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The Consignment Scam
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Ottilie
(last edited Jan 17, 2016 07:03AM)
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Jan 17, 2016 07:03AM

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Everybodies experience isgoing to be different. I personally don't see the point, so I'll let the market decide where it goes.




It is one thing to agree to contribute to marketing efforts in the store like flyers, and another to pay to have your products on the shelf. I have not heard of any stores charging distributors to put their products on their shelves, and I spent 10 years in retail management. This must be a relatively new trend that hasn't caught on out here yet.

The chains corporate buyers would send a weekly order and a pick list of books to un-shelve. They would be returned or the cover torn off a tossed. We arranged the store any way we wanted.


John,
We understand that bookstores need to make money too. We are not faulting them for making money. Nobody is objecting to a 60/40 split, which is common for the industry. But traditional publishers do not pay a "stocking fee". Yes, some stores offer you a premium position (Face out in a front row) for a fee, or will ask you to contribute to their weekly newsletter to receive placement.
But asking someone to pay you more than they could make to put their products on your shelves, AND asking to get a percentage of sales is getting a bit ridiculous. It is taking advantage of desperate people. That is not business, that is fraud.

John,
I am not, which is why I would never agree to such an arrangement. However, some authors must be, as I have seen more and more of these online stores popping up.
Like you, I have found success in meeting store owners face-to face.
It is really nice that you also encourage the bookstores to carry your friends' books!

If the store gets its profit from renting space, or more generally - the author. Then it has no incentive to sell. The author pays, and the store earns.
The only way I found that works with stores is when they have actual incentive to sell. As in, when the profit comes from sales, not the author.
Since the world is a free economy, I found it best not to sign any agreements which feature bad math, or work against me as an author.
No responsibility for book condition? No thank you.
Pay you for shelf space? Just no.
There are other stores and avenues to sell books which are not exploitative. In the end, if you don't rent the space, they will change tactics.

My book is a children's picture book and I think consignment will likely (hopefully) be a viable avenue. Question. How many books do you usually leave with the store owner ? (I'm thinking 5?). When do you get paid by store owner (how often do you check in)? Finally, do you have an official consignment contract or just trust the process?
Since I'm a total newbie anyone feel free to take me under your wing. I have lots of ideas and am very excited and I am open to all suggestions from all of you who have had success.
Thank you!
Please check out www.mysuperherograndpa.com
Best, Michele.

I don't think anyone has replied to Michele's question. I sell from my website and at Amazon. I approach only independent booksellers to place books on consignment. In this area the book store takes 40% of each sale, the rest is for you but you need to contact them to see if any have sold and collect the cheque. They
rarely contact you so they have your earnings as long as possible.
I try to manage contact every 5-6 months.
I leave what they'll take (3-5 books) and give them the top page of my numbered invoice book, signed by them and me. Bookkeeping is the worst part but needs to be done.
