How does sale or return work in boutiques?

[BrianAndHisBalls]

Hello

A shop has just contacted me asking if they can sell my handmade craft brooches on a sake or return basis. I get the jist of that but am not sure how it would work re percentage they receive/I receive.

Has anyone any experience of selling their crafts in this way?

Many thanks

It means that anything they don't sell is returned to you.

All other details are still up for negotiation. There is no set percentage, you need to talk it through with them.

One other thing to consider is what happens if things are stolen or damaged.

so would 60%-40% to me be too high? Id be taking the risk of supplying things for free (as you say damage/theft etc) and they'd have the overheads of the shop to pay.

Personally I'd be wary, if they are keen & their business is sound then no reason why they souldn't just buy stock from you.......

so check them out VERY thoroughly (ask their other suppliers if they pay up, can be trusted) & be VERY professional in that you provide & get them to sign an invoice when you deliver the goods, & let them know you have copyrighted the goods (photos in a sealed envelope posted to yourself or a friend used to suffice) etc etc

IME, this too often means.....

you give us the stock for free, & we still expect to add a huge mark up, often the same as if we bought the stock from you, & if you are lucky & we are generally doing well sales wise, we'll pay you when the goods are sold...& then we'll just copy them & make out own, as we make more profit ....& .if we are not doing well, then your stuff might just get nicked/lost & we wont pay you as its not our fault

Sorry, I'm sure its not what you want to hear, but I've years of experience in this sort of thing & I wont touch Sale or return with a barge pole now, very few that ask for it are honest traders....in my experience at least

,

60/40 is probably too low, if you still go for it, try for 75/25 to you, but its usually a 1/3 to them, 2/3 to you

& make sure all the details, theft responsibility, details of payment etc etc are written out & signed for in a "contract"...& then invoice on deliver...good luck :)

rockin - I must admit thats kind of what i was thinking too, I might go back and say that I can't do sale or return but will offer her a wholesale price of x.

And now the next question what is the usual mark up? I sell my goods usually for approx £7 £8 £9 each. So what would be reasonable to offer them at wholesale and what would she then mark them up too do you think?

Sorry for all the questions.

no worries, ask away :)

look at your nearest competition, & see what price they go for in similar boutiques, & then expect to wholesale at 50 - 60% or that sort of price.....I found it helps if you offer a staggered price plan, ie, by 10 its X price, by 25 its Y, 100 is Z etc...........

this encourages them to by more, & its usually better for you as with most stuff its as easy to make 100 as it is 75, if that makes sense

some smaller traders will take a first order as sale or return though, but usually very small trials......that used to be the norm around Cambden & the likes,

but you do need to treat it carefully & check them out first, especially as a lot of businesses struggling right now, so even if they do sell all your stuff, it might just end up paying their rent, rather than back to you...& be very wary if they also make their own stuff

buy...doh!!

thank you for your help its really useful. Think I'll go back with a wholesale offer instead.

I can see items 'walking off' otherwise.

Thanks again

no problem :) & good luck

& also worth bearing in mind, don't be afraid to "hype" yourself up & don't be too down to earth when selling yourself, play the flaky designer card, add your name to the back of your stuff etc .......its amazing how much more someone will pay for something they think is an up & coming designer brand, as opposed to craftwork, so don't be afraid to over sell yourself

wishing you the best of luck