Comments on: A Simple Consignment Agreement: Does One Exist?

By: Rena Klingenberg

Rena Klingenberg — Sat, 23 Feb 2013 15:22:47 +0000

Hi Laura, Here's a list of things your consignment agreement should include, plus an example consignment contract: jewelry consignment agreement. Also, you'll find answers to a lot of your questions in my Jewelry Consignment Checklist. Best of luck to you! :)

By: Terri Belford

Terri Belford — Tue, 05 Feb 2013 22:54:41 +0000

I agree with Lynn on the commission. I’ve been on both ends, jewelry artist selling in galleries and gallery owner carrying others’ work and I believe 50% is fair and common. A good gallery will market your work, have sales people who are often paid an additional commission on your work and huge overhead.

It is worth 50% to have your work represented in the right places. That said, if you retail online or at craft fairs, always sell your work for as much or more than the galleries sell it for.

Also, make sure that you check in physically with your stores often. If your work is in galleries far from home, have someone else go in for you. Too often, consigned work does not get the best spots and frequently, a gallery owner will stick consigned work in the back room to make space for jewelry she has purchased outright.

Make sure your work is displayed well and kept fresh, not tarnished or tired looking. If it isn’t selling well, it’s either the way it’s displayed or it’s in the wrong shop.

I agree that done right, consignment can be lucrative.

By: Lisa W.

Lisa W. — Sun, 04 Nov 2012 17:57:28 +0000

It’s hard to get a gallery taking a 30% commission, but I hear of it occasionally. The galleries/stores usually tell you what % they will accept consignment at, how often they pay, etc, and often have their own contract. Just read up on consignment so you know what you are getting into.

I don’t do it much, and only in places/with people I know or trust. For instance, the jewelry is damaged when being shipped back to you – who is responsible for the cost of the damage? What if the jewelry is stolen from the shop, damaged by a customer, worn home by a sales clerk/owner, returned to the store by a customer, etc? Does “responsible” mean retail cost, or the gallery’s percentage?

Do you need to hold separate insurance on your work, or will the store’s insurance cover it in a variety of instances? One I have heard about several times is this – the shop closes and owners are now unavailable. All merchandise is taken in foreclosure. Do you have any rights, or hopes of seeing either your work or some money from it?

All details really do need to be spelled out, causing the contracts to get somewhat complicated. Just be sure you or someone you trust can keep an eye on the work. Is it being dropped in a back room and never even hitting the sales floor, while you tap your foot waiting for sales? How is it being displayed, and where? Is that something you want to specify in your contract? You can add in a line or two to a gallery’s contract to address an issue that’s important to you.

Good luck!

By: Lynn Schmitt

Lynn Schmitt — Thu, 01 Nov 2012 06:47:03 +0000

The Society of North American Goldsmiths (SNAG) has a good consignment contract which you can download. Go go snagmetalsmith.org, select Professional Development, then Professional Guidlines, then Contracts. My family owned a gallery and we used a modified version of this contract for all our consigners. I’ve also used it with galleries who don’t have their own contracts. Whenever you work with a boutique or gallery, be sure to get everything in writing so there aren’t any surprises on either side.

As far as commission percentages, that is usually determined by the gallery. Most commonly, I’ve seen 40% and 50% gallery commissions.

Good Luck!

By: Sheila Davis

Sheila Davis — Tue, 30 Oct 2012 18:04:04 +0000

You shouldn’t need to show your business license. If the boutique owner already carries consignment items, they’ll have a contract in place. If not just make up your own with what you expect of the owner and what they can expect of you. Don’t forget to include a theft clause, such as who’s responibility it is for stolen items. (hopefully that won’t happen).
Also how often you rotate the stock. For a percentage it can be anywhere from 20% to 40% or more. Just make sure you mark your jewelry up enough to cover the percentage and still make a decent profit. Good luck!