small craft business question

[janeL]

Hi all, I have been selling my hand made cards adn paintings etc for about five years at craft fayres etc... Today I have set my niece and her friend up at a fayer (extra pocket money they love it) and I am dong another in a couple of hours at a coffee morning. I make a reasonable amount from it (wich is of course declared). My niece just rang me as a lady with three shops approached her asking to sell my stuff in her four shops. Now I have to admitt I have always shyed away from this as I don't know how it works but I am thinking the extra money would be a god send right now. With a fayre you pay for you pitch, job done!

My question is how do I do this? Do I offer her a percentage of what she sells? If so how much? Is 5% / 10%/ the norm? Or can I get away with less. My niece said she gave the lady my contact details and said to ring late this afternonn.

Please Help!!!!

[fourtorts]

I think that you will find that when you contact the shop owners they will have their own ideas on how they want to do business with you. I think the norm is to give them a percentage of your sales. I am sure you will come to some arrangement. but don't sell yourself short, make sure they don't take too much of your profit. I'm not sure what sort of percentage is acceptable but I wouldn't want to lose more than 40% of my sales. Don't be afraid to negotiate with them. eg. If they ask for 35% you say 30%. Ask for time to think about it and wait until you have spoken to all 3 shops and take the best deal.
Hope this helps
Lynne

[fourtorts]

OOPs I think i got the wrong end of the stick here. It's just the one lady i would still apply the same approach and good luck..... Don't forget don't sell yourself short.. negotiate........

[janeL]

Thanks Lynn, Gosh that is a lot of proffit. I need to think this through.

[Laraine]

You tell her what you want for them, and then she can add on her commission in the shop. she will probably sell them for more than you have been doing because she has more overheads than you.
I'll keep my fingers crossed for a profitable venture.

[aramintalovegrove]

Yes my friend does jewlery and has negotiations with shops similar to laraines example, however I think the shops get about 20% from the sale. One thing she has major problems with isshops paying her back on time, she has gone without petrol for a couple of weeks as she had alot of sales due that were not paid on time, I would say either dont rely on the money as an income if you do choose to sell in this way or consider cash on supply maybe.

[chris_walton]

normally for work when im buying in stock the sellers have a fixed cost prices which i then double or whatever to get my retail price

if you want pm me and i will help you work out a cost price so you know how much they should be retailing for

chris

[Evie]

I agree with Laraine - work out what you want to sell to her for and she can add on her profit See what figures she has in mind first though and then you can start your negotiations.

[swad1000]

Work out your bottom line that you require, you then sell them to her at that price.

What she charges after that is then up to her. Personally I wouldn't go down the sale or return route, as its a pain in the arse.

[gtm]

Just a small point make her sign a contract with a 'Rentention of Title' Clause. Generally, the law says she will own the goods on delivery. However, if a Retention of Title clause is incorporated into the contract you still 'own' the goods until she has paid for them. If she does'nt pay you can take the goods back.