View Full Version : What's a reasonable consignment fee?
07-08-2008, 04:30 PM
A friend of a friend is placing some of my baby hats in her store on consignment. In working on what to price the items, I am wondering what is the range of commission that she should expect to take from the sale? She quoted me 50% but it seems that's a bit high...I'd have to price the hats quite high just to make up for my time and effort.
Does anyone have experience with this and how did it work for you? What type of commission is typical with crafted/handmade items?
07-08-2008, 06:08 PM
I have some tablecloths in our local Artisans Gallery and they only take 30%. Furthermore, if we(the artists) come in and run the gallery at least once a week, our commissions are reduced by 5-10%. I have to agree that 50% is very high. Most places I've dealt with only took 15-20%.
07-08-2008, 07:46 PM
i didn't do consignment stores but i did do an Etsy shop at one point. they took 5% plus a 20 cent listing fee. Ebay is higher if fees so that is why I went with Etsy.
07-08-2008, 08:59 PM
I agree, 50% is too high. My mother has sold afghans in consignment shops for years and I don't think her fee was ever more than 15%. I think there was one shop that asked for an account set-up fee...that may have been $25. For baby hats that would be a lot, but mom was selling $150 afghans and accepting orders for custom ones.
Can you explain to the owner that while you love making the hats you have to make enough to cover the yarn and needles?
07-08-2008, 09:35 PM
With a lower dollar item she would have to consider the time to show and sell the hats as well as allocate space and tidying time. Hopefully you can negotiate a better deal for yourself, but realize that retail businesses generally have to make a certain amount per square foot of display space to cover business costs. Higher dollar items such as afghans return a higher dollar amount.
You may be better off looking for a co-op or some other venue if she can't drop her consignment fee.
07-09-2008, 08:56 AM
Here in San Antonio, 50% would not be considered high.
07-09-2008, 11:56 AM
Thanks for all the input!! I also spoke to a friend of mine who is a crafter as well and she said it's more typically 20-30% as well. I'd be happy to compromise and maybe ask for 25-30%. I understand that her store is not really a clothing store and she's doing me a favor by putting my hats on display. I might also raise the prices a bit since this is a high-end store and I am in the middle of the range I've seen online for hats like this.
I really only did this because she loved my hats...I wasn't intending to start a business or anything but if it makes me a little extra cash, it's just extra goodness!