Mrsz1ppy
Brilliant_Rock
- Joined
- Feb 23, 2012
- Messages
- 1,476
I am not going to name the vendor involved in this situation. I just want some advice on how to handle the termination of our relationship.
I want to sell some of my more expensive pieces. The one time I tried to sell a 3 ct Oec on Pre-Loved, it didn‘t get any nibbles, and I came to understand that trust is super important, and greater amounts are needed as the price increases. So that led me to consider consignment as a way to gain trust in the marketplace.
I approached a dealer who specializes in what I want to sell, and discussed the possibility of consignment. I gave an example of a piece I had and a price I wanted to net, before sending my collection of 40+ pieces. The vendor pushed me to reveal the prices I paid for insurance purposes, but promised that this person wouldn’t ’use it against me’ . I agreed after explaining that the purchase price was a sunk cost and has nothing to do with the market value today, and that only the IRS cared what I paid, since if I made a profit, they would want their cut.
After reviewing my pieces, I got a minimum price that would be guaranteed, although the hope was that the pieces would sell for more. I was told that I should be happy because the minimum guaranteed prices, totaled would come pretty close to getting me back what I paid. I am used to consigning where the piece is listed on a public website and I know the percentage I am paying to the vendor. This seemed upside down.
I read the consignment agreement, and the last paragraph allowed the vendor to buy any of my pieces for the minimum price at any point during the consignment. That was a deal breaker for me, as I never want to sell to a dealer unless it is a competitive situation like a sealed bid or an auction. I chose consignment because I want to sell to the end user as they pay the most. Unfortunately, removing this paragraph was a deal breaker for the vendor, and this person shipped my property back.
After I confirmed receipt, I got an email asking me to split the shipping and insurance; the total was $2700+. My initial reaction is that the vendor materially changed the terms of our agreement at the last minute, in the last paragraph of the consignment agreement, and that I never would have sent my property if that conversion from consignment to dealer sale had been explained up front. So I am disinclined to pay. But that may not be the ethical way, so I am asking the question,
If you were in my shoes, what would you do?
I want to sell some of my more expensive pieces. The one time I tried to sell a 3 ct Oec on Pre-Loved, it didn‘t get any nibbles, and I came to understand that trust is super important, and greater amounts are needed as the price increases. So that led me to consider consignment as a way to gain trust in the marketplace.
I approached a dealer who specializes in what I want to sell, and discussed the possibility of consignment. I gave an example of a piece I had and a price I wanted to net, before sending my collection of 40+ pieces. The vendor pushed me to reveal the prices I paid for insurance purposes, but promised that this person wouldn’t ’use it against me’ . I agreed after explaining that the purchase price was a sunk cost and has nothing to do with the market value today, and that only the IRS cared what I paid, since if I made a profit, they would want their cut.
After reviewing my pieces, I got a minimum price that would be guaranteed, although the hope was that the pieces would sell for more. I was told that I should be happy because the minimum guaranteed prices, totaled would come pretty close to getting me back what I paid. I am used to consigning where the piece is listed on a public website and I know the percentage I am paying to the vendor. This seemed upside down.
I read the consignment agreement, and the last paragraph allowed the vendor to buy any of my pieces for the minimum price at any point during the consignment. That was a deal breaker for me, as I never want to sell to a dealer unless it is a competitive situation like a sealed bid or an auction. I chose consignment because I want to sell to the end user as they pay the most. Unfortunately, removing this paragraph was a deal breaker for the vendor, and this person shipped my property back.
After I confirmed receipt, I got an email asking me to split the shipping and insurance; the total was $2700+. My initial reaction is that the vendor materially changed the terms of our agreement at the last minute, in the last paragraph of the consignment agreement, and that I never would have sent my property if that conversion from consignment to dealer sale had been explained up front. So I am disinclined to pay. But that may not be the ethical way, so I am asking the question,
If you were in my shoes, what would you do?
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