On Consignment

[LindaLoo]

I've come across this term on a couple of guitar websites recently and I haven't got the first idea what it actually means. Perhaps we use a different name for whatever it is here in the UK. Can someone enlighten me! Thanks.

[cotten]

Here in the States, when we want to sell a guitar, we sometimes take it to a dealer, asking him to sell it for us in exchange for a certain amount of the proceeds. That's what I think of when I see "on consignment."

Do y'all have a more proper term for it? (You'll have to excuse me - I only speak South American. )

cotten

[PWoolson]

I usually means that someone has placed a guitar in a shop so that the shop can sell it for them. The shop then takes a cut of the sale price after it's sold.
This is the best deal for shop owners because they have no output of money for the product.

[Fliss]

I think the equivalent phrase would be "on commission"

Fliss

[LindaLoo]

Ah, I see. Thanks for the info guys (and Fliss).

[hnuuhiwa]

Aloha Linda,

Basically the seller "consigns" (def. To deliver (merchandise, for example) for custody or sale) the guitar to a shop or dealer to sell, who in turn gets paid a commission for the sale.

So the guitar is on consignment, and the dealer is on commission.

Hen

[eastcoastnme]

Originally Posted by Fliss

I think the equivalent phrase would be "on commission"

Fliss

that would kinda fit, but not really. on comission is a term used for salesmen who get paid a percentage of the profit from sales. but in a way, could definitely apply.

usually when an instrument is placed on consigment, a general fee of 15-20% will be added to what they are requesting from the sale, and that added percentage yields to actual selling price.

[imwjl]

http://www.merriam-webster.com/dictionary/consign
http://www.merriam-webster.com/dictionary/consignment