Seven Tips for Successful Consigning

Here’s how to ensure that your consignment items will benefit your organization as well as the seller and buyer.

Know your consignment vendor. Be sure you are dealing with a reputable organization. As with any large purchase, take the time to ask for references, and contact those references to find out their experience. Read the “fine print” in the purchase agreement and know the terms for reservations and purchase prior to reserving.

Verify the pricing. Is the consignment cost realistic? Find out how much the item would cost to purchase on your own. If it’s close to retail value, the return may not be enough to justify including it in your auction. However, you also need to take into account, especially in the case of a travel package, how difficult it would be to acquire the item, trip, or experience on your own. The convenience may outweigh the cost, or the item may be unique enough that assigning a price could be immaterial.

Carefully review restrictions on travel. The more restrictions, the less attractive the package will be. When is the trip available and when doe it expire? Are there any blackout dates? Will your buyer have to pay additional fees?

Consider how to promote and present consignment items. Some consignment vendors will provide presentation materials such as posters, videos, brochures – even a representative to attend your event to help promote the item. If materials or representatives are available, verify that there are no additional fees involved in taking advantage of them.

Not all travel consignment package are created equal. Be sure to check whether transportation is included. There are a lots of terrific consignment destinations to choose from, but if they do not include transportation, the perceived value of the package drops considerably. Look for packages that include round trip airfare where applicable.

Set the minimum bid. One of the biggest keys to success with consignment items is in setting the minimum bid. The minimum bid should not be the cost of the consignment item! A good rule of thumb is to add 10-20% of the package cost to guarantee a profit to your organization if the item is sold.

Be creative. Remember that a great package can be created by combining a consignment item with other donations that you have received. For example, if you have consigned a weekend theater trip to New York City, perhaps you can arrange a lunch with a celebrity during that weekend through members of your procurement team to make the trip unique.

Adding consignment items to your next auction can ease your mind and boost your profits.