Start Your Own Craft Consignment Shop

The reason this business works so well is because many people who enjoy making craft or art items do not have the skills to sell them. Some do not like selling and others are actually too embarrassed and self conscious to market their own creations

And that’s why most crafts people do not usually sell enough of their work to recover the cost of their materials, and many will definitely welcome a service to market their work.

Of course you can also make and sell your own craft products in your spare time, or offer instructions for others to do the same. This type of business is not limited to any certain type of crafts. In fact, it is quite flexible, and can easily be adapted to whatever products are available and in demand in your area.

You should have a written agreement with each consigner indicating both parties’ responsibilities, and outlining conditions for payment and compensation for items that get stolen or lost. The easiest way is to have your terms printed on receipts you give them for their crafts. If there is any possibility of a misunderstanding, make sure they understand the agreement.

The printed terms should have a place for a minimum price desired by the owner, and cover a specific period of selling time, so you don't become overloaded with things that won't sell at prices you must charge to make a profit.

Something like thirty days selling time would be fine for most articles. If an item hasn't sold by then you can either renegotiate the sale with the owner or hand the work back.

Retain a copy of each receipt in your permanent files. You also have the option of buying items outright, because the craft person might be willing or even anxious to give you a big discount for cash. In a very short time, you will be able to judge what will sell and how much it will bring.

You can also stock craft supplies to sell to visitors, plus your own crafters, for even more profit.

You will be responsible for the care and security of merchandise consigned to you, as well as for collecting payment for sales, withholding any sales tax, computing and paying consignors their share.

For consignment sales, it is a good idea to consider renting a store on the high street where you’ll attract passing traffic, and where there’s plenty of room to showcase your stock tastefully and attractively.

The display area should be well lit, neat and offer sufficient protection to goods consigned to your care. There should be enough room for customers to view items without goods being placed close together or in dark corners and crevices.  

The bottom line is that you are in the business of selling craft items. In order to do this effectively, you must present those items to the public to their best possible advantage, so they will not only sell, but will also bring the best possible prices. If your place looks junky, people will want to pay junk prices.

Use all the free advertising you can get. One way is to write short articles about your consignors and feed them to your local paper whose editors love human interest stories.  Tell editors what your craftspeople make, how they make it and where their products are on sale, namely in your premises. If you provide pictures, as you should, use a good quality black and white film which is easier to newspaper manufacturers to process.

The editor probably won't use more than one article about your shop, but he or she may welcome other articles about the crafts business and give your business a plug each time.

Finally, make sure you take in all craft related activities in your area. Attend craft shows, work with stores that supply craftworkers to teach customers, and where organisers will welcome the opportunity to tell their own customers how and where to sell their finished projects.

To help create more interest in crafts, consider conducting classes in your own premises or at a local college, and if necessary hire a teacher and charge tuition to cover your costs.