BHOFM

I got a call from a local antique shop today. They saw
my add in a area trade paper and are interested in
handling my clocks. They have checked out my
website and liked what they saw.

The only problem is, they want the exclusive sales.
I won't be able to sell clocks at the house anymore.
They want a display case for the clocks as well.

I have a meeting tomorrow and work out the details.

They are a upper middle price shop that handles
reproductions as well as antique items.

They want the clocks on consignment and will
get 15% of the selling price. They think I should
up my prices by at least 25% and 50% on the
lesser ones.

We will just have to see what happens.

I was selling them through a local business
supply house and did several high $ customs
for them to match the decor of offices they set
up. A couple were in the pre laminated mdf
they used for the cabinets. I don't really care
for the stuff. It had matching stick on edging.

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cabinetman

So, they want exclusive rights, and you give them free inventory...such a deal.

BHOFM

What I was thinking. But with the economy what it
is,,,?

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johnep

They will be quite good at first, then when you become dependent on them, they will screw you.
johnep

frankp

Avoid this situation would be my advice. Cabinetman is right, this deal isn't worth bothering with. If they want to "resell" your clocks then that's a different story, but selling on consignment won't do you any good. I would be willing to be there are other boutique style shops that would allow you to put up a display of your clocks for a small fee that you would then get total control of sales. You may even offer that to them, rent-a-booth type situation and display in their shop. It's a win for you (more exposure) and them (may bring in more customers) but the deal they have offered you is not worth it.

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Tom5151

I have to say I agree with what has been said.....

You have gorgeous clocks but let's just say due to the current economic landscape people aren't in the market for clocks the way they used to be. With the proposed deal, not only would you not be moving clocks at the store, but now contractually you'd wouldn't even be able to sell them out of your house. That's a lose/lose for you.

I might spend more time re-thinking that before pulling the trigger...

You really do have gorgeous clocks....

johnv51

You might offer exclusive sales for a particular style of clock but retain all rights to any other item or style you make. I would hit em with a counter offer that doesn't include exclusion first then negotiate from there. Don't lose sales because of someone elses greed.

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woodnthings

What occurred to me, is to offer them a fixed number of clocks per month say 3, without exclusivity, and if they can move them, then negotiate up, if not, you can still be selling them from home and off your website that you've created. Nothing less would work for me.
Unless this store has a website with good links, you still need your own national or world wide marketing base, not just local retail. JMO. bill

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BHOFM

Meeting has been moved to Monday.

On the plus side, they can ship anywhere, customer
pays for this. They are fully insured. It is in a high
traffic area. There is no long term contract. They
are an old, third generation, firm. I am very
familiar with the store and family.

The clocks are a side line, I don't want to do more
than four a month. In the summer, sailing season,
I don't want to do that many.

I can do customs for them as well.

Remember, this is a small town, million dollar deals
are still done with a handshake.
I am on the board of directors at the largest bank
in town, I don't see these people screwing with me.
They have known me and my family for near 100
years.

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Tom5151

Well I guess it's essentially what you feel comfortable with. How long is the contract?

BHOFM

Will discuss at the meeting as well as the display
issue. If I build the display case, I don't want other
stuff displayed there. I would like a banner on it,
like professional looking!

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Tom5151

Got it.

Personally I wouldn't be comfortable not having the flexibility to continue to sell on my own. But if you can live with a short term contract just to see how it goes then maybe that makes sense.

I would make sure though to structure the short term contract in such a way as to be as painless as possible for you. Meaning worst case scenario, how long can you afford to go without selling any clocks? 3 months? 6 months a year?

Actually I think Bill had a great idea for a way to minimize your risk. You shouldn't have to be the one assuming ALL of the risk. Some risk yes. But not ALL.

BHOFM

Forever!

A few hundred dollars one way or the other will have
no effect on my finances. Wife and I both have a very
comfortable retirement.

I am running out of room, I have about sixty clocks now,
and 13 of them are chimers. I just need to move
some so I can build more. I love doing them.

A lot of the clocks are not for sale. Several have
been in the family for years.

Some rough pine and peg board will make the display
I want, maybe twenty dollars or so. Sort of a china
hutch look. Or bakers rack? Some shelves for the
mantle clocks and space for four or so wall clocks

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Tom5151

ah okay...i see......

well yeah then in that case there probabaly isn't nearly as much risk....

phinds

15% on their end is VERY low so at least that part of the deal is good for you. How far is your house from them? If you are many miles away, then they should NOT be bothered by your selling at your house. If you're just down the road (say no more than 5 or 10 miles away), that's another story.

Paul

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BHOFM

Twelve blocks! Ten east, two south.

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lucas.j.dunton

Personally I say congrats! It sounds like a good arrangement for you. Retired, and doing something you love to do and all this seems to do is take away the part of the clock business that would be a pain in the ass. It may not be a good arrangement for someone that is trying to live 100% off of it, but for something that you would probably do even if you could't sell them I think it's GREAT! Again Congradulations!

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Jacktoo

I agree with FrankP, I've had the same thing tried on me many times and I've always said no. I still have my products in their stores and many others. Good luck and your clocks are very nice!

Shamus

The better question is what do you do if they sell 20 clocks a month? Are you prepared to handle the business they might generate?

It happens all the time and it's not always easy to say no.

I'd pick a couple styles, build a stock of half dozen each and tell them these are the ones you want them to market. Offer to do custom work but price it as a one-off and deal with the customer direct. Give them their 15% for the referral.

rrich

I agree with about everything that has been said. I didn't want to answer immediately because I would appear too negative. I don't do things commercially so my advice would be not worth much, but the "Red Flag" in the back of my mind has been waving like crazy.

My suggestion is this. Go to a near by town and a similar store. Talk to the owner and explain the "Deal" thats is being offered. (Leave names and places out of it.) Tell the owner that you are asking for business advice. Most small business business owners are willing to offer advice from their experience. Some will even help a competitor.

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Huntington Beach, California
Remember that when we have the "BIG ONE" everything east of the Rockies falls into the ocean.