Fair rate for Consignment Shops

[Devin Wilson]

Looking for some ball park rates that some of you a paying in consignment type shops. Got a appointment this weekend to go look at one and curious what is the average rate most pay either by % of sales or flat monthly rate. 

[kmmcrafts]

I signed a 6 month contract at a local shop.. they had different space sizes / prices.. I had a 4 x 4 space and paid $40 a month plus 2% sales fee.. they took care of taxes etc.. I almost made enough to pay for all the 6 months.. but.. I got in early Fall and went through the holiday shopping season.. otherwise.. I don't know if I would have made any sales.. Some items came up missing.. that they wasn't responsible for.. Ask about this and insurance should the building blow up or something, LOL.. Maybe ask about foot traffic.. go and observe for yourself before signing up..

[JTTHECLOCKMAN]

I agree you need to look the place over and get things in writing. Theft and breakage can destroy your profit margin quickly. I also agree many times space is different for the fee they charge. I use to be in 6 different stores in 3 huge malls. I payed 10%  and $100 for the space, but was given 6' X 8' of prime real estate plus front show window many times for a few pieces. They handled all taxes, took orders for me and called when they came in and also were responsible for damage and theft. I was paid a couple times for theft and some big items walked too and we could never figure out how they got them out. Then after 4 years the people sold the business and it went down hill and I had to pull out because of theft was too high. One person working in the store can not watch everything and be behind the cash register too. The holidays were the busiest times of the year. You needed to rotate the stock to play on this season thing. Those 4 years I did very well but had to hustle my backside off with supplying the stores, doing orders, and doing 6 craft shows most in Nov and Dec. Adjust your prices to make up for rental fees. Keep good records for the Tax man because you have to pay taxes. When you do this then you are into a business setup and things can be written off. But be careful. 

We were responsible for keep the space looking good and you can set it up anyway you want. 

Edited March 27, 2019 by JTTHECLOCKMAN

[Denny Knappen]

As a shop owner, we keep our fees low.  A booth space is $25 and 15% commission.  A shelf space is $15 and 25% commission.  We have been in business for almost 10 years and almost no theft.  The space rented, is the artists space and they are to keep it up.  We collect and pay taxes and also the cost of credit card processing.  Advertising is also another cost we cover.

[meflick]

3 hours ago, Denny Knappen said:

As a shop owner, we keep our fees low.  A booth space is $25 and 15% commission.  A shelf space is $15 and 25% commission.  We have been in business for almost 10 years and almost no theft.  The space rented, is the artists space and they are to keep it up.  We collect and pay taxes and also the cost of credit card processing.  Advertising is also another cost we cover.

Denny, I assume that cost per booth or shelf space is per month?

[Denny Knappen]

52 minutes ago, meflick said:

Denny, I assume that cost per booth or shelf space is per month?

Yes, Melanie.

[ike]

Denny that sounds good you do all the cost items I wish you were around here I would be there tomarrow.

IKE

[Devin Wilson]

Thank you for all the replies. I'm going to meet he owner today after my normal 9-5 gig and will let you all know how it goes. 

[Devin Wilson]

UPDATE: Met with shop owner yesterday afternoon and got a shelf space. Basically its a book shelf about 3 foot wide and about 6 foot tall. Charge is $30 a month and 10% commission. Moving in on the 20th of April. He had bigger areas that were like room size and were $2 a square foot plus 10%.  Going to put some puzzles and a few wordart signs and some other small items out and see how they go. $30 a month isn't huge investment at least and can always expand to a bigger area if things do well. 

[kmmcrafts]

1 hour ago, Devin Wilson said:

UPDATE: Met with shop owner yesterday afternoon and got a shelf space. Basically its a book shelf about 3 foot wide and about 6 foot tall. Charge is $30 a month and 10% commission. Moving in on the 20th of April. He had bigger areas that were like room size and were $2 a square foot plus 10%.  Going to put some puzzles and a few wordart signs and some other small items out and see how they go. $30 a month isn't huge investment at least and can always expand to a bigger area if things do well. 

Good luck with it.. I think the biggest draw back to the place I was in was their location and the did very little advertising to bring in shoppers.. Not much of any places around here that do this.. the shop I was in.. the owner closed it up and is now running cardio drumming and things like that out of the building.. LOL..  

[bcdennis]

I wish you success.  Let us know how it goes. 

[Denny Knappen]

Again, from a store owners perspective, consider the space your own little shop.  Use social media to promote and invite family and friends to visit the shop.  As a shop owner, we promote, but with 25 artists and crafters, the advertising is about the shop and not the artists and crafters.