I have had my present retail store for 13 years, and recently have
been able to afford to take artists work on consignment.
If I buy something, I can mark things up from 2 times up to 10 times
on some things. Something I pay 10 dollars for and mark up over a
hundred is similar is quality to something that would sell for $300
at a dept store.
So why would I want to use my valuable real estate to make 30%?
We are generous, and pay our consignment artists 60%. We advertise,
have an opening with wine, cheese, and chocolate, stay open longer
hours, pay employees for more hours. I can afford to do this as a
draw, to make my store special, have it be remembered, and they come
back and over time it makes it worth it.
I’m wondering if you depend on this for your income, or some extra
income. The artists we work with usually get 50% from their other
If what you are doing works for you, you are doing something right.
The amount of time it takes to make a sale has to be figured into
the price, as does rent, utilities, insurance, taxes, ect, so 30%
would not cut it for me, and I believe I know what I am doing. At 40%
I am probably breaking even unless I sell $3000-$4000 of consignment
in a few days,along with sales of my merchandise, repair and custom
orders. Then there is the issue of the customer who wants a deal,
(there goes 10%) and this happens more and more (Dr. Phil did a show
on women learning to negotiate for EVERTHING.
I do not know what others are going through right now in retail, but
here in Denver, people come in, look around, and complain about not
having money. People are very careful now, and we have a huge
inventory of easily afforded merchandise.
I am an artist first, businessman second, and God Bless myself (and
my wife who is my better half), we have been able to juggle all this
and be between surviving, and thriving.
A diamond in the rough,