6 Tips in Consignment Business Practices
Judging from its role, consignment is able to provide benefits for business people who want to introduce their products to the market. However, if you do not understand the proper procedures, it is not impossible that this business will become a double-edged sword. As a result, the business that is being pioneered is threatened to be sustainable.
So that this does not happen, there are some tips that must be known in consignment business practices. Guaranteed to understand these tips, the risk of bad business practices will be smaller.
1. Choose Products that are Much Liked
The first tip is to determine the product that many consumers like. This is important to do because consignment practices will not be effective if the entrusted product is not much liked by the market.
For example, you live in a hot and dry area. Based on this information, products in the form of refreshing cold drinks are definitely sought after by consumers. So, you can entrust cold drink products to consignees to be bought by their customers.
2. Location Survey
Next, tips on consigning are to survey in advance the location that will be chosen to entrust merchandise. You certainly should not choose a shop or stall with a concept that has nothing to do with the product entrusted.
If the product you want to market is related to culinary, then you can leave it in a place to eat or school and office canteens. When the custodian and the product deposited are related to one another, it is likely that consumers will glance at the business brand that is being developed.
3. Mutual Trust
Continue to the third tip, one of the keys to consignment running successfully is trust between the two parties concerned. That is, if these types of traders know each other and have good business communication, the success rate can be said to be almost 100%.
Therefore, make sure that the consignor cooperates directly with the owner of the store or shop in order to negotiate the terms of the consignment.
4. Good communication
In line with the third tip, consignment will only be able to take place smoothly when business communication between the perpetrators goes smoothly. For this reason, when making this type of consignment transaction, be sure to always maintain good communication. That way, only the consignor and consignee will be able to maintain cooperation for a long time.
5. Always Check the Number of Products Sold
The next tip is to always check the number of products sold at each store regularly. This is a preventive attitude towards the potential for fraud by one of the parties. Not just a matter of quantity, the consignor must also routinely control product quality, including packaging and expiration dates.
6. Creating a Detailed Goods Recording System
The last tip is that the consignor is expected to be able to create a system for recording goods in each consignee. These tips are important to do because the consignor has a considerable amount of risk of loss due to negligence in sending merchandise.
Advantages of Consignment Business for Consignors and Consignees
Not only does it provide benefits for the consignee of the goods, the practice of consignment also promises benefits for the consignee. So, even though it benefits the consignor more, shops or stalls entrusted with merchandise do not necessarily get bare hands.
1. Benefits for Consignors
For the consignor, the advantage of carrying out consignment practices is to reach a wider market without having to disburse funds for promotion. Because it is placed in a shop or shop that has many customers, the products that are entrusted will be automatically seen or even bought.
So, just by sharing profits with shop owners, you can introduce your business to new customers.
The consignor can also reduce the cost of spending on human resources and services because the transaction is carried out by the consignee. Business people can also focus on developing product quality so that consumers can more easily accept merchandise.
2. Benefits Received by Consignees
Continue to the excess consignment for the consignee or distributor, the consignee is able to reap the profits without having to spend any capital. In a way, conducting a consignment business collaboration carries almost zero risk for the dealer.
Receiving items can also make shops or stalls have complete merchandise. That way, it is not impossible the consignee will have more customers who like the consigned goods from the consignor.