Wednesday, December 22, 2010

Products on Consignment

If a supplier is trying to talk you into carrying a new or improved product, you may be able to get it on consignment, which means you don't pay for it until you sell it. There is no inventory cost and no accounts payable to worry about. Just provide selling space and add it to your catalog or direct mail literature.

This can also be done with closeout items and a big stock-up for a coming sale. Ask, fax, call or email all your suppliers and see if they are interested in working with you. If you get 20 no's and 3 yes's, you're still ahead in the game. Consignment items can make your store or catalog look fully stocked at a minimum cost to you.
More on raising capital in chapter 22 of my book "When the Shit Hits the Fan" available at bookstores, amazon.com and Kindle.

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