Setting Up In-House Retail Sales

Now, that you are familiar and likely connected withtodramatically reduce the number of returns that are
onlinemusic sales sites, such as CD Baby, oracommonality with retail consignment and distribution.
combinationonline/offline retail sites, such as TheThe less returns, the more money you make (and
Orchard, you areprobably comfortable in having yourkeep).
music distributionand sales fairly covered.Additionally, you will see where I have limited the
But, what if you could get even more music sales,numberof units to five (5) at any given time. This is to
andeven more profitable income?ensure thatthere are just enough copies that should
I'm speaking of consigning your product to retailsell with noproblem within a 30-day period, especially, if
stores,but, with one exception...consigning your productyou alreadyhave promotion and publicity occurring in
nationally,or even internationally.the retailer'sarea. This limit also ensures that you have
For all concerned, "consignment" means placingenoughproduct to reasonably service enough retailers.
yourmusic in retail stores on a trial basis, thenAlso, with this limit, re-orders are more likely to
collectingpayments when it sells, with the retaileroccurbefore the end of your 30-day periods. This type
keeping a portionof your sale.of retailactivity looks really great to traditional
You see, as consignment goes, most musiciansdistributors who,after seeing your product's retail track
whoconsign their music to retailers, usually limitrecord, may contactyou to inquire about carrying your
theirconsignment territory to only local retailers, or onproduct. This will giveyou stronger bargaining power
aregional level at most. Their reasoning is that anywith them, as well as widerdistribution, than if you did
largerarea will be too difficult to manage.not have retail product availableand moving.
But, that is simply not so, and they are losing aAnd, even if distributors do not call, this will allow you
fantasticamount of money by limiting themselves totoapproach them with an attractive sales history and
their localregions.trackrecord.
So, I am going to show you how you can easilyAlso, be sure to provide local retailers with two copies
consignyour music to retailers and be able to collectofthe consignment form to sign (carbon paper
paymentsfor sales every thirty days (or so) via abetween twooriginal copies still works) so that both
"step-by-step"process.you and the retailerhave copies.
It is important to note that the consignment process will5. As for retailers outside your area, or local retailers
bemost successful if you are already receiving somethatprefer to use the online consignment form, be sure
degreeof promotion and publicity results, such as radiothatthey download, sign and either fax or mail the form
airplay,press coverage, video airplay or through yourto you
musicbeing played in nightclubs via record pools, of*BEFORE* you send them product. This creates
which Ihave addressed in a previous article.aninitial record and verification of a purchase request.
Otherwise, you may find your ability to move yourYouthen, in turn, sign the form then return a copy to
productfrom retailers' shelves almost as difficult as ifthe retaileralong with his order.
you did nothave product on them. And, if you do not6. When sending retailers product, be sure to
have somedegree of promotion or publicity, whether*ALWAYS*send your product via some shipping
you have hiredsuch a service, or you choose totracking method. Iwould, personally, use the Certified
conduct it yourself,practically, the only way that you willReturn receipt servicewith the U. S. postal service, and
experience sales ispurely by retail customers'I believe that the U. S.postal service also now has
accidental discoveries of yourmusic.tracking for 2nd Day
So, ready?Air/Priority mailings as well.
1. Concentrating on retailers (both major chainsThese particular services are probably the
andindependents) in areas where you are gettingleastexpensive services on the market, but they will
radioairplay, video airplay, press coverage or any otherensurethat your product doesn't get lost or stolen en
formof promotion or publicity, contact retailers in theseroute to theretailer. They also ensure a record of the
areaswho your distributors may not service. One ofretailer havingreceived your product for those few
the bestup-to-date online sources to use, particularly,unscrupulous retailersthat may not wish to pay for
for the U. S.isyour product if they receivedit by first class mail, but
This is the online version of the Yellow Pages, andwould sell it and keep its profits.
youshould look in such categories as "Compact Discs,"7. At 30-day intervals, contact your retailers, whether
"Compact Disc Retailers," "Music Retailers" orinperson or via telephone, to inquire of any sales that
similarcategories.haveoccurred. While you can pick up payments locally,
2. You may prefer to visit local retailers inyoushould have distant retailers forward you a check
person,introduce yourself and make them aforpayment that corresponds with the number of unit
consignment offer,such as the amount that you willsales.
need from each unit sale,etc., and how often you willYou could also have them pay you online via a
need to collect payment forany sales (usually everycreditcard through PayPal, or another such online
thirty days is the normal timeframe). Retailers will alsoservice.
expect you to make a writtenagreement available toThis would eliminate lost/stolen checks through themail,
them that spells out the terms ofthe consignment.while guaranteeing your payment quicker.
3. As for retailers outside of your local area where8. If, for example, within a 30-day period, you have
youare already getting promotion or publicity, you canthreesales, with two unsold units with a retailer, you
simplycontact them via telephone and relay the samehave thechoice of either waiting for the remaining two
informationthat you do with local retailers in person.units to sellprior to forwarding more product to the
In both cases, you should direct them to yourretailer, or you canoffer to forward three more units to
website,whereby hopefully, you have your musicthe retailer. However,it is probably best to wait until the
streaming forthem to listen, as well as have a bio andtwo remaining units sell.
other importantinformation regarding you and your9. In either above case, once all five units have sold
project.atany given retailer, begin the complete process
You are also free to utilize the retail consignmentover,starting with the retailer signing or faxing another
formthat I have already created, and which you cancopy ofthe consignment form in order to ensure
download,customize with your own information, thenaccurate salesrecords and sales continuity for your
upload to yourown website, that is freely available atproject.
4. Once you have uploaded your customized versionNote: Should your project begin to experience a
toyour website, your retail accounts can thenlargesales volume, you may wish to hire someone, i.e.,
simplydownload it from your site, or you can fax aastudent or intern, to work this aspect of your project,
copy to themif they prefer.andwhom you can pay a commission for each sale.
You will also note that I have included discountsThis willeliminate your need to pay hourly wages or
forretailers within this 1-page form that are designedsalaries, andwill further save you money.