I want to sell designer fragrances on consignment at hair salons?

Question

What percentage do you think I should give the owner? How do you think I should go about doing this?

For instance, I get Paris Hilton 3.4oz for $16, retail price is $49. Should I put price tags myself on the fragrances. Or should I just put the amount I need back from each item and let the owner sell them at their price. Any other suggestions would be great, thanks.

Also, about the tax. Should I include the tax already, or should I have the owner charge tax and then give it to me.

Answer 1

Suggestion:
You might have to make different deals with different owners.
Hair salons are usually rented out to each person.
Talk to each person, ask if you can set up a display in salon, offer a percentage of your sales say 60/40..you 60 them 40.
You should never tell them what you pay or how much your making.
So in your example the perfume was $49.00 you would pay
$19.60 commission(40%), and keep $29.40(60%), minus your coast $16.00, your profit would be $13.40 The less comission you can get them to agree on the more your profit will be.
You should take care of all the pricing, stocking of your consigned items. Be professional.
If your goingto let the owner sell them sell the product directly to the owner, if you buy it for $16.00, sell it for around $25.00 to $30.00 it would work out about the same profit. Than the owner can mark-it up..and thats what it is called mark-up.
You do not have to include tax, if your state has tax ( mine does not) it is added to the sale, you should collect the tax
and deposit it in an account, I would suggest setting up a TIN number. This way you can pay the taxes, this is not part of your profits.

Suggestion 1) Go to each salon a propose to sell your items on a consignment basis, or offer to lease a small display and pay them a fee to sell your merchandise.
Suggestion 2)Write out a specific contract between you and the person who will be consigning your products as to what the terms of the consignment are.
Suggestion3) Price and stock your items on a daily basis or have an established way of that person to contact you.
Suggestion 4) Do not disclose your purchase price, or where or how you are getting your products, if you do that they are likely to cut you out of the deal, and do it themselves.
Suggestion 5) have business cards, web sight, phone number available at your displays for people to contact you!
Suggestion 6) find out from your local business license department what is required of you for state and fedeeral taxes.
Suggestion7) Keep good accounting records!

Answer 2

You really have to talk to the owner. What is "retail price"? If you mean "list price" or "manufacturer's suggested retail price" that might bear no relationship to the "street price" that it can actually be sold for. It's consignment, so you make the call, but it's somebody else's store and they might not want to give shelf space to something that they think is overpriced and won't move.

Retail that I have dealt with usually wholesales at 50% of what we retailed it for, so you might expect to get $25 tops. (Exotic fragrences may be lower.) The rest goes to the store owner.

You can't include sales tax in the price because it's illegal (except in certain special cases of bulk goods like gasoline.) Besides, the sales tax is on the final retail price.

You don't worry about sales tax because you are not selling it to a final customer. You are selling to a retailer, who charges THEIR customer when they ring up the sale. You do need to explain why you didn't collect sales tax, so you need to keep track of who sold what, and get THEIR tax number and keep it in your files.

You left out one important point of negotiation. In the event of shoplifting, who eats the loss for the missing merchandise?