Consignment" question..

Bob Carlucci · From: Candor, New York, USA

I just brought 2 pedal steels and an amp head to a very well know vintage guitar store here in NY, as they usually sell thier pedal steels fairly quickly.

The problem is, I have a price I CANNOT go below.. Now, when they tack on what they want, 20%, the price on a couple of these items goes way up to where I think they are just too expensive,and something[or someone]will have to give.. I guess my question is this.. Will dealers as a rule, forego some of that 20% to make the sale?? in other words, If they get $200 @ 20%,will they lower the price and just take say $100 to make a certain sale?? or is the equipment owner expected to take part of the "hit"?? Just wondering...

[This message was edited by Bob Carlucci on 04 May 2005 at 02:28 PM.]

Jimmie Martin · From: Ohio, USA

i have a better idea. take 20% of what you are asking and give someone a great deal. and just say batabebataboom. thats how it is.

Dave Mudgett · From: Central Pennsylvania and Gallatin, Tennessee

As an ex-vintage guitar dealer, I'd say that varies a lot. If it's something the dealer thinks is a very desirable item resulting in a quick sale for good money, many but not all dealers will relax the consignment rate. For example, IMO, 20% is too much for a high-end piece like a pristine pre-CBS Strat, Les Paul, or pre-war Martin D-28, since these trade in the 5-6 figure territory and sell themselves these days if they're that clean. But if it's viewed as a hard sale or the money isn't that great, most dealers will hold tighter to their normal rate, at least the ones I know. It may depend on whether or not they believe they have a larger 'reach' than you would alone and can get you that much more money for you than you can for yourself. You need to realistically assess where your steels lie in that spectrum.

In the end, speculation will not answer this, the only way you'll know is to ask them. Just have your ducks in a row and be prepared to explain your reasoning. A dealer really has no interest in taking on overpriced consignments. But they may feel they can get significantly more money than you can. Or they may just not want to take on consignments for less, some feel this way. The usual reasoning is that they have to stand somewhat behind even consignment sales, and for the higher profile dealers, that may be true.

If this dealer can't get your price + 20%, I'm sort of with Robert - someone on this forum might be tickled to get a steel like the ones you're describing for a somewhat lower price. If you are completely accurate about describing it and offer a discount, I see no problem with making the quid pro quo an 'as-is' arrangement. That sort of 'standing behind the sale' is part of what one pays a dealer extra for, IMO.

[This message was edited by Dave Mudgett on 04 May 2005 at 03:02 PM.]

Larry Robbins · From: Fort Edward, New York

Bob, It has been my experience that most dealers will NOT lower there cut just to make a sale. I had a GFI on consignment here locally last year and after I left the store they raised the price even higher than
we had discussed .Did not sell of course!
I ended up listing here on the Forum, and it sold very quickly! And I got my money back( all I wanted in the first place)
Good luck with your sales..

Wish I had kept that GFI

------------------
Sho-Bud ProII, Pro III custom,Steelking,Hilton pedal,Tut Taylor"Virginian"

"Theres been an awful murder, down on music row"

Bob Carlucci · From: Candor, New York, USA

Larry.. thats all I want too is my money back.. not looking to profit a nickel! I don't want to have to lose money on a couple of good playing and sounding steels, but wow, I want $1350 for one of them, and the "marked up
price is close to $1700.. Its NOT gonna sell!! Its worth about what I'm asking, but NOT the consigned price... bob

Glenn Austin · From: Montreal, Canada

Bob, Why don't you list your guitars on a local classified ad site. There are lots of them on the internet and they are free. I just sold two pedal steels this way to two complete beginners who had never heard of the steel guitar forum, but they happen to peruse instruments for sale ads.

Curt Langston · Posted 5 May 2005 4:16 am

Hi Bob! It has been my experience that the "vintage" dealers will not take less than their 20%. From their point of view, they have nothing in the guitar. They don't have to sell it, since they did not sink money into it. It could set there until the cows come home as far as they are concerned. If they have the space to leave it set up, then they have incentive to let it set their until one day someone happens to be willing to pay the asking price. Consignment is fine, if you are not in any hurry to sell. I personally hate consignment. Especially when we have this Forum. IMHO.

Joey Ace · From: Hamilton, Ontario, Canada

It is my experience that they do not move on their fees. They explain they have costs of doing business.

I often suspect that they like having your items in the store at a high price. Comparison shoppers see them and then think the store owned items are a better deal.

Herb Steiner · From: Spicewood TX 78669

Another thing to consider about consignments in a regular music store: The cost of space and how much inventory turnover will that space yield?

Example: say there's a pedal steel on consignment at a store, even with a consignment rate of 20%. Using Bob's example, the price would be $1700 (Bob's cut 1360, store cut 340). A steel guitar on the floor takes up the space of 4 standard guitars.

Bear in mind that the dealer has already spent tons of money creating, renting, heating/cooling/lighting, and advertising a store that people know deals reliably with musical instruments and products.

Let's say that those 4 acoustic guitars are beginner/intermediate models, retailing at $400 and discounted 20% (store pays 200 for the guitar and receives $320, profit per guitar of $120). The guitars all sell in one week, so that space yields $480 profit that week. The next week, 4 more guitars go out, etc. At the end of the month, that space has brought in $1920.

A used steel guitar sitting in that space might not sell in a month, or even 6 months, not to mention that fact that the sales staff probably knows nothing about steel guitars. But let's be generous and say it sells in that time. That space will then bring in $340 to the dealer.

$1920 vs. $340? Duh!! There is now an opportunity cost to the dealer of $1580, representing the loss of income that space might have yielded.

Therefore, a consignment deal is only good for a dealer if 1) the item can be sold relatively quickly, or 2) it brings new customers into the business that will buy other stuff. Sadly, steel guitars don't usually bring either factor into the mix.

It is much better for the owner of the instrument to sell 1) privately, or 2) through a dealer who moves steel guitars quickly and people know to contact when looking for steels, like Bobbe or Scotty.

This is my experience having worked in retail music stores for 5 years.

------------------
Herb's Steel Guitar Pages
Texas Steel Guitar Association

Glenn Suchan · From: Austin, Texas

As usual, Herb's logic is "spot-on". When I was selling my Sierra S14 guitar, consigning through the local music stores wasn't even a consideration for the very reasons Herb stated. The market for standard steel guitars is narrow enough, let alone a fourteen-stringer. Even the TSGA convention wasn't enough. This forum proved to be the best way for me and b0b's consignment requirement is very modest.

However, if you feel compelled to sell a steel guitar through a consignment, try an established steel guitar dealer/store. It might be a different situation as they've already developed and "mined" the market for the instrument and would likely attract potential buyers to the store.

Keep on pickin'!
Glenn

[This message was edited by Glenn Suchan on 05 May 2005 at 06:55 AM.]

Jory Simmons · From: Elkhorn, Wisconsin, USA

Am I missing something here?????The best place to sell a steel guitar is right here!!!! Just My opinion!

------------------
Jory Simmons

John Davis · From: Cambridge, U.K.

Hey Bob,Carter site also has a used steels for sale part on their site,I am sure you could use that too especialy as your a "Carter fan"
Wish I had them at my Steel players meeting I bet they would sell there!
Another thing you can do is email Ted Nesbitt at Rainbow music Ireland He shifts a lot of steels, he is a good guy and may well take both!
Good luck whatever you decide...........

Dave Mudgett · From: Central Pennsylvania and Gallatin, Tennessee

Let me say, for you guys in Texas, that pedal steels are not so easily found here (central PA, upstate NY, etc.), and they often do sell fairly quickly. I started and co-owned a vintage guitar shop during the 90s (it's still here, but I got out in late '99). We sold every pedal steel we got in days, if not hours. Several came through when I ran the store, and somebody always grabbed 'em quick. In fact, that's how I got my first steel, I did a trade at a guitar show and bought it from myself. But only after I hooked up a bunch of other guys with one first.

If anything, I think the awareness and interest for steels around here is much higher now, probably due to Robert Randolph. However, as I said earlier, I like the idea of selling it at a discount on the forum. But honestly, Bob has received enough negative comments about these steels that I understand why he wants to try to do it locally. He just wants the buyer to be happy with the purchase, and that is often hard to achieve at-a-distance.

Joey, most dealers I know don't have room for dead merchandise. I basically agree with Herb's assessment on this. I won't say it never happens, but I don't think it's clear thinking on the part of such a dealer. If it's who I think Bob's probably dealing with, believe me, they think plenty clearly on the business side of things.

[This message was edited by Dave Mudgett on 05 May 2005 at 09:17 PM.]

Bob Carlucci · From: Candor, New York, USA

Dave.. I think you are on my wavelength. The dealer you are thinking about is world class these days. He always sells pedal steels. I am giving the same approval he does.. 24 hours.. I can't afford to have either steel returned after two weeks saying it has "tuning issues" and when I look it over 6 of the nylon tuner nuts are screwed HARD, TIGHT,DEEP, into the changer causing major problems.. it DID NOT leave my house in that cond,it was played BY ME at several gigs and performed flawlessly. I do want the buyer to be happy with either steel, but I do not want to made a fool of.. The Sho Bud is taken I think, glommed by the store's long time salesman who is fine guitarist that plays some steel. They'll sell eventually... bob

[This message was edited by Bob Carlucci on 06 May 2005 at 02:48 AM.]

Bob Carlucci · From: Candor, New York, USA

Just to add to what my friend Dave stated,,, in this area, a clean S 10 is snatched FAST!!!.. D 10's, D12's old oddballs, they are tougher, but S 10's are GONE quickly... bob

Forum Index > For Sale: Steel Guitars		Next oldest topic :: Next newest topic

All times are GMT - 8 Hours	Jump to: