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Biz Talk - Minimum order and payment time?


#1

I make mostly one-of-a-kind intricate fabricated jewelry and small
sculpture in sterling with lots of colored stones and 14-and-18k
accents in the $48-$600 range. Although I’ve been in business 30
years, I’ll readily confess to an embarassing lack of business
acumen when it comes to dealing with shops and galleries, as my
sales have primarily consisted of private commissions, retail fair
sales and some consignment sales through selected galleries. Since
more and more galleries in my area (the Southeast) seem to do a
50/50 consignment percentage, I find myself wondering whether I
might not be better off going to wholesale.

How do others decide on a fair minimum order and payment time? I’ve
been inclined toward a $1000 initial minimum, $500 restock minimum,
Net 30, unsold work in good condition exchangeable for new stock
after six months.

Several friends have suggested this exchange policy is too liberal
and that I should require payment for the initial order in ten days,
rather than 30. I’d really appreciate some guidance from orther
Orchidians with more experience in this area.

Walk In Beauty,
Susannah Ravenswing
Germanton NC - where the flame azealea and trilliums are in full bloom!


#2

A common practice is 2% discount if the invoice is paid in ten days
and net thirty.


#3

As a wholesaler for many years a 30 day invoice is standard.

But, if you want your goods in stores and can wait, you can give
them the option of a set of goods for 6 months and the right to
return unsold goods and only pay for the sold items. This takes the
pressure off of the store to move your goods, a no risk deal for the
store. If your goods don’t fit their store, they just return it, or
it moves and you get new orders. It depends on if you can carry the
stores.

Tim…