For many stores, creating a consignor contract can seem a little overwhelming , especially if you have no history in the industry. Consignment contracts are actually very simple to create and just need to review all of your consignment requirements in a clear manner. Below we have added a check list of each section you should add to your contract to help you out.
” Consignment contracts are designed to protect you and your business, but you also want to keep them simple and straightforward. A good consignment contract should not be over one page.”
Create a section where your consignors can add all of their contact info. This will include
- City,State, Zip
If your store has multiple consignment split options, you would also want to add a section here for them to fill in the consignment split they are choosing.
In this section you want to review the items you will accept. This will include
- The type of items you will accept
- The quality of the items (smoke free, no stains, no pet hair, etc)
In this section you do want to establish that you and your store will be establishing pricing. This does not have to be a very long section but you will want to review how items will be priced. Prices should be based off:
- Market Demand
This is where you will review your consignment contract period. In the section review
- How long the contract will be
- Establish any discounting dates
- Establish end of Contract Date
- Establish how many days a consignor has to come pick up an item after it’s expired
- Establish what will happen if items are not picked up after the end of contract date
In this section you will review how and when your consignors will get paid. Make sure to review not only the consignment splits that will be offered, but also the process and time period it will take to get them paid.
In this section you will want to review.
- The amount a consignor will receive after the sale of their item
- How long it will take to receive their payment for their sold items
- Review payment process (as in if funds due are over a certain amount then check will be mailed out, etc.)
- Review any check or handling fees that will be deducted
Loss or Damage
In this section you will want to review your policy regarding damaged or stolen items.
This is a statement that will say that the contract will remain on file to be used towards future consignments. You will want to state that if the consignment terms change, they will need to fill out a new contract.
Add a line for the consignor to sign and date with a section that says “I have reviewed the consignment policy and agree to its terms” above the signature line.