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RetailBX.sg - About consignments
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duriancake 08-08-2008 09:29 PM
About consignments
 
i wanted to ask this on 'question on consignment' but it's closed.. so i need to start this thread. :x

anyway, just wondering, what are the rates for consignments?

40-60? 30-70?

erm, i'm only interested in the information.. so don't offer here. thanks alot!

Mystech 10-08-2008 10:14 PM
Re: About consignments
 
i think it depends on the company giving you. basically, my side only give consignment to ppl we know well. We just give them a cheaper price, and let them go sell

sharon.nyh 10-08-2008 11:58 PM
Re: About consignments
 
Quote:
Originally Posted by duriancake (Post 6869)
i wanted to ask this on 'question on consignment' but it's closed.. so i need to start this thread. :x

anyway, just wondering, what are the rates for consignments?

40-60? 30-70?

erm, i'm only interested in the information.. so don't offer here. thanks alot!
Usually is 40-60.. =)

J'dore 11-08-2008 12:03 AM
Re: About consignments
 
Yea..depends on the shop but usually its 40-60 or even 45-55 if the shop is evil or if they want to give 10% discounts to their customers

duriancake 11-08-2008 12:13 AM
Re: About consignments
 
i was offered 15%. :x but it works kinda like dropship? so when there's order he will send it out.. all i do is receive the order, forward the info + money..

any comments?

beadsandends 11-08-2008 07:09 AM
Re: About consignments
 
that's way too little. the min. market rate now is at least 30-70.

Pushcarter 16-08-2008 11:25 PM
Re: About consignments
 
Quote:
Originally Posted by beadsandends (Post 6892)
that's way too little. the min. market rate now is at least 30-70.
Newbie here lah... but what do you mean by 30-70?? 30% off the normal price :confused:

beadsandends 17-08-2008 08:31 PM
Re: About consignments
 
what i mean is that your commission should be 30% of the price of the item sold. e.g- you sell a $10 top, so you should pocket $3 and pass $7 to the owner.

Pushcarter 17-08-2008 10:25 PM
Re: About consignments
 
Quote:
Originally Posted by beadsandends (Post 6968)
what i mean is that your commission should be 30% of the price of the item sold. e.g- you sell a $10 top, so you should pocket $3 and pass $7 to the owner.

Oh ok, thanks for clarifying! :thanx:

ChinChic 08-03-2009 02:31 PM
Re: About consignments
 
hi all, as there is a thread on this consignment topic, instead of starting a new topic just thought as asking some questions through this thread...

let's say my product costs me $3 per piece, i intend to sell it at $10, so my profit is $7. so if i would like to put my items at a shop to sell at $10, if based on 30-70, does that mean that I can only take back $7 for one item sold?

sorry for this very noob question for i do not have any experience in this. would someone please be so kind as to enlighten me?

:thanx:

FASHRUS 08-03-2009 02:58 PM
Re: About consignments
 
if you want a profit of $7 on a product which cost you $3 you will have to give it at $10.
but depending on the commision that your consignee want to take the price of your item will inflate more.. say they want to take 30% per piece they will sell it at 13dollars.
but i hope that you are not giving real life example. because as responsible supplier you wont want to take that kinda margin which ultimately will inflate the price of ur product soo much that the end buyer will never get value for money. and anyone who decides to reduce the price of ur same product can kill ur market share almost instantly!

duriancake 08-03-2009 04:49 PM
Re: About consignments
 
hey ChinChic. based on your example.. the cost is $3. selling at $10. so if it's 30-70, you will back $7.. but, the real profit is $4 because cost is $3?

normally you supplier decide the range, eg, 70-30 or 60-40.

like FASHRUS said, some shop might mark up more so that they can earn more. but i guess it's ok for supplier to give a range for the pricing to prevent marking up and losing of market share.

