consignment frames

**jamie w** · 12-10-2009, 04:12 PM

Hi everyone,
I would like the boards opinion on consignment frames. Do you carry them in your optical? I was approched by Altair eyewear to carry their frames on consignment, I think mainly for my VSP patients. Can someone explain the in's and out's. I understand it as a no risk way of buying, however I have never done this and not sure if this is a direction I want to go. Any info would be helpful.
Thankyou in advance.
Jamie

**cocoisland58** · 12-10-2009, 08:06 PM

Wouldn't you think it would be in your best interest to sell what you already have purchased and have a stake in? Has VSP done anything nice for you lately that has not been in their best interest? No. That is my humble opinion. That and I don't belive in consignment frames in general unless you have the entire store devoted to them and then you are a consignment shop.

**Johns** · 12-10-2009, 08:13 PM

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**Fezz** · 12-10-2009, 08:15 PM

Originally Posted by Johns

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Good points.

Don't forget about:

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**Tony_Butler** · 12-10-2009, 08:19 PM

There are many pro's and con's for consignment frames. I carry them and use them as fillers more than anything. I try to sell frames I have already bought but at times it nice to have frames fill spots or low traffic areas of the optical. If you choose to take on Altair you will need to complete an inventory sheet every month. The more you sell the higher your discount will be on "core" products. The discount is done over a 3 month time. Good luck.

**Fezz** · 12-10-2009, 08:28 PM

Put a call into your accountant and ask their opinion.

Put the next call into your insurance agent and see what they say.

**Fezz** · 12-10-2009, 08:30 PM

Here is a great thread on this.

http://www.optiboard.com/forums/showthread.php?t=31647

Pay special attention to post #3.

**Johns** · 12-10-2009, 08:31 PM

Originally Posted by Tony_Butler

There are many pro's and con's for consignment frames. I carry them and use them as fillers more than anything. I try to sell frames I have already bought but at times it nice to have frames fill spots or low traffic areas of the optical. If you choose to take on Altair you will need to complete an inventory sheet every month. The more you sell the higher your discount will be on "core" products. The discount is done over a 3 month time. Good luck.

Welcome to Optiboard !!:cheers::cheers::cheers:

PM Sent...

**rbaker** · 12-10-2009, 09:33 PM

While consignment may seem an advantageous method to fill up your push cart there may be some pitfalls. Firs of all, be vewwy vewwy careful to read the consignment agreement. You may find pesky details like conversion dates or restocking/exchange fees. Also, companies that sell on consignment sell at a higher price than traditional "you buy it - you own it" dealers and consignment goods are typically the sign that the supplier is pretty desperate to get their product out the door.

There is not as much motivation to sell as when you own the product and have already paid for it. A lot of businesses have "balanced sales" statistics which prove this fact.

Years ago the Petroleum Institute established a balanced sales study which determined that a service station should sell 18 quarts of oil and 1 tire for every 1000 gallons of gasoline sold. When these balanced sales figures were compared between gas stations that were set up on a consignment basis it was found that their sale of consignment tires was less than half the rate of those stations that purchased their tires outright.

Consignment equals no motivation to sell!

**Chris Ryser** · 12-11-2009, 04:35 AM

Consignment on frames is the same as borrowing money, with the exception that you pay an interest rate of 200 to 300%.

**jamie w** · 12-11-2009, 08:44 AM

Chris, could you elaborate more on the intrest rate part of it I'm not really sure what you mean. As far as doing an inventory worksheet every few months I am not wild about that either. I really do not want to create more paperwork for myself.
Fezz,
I am not able to view that thread you suggested.
Jamie

**Fezz** · 12-11-2009, 08:47 AM

Originally Posted by jamie w

Fezz,
I am not able to view that thread you suggested.
Jamie

Opps!

Sorry about that!

It is posted over in the Pro's Forum and you have to be a member to view it. I should have checked that!

Well..................................you could always sign up, support Optiboard, and view it!

;):cheers::cheers::cheers: