Selling on consignment

[minehart gap]

ebliese, back to your original question. I think that you should also include a minimum price that the coffee shop is allowed to sell the syrup. In that minimum price, be sure that your 70% is enough to cover the cost for you to make the syrup and some profit. No point in it if you will loose money in the end.

Or, suggest for the coffee shop to start making and selling maple latte's using your syrup and sell it directly to them.

[ebliese]

In answer to questions that have arisen:
We are an LLC.
We do not have product liability insurance but it certainly is something for us to consider.
In Michigan, if your gross sales are under $15,001 you are exempt from licensure. Maple syrup producers are not limited to direct, face-to-face sales to consumers. You still must label your products in accord with the law.

We do not sell out of our sugarhouse, or at least that hasn't happened yet. All of our sales have been at Farmers' Markets or through our google docs order form.

A written agreement with terms is a very good idea and we are working on a draft.

Thanks for the suggestions!

[ToadHill]

My advice is to avoid consignment if you can. In my experience consignment is usually reserved for businesses that can't afford to buy your products wholesale and there's usually a reason for that. We've been selling syrup wholesale for years and of the 6 times I tried consignment I got burned on 5 of them. They were shoestring operations that all went out of business and owed me money. I would look for other outlets for your products.

[Sugar Bear]

I will give you 100 to 1 odds that your own instincts on this frontier are your best bet.

I will also bet you are probably good at a lot of things even judging character.

If it works out its a outlet, if not its a small loss and you can still ask them to pay for what has been exchanged or you will leave them google reviews for anything they do the rest of their lives.

I will bet that will work.

[ToadHill]

"you can still ask them to pay for what has been exchanged or you will leave them google reviews for anything they do the rest of their lives."

It's hard to leave Google reviews for a business that closes. The ones I had experience with were probably losing money and owed more people than just me. None of them ever made an effort to square up with me. They just closed the doors and left. There's usually a reason why they wanted to do consignment in the first place. It's generally because they can't afford to purchase your products. That should be a warning sign.

[TapTapTap]

I will give you 100 to 1 odds that your own instincts on this frontier are your best bet.

I will also bet you are probably good at a lot of things even judging character.

If it works out its a outlet, if not its a small loss and you can still ask them to pay for what has been exchanged or you will leave them google reviews for anything they do the rest of their lives.

I will bet that will work.

Yup, you can't go wrong. Place a $10 bet with sugarbear at the 100 to 1 odds and if things go bad then go collect your $1000. Better than insurance.

[Sugar Bear]

Yup, you can't go wrong. Place a $10 bet with sugarbear at the 100 to 1 odds and if things go bad then go collect your $1000. Better than insurance.

Ken

Yup ...Good idea.

But you are asking him to perhaps be the person he is trying to avoid.

I am trying to assure him that he is not likely to contact that person.

In my experience of consignment in New York, Connecticut and Vermont, with my hand made products selling on consignment, I have sold through 11 different consignors that I can count off the top of my head. All but 1 have worked out well. And ironically the one from Vermont was the only one that did not work out well. After she sold my woodwork and would not pay my portion, I told her that she could keep the money if she needed it for food and would agree not to buy alcohol, tobacco or recreational drugs with it. I sincerely doubt she respected my request.

Based on the OP's tap count I don't think he is bringing in 6000 gallons of syrup to a coffee shop.

So my say is ...... go with your instincts and give it a try. If it does not work out you lose a little money, if does you sell your syrup. I like his chances.

Don't worry, he is not going to put your Vermont Made Maple syrup out of business.

Although that consignment shop in VT did go out of business. Then she came back for a while and then back out.

And I thought there was only good hard working honest people in Vermont like yourself!

Who wooda thunk it!