Is Rent a Shelf Right for Me?
Before we look at whether rent a shelf is right for your crafting business, let's understand what it it.
Rent a shelf is where you, as a crafter, rent space in a retail shop to sell your goods. This might be a fixed shelf rental, commission or both. It give crafters the opportunity to get their goods in a retail environment without the costs of renting and staffing a shop.
Renting a shop space is expensive. Even small shops can cost hundreds of pounds every month for rent. Add to that gas, electricity, insurance, water, phone line, epos systems, card machines, and that's before we add staff into the mix. Then there are long term leases that are challenging to get out of.
Most crafters couldn't afford the overheads, nor would they have the volume of goods to make it a realistic option.
How Does Rent a Shelf Work?
The process of renting a shelf varies from shop to shop, but the general concept remains the same. A crafter selects a retail location that offers shelf rentals, signs an agreement detailing the rental terms, and pays a fixed fee, usually on a weekly or monthly basis. They then stock their allocated shelf with their handmade products. Pricing is typically set by the crafter, though some shops may have guidelines in place.
Once a product sells, the shop handles the transaction and pays the crafter their earnings based on the agreed terms. Some shops provide regular sales reports, while others may require crafters to check in periodically.
Crafters & Co have spent a lot of time developing a portal that gives crafters access to sales information daily, as well as at a glace information on their playouts.
Who is It Best Suited To?
Renting a shelf is ideal for crafters and small businesses looking for an entry point into the retail market. It works well for those who produce a steady stream of handmade products but do not want the overhead costs and responsibilities of running a physical shop.
This option is particularly appealing to makers who want to expand beyond craft fairs and online marketplaces, as well as those who prefer a passive selling approach where sales transactions are handled by the shop.
The Pros of Renting a Shelf
One of the biggest advantages of renting a shelf is the ability to have a retail presence without the high costs associated with running a shop. This model allows crafters to showcase their work in a location that already has an established customer base, increasing the chances of making sales.
Another big selling point is that there is no need to be present to sell the items, making it a convenient option for those who want to focus on creating rather than handling transactions. Being part of a curated shop can also enhance brand visibility and customer trust, especially if the store promotes the makers it works with.
The Cons of Renting a Shelf
