consignment basis

[j***@hotmail.com]

I would like to appoint few distributors of decorative lighting
(Chandelier, wall lights, etc...). As an incentive I would like to
offer my potential distributors goods on consignment basis. Please can
you offer your suggestions on the terms and conditions I should set
which are favorable to me? I have written down a few things I can
mention in the terms and conditions:

I can ask them to stock and sell my products exclusively.
I can set a deadline by which they should sell the goods and make the
payments.
I can also dictate the price and then reward them with commission for
each sale.

This is the first time I am writing an agreement for offering goods on
consignment basis so please guide me as much as possible.

Thank you,
James

[m***@jach.hawaii.edu]

Hi James,

I have sold things (plants) on consignment with one buyer, and
I'm not sure if you were to sell to me I'd agree with your
conditions, and here's why ...

Post by j***@hotmail.com
I can ask them to stock and sell my products exclusively.

then you're asking them to take a big risk. how are they going
to survive if your product doesn't sell and they're selling only that?

Quite in contrast: they may ask you not to sell to the competing
store down the road.

Post by j***@hotmail.com
I can set a deadline by which they should sell the goods and make the
payments.

do you also provide them with the customers?
How can you set a deadline by which something has to be sold?
What if there are no buyers?

Post by j***@hotmail.com
I can also dictate the price and then reward them with commission for
each sale.

Consignment shops generally take a fixed cut.
You can tell them how much they should sell for, but then
they'll tell you how much they're going to take out of it,
_or_ you can tell them how much you need to get out of it
and then they make their own price. You can't possibly dictate
what their markup is (different sellers have different markups,
some even have different markups for different products).

Also: I don't see a basic commission as a reward. It's the markup,
basically. You can offer them additional incentives if they go over
a certain limit ...

Post by j***@hotmail.com
This is the first time I am writing an agreement for offering goods on
consignment basis so please guide me as much as possible.

What's important is to spell out who pays in case of a loss, whether
there's a time limit, either from your side or from theirs after which
you take the product back, probably a few more - there's a couple of
quite interesting threads on rec.crafts.beads on this or similar
subjects right now.

Aloha,

Maren
Tropical seeds - Job's Tears Jewelry - Plants & Lilikoi
http://www.jach.hawaii.edu/~maren/palms_etc/