Hi,
I must yet again tap on the expertise of the kind people of BGDF :) ....
I have a retailer who has expressed interest in taking my game on a consignment basis. I've read a lot on this forum on the discount one gives off the selling price to distributors and retailers- but what about consignees? Is there any sort of "standard" rate??
I'll be drafting out an agreement for the retailer to sign which would outline the following:
1. Quantity of games he is receiving
2. Price which he must pay for each game sold
3. Payment terms (including mode of payment and time frame)- was thinking that the quantity of goods sold would be tallied and billed on a monthly basis
4. Time frame of agreement- i.e. after X months, I'll take back the balance unsold stock
5. Damage clause- i.e. if any of the games are damaged while in his care, he must pay for them
(BTW, shipping is not an issue in this case- I'll be delivering the games myself straight to his door)
Have I missed out anything major? Any input would be greatly appreciated!
Thanks in advance! :)
eve
Just a quick questions for you: are you selling on consignment because the store doesn't buy from your distributor who carries this game, or because you haven't set up distribution yet and you want to get some games on a shelf?
When setting the price, I would charge the store more than they would pay if they were buying from a distributor. Since the store isn't assuming a capitol risk in stocking your game, they shouldn't be rewarded to the same degree they would be if they were buying the units and then stocking them. If the store would normally pay 50% MSRP from a distributor, then sell to them for 20-30% or so. I have even heard of people selling on consignment and giving the store only 10-15% MSRP (though not for games).
If you do have or are setting up distribution for your game, then you can try to get the store to order from your distributor. They would get a better price on the game and each sale would be supporting more people in the gaming universe.
Best of luck with your game!