Recent Feedback
I research collectibles, China, Glassware etc. for people to valuate and find a source for as close to the book price for the sale of their collections etc. I charge 25% of the sale price. Should I be asking more since I do all the research, pay the posting fees, etc. And what if the piece I research is not saleable or doesn't sell at all. What about all the time I spent researching - shouldn't I be charging a flat fee for my time and effort? Do I need a dif. doc. for this issue or can it be added to the consignment agreement? And shouldn't there be a time limit set for my obligation to the seller? I owned an antique store a few years ago, but this on-line business is a little different. I don't want to short myself. Most dealers (1) don't research, (2) charge 40% and (3) charge a posting fee. Can you help me here? Thank you. Karen Geiger
Optional Information: State/Country of Question: Washington Already Tried: When I had my store I had my consigners sign an agreement to allow me to place their goods anywhere in the store; for a period of 4 months. I took 25% of the sale of each piece sold. I did not do research. Customers had to price their own items. On this venture, I do the research and prepare items for auction, or place them on my online store for sale. It costs me to post on line, pay for pictures, and other resourses in order to get a positive sale. What if the object doesn't sell...you are only allowed 7 days of posting time then you have to remove the item..but you still incure costs. I want this venture to be a positive one for both the client and myself.But I don't want to short myself and not be able to continue to offer my services. Any help you can give me, or ideas as how to incorporate more detail to the Consignment Agreement would be greatly appreciated. Thank you.
Good morning Karen,I'm sorry to hear of your dilemma.As the business owner, you can draft your consignment contract with any clauses you would like to, of course. The real issue is, that for your business to prosper, you have to remain competitive with other businesses. A time limit on the consignment agreement sounds like a great idea, as does perhaps a reasonable posting fee.However, I doubt that charging a research fee would go over very well with customers. And, the fact of the matter is that as a professional, your research not only increases the likelihood that you will sell the item, but that you will sell it for more money because you are informed as to its value. That aspect of the business seems as though it should be built into the flat percentage that you charge upon sale. If you want to somehow add the value of your time into the mix, it might be better for you to raise your percentage rate a bit as opposed to listing a separate charge (research) to the final bill.I wish you well in your business.
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Best regards,
Doug
Experience: I am a practicing attorney with more than 27 years of experience in the legal field.