| Last week we explained some basics about consignment, and how to manage
your consignment to stores. We found out that regular communication with the store
is the key and that you haven't really "sold" the record until a reorder is
placed with you. This week we go into how to place your CD on consignment with the stores. |
|
| The first thing you need to understand is that stores really
don't want to deal with bands. Many times the stock just sits there, is never
checked on, never sells and just gets in the way. When a store deals with
professional record companies, they usually have a better experience. |
| So if you wanted to put your CD into "Mommies
Records" you wouldn't go in and say "My band is releasing a CD and we want you
to take it on consignment." Many stores, usually the important stores, will not
even accept the product. |
| A much better approach is, "I am ______ and I represent
_________ Records. [Well of course you do - the record label; belongs to the band
and you are the lead singer - just don't "promote" this fact.] We expect
________ radio station to start playing our latest release on [Insert Band Name] and we
would like you to accept an initial stock on this release." [This is the station you
will be presenting the CD to for air play - of course you expect them to say yes,
especially once they know that Mommies Records will be stocking the product.] |
| Stores will often have rules about consignment. They
often will "limit" the consignment time to 6 months - but some store limits go
as low as 3 months. Whatever their normal terms are is OK - they will not
"pull" a product that is selling. Most stores have the right to dispose of
stock if it is not claimed at the end of the consignment period. If you don't check
back and stock is destroyed, there is no real way of telling what was sold. |
| Consigning To Chains |
| Different chains have different rules. Often an
individual store in the chain will be able to take stock, and if it sells, introduce it to
the "home office" for distribution to other chain stores. In any case you
want to start with the individual store and let them refer you to the central chain office
if this is their procedure. Some chains will only take product from certain
representatives or certain distributors. If this is the case, they will refer you. |
| In any case, it is important that you come off professionally
and looking like you "know the ropes" when dealing with stores. It then
becomes important to manage the consignment as we discussed in last week's tip. |