ChinChic 08-03-2009 09:10 PM
Re: About consignments
 
thanks FASHRUS & duriancake for your helpful replies :) but i don't really understand the part about the market share... :o

EarthlyScents 08-03-2009 09:21 PM
Re: About consignments
 
Quote:
Originally Posted by ChinChic (Post 10153)
hi all, as there is a thread on this consignment topic, instead of starting a new topic just thought as asking some questions through this thread...

let's say my product costs me $3 per piece, i intend to sell it at $10, so my profit is $7. so if i would like to put my items at a shop to sell at $10, if based on 30-70, does that mean that I can only take back $7 for one item sold?

sorry for this very noob question for i do not have any experience in this. would someone please be so kind as to enlighten me?

:thanx:
ChinChic, different companies have different T&Cs regarding consignments. In my case, one of my consignors states that I get 30% while they get 70% at their retail price. That means if the consignor states that you sell a certain product at $3, you'll only pay 70% of your retail price to them. You then get 30%. Consignors will never, I repeat, never want to give you the bigger share. In many cases, consignors will not negotiate with you in terms of percentage.

EarthlyScents 08-03-2009 09:26 PM
Re: About consignments
 
PS: Usually, the retail-prices that the consignors give you are controlled-prices unless stated otherwise. Else, if you charge according to your preference and not of the consignor's, they may withdraw the deal as you r either under-cutting then or over-pricing them.

ChinChic 08-03-2009 09:43 PM
Re: About consignments
 
Quote:
Originally Posted by EarthlyScents (Post 10160)
ChinChic, different companies have different T&Cs regarding consignments. In my case, one of my consignors states that I get 30% while they get 70% at their retail price. That means if the consignor states that you sell a certain product at $3, you'll only pay 70% of your retail price to them. You then get 30%. Consignors will never, I repeat, never want to give you the bigger share. In many cases, consignors will not negotiate with you in terms of percentage.
huh? in your example, does that mean that if my product is sold at $10, i'll only get $3 back? how could that be possible??? wouldn't I be making a loss? i'm the one who paid the the items, isn't it? i'm really so confused now... :confused2: :confused2:

if you don't mind can u give a more specific example how this may work? like:

cost price of product:$3
the deal: 30-70
product selling at:?
the shop earned:?
I earned:?

:thanx:

TanPohKiat 08-03-2009 11:20 PM
Re: About consignments
 
normally i do ladies tee consignments for 40% 60%,

EarthlyScents 09-03-2009 09:54 AM
Re: About consignments
 
For example, your consignor lets you have his product at $7 but he insists that you can only sell it at the retail price of $10, he is actually getting 70% of the retail price and you get 30%.

You're not in a lost as in the case of consignment, it's always a win-win situation as you don't need to pay a single cent for the goods till you sell them at the retail prices that he has stated you to.

Consignors usually don't allow you to under-cut them in retail pricing if they already have their goods sold in other places where the retail prices are fixed. Eg, if the consignor states that you sell the product at $10, it also means that the other places that he consigns to are selling at $10. You can't change that price because it's controlled pricing.

:) Hope that helps you.

Quote:
Originally Posted by ChinChic (Post 10162)
huh? in your example, does that mean that if my product is sold at $10, i'll only get $3 back? how could that be possible??? wouldn't I be making a loss? i'm the one who paid the the items, isn't it? i'm really so confused now... :confused2: :confused2:

if you don't mind can u give a more specific example how this may work? like:

cost price of product:$3
the deal: 30-70
product selling at:?
the shop earned:?
I earned:?

:thanx:

FASHRUS 09-03-2009 12:07 PM
Re: About consignments
 
:) okay chinchik..
do not get confused.. its very simple. you bought something for 3$. u wan 7 dollar margin. 3+7 = 10 which is ur target price which u wanna keep intact. then u also have to give ur retailer 4% margin, so sell it to your retailer at
14 $ (because 10+4% = 14 mah..).
tell him on every piece he sell he will get 40% margin. that will solve ur problem of 7 dollar margin and his issue of 40% margin..
(but 7 for a 3 dollar thing is still unrealistic margin. hope its not real life example.)
And now ur doubt on MARKET SHARE.. suppose you are selling ur product.. say "bag".. and there is 100 shops in singapore selling bags (example). and you manage to win 5 of those shops to take goods from you.. so 5 out of 100shops is your market share for bag business in sigapore lah.. you get more shops to take frm u then u increase ur market share.. simple also right..?

EarthlyScents 10-03-2009 01:22 AM
Re: About consignments
 
Quote:
Originally Posted by FASHRUS (Post 10175)
:) okay chinchik..
do not get confused.. its very simple. you bought something for 3$. u wan 7 dollar margin. 3+7 = 10 which is ur target price which u wanna keep intact. then u also have to give ur retailer 4% margin, so sell it to your retailer at
14 $ (because 10+4% = 14 mah..).
tell him on every piece he sell he will get 40% margin. that will solve ur problem of 7 dollar margin and his issue of 40% margin..
(but 7 for a 3 dollar thing is still unrealistic margin. hope its not real life example.)
And now ur doubt on MARKET SHARE.. suppose you are selling ur product.. say "bag".. and there is 100 shops in singapore selling bags (example). and you manage to win 5 of those shops to take goods from you.. so 5 out of 100shops is your market share for bag business in sigapore lah.. you get more shops to take frm u then u increase ur market share.. simple also right..?
Now you're confusing ChinChic. She's asking from a consignee's point of view, not as a consignor because she's still new to business. Then again, ChinChic, what's your intention for knowing?:confused2:

FASHRUS 10-03-2009 11:13 AM
Re: About consignments
 
Quote:
Originally Posted by EarthlyScents (Post 10191)
Now you're confusing ChinChic. She's asking from a consignee's point of view, not as a consignor because she's still new to business. Then again, ChinChic, what's your intention for knowing?:confused2:
dear earthly scent....
before u say that, READ her posts.. this is her original question.. ""let's say my product costs me $3 per piece, i intend to sell it at $10, so my profit is $7. so if i would like to put my items at a shop to sell at $10, if based on 30-70, does that mean that I can only take back $7 for one item sold?""

as u can see, this person want to put his/her things to a shop.. and was confused about the margins. and i replied preciesly to it, that he or she should should add on to the margin.. and just add another percentage to give it on consignment or put that items to a shop....

if i confused you with that chinchic then I'M TERRIBLY SORRY!

ChinChic 10-03-2009 09:51 PM
Re: About consignments
 
dear FASHRUS & EarthlyScents, thank you so much for your helpful replies, i think i sort of get the idea now...

and so sorry for not explaining properly earlier... as i wasn't sure what's a consignor & consignee... but as i was reading through the posts, i guess i should be a consignee: someone who's trying to get retailers with shops to sell her products.

you see, i'm in the process of getting some bags from an overseas supplier to sell in s'pore. one of the ways i'm thinking is to get a shop to sell them for me... at that point i did not know if i'm considered a consignor or consignee...

so sorry for the confusion caused. so now i sort of get it. in my example, as a consignee selling my items at $10 per piece when it costs me $3, if it's on a 30-70, then i should get back $7 and earned $4 out of it. yup :D

:thanx:

juinjuin 10-03-2009 10:33 PM
Re: About consignments
 
Chin Chic

Your are absolutely right on the last point with regards to the mechanisms of a typical consignment scenario.

Quote:
in my example, as a consignee selling my items at $10 per piece when it costs me $3, if it's on a 30-70, then i should get back $7 and earned $4 out of it.
However, I'd like to highlight that your understanding of the roles in question vis. consignor and consignee is reversed.

According to thefreedictionary.com:

Consignor is the person who delivers over or commits merchandise (this is the supplier in the retail context)
Consignee is the one to whom something, such as goods or merchandise, is consigned. (this is the retailer in the retailing context)

Similarly, in the shipping context, the consignor is the shipper, while the consignee is the receipient. If you are have used international couriers before, you should be familiar with this.

I need to clarify this as otherwise there might be confusion as to the type of ads intended for the 2 categories in BIZHUB:

Looking for Distributors or Consignee
Looking for Suppliers or Consignor

Hope this is clearer.

Please all, do not get overly worked up over the semantics. It can be a bit confusing, but I am sure no ill intention was intended by any party. We are all trying to help :)

:applause:

Regards

ChinChic 17-03-2009 12:48 AM
Re: About consignments
 
Quote:
Originally Posted by juinjuin (Post 10214)
Chin Chic

Your are absolutely right on the last point with regards to the mechanisms of a typical consignment scenario.



However, I'd like to highlight that your understanding of the roles in question vis. consignor and consignee is reversed.

According to thefreedictionary.com:

Consignor is the person who delivers over or commits merchandise (this is the supplier in the retail context)
Consignee is the one to whom something, such as goods or merchandise, is consigned. (this is the retailer in the retailing context)

Similarly, in the shipping context, the consignor is the shipper, while the consignee is the receipient. If you are have used international couriers before, you should be familiar with this.

I need to clarify this as otherwise there might be confusion as to the type of ads intended for the 2 categories in BIZHUB:

Looking for Distributors or Consignee
Looking for Suppliers or Consignor

Hope this is clearer.

Please all, do not get overly worked up over the semantics. It can be a bit confusing, but I am sure no ill intention was intended by any party. We are all trying to help :)

:applause:

Regards
Wow! thanks for the detailed explanation, really appreciated it! looks like i'm getting all the terms mixed up again :o i'll try to search for more info online so that i can understand more about this area... :thanx:

carousel 14-04-2009 04:08 PM
Re: About consignments
 
Wow thanks for letting me know, I had no idea the terms are so much more favourable to the consignee.

KittyMi 14-04-2009 05:50 PM
Re: About consignments
 
I thought the industry practice is 60:40. Are there shops that will take wholesale lot, not consignment. I feel that consignment is really not fair to the consignor as they have to invest huge amount of money & time to market the brand, but returns are lesser than consignee. Or am I doing my sums wrong?

I am in the process of seeking for shops to take my goods, but feel that 40% to consignee is really high. We as consignor have no negotiating power :(

EarthlyScents 15-04-2009 01:18 AM
Re: About consignments
 
Consignments have win-win situations for both parties although the consignors will have to sell to the consignees at a fraction of the retail prices. It's good for them as more people will get to know about the products they bring in.

cocoshoe 01-05-2009 12:31 PM
Re: About consignments
 
Hi,
Yes I think Earthlyscents is right both is win-win situation.
Because the consignor will have to fork out lump sum of money to buy or manufacture the stocks on the other hand the consignee dont have to have the money to have stocks but duty is to sell and get profit from it...
something like that lah...
and 30% to consignee and 70% to consignor is the usual rate going around as far as I know...

swee18 19-10-2009 12:43 PM
Re: About consignments
 
Is it normal to ask for security deposit if someone is interested in taking your items on consignment?

I am afraid that he/she might run away with me stuffs.. pushcart & shops not so but if running a bazaar.. I am not so sure...

marathon 19-10-2009 01:28 PM
Re: About consignments
 
Quote:
Originally Posted by swee18 (Post 16463)
Is it normal to ask for security deposit if someone is interested in taking your items on consignment?

I am afraid that he/she might run away with me stuffs.. pushcart & shops not so but if running a bazaar.. I am not so sure...
You can ask but its up to them to give in. Because they also affraid that you will run away with the deposit too and leave behind your items as sold items. Consignment is like that, its both ways.

Previous someone also asked me a deposit but I don't. Still the person gave in.


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