A blog on issues affecting Australia's newsagents, media and small business generally.
Newsagency management

Beware the lure of consignment stock in the newsagency

I get that being offered inventory on consignment is appealing. You only pay us for what you sell is a compelling pitch. The thing is, consignment stock takes space, it has to be managed, the products can be stolen and, the cost to the supplier of consignment is, I am sure, built into their price model.

I am not recommending against consignment. rather, I am saying think about it. There may be times the lure of consignment is not worth it. It all depends on where the product fits in your business and whether it advances your overall business objectives. For example, if the consignment stock is on a spinner and your floor is already full, why make it more cramped.

One thing Covid has taught us is that shopability matters. People like space, they want to be able to move around. We’re on a break from stack em high watch em fly.

My biggest consider with consignment stock is that it tends to be ignored by retailers and inventory that is ignored usually does not perform well in-store. My advice is that you manage consignment stock sales as if it is regular stock. Know what’s selling and what is not selling. There is no point in having your space and time take up with items that are not selling, designs you only paying based on sales.

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