Is consignment giving it away?

All your hard work is showing signs of paying off. The prospect is enthusiastic about your product and wants to carry it in their store. They must see the value in dealing with you... or do they really?

The sales process is moving along and you hear the word consignment.

Merriam Webster defines the term 'on consignment' this way: "shipped to a dealer who pays for only what is sold and who may return what is unsold."

What is in it for you as a supplier when your customer shows minimal commitment to carrying your product beyond displaying it? You may not even have a say on where it is displayed. Consignment can be a one way street that does not point in your direction. Managed properly it might work, but in the long run it may be a better policy to avoid it.

If the value of your product has been clearly communicated and understood, there should be no hesitation to purchase it. The commitment demonstrated by your customer in purchasing your product will result in that customer making the effort to turn it over as quickly as possible.

Many times I have seen good products languish in the dimly lit back corner of a store with little or no hope of being sold. I wonder if the supplier is aware that this how their product is being promoted.

It is any retailers ideal situation to have no money invested in inventory. Think about it, wouldn't it be great not to have to pay for any of your materials until you receive payment for them? Reducing costs is important, but at who's expense?

Please note that when it comes to fine art, consignment is a standard practice. It is not this sector I am referring to in this post.

If you do find yourself in the position of going the consignment route here are a few tips that may be useful:

• Contact other vendors and ask them about the store
• Visit stores on a regular basis and see how your product is being promoted and displayed
• If your product is not moving, be prepared to remove or change it
• Build a solid relationship with the store owner(s) and staff, they are your sales people

Good selling,

Richard