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Keeping Track of Your Jewelry Consignment Inventory
Keeping good records of your jewelry consignment inventory is essential for protecting your investment in the pieces you've consigned to shops or galleries. You'll need to track each piece of your jewelry (including details such as size and color) that you've delivered to the shop, when they received it, its retail price, and when it sold. Good shops and galleries send artists a monthly or quarterly sales activity report, and you should check their report against your own records to be sure nothing has slipped through the cracks.
Photograph the Jewelry You Consign to a ShopAn easy and irrefutable way of keeping a detailed record of the jewelry you consign to a particular shop is to photograph it. You can use any method of taking pictures of your jewelry consignment inventory - some artists place the pieces on their computer's scanner and take a quick scan of it; others use a digital camera or regular film camera; and still others use a video camera. Whatever method you use, keep the pictures with your other consignment records for that shop. A side benefit of keeping photos of all your consigned pieces is that you'll be able to see exactly which piece the shop owner is talking about if one of their customers requests matching earrings for it, or an identical piece in a different size. Create a Consignment Invoice or Packing ListYou can either create your list/invoice on your computer, or use a pad of invoice sheets available at office supply stores. Whichever method you use, be sure to include a heading with this information:
- "Consignment Packing List" or "Consignment Invoice" - the date - your business name and contact info - the shop/gallery name and contact info (including the owner's full name) - the shop or gallery's resale tax number (for proof that the shop, not you, is responsible for collecting, reporting, and sending in the sales tax for these items) - description and quantity of any jewelry displays you're lending to the shop.
Now list each piece of jewelry being consigned; for each piece, record:
- the piece's name and your stock number for it (if any) - a brief description, including the metals, stones, and other materials used - the piece's retail price - the consignment percentage you've agreed on with the shop (such as 60/40) - attach a photo if you took one.
At the bottom of this consignment invoice / packing list should be your signature and that of the shop or gallery owner. Monitor Your Jewelry Consignment InventoryFor maximum success and minimum losses when you consign your jewelry to shops or galleries, it's essential to keep track of your sales activity at each shop. Mark off each item as it sells, and look for patterns in your sales activity at each shop. You'll be able to see which items are your best sellers at a particular shop, so you can restock as they sell. It's important to restock as your items sell, and keeping good records will help you know when, what, and how much to restock. You'll also be able to see which consignment shops aren't performing for you. With that information you can decide whether to try a different assortment of jewelry in that shop or end your your relationship with that shop and move that consignment inventory to a better-selling one. And you can see when your consignment inventory items disappear without a trace from a shop, so you can work on tracking down missing inventory and minimizing your losses. In summary, consignment selling involves more record keeping than other ways of selling your jewelry. But it's not hard to keep good records of your jewelry consignment inventory, and they are the key to maximizing your profits and minimizing your losses with this kind of selling.
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