Think Art Loud

Inspiring, Encouraging, and Promoting the Handmade Arts and Artists

Consignment vs wholesale is another of those decisions that is likely never going to be easy to decide, and both have their upsides and their downsides. When it comes to considering consignment vs wholesale, first of all, make sure that you are ready to take either step as both can cause a lot of damage to your business if you rush into either one too fast. You don’t have to wait till you have learned everything there is about your particular art media before you start considering consignment or wholesale (as that is never going to happen! There will also be something new to learn or improve upon no matter how long you’ve been doing it). However, you also shouldn’t just run out to every gift shop/gallery in your area if you’ve really only just started making/selling your art. When looking to interest a retail venue in either consigning or wholesaling your work you need to be confident not just in the quality of your work, but also in your pricing, knowing what your art is about, who your market is, and (particularly in the case of wholesale) your ability to keep up with a demand for more product is your work does well.

If this issue of consignment vs wholesale is new too you, then, once you feel you are ready to pursue it, you should really start with consignment. Consignment is a good entry into the world of third-party sellers. Besides generally being easier to come-by and wholesale, it also helps you to build up your professional resume which can help you down the road should you start looking for wholesale venues. However, there are some definite risks involved with consignment: damage, theft, lost, and, of course, trusting that those you are consigning your work with are honest. Whenever possible, get a consignment contract in writing and signed by all parties involved! First of all, a good consignment contract will explain to you when you get paid, how you get paid, and cover all other relevant issues such as who is liable in case your work is damaged, lost, or stolen (some galleries/stores will compensate you in the event any of those happen, but others will not). And secondly, having a signed consignment contract allows you legal recourse in the event that the consignment venue is acting dishonestly. It’s one of those things that you hope you will never need to use, but best have just in case.

With wholesale, you have the benefit of being paid up front, unlike consignment where you wait, hope, and pray that you make a sale. However, your selling price for wholesale will be lower than that for consignment, and wholesalers can be much harder to find. Also, before considering wholesale, make sure that all your legal business documentation is in order as tax numbers are likely to be required for any wholesale agreement.

When considering consignment vs wholesale, really take into consideration what kind of an artist you are. Do you enjoy making the same designs over and over with only a few modifications, or do you thrive on making completely one-of-a-kind work? Knowing where you stand on this will help you identify whether you are better suited to consignment or to wholesale. If you don’t like making the same or similar thing over and over and over, than wholesale may not be for you. So before you push too far forward with making a decision on consignment vs wholesale, take a minute to consider how well either one fits your business, not just where it is right now, but where you want to take it down the road.

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