Renting shelves versus commission/trade prices

Today I am renting shelves at a local shop for the first time.
In the past I have stocked a few items at a small gallery on an informal trade price agreement.

I was just wondering who prefers renting space/shelves and who prefers trade prices/commission, plus any pitfalls or advantages of each?

Sarah x

I wish you well but have had bad experiences with renting shelves and varied experiences with sale or return. Commission based sales are fine but wholesale (for me) is the only option.

The most important thing is to have a contract that sets out who is responsible for what (damages, theft etc). I had framed pictures being listed as ā€˜missingā€™ from a craft centre where I rented a wall space, but I think they sold the picture and pocketed the cash, whether that was by mistake or incompetence I donā€™t know, but I was very reluctant to believe a large framed picture could be stolen (and quite frankly, although Iā€™d like to think my work is lovely, itā€™s hardly in the class of Van Gogh and therefore worth stealing!!).

I know others have had good experiences though so hopefully they will share those experiences too!

Best of luck :slight_smile:

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I prefer commission sales however for certain sites renting space is an idea.

Renting space/shelves/cabinet space means, IMO, doing a bit more homework. I check out reviews (if available) and try and find out what other sellers think and what else is being displayed

More importantly, spend a few hours if you can at the site, see who comes and goes, how many, when, and who. It depends on location but if the people coming into the shop are not the type who buy your items then you will have wasted your money.
For me smaller items have sold better when renting shelf space, with items at a lower price point for impulse purchasing and gift buying.

Commission selling has, for me, worked best when selling higher value items, or larger pieces. However I have had a recent surge in the sale of smaller and cheaper pieces at a site where they take a commission.

Pricing for trade is daunting and isnā€™t something I have gotten too much into.

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Thank you!
I like the idea of renting shelves as Iā€™m hoping it gives more flexibility and control with pricing, replacing/changing stock and display etc.
But I do worry about possible damage/theft/sticky fingers etc.
Itā€™s quite a new shop but has survived the first year, which is a plus for me.
This is the first time theyā€™ve rented out shelves so I think Iā€™ll book them for two months to take me up to Christmas, then take it from there.

Sarah x

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Thatā€™s perfect then @thesherbetpatch because the two months up to Christmas tend to be the busiest periods. I did read some feedback from a shop/ gallery owner who said that the people who sold the most were those who actively managed their displays i.e. changing them and bringing in fresh stock, whereas those who just put stuff up and left it were the ones that didnā€™t sell.

Let us know how you get on as itā€™s always encouraging to hear success stories!! :slight_smile:

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Since moving I have found several outlets for my felt work. I think the main issue I have with them is the care taken of your items by customers/staff alike. When items are picked up/moved they are not always put back very neatly and unless you visit regularly to check your display it can end up looking a bit of a mess. If your items are easily damaged that might also be an issue. Also many of my items are provided gift boxed which gives them an extra saleability factor but are not displayed to their best if in the boxes so customers do not always know they are available and many outlets use many ā€œvolunteerā€ staff members so even if boxes are supplied they are not always used.

  1. Shelf space in a fairly large shop in a shopping ā€œvillageā€ with a one month rolling contract. I am not totally convinced of the footfall or the care taken of items and the large numbers of staff doesnā€™t help with the gift box issue. I will continue here until Christmas and see how it goes.

  2. Shelf space in a gallery/artists co-operative. This is in a much better position in a courtyard off the high street with other craft shops and is somewhat more ā€œup marketā€ Artists have to be approved before being accepted and everyone has to do shifts in the shop which reduces the cost of the shelf space. The issue with gift boxes remains but I suspect as I get to know the other members of the cooperative it will be better. An additional benefit is that you get a free stall at various events that are put on in the courtyard. As this is not a very expensive option I will probably keep it going all year round.

  3. A central table space in a craft ā€œcabinā€ within a garden centre. This is only rentable for a month at a time and they like to change the crafts displayed around. I have rented it for November and will see how it goes as the cabin also rents out shelf space in 3 month blocks. This is run by two ladies who are there most days so I have more confidence in my items being looked after and packaged correctly.

I have decided to see how it goes over the Christmas period and then rethink it all in the New year - after a couple of weeks in the first two my costs for the first month have been covered but Iā€™m not in profit yet!

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Cautionary tale - Iā€™ve come across the ā€œweā€™re not responsible for theft or damageā€ clause in a few places doing sale or return, so please check that out. If they buy direct from you, and sell on, then thatā€™s their lookout, but if the items still belong to you, itā€™s worth being cautious.

After an expensive lack of care from one shop (expensive to me, they just shrugged their shoulders and said it wasnā€™t their problemā€¦I could have bricked their windows, I was so angry) I now hand over items with my ā€œTerms and Conditionsā€ on the delivery note, covering whatā€™s been delivered and what their responsibilities are regarding my items ( and they ARE my items, until they sell them). If they donā€™t want to work within my terms and conditions, I remove my items. Iā€™m not prepared to be Ā£150 out of pocket again for a simple lack of thought, care or ā€œbotherednessā€ on the part of a shop.

Good luck with your shelf Sarah - look forward to reading about it in your blog.

I completely agree with Andyā€™s comment about checking out the venue before making a decision. Iā€™ve only rented a shelf in one lovely shop last year that stocked a very wide selection of handmade items - it had such promise of success at the start. As time went on I realised the location would most probably mean that cheaper items would be the ones to sell - the shop was perfect for the quick, low priced gift. Sadly the shop couldnā€™t survive and closed at the end of last year.

I love the idea of the garden centre cabin (although I can imagine it gets very, very cold if you have to man it for any length of time). Look forward to hearing how you get on with this Roz.

Elaine

Well, Iā€™ve been renting shelves for nearly three months now, and itā€™s been a learning curve!

First month and a half - brilliant - lots of Christmas sales.
Next month and a bit - hmmm, sales quiet, but I expected that.

Shop closed erratically for odd reasons - dentist, paintingā€¦this wouldnā€™t be a problem except the shop was only open three days a week as it was, so closing during that time definitely affected sales.
Painting the shop with uncovered stock still on the shelves!!!
(Really cross about that)
Moving my stock around the shop instead of keeping it self contained on the shelves I was renting.
Taking small items out of packaging as people 'ā€˜like to touchā€™'
Removing an item from the shelves as it was ā€˜ā€˜reservedā€™ā€™ - fine, but three weeks later it is still ā€˜ā€˜reservedā€™ā€™ and I donā€™t have payment for it as it hasnā€™t officially sold!!!

I wonā€™t be renewing the shelves in February.

Funny how cavalier shops can be with items that donā€™t belong to them.
Iā€™ve just removed 7 of my embroidered clutch bags from a local shop who just flung them in a basket.

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I found this thread while researching for my store Iā€™m looking to open. While I make some of my own homemade items I also offer services and Iā€™d like to have spaces so people can come in and hold their dance classes, yoga, meditation anyting. Iā€™m also looking to rent out shelves or do commission for people who have homemade items. I havenā€™t figured out yet which would be better for them and myself. Iā€™m baffled by the way the stop owners treated all of your items. Any suggestions you can give me on being the shop owner would be appreciated.

If somebody rents a shelf from you there is no further incentive for you to sell their items, take care of them, or even to open the shop - youā€™ve got their money already! This method only seems to work when the makers also staff the shop.

If you stock items on a ā€œsale or returnā€ basis, then you owe the makers their items back in good condition or the sale price minus the agreed commission. You should accept a duty of care for the items at your premises, and get some insurance in case of disaster. Plan to do a stock changeover every couple of months - it keeps the shop looking fresh and reduces the chance of dusty or shop-soiled items returned to the makers.

In general, think how you would feel if you were the maker, and treat the items appropriately.

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A shop I sell at does sale or return. At first they just took commission on the sales, but as their rent went up the commission had to go up, and with the variable nature of sales, some months this was great, other months the commission wasnā€™t enough, so they had to rethink. Now they charge a small monthly fee with lower commission, so even on a slow sales month they should be covered, but they still have incentive to sell to get the extra commission (and so the stockists donā€™t leave).

You have to think very carefully to make sure the artists will be happy and you can cover your costs, because Iā€™ve seen quite a few handmade shops that quickly close, even though the stock is all sale or return so they wonā€™t have costs filling the shop with items.

Have you spoken to the artists and creatives who youā€™d like to showcase? I bet youā€™ve got your eyes on a few already, so why not ask them?

Are you prepared to put your own money on the line and buy some items from each of them at a wholesale price? Iā€™d be much more inclined to give you something to stock on sale or return if you spent some cold hard cash with me first. It just inspires confidence, shows that youā€™re taking the business seriously.

Iā€™d never rent a shelf personally, itā€™s just not for me, but it does work for some folks so ask the actual people you want to stock. I personally would also be cautious of providing items on sale or return unless I had a significant say in how my work was treated whilst in the shopā€™s care, and full retail price compensation if it wasnā€™t returned in exactly the condition they received it.

I would want everything to be clear and transparent, from commission percentages, payment terms (weekly? monthly?) to full insurance details and stock rotation plans etc, and for me it needs to be set out totally clearly right from the outset. On paper. No surprises. Vague just causes problems, Iā€™ve found.

Good luck!

Yep, a few years ago I did the same when the shop owner posted a photo on facebook of her roller painting the shop walls around stock with my (fabric and unwrapped) items still on the shelves!!!

I was really cross.

Ouch. What could possibly go wrong? When I was helping out a local b & b owner (and friend) for a few weeks (doing the glam work of cleaning rooms), I learned an awful lot about human nature, and how downright ugly it can be when they items are not their own. Items were just getting trashed. Absolutely trashed. I once had to clean poop off a shower rooms walls. And these were suited and briefcased businessmen who were staying there. Iā€™m still shocked at how badly the treated the place.