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Bruce Shiverdecker
09-20-2005, 12:40 AM
Question!

Do any of you have pieces at a gallery on Consignment? If they walk away, who is responsible?

The reason for the question is that my best location is going through a rash of thefts. They paid for the losses, but don't want to any more. I'm deciding whether or not, with the holidays coming up, I should pull everything from there.

Thanks in advance,
Bruce

Michael Perata
09-20-2005, 1:06 AM
Bruce

Try this link http://muextension.missouri.edu/explore/miscpubs/mp0597.htm

Wes Bischel
09-20-2005, 9:27 AM
Bruce,

Look at the situation as purely economics. Can your profits from the sales at this location still give you a comfortable margin when the theft is factored in. If not, you cannot "afford" to continue selling through that outlet. If the answer is yes, then the question is how much you are willing to give up in profit. Will the seller cut their margins to cover all or part of your losses? In other words, are they willing to share the burden? Talking via a spreadsheet also helps keep things factual and helps with the emotion if you decide to pull your products - nothing personal, the numbers just don't work.

Good luck - I'm sorry it has to even be an issue.

Wes

PS Good link Michael

Jim Becker
09-20-2005, 9:48 AM
What does your contract say about it??

Todd Woodward
09-20-2005, 10:41 AM
Look at it this way. I want your product in my gallery to sell. I also don't want to pay for it. I tell you it was stolen after I already sold it and I don't have to pay you for it, thereby increasing my profits. Want to put some stuff on consignment at my shop? Sounds like they have some teenagers working there that want the stuff more than they do or are letting their friends walk out the door with it. Something just doesn't sound right here. Maybe they are catering to the wrong people. I say they pay if it was stolen on their watch, but I would kee an eye on the place. I bet they go under real soon.

Jason Roehl
09-20-2005, 10:42 AM
Jim and Wes both raise some good points, but let me add this: it's in the consignment shop's best interest to cover the thefts if they wish to stay in business. It's obvious that theft is entirely out of your control, since the items are not on your premises. Granted, theft certainly cannot be "controlled", but if the shop garners a reputation as being easy pickings, they will eventually lose all their artisans, as you are considering walking right now. You might point this out to the owners, along with any contractual obligations and as Wes suggested, some hard and some potential numbers. Those owners really need to take steps to reduce the likelihood of theft--cameras, mirrors, security system (even a service). It's just the reality of business in the world right now. The days of mom and pop shops who can leave their doors unlocked are quickly waning.

Bruce Shiverdecker
09-20-2005, 12:57 PM
I appreciate all of the answers and agree with most. In this case, I trust the owners are not selling and stealing. There are no so called teenagers here. It is an upscale shop in an upscale mall.

The only reason I'm having a delemma is that they were the only place to support me when I first started showing and up until the last two months there have been NO problems with theft.

WE are both looking at the situation strictly from a business standpoint and looking at it that way, I have no choice but to leave.

Bruce

Jim Hager
09-20-2005, 1:59 PM
Bruce, I did craft mall stuff for a few years and most of my product was too big to walk out of the store un-noticed. If you want to keep down on the thefts you might want to up-size your products for a while until the incidents of theft subside. I sold mostly blanket chests, wall shelving, jelly cabinets, tin punch pie safes etc in craft malls in Branson MO and Hardy AR.

I really enjoyed the craft mall stuff until I got tired of staying on the road all weekend stocking my booths. We made good money We did have some small items but mostly larger items that couldn't sprout legs. :D

What kinds of things are going missing? Might want to look at that to see if you might could change the product line a little to help avoid that from happening. So sorry for you to be having this kind of trouble. Dad-burn thieves anyhow:mad:

Norman Hitt
09-21-2005, 2:52 AM
I appreciate all of the answers and agree with most. In this case, I trust the owners are not selling and stealing. There are no so called teenagers here. It is an upscale shop in an upscale mall.

The only reason I'm having a delemma is that they were the only place to support me when I first started showing and up until the last two months there have been NO problems with theft.

WE are both looking at the situation strictly from a business standpoint and looking at it that way, I have no choice but to leave.

Bruce

My Personal Feelings about selling through a Consignment Shop, is that they are already operating on LOW OVERHEAD, by not having to purchase stock to Sell, and therefore, they should be FULLY RESPONSIBLE for ANY and ALL merchandise in their store, from the time it is delivered to them, until it is either sold, or returned to you the supplier. If they cannot control the theft in their store or stand good for those losses, then they should cover it with the proper insurance to cover those losses. After all, they are collecting a handsome fee for displaying and selling your merchandise with none of their money invested, and should certainly be responsible for its security.

In other words, Why should YOU be expected to Both Stock their Store for them for Free, and then COVER THEIR LOSSES as well.

If they can't see this, I would REMOVE MY merchandise, POST HASTE.