Posted by Jamie Botdorf on December 17, 2008 at 6:43 PM
I recently came across a group that opens short-term store fronts during the holidays in key retail areas. Then they rent the space out to a variety of artisans.
I'm interested if this kind of opportunity is worth it? They are charging $175 for booth rental and 30% commission. This is the info for the shop they set up from Nov 8 - Dec 28 (open 7 days a week). I expect their Spring or Summer locations will have a similar rate.
I think the commission rate seems high...or is this typical? What does a typical consignment arrangement look like (say, if I were to approach a more permanent location like a local bookstore)?
In my experience, 30% commission is about average. I've seen anywhere from 20% to 50% commission in various retail situations. If the $175 booth rental covers the entire period from Nov 8-Dec 28 with 30% commission on sales, this is very reasonable indeed.
As far as bookstores and other more permanent locations, in general, the larger the business, the higher the commission will be (usually in the 40%-50% range) since, in theory, your work will get more exposure. Also, an established business will have to spend time and money adding your items to their inventory in order to maintain proper accounting.
All that said, you'll need to approach each business individually and see what kind of deal you can negotiate.
I hope this helps, and good luck to you...
Gail.
Posted by Jamie Botdorf on December 18, 2008 at 12:47 PM
Thanks, Gail! That is the kind of feedback I needed.
Discussion
2 repliesI'm interested if this kind of opportunity is worth it? They are charging $175 for booth rental and 30% commission. This is the info for the shop they set up from Nov 8 - Dec 28 (open 7 days a week). I expect their Spring or Summer locations will have a similar rate.
I think the commission rate seems high...or is this typical? What does a typical consignment arrangement look like (say, if I were to approach a more permanent location like a local bookstore)?
In my experience, 30% commission is about average. I've seen anywhere from 20% to 50% commission in various retail situations. If the $175 booth rental covers the entire period from Nov 8-Dec 28 with 30% commission on sales, this is very reasonable indeed.
As far as bookstores and other more permanent locations, in general, the larger the business, the higher the commission will be (usually in the 40%-50% range) since, in theory, your work will get more exposure. Also, an established business will have to spend time and money adding your items to their inventory in order to maintain proper accounting.
All that said, you'll need to approach each business individually and see what kind of deal you can negotiate.
I hope this helps, and good luck to you...
Gail.