Consignment

[Uni-Clip]

What percentage of frames in your practice is consignment from frame suppliers? What's your opinion of consignments? I have customers requesting this but I really doubt if this is the future of optical retail, although many other industries are heavily doing it.......

Lak Cheong
www.acuityeyewear.com

[cocoisland58]

Zero percentage of consigned stock and have no intention of changing that.

[Johns]

When I was in wholesale, I found that the accounts that were needing consignments were just that - needy accounts.

Show it.
Sell it.
Reorder it.

This aint' brain surgery!:cheers:

[chip anderson]

Seems that consignment is only offered to O.M.D.'s and O.D.'s in our area (presumeably because they can earn a living off the professional side of thier practice well enough to support the merchandise side). Consignment is never offered to the independent optical (30-60-90 billing is the best office we get). Consignment is usually offered to O.M.D.'s in order to get them into the merchandising side of the business because: "It's this way, it's not costing me much money."

Chip

[Excel-Lentes]

When I first bought this business 6 years ago I had 2 consignment accounts and it was a great way to improve the inventory quickly without tying up a lot of cash. Things went smooth for a while but, little by little, things got out of control. Exchanges, increases in consignment numbers, etc..... caused the inventory to be impossible (for me:() to keep track of. After about a year I bought everything I wanted and returned the rest and closed the consignment accounts.

About a year ago I tried another consignment with a frame company that didn't work out. Frames didn't move and the prices were kind of high (usually there is no discount for consignment purchases; just the free inventory)

I understand the "needy account" statement because that was me. But I still do quite a bit of business with the companies that did consign for me originally. I would request deeper discounts to purchase frames up front rather than ask for consignment.

[Andrew Weiss]

My consignment inventory is about 3-5% of my frame stock. It was a quick, no-cost way for me to bring in some styles we were missing when I first got here. The consignment program I deal with does give me a discount on the frame orders. The quality is decent.

In general, you can get better discounts if you buy the frames outright. I would not increase our consignment inventory, and may let it go after awhile once I find other, higher-discounted stuff to take its place.

[gilweber]

Before you commit to taking on any consignment frames be certain that you check with your insurance carrier. In many cases (most? all?) consignment frames are not covered in the event of theft or other types of loss.

Since you do not own the frames they are not considered part of the protected property.

So if a consignment frame is stolen, or if you lose them all as the result of a fire, you could be stuck for the replacement cost.

A word to the wise. Just check first.

Gil

[drk]

Hi, Gil!

I've found what Excel-Lentes found:
1.) Great way to have a big bump in your inventory
2.) Gets out of control and difficult to manage, very quickly.

It's like credit card debt: just say "no".

[Chris Ryser]

What is really a consignment account is also the one were the optical retailer buys the frames with an agreement that he can return the ones he dont want anymore.

The store gets the samples pays for them and then a few month later returns 50% in exchange for newer models

These days a frame distributor can get up to 60% percent of his sales back 3-4 month later for exchange or credit. That is also why frames are usually overpriced allready in the wholesale in North America.

[optigrrl]

What is really a consignment account is also the one were the optical retailer buys the frames with an agreement that he can return the ones he dont want anymore.

The store gets the samples pays for them and then a few month later returns 50% in exchange for newer models

These days a frame distributor can get up to 60% percent of his sales back 3-4 month later for exchange or credit. That is also why frames are usually overpriced allready in the wholesale in North America.

Yessiree.

[harry888]

When there are two frames a patient likes, one is consignment, other is "paid for", I'd prefer to move my paid for frame.

Did consignment a few years back, no incentive to move those frames when I had an investment in others.

Harry

[RustyS]

great frame line are NEVER on consignment. Why.... hmm its because they cant sell them. Gee why doesnt Chanel, Oliver Peoples, Giorgio Armani or any other high end line (thats any good) consign inventory? Its because they dont have to. READ the fine print of any contract with a consigner and you will see that after a said period of time you will be required to purchase the frames in your store, also the perceived quality of those frames are dimished in the eyes of the dispenser and owner which will obviously hinder the sell through. scenario i just spent 5k on the new Billy Bob collection and the JIMMY COLLECTION i got free, where are you gonna steer your customer. If you show me a optical owner who gets all excited about a consignment i will show you a man (or woman) who has major inventory problems.

[For-Life]

I have been dealing with a great frame line for years on consignment. A real group that works for you and not against you. They check over the frames, never add anymore and such. We do very well, but to have 10 percent of my inventory stocked for free leaves a little more room for creative choices.

[Happylady]

We have some Altair frames on consignment. The quality seems to be fine and I can return them anytime. The frame warranty is also very good.