Get Your Rutgers Tickets

[FfldCntyFan]

Consignment is essentially “leasing” shelf space for a product where the “rent” is collected every time the product is sold to a retail customer. The risk is solely on the manufacturer because they have to finance and create the inventory with no down payment and no guarantee of retail sales. The only risk the store takes on is giving up shelf space.

What Dr. Who is describing is a wholesale transaction where the retailer pays a wholesale price upfront and the manufacturer sells their product to the retailer.

While there is obviously still risk here with a buyback clause (which you can buy insurance to cover) wholesale is much better for the manufacturers cash flow. Although, the manufacturer would make more money with consignment, because they take on more risk.

I am going through product placement (not with a big box store, but a local retailer) for one of my companies right now. We are taking the wholesale route for less $ per unit instead of the consignment route which would double our profit if it all sells through. But if it doesn’t sell through it puts us on the hook to eat the production costs of whatever doesn’t sell. While we don’t have a buyback clause in our wholesale agreement, it’s not uncommon for there to be one with big box retailers like Costco or Walmart.

From what I remember, in a consignment relationship, the consignor maintains ownership until the item is sold by the consignee. Calling it "essentially rent" is neither correct nor incorrect. Stating that the manufacturer (or in this case, supplier) maintains full risk is absolutely correct and the major driver in a relationship such as this.

Unless I missed something in his further posts, I don't see Dr Who claiming that Costco paid a wholesale price upfront. My position (I believe he generally confirmed this) is that Costco won't pay anything until after the ticket is sold.

While it is of a tremendously smaller scale (also, not including cold solicitation), this is somewhat similar to a fulfillment house attempting to peddle magazine subscriptions.

 

[ZooCougar]

…at Costco

Rutgers Has Resorted to Selling Football Tickets at Costco

We literally shouldn’t be making fun of how anyone sells tickets.

If we don’t get this ship turned around we’ll be turning the Rent into a homeless shelter to get better attendance.

 

[ZooCougar]

"And while the history was short, UConn has a winning record vs. Rutgers."

RU vs UCONN since 1979: RU-7 wins, UConn 6 wins (Apparently both became major college football at the same time in 1979)
All-time record: RU 22 wins, UConn 11 wins

If we played you now who do you think would win? Quit making up stats.

You guys have really never accomplished anything in football. Even with all the recruiting success on paper in the Big East you weren’t better than us. Even being terrible the last 10 years you still haven’t eclipsed anything we have done.

We’ll play anyone. Even Rutgers the accidental B1G school who runs a bigger sports budget deficit than us; which is a major accomplishment.