Sale or Return - Percentage?

[SallyWright]

Hi Everyone

I have been asked to take some pieces of my jewellery into a local shop. They want to put some of my jewellery in but not pay any money up front.

Just wondered if anyone had any ideas or experience of sale or return and as to what percentage I should give to the shop and what percentage I should expect to receive.

Many thanks for your help.

Sally

[greannancrafts]

Hi

I only do SOR with people I know really well - and then for only 4 - 6 weeks.
They then either pay for it and then go onto COD for 3 months or return I the stock in a saleable condition.
Tread carefully with anyone you don't know.

HTH

Jane

[Caroleecrafts]

I have done this before and offered 20% of sales, if they want a bigger percentage they will have to buy wholesale from you, which means having a min order.

It may be worth drawing up a contract along the lines that any goods sold they have 20% and the funds must be paid to you on the 1st of the following month, also they are responsible for any damage to the goods whilst in their care. Give them a list of all the items you have delivered sign yourself and get them to sign to confirm what they have taken possession of. Keep a copy for yourself.

I would go in there on the 1st with a list of what you left and check off what has sold and let them have an invoice for the amount you are due. At that point if they pay you can replace the stock or take back what is not sold. As this is your first time of doing this can you take someone with you both times, this would give you more confidence as whilst you want to sell your items you have to safeguard yourself.

Good Luck

[SallyWright]

Many thanks for your comments.

I am going to do a list but getting her to sign and me will be a good thing. I am also taking a friend along as she knows the lady who wants the jewellery. I think with the credit crunch people are wanting to pay out for stock.

Thanks again will let you know how i get on.

Sally

[matt.chatterley]

A contract is essential (but you knew that)

Last time I dealt with anything involving Sale or Return (and it was soap, a few years ago), the deal was a bit diff - the goods were 'sold' to the shop on the basis that:

1. A discount was offered on small purchases (10% if memory serves) - so the shop saved on the Standard RP

2. The shop could reprice freely, and sell on

3. Undamaged, unused goods could be returned no-quibble to the supplier within a given time-frame (4 weeks).

[Jeff & Becky]

Most of the shops we sell to give us cash up front - i.e. they are buying the stock from us. However, we do do sale & return to a local village post office. In their shop they stock a number of local items/produce - it has proven to be a good sales channel and they will periodically call us up for a stock take/more stock. It is, of course, still a commercial venture, but I do believe that small post offices in rural locations are a valauble service and so we are happy to support it in this way (and we do well out of it too!).

I suspect that they couldn't afford to buy all the local stock that they sell outright, but this works well for us, other suppliers, the post office and the local villagers who are very supportive and keen to buy good quality local products.

Now, if only the rest of life where so simple ...!

[Delta]

So far I only supply one place with my jewellery, and that's done on sale or return, they did tell me what they were going to charge over and above my 'rate', but to be honest I forgot and the contract is filed at the bottom of a pile of paperwork right now).

But saying that, I didn't factor in their take on it, I just took the jewellery along, with a list, said that I wanted whatever amount for each piece (I put my actual price down a bit, so if I usually sold an item for £12.50, then I said I wanted £10 for it, but then my craft fair and website prices are different anyway!)

So far we have sold three pieces, I got what I asked for, and I am assuming the seller was happy with the price they got, and to be honest, unless they want to tell me, then I don't really want to know what they charged for them, that's their business! (I hope that came out right, and oyu know what I meant!)

[Glitterbug]

I stock several local galleries on SOR. They're all galleries that have a high turnover and all pay out at the beginning of the month. I'm happy to do this as I know I can trust them and I get lots of nice cheques each month.

[auntynet]

So far I only supply one place with my jewellery, and that's done on sale or return, they did tell me what they were going to charge over and above my 'rate', but to be honest I forgot and the contract is filed at the bottom of a pile of paperwork right now).

But saying that, I didn't factor in their take on it, I just took the jewellery along, with a list, said that I wanted whatever amount for each piece (I put my actual price down a bit, so if I usually sold an item for £12.50, then I said I wanted £10 for it, but then my craft fair and website prices are different anyway!)

So far we have sold three pieces, I got what I asked for, and I am assuming the seller was happy with the price they got, and to be honest, unless they want to tell me, then I don't really want to know what they charged for them, that's their business! (I hope that came out right, and oyu know what I meant!)

We added 20% onto the price that you wanted to get for your pieces, as we've done with the other pieces that we have from a few other suppliers.

We feel that this is a relatively low rate compared to some of the places that used to stock my jewellery before we had our own outlet. One place would add 40% onto "my price" which obviously is quite a hike on an already expensive piece of jewellery.

I reckon 20 - 30% is a fair rate. Another point Delta makes is that she lowered her own retail price a little bit and this gives a wholesale price. This is the lowest rate you would expect to receive for your items and then the seller's % of commission would be worked out from that figure and added to your wholesale price.

The "contract" is very important but it doesn't have to be anything special. Just type up a list of your terms & conditions, make sure you have a list of all the goods you have left and then you both have to sign it.

Hope this helps but feel free to PM me if you'd like to know anything further.

[SallyWright]

Many thanks again for your helpful comments. My thoughts were somewhere between 20 and 30% and if they want to sell it at a higher price than I would sell on my website that is fair enough.

Will let you know how I get on.

Thanks again its great to have the forum to ask question especially when you are a beginer like me!

Sally

[shiner]

someone has already said what I was going to say. get signitures for everything. Wendy got turned over by a gift shop she was doing sale or return with, denying recipt of a delivery, supposed shoplifters (from a locked cabinet?) we cut our losses and removed our stock quickly

[auntynet]

. . . . supposed shoplifters (from a locked cabinet?)

Its in our contracts that if they don't get the items back, they get the money for them. Loss because of shoplifters should be footed by the proprietor and not the artist.

[Delta]

When I took the stuff to Auntynet's stall, I took with me two copies of a printed out list of what I had taken, with a brief description and what I wanted for them on it, that way we both had a copy, not because I didn't trust her, but more because I was likely to forget what I had taken.

I have one of those A4 plastic wallets with both my copy of the list and my copy of the contract in.