Selling on Consignment is a Good Opportunity for Your Jewelry Business

A Home Business Article Contributed by Elizabeth Fox-Wise

Many Jewelry Business Owners Recognize the Opportunity in Consigning

The opportunity to sell jewelry on consignment should not be overlooked by your business. Many jewelry business owners find is much easier and more profitable to sell their jewelry on consignment through stores and galleries, than it is to sell it at fairs, shows and home jewelry parties.

Selling your jewelry on consignment affords you the opportunity to have your product displayed in several locations simultaneously. Many small jewelry business owners, especially those which are a sole proprietorship, often find that their sales are limited by the fact that they are all "attended" sales. Since the sole proprietor can only be in one place at a time, the jewelry also can only be seen in one place on any given day. Consigning your jewelry in stores, boutiques and galleries, can lead to an increase in business.

When choosing to consign your jewelry, your merchandise will be required to "sell" twice. First, you must "sell" the jewelry to the shop owner to get it onto the shelf. And then the jewelry must sell to the customer who purchases it from the shop.

What is a Fair Consignment Commission for Your Jewelry Business Opportunity?

When you place your jewelry into another business for sale on a consignment basis, the other business gets to keep a percentage of the sale prices as a commission for displaying and selling your jewelry. Typically, the store or gallery will pay you for your jewelry sold on a monthly basis. The rate of the commission is usually set by the store or gallery owner. Based on the commission rate, as well as other factors, you then decide if you want to consign your jewelry there.

The commission rate will vary in different regions and even among shops in the same town. A typical rate that is considered a good opportunity for both the shop owner and the jewelry business owner is 60/40. With the 60 percent going to the jewelry business owner and the 40 percent going to the shop or gallery owner. However, it is not unusual to see offers of 70/30 with the jewelry business getting the 70 percent or 50/50.

Take the Opportunity to Protect Your Jewelry Consigned in Another Business

Consigning your jewelry means that you are entrusting your merchandise in another's care until it sells. This can be scary for the sole proprietor business owner who has always had his jewelry in his possession. Therefore, before putting your jewelry our on consignment, you should take the opportunity to protect it.

Most states have consignment laws to protect you when you consign your jewelry, be sure to familiarize yourself with the laws in your state.

Browse at the stores or galleries you are considering consigning with. Do they take care of their merchandise? Is it attractively displayed? Is it secure?

When you first start a consignment relationship with a new shop, start with only a few pieces. Add more jewelry as you get comfortable with the relationship and start to realize sales.

And perhaps most importantly, be sure to keep accurate records of all merchandise our on consignment.