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Message: [QUOTE="McLovin, post: 4366226, member: 9450"] 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. [/QUOTE]