# consignment question



## Deb (Apr 26, 2010)

Hi, 

i'm discussing the option of my stuff being in a shop on consignment. 

which leads me to the following questions
1) does anyone know of any good consignment agreements? Would I talk to a lawyer?  Can I get a kit?
2) what is a normal percentage for consignment 'take' for them?
3) are there any other things I need to watch out for?

Thank you! 

Deb


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## Tabitha (Apr 26, 2010)

I have beeen on both sides of the consignment fence. I consigned at 2 different local shops & my items got trashed/ lost/stolen at both places & I could not re-coop my losses. Loss _is _part of doing business, _however_, I lost over 50% of my items at both locations & that was just rediculous. You should build in x amount for loss/theft or damage.  These 2 places did not do a good job of managing, cleaning or monitoring their shops. Some other people might. I had 20-ish bars of fancy M&P soap some kids dug their fingernails into. The shop owner actually said "I wondered what they were doing over by yout display for so long."

(switching hats)

I own a consignment gallery & have for 4 years. realisticaly, a shop owner can not be responsible for all lost/stolen/damaged items. If that were the case, every starving artist in town would place their items on consignemnt & send their brother in to damage the item & the shop owner would have to pay.

I am a STRONG advocate for 30% commission to the shop. Many shops charge 40%, but a 40% you might as well just do 50% and let them buy it straight out. I bet if they did buy it straight out they would be better about monitoring for damage/theft/loss :wink: . If they are not willing to take the financial risk by buy the items straight out, they should NOT get more than 30%. The maker is accepting risk on loss/damage/expired inventory and should get 70% of sales.

I will look for my consignment contract & paste it here later today.


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## Tabitha (Apr 26, 2010)

Here is a my contract.

You acn tweak it. Delete what does not apply to you or add what does.

It was one I found on the internet and modified to suit my needs.
=============================================

Consignment Contract 
ARTIST: (Name, Address, and Telephone number): 




and 

SHOP: (Name, Address, and Telephone number): 




hereby enter into the following Agreement: 

1. Purposes. The Artist appoints The Gallery as agent for the works of art ("the Artworks") consigned under this Agreement, for the purposes of exhibition and sale. The Gallery shall not permit the Artworks to be used for any other purposes without the written consent of the Artist. 

2. Consignment. The Artist hereby consigns to The Gallery, and The Gallery accepts on consignment, those Artworks listed on the attached Inventory Sheet. Additional Inventory Sheets may be incorporated and signed into this Agreement 

3.Authority of Accepted Artist’s Works. Only (shop owners name here)may accept Works of art for consignment. The Gallery may reject artworks at the Owners discretion. 

4. Warranty. The Artist hereby warrants that he/she created and possesses unencumbered title to the Artworks, and that their descriptions are true and accurate. 

5. Duration of Consignment. The Artist may request Artworks be returned at any time though the Artist and The Gallery agree that the preferred term of consignment for the Artworks is to be a minimum of 3 months. The Artist does not, at this time, intend to request their return before the end of this term. Consignment shall continue, after the initial 3 months, until the Artist requests the return of any or all of the Artworks or The Gallery requests that the Artist take back any or all of the Artworks with which request the other party shall comply within 30 days. 

6. Transportation Responsibilities. Packing and shipping charges, insurance costs, other handling expenses, and risk of loss or damage incurred in the delivery of Artworks from the Artist to The Gallery are the responsibility of the Artist. Return packing and return shipping charges, insurance costs, other handling expenses, and risk of loss or damage incurred in the delivery of Artworks from The Gallery to the Artist within the initial 6 month contract is the responsibility of the Artist. Return packing and return shipping charges, insurance costs, other handling expenses, and risk of loss or damage incurred in the delivery of Artworks from The Gallery to the Artist after the initial 3 month contract, shall be the responsibility of The Gallery. 

7. Responsibility for Loss or Damage, Insurance Coverage. The Gallery shall not be responsible for damage or theft of artwork unless damage or theft is due to neglect on the part of The Gallery. 

8. Removal from Gallery. The Gallery shall not lend out, remove from the premises, or sell on approval any of the Artworks, without first obtaining written permission from the Artist. 

9. Pricing; Gallery's Commission; Terms of Payment. The Gallery shall sell the Artworks only at the Retail Price specified on the Inventory Sheet. The Gallery and the Artist agree that the Gallery's commission is to be 30 percent of the Retail Price of the Artwork. Payment to the Artist shall be made by the Gallery by the 7th of every month, and will include all commissions due for any/all artworks sold. 

10. Framing. If the Gallery will be framing the Artwork, The Gallery and the Artist agree that The Gallery's expense will be factored into the retail price and full compensation for framing will be given to The Gallery upon the sale of Artwork. 

11. Promotion. The Gallery shall use its best efforts to promote the sale of the Artworks. The Gallery agrees to provide adequate display of the Artworks, and to undertake other promotional activities on the Artist's behalf. The Gallery shall identify clearly all Artworks with the Artist's name 

12. Termination of Agreement. Notwithstanding any other provision of this Agreement, this Agreement may be terminated at any time by either the Gallery or the Artist, by giving a thirty (30) day written notification of termination from either party to the other. 

13. Choice of Law. The law of the State of Texas shall govern this Agreement. Sincerely, _____________________________________________________(Artist) Sincerely, _____________________________________________________(Gallery) Length of Contract From_____________open_____________To___________open______________ Consented and agreed to: Artist Date______________________________ Consented and agreed to: The Gallery Date______________________________ 
Consignment Agreement Artworks List 
Title/Item/Retail Price 
1. 
2. 
3. 
4. 
5. 
6. 
7. 
8. 
9. 
10. 
Artists Signiture______________________________________________Date______________________________ 
Gallery Owner________________________________________________Date________________________________


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## Deb (Apr 27, 2010)

Tabitha, you are awesome! Thank you so much. 

I'm going to see if I can 'canadianify' this but its a fantasic start.


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## Eesil7we (Feb 22, 2011)

Tabitha said:
			
		

> I have beeen on both sides of the consignment fence. I consigned at 2 different local shops & my items got trashed/ lost/stolen at both places & I could not re-coop my losses. Loss _is _part of doing business, _however_, I lost over 50% of my items at both locations & that was just rediculous. You should build in x amount for loss/theft or damage.  These 2 places did not do a good job of managing, cleaning or monitoring their shops. Some other people might. I had 20-ish bars of fancy M&P soap some kids dug their fingernails into. The shop owner actually said "I wondered what they were doing over by yout display for so long."
> 
> (switching hats)
> 
> ...



i got an enquiry to consign my soaps at 40-50% consignment profit margin, get payment 2 months after sales invoice is billed. 
Would you consign? Personally i felt like a dirt cheap soap maker, is the world doing business in this manner?


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## Tabitha (Feb 22, 2011)

I would not. Why won't they buy it straight out at 50% (wholesale) off? Either they don't have neough money or they don't expect the item to sell. If they had a good cash flow & thought the item would sell they would buy your soap.


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## Eesil7we (Feb 25, 2011)

Thanks Tabitha! 
Have decided to let go the offer.


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