A Comparative Analysis of Franchising, Owning, and Consigning for the Low Volume Retailer

Author

Rita Richelle Kessler, Fontbonne College

Year of Award

1994

Degree

Master of Business Administration (MBA)

College

College of Arts & Sciences

Degree Program

Business Administration

Department

Business Administration

Keywords

consignment, merchandise, sales, merchandising

Abstract

Consignment is a natural for many "mom and pop" stores. It does particularly well in the clothing, shoe, furniture, housewares, appliance, and stereo industries and can work in any field with high unit sales and is competitive at the manufacturer's level.1 What makes consignment sales so attractive is the fact that the supplier takes no risk. As a retailer sells the goods, he takes his percentage and remits the difference to the supplier. Until the goods are sold, the seller retains title. If the retailer fails or closes his store, the supplier can just step in and remove the goods. It is that lack of risk that induces a supplier to provide goods to a retailer who can sell the goods, bypassing any concerns of credit or cash.

Document Type

Restricted Thesis

Recommended Citation

Kessler, Rita Richelle, "A Comparative Analysis of Franchising, Owning, and Consigning for the Low Volume Retailer" (1994). All Theses, Dissertations, and Capstone Projects. 231.
https://griffinshare.fontbonne.edu/all-etds/231