Business deal with local craft shop

[minowevie]

Originally Posted by Appleseed

I'm still a little confused on what consignment is. Could someone please explain?

well I believe it means, you sell something, in a store or place. ether by picture, or finished product, and the store gets some of the money. also . something someone seen that they wont to order. from you. say you make a piece. and they order one. you make one. and the person gets it at that price. and the store get some too. maybe I am wrong, but I see it 2 ways. one you sell something, on consighment. the store gets some money, or . another way is they order one. you make it, and sell it, like a commitment. I guess I have heard it both ways. some one help. thanks Evie

[Buzz]

Originally Posted by Appleseed

I'm still a little confused on what consignment is. Could someone please explain?

As I remember, consignment means that you give them the pieces you want to sell. No money changes hands until the pieces are actually purchased. My suggestion is to keep absolutely accurate records and check with the store fairly often. Talk to them about how to keep track of the sales.

[JohnB]

Buzz has it about right, well for my part of the world

Another way to look at it is, that you only hire the floor space to display your product and this fee is only payable if or when the product sells.

There are two ways to price the product.
1. You put your price on it and when it sells the shop keeper retains an agreed upon percentage or amount out of your price.
2. You put your price on the product and the shopkeeper adds his required percentage or amount on top of that. When the product sells you get your price and the shop gets it's margin.

Smaller shops are more likely to enter into consignment agreements because they can obtain stock without out laying cash.

When a consignment item sells, they can stick the cash in a tin under the counter and when you come for your bit it gets taken from the tin, so no paper trails and a little cash.

[marshall]

Appleseed I think that Johnb has the right way as far as I can see it , thanks John this has opened my eyes on this subject ..........Marshall.......

[merry]

lot of craft stores will sell your work if you get the right things that they can sell in that area. that is what i had to do find what people will buy in the area of the state your are in . lot of shops will sell local made crafts.and do very well.all you can do is try wish you the best of luck let us all
know the outcome.thanks merry

[yost69]

Originally Posted by oops99

To the experienced ones in this matter,

Do you have to pay taxes, or fill out any tax or ID forms when you do this by consignment or otherwise. I know some people who are on disability and this might send up a red flag to alert Big Brother.
Any answers or comments welcome.

Tom

You dont have to pay sales tax. The store that your stuff is in has to do that, so you dont need a business license. You DO however have to pay income tax to the federal and state.

So if you are selling your stuff via consignment and you get 70% and the store gets 30%, they pay the sales tax on the whole 100% and you have to claim the 70% at the end of the year on your income tax forms. Hope this helps ya.


Ben

[scrollsaw4u]

For Appleseed - Consignment means you get a percentage of the final sale - but not until the item is actually sold, and usually at the end of the month.
Also, What part of Wisconsin? I am in Milwaukee, and looking to have a "face to face forum" going.... If you are interested please drop me a e-mail at bruisedbutnot60@hotmail.com

To Tom, it depends on your state's rules. Here in WI, I can make up to $800 per year and not claim it on taxes. Not sure where you can go for your state, perhaps the small business bureau?

[Appleseed]

Thanks to all for clarifying this for me. I will definitely have to try talking with them. I already have some ideas for items that would sell great locally that I could make up as samples.

Also, what is a fair consignment percentage for them to take?

[imascrollman]

I have consignment contracts with a few places arround Phoenix. I draw up my own contract, and agree to give the store 15% of the sale per item. They take care of everything at their register and money automaticaly is deposit into my buisness checking account. At the end of the month they send me a sales statement, which I can compare to my deposits to ensure everything is on track. This also tells me which items I sell more of.
I hope this helps.

Randy Anderson
Randy's Creative Woodworking, Peoria Arizona

[woodworker001]

Uncle Sam always wants his money. Most stores will handle that part. Most stores do ask for a copy of your licenes. Judy