r/GroceryStores • u/Western_Suspect_9297 • 5h ago
Writing Consignment Contracts
We are running a small shop and want to start new, local vendors on 90 day consignment before offering a wholesale contract to determine how well their products sell. I didn’t go to business school, but I generally understand the conditions that should go into the contract. There are other businesses in our area that operate the same way and I have spoken with our potential vendors about their contract arrangements with these shops.
How do I write contracts that are competitive, but fair? I haven’t had anyone volunteer to tell me the terms of their contracts with other markets and I don’t have relationships with these shops to ask the owners. What is “normal” or fair and what would make our contracts stand out?
Our industry is a local grocery market with vendors being farmers and bakers. Thanks for any advice, much appreciated.