steinway consignment

[Paul McCloud]

The store where I work has sold consignment pianos for many years. 
Recently, we got into trouble because of the contract we were using.  As
David Love said, a fixed price is better.  Our old contract said that we
would take a 25% commission on the sale of the piano.  We would tell the
customer a selling price, which they would have to agree on, and the
contract would be signed.  We would try to sell the piano for more that the
agreed price, of course.  If we got more than the agreed selling price, the
customer would get the same amount we agreed to in the contract that was
signed.  Ok, sounds right. But what if the price agreed to doesn't sell? 
In our case, the piano was a G2 Yamaha with Disklavier  The store got an
offer for less than the agreed price.  We phoned the customer, and he
agreed to accept less for it.  The piano was delivered. Then, we got a call
from the consignee.  He said he wanted the amount we previously agreed to
IN THE CONTRACT.  No matter that he agreed to the lower price on the phone,
he had a signed contract in hand, and was prepared to go to court.  No
matter that the Disklavier needed repairs after delivery, and was likely
known to the previous owner.  We had to pay him the agreed amount because
we didn't want to waste time in court.  Needless to say, we were stung, and
we beat a hasty path to our lawyer's office to write a new contract form. 
Now, our contract specifies to the consignee exactly how much we will pay. 
I don't have all the details so I can't say what happens when the price has
to be lowered to sell.  I assume that a new contract would have to be
signed.  

Paul McCloud
PianoSD.com
San Diego


> [Original Message]
> From: David Love <davidlovepianos at comcast.net>
> To: Pianotech List <pianotech at ptg.org>
> Date: 11/27/2007 7:23:50 AM
> Subject: RE: steinway consignment
>
> There are two approaches to consider, one is a percentage of the sale
price
> which requires you to contact the seller to approve anything below what
you
> establish as the original asking price, the second is a fixed price to the
> customer where their price upon sale is predetermined.  The second option
> leaves more flexibility for you to do improvements as add-ons to the price
> without having to pay 70% (in the case of 30% commission) of those costs
> back to the consignor.  My view on these things is that pianos I sell
(even
> consigned ones) reflect on my reputation as a technician so I want them to
> be in the best possible shape when they go out.  I insist that necessary
> work be done before they are offered for sale but I want that investment
to
> come back to me, not the consignor.  A fixed price allows that more
easily.
> It does require a good understanding of the market beforehand to ensure
that
> you don't promise the consignor a price which is unreasonably high, but it
> may give more flexibility in the long run.  A long term consignment
> agreement (renewable) is also necessary to be sure that the piano with the
> work you have done isn't pulled out from under you, along with an
agreement
> authorizing the work that you will do on the piano.  
>
> David Love
> davidlovepianos at comcast.net 
> www.davidlovepianos.com
>
> -----Original Message-----
> From: pianotech-bounces at ptg.org [mailto:pianotech-bounces at ptg.org] On
Behalf
> Of David Andersen
> Sent: Monday, November 26, 2007 11:58 PM
> To: Pianotech List
> Subject: Re: steinway consignment
>
> You move and prepare the piano at your expense;  the client gives you  
> at least 6 if not 8 or 12 months minimum (and renewable) to sell it;  
> you bear all the costs of carrying, advertising, selling, add-ins at  
> time of sale,  cartage, and give your  personal guarantee---and you  
> take 30-35% of the sale price.
> David Andersen
>
> On Nov 26, 2007, at 4:55 PM, richard.ucci at att.net wrote:
>
> > What is the usual arrangement for doing a consignment sale. Private  
> > party that is. I would be selling the piano for the owner.
> > Thanks,
> > Rick Ucci/Ucci Piano
>
>
>