my folks ran independent drug stores and there was a guy who used to sell all kinds of seasonal and sundry items from the back of his car. He could also provide larger quantity by order. My folks are long dead now, so I can't ask them about this character, but I do recall my folks saying the guy was very wealthy even back in the day. Not just some "joe" selling crap out of his trunk. Looking for any and all ideas, suggestions, pitfalls to avoid. Thanks in advance.



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