Okay group.. as a relative newbie to the business world I would like to throw these questions out to you 'business-savvy' folks for your input.
1) Consignments: This seems to be the method of choice to some of the small businesses we've approached to carry our candles. Here's the questions:
a) What range of percentages should the retailer normally get?
b) Is a monthly fee to the retailer common?
c) Do you make out a contractual agreement with the retailer, and if you do, would you be willing to share the format of your agreement with me/us?
d) {This ties in to my second question as well.} Who collects or is responsible for the sales tax on consigned items, and if my normal price to the public includes sales tax, what affect does that have on my consignment issue (yeah.. I know..., that's 2 questions in one but it's hard to seperate them).
2) Sales tax:
Would someone like to address the pros and cons of including sales tax in the price? Most of our sales have been at Farmer's Market and it just makes it easier to deal with change to include tax and put all prices on $.25 breaks; i.e.; $5.75, $6.25, so on and so on.
We're located on the Iowa/Illinois border but I'll reserve the bi-state issue for another time.
My motto: The only stupid question is the one that isn't asked.
Thanks for all input and feedback.
Jerry Painter
Cedar Creek Crafts