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  • #987617
    Noeski
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    Questions for any retailers or distributors/agents:

    I would love to get a perspective from BOTH sides regarding receiving/selling products on consignment.

    I am aware of the basic pro’s and con’s, but would love to hear your actual experiences and whether or not you think this is a good way to get products in store initially.

    What would be an expected % split?

    Would it be reasonable for the retailer to expect slightly less potential profit for having no initial outlay? Say a 60/40 split in the suppliers favour?

    What would a retailer generally expect as a minimum mark up if paying up front? 100% perhaps?

    Any other pearls of wisdom appreciated.

    Cheers

    Paul

    #1163565
    MH08
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    It will depend on the product your offering and what the market value is.

    Distributors always get it cheaper then wholesaling to retailers directly, otherwise it’s no point having a distributor if you offer it the same or cheaper. Distributors take it onboard for a full consignment they don’t due percentage splits on the bills.

    Create account forms and get their references, your account forms should be around 8+ pages. Check out their references by calling them, usually large distributors have very strong referencing and you won’t have a problem.

    But if you explain that your product is the next best thing (we’ve heard it all before) and it doesn’t sell, you will be given the product back and they won’t pay for it.

    Happens to new business wanting to sell through my own company, very annoying.

    #1163566
    Noeski
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    MH08, post: 189268 wrote:
    It will depend on the product your offering and what the market value is.

    Distributors always get it cheaper then wholesaling to retailers directly, otherwise it’s no point having a distributor if you offer it the same or cheaper. Distributors take it onboard for a full consignment they don’t due percentage splits on the bills.

    Create account forms and get their references, your account forms should be around 8+ pages. Check out their references by calling them, usually large distributors have very strong referencing and you won’t have a problem.

    But if you explain that your product is the next best thing (we’ve heard it all before) and it doesn’t sell, you will be given the product back and they won’t pay for it.

    Happens to new business wanting to sell through my own company, very annoying.

    MH80,

    Thanks for the response. I already have some consignment agreement templates that cover the obvious things including insurance, terms, references etc. Not sure what you mean by 8+ pages though?

    Let’s just say it would be a unique but VERY practical art/furniture item, that nobody else is producing currently. Targeting niche/en trend stores. Depending on size/style from MRP $149 to $699 < > relatively affordable, yet currently has NO similar competition believe it or not. Not saying it the next best thing (that would be a bold statement) but it is definitely unique.

    I am the importer/distributor.

    Maybe I’m asking the obvious, but I would like a retailer’s view incase I’m missing a point here…

    With your ‘annoying’ scenario, did you take these products on because it was really a no lose gamble for you and you need to fill your shelves? Or because you felt you really could shift some units of said product? Why did this annoy you if you decided to give them a chance and it didn’t work out?

    With the products that you order and pay for, are you always 100% sure that you will shift units or do you take an educated gamble on these too?

    Appreciate your help here, it’s great to pick the brains of the experts…

    Paul

    #1163567
    MH08
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    I was taking your question on the basis you were seeking a distributor, we distribute and import goods for large chains, independents and the hospitality industry but I can tell you one thing from experience.

    Furniture is the right way, it’s one of the big ticket items for importers at the moment, everyone is trying to get on the band wagon.

    So I’m not the retailer, but what I get from start-up importers is that there product is the next best thing and with our direct channels we can’t even sell it and give it back.

    I’m not sure about what you mean by chance, I think customers that are taking the “chance” to sell your product in their stores are probably not the right customer. From experience they tend to shut down, can’t sell anything or let the product collect dust, you don’t want ‘chance’ customers, you want customers that can sell it quickly to the consumer and keep buying from you.

    #1163568
    Noeski
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    MH08, post: 189270 wrote:
    I was taking your question on the basis you were seeking a distributor, we distribute and import goods for large chains, independents and the hospitality industry but I can tell you one thing from experience.

    Furniture is the right way, it’s one of the big ticket items for importers at the moment, everyone is trying to get on the band wagon.

    So I’m not the retailer, but what I get from start-up importers is that there product is the next best thing and with our direct channels we can’t even sell it and give it back.

    I’m not sure about what you mean by chance, I think customers that are taking the “chance” to sell your product in their stores are probably not the right customer. From experience they tend to shut down, can’t sell anything or let the product collect dust, you don’t want ‘chance’ customers, you want customers that can sell it quickly to the consumer and keep buying from you.

    Maybe I’m not phrasing my questions correctly. (much prefer to talk rather than type!)
    I may be mis-reading/misunderstanding your replies too!?!?!

    Now I understand your situation, I’ll have another crack…

    As an Importer/distributor yourself, do you find that retailers are generally happy to give most products (within reason) that you offer them a chance in their store as long as there is NO RISK for them (i.e. sale or return/consignment). And likewise are the retailers more likely to order and pay up-front if THEY feel confident that the product will sell? (hot ticket item)

    And do you have the impression that most start-up importers/distributors are probably blinded by their own liking of a product rather than having a subjective view of what the current market/trends are demanding? (i.e. “I think this is GREAT, it MUST be a winner”)

    p

    #1163569
    MH08
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    I’m not in the same industry as yourself but I have friends who are i.e. Lounges Plus, though they supply there own stores, it still comes down to the same mentality with new products.

    For instance in my industry we have to offer beverages/produce free for their own customers to like the product or not, it’s our loss.

    It could even save you a ton of money, if you find say, 5 – 10 of the biggest volume furniture stores and place 3 to 5 of your best products on their floor to see how it will even sell. This could save you outlaying cash for nothing to see if the market even wants it.

    They never feel confident, I’m yet to meet a customer that can be so moved by the sales person that it will sell. Business owners today don’t want to get sucked in buying stock that can’t sell period. Importation/distribution is a great business and very lucrative but you have to be prepared to get burnt more then once and it’s something you can learn what not to do. But the money boils down to the customer actually buying it from you.

    PM me if you want to know finer details including what is actually better, importation or both.

    Cheers.

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