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Tips For Your Home Jewelry Business Success

Tips For Your Home Jewelry Business Success
Setting Up Your Consignment Accounts & Receivables
Learn to collect money with confidence and grace
When you are wholesaling your products, you will most likely use two different types of
wholesaling:
One: the consignment. Two: wholesale purchase.
Consignment means people will allow you to display your product in their store, without
the storekeeper investing any cash. They pay you, when (if) the product sells. Stores
keep say 50% and you keep 50%. (I would always bargain with them to begin with a 70-
30 split, favoring you. You are just starting and they are risking NOTHING, so the
percentages can reflect the risk.)
Consignment is a good way to get your product in front of people, if the merchant does
display the product in front of people. You need to oversee to be sure that you have
your art showing in ways that inspire people to buy. Otherwise, you and the merchant
lose.
When your product is on consignment, it needs to be recorded and remembered. Don‟t
let hundreds of dollars of inventory stay in a store if it is not selling. Also, you need to
receive monthly checks for pieces that did sell, and you need to know which pieces they
were. So be sure to number your pieces and provide some way for the retailer to keep a
record. If their POS system is sophisticated enough, that won‟t be a problem, as each
piece of inventory is monitored at the time of purchase.
Obviously, you would rather the retailer purchase the product. If they do, they have a
vested interested in the sale, and work harder to promote the product. But often they
won‟t purchase until they have tested the new designer, so pay your dues where you
must.
How to ask for money
For those of you Godfather fans you will know what I mean when I refer to the horse‟s
head – You don‟t need to send such a strong message when asking for your money, but
you do need to ask.
If you had an employee named Jennifer, and she went to the retailers to deliver some
product, but you noticed she forgot a box – would you be shy to call her at the retailer to
inform her? No? Let me assume that is because – you have a relationship with
Jennifer, you are on talking terms, and she would want to know.
The same can be said for money. When you call one of your distributors (retailers) to
ask for either 30-day account payments or consignment payments, you could just as
easily be asking them about their next order. It is ONLY MONEY. You are not asking
for their first-born. You are telephoning to ask them to put the check in the mail ASAP.
You are a small business and you require cash flow. Simple.
2008 www.beading-software.com
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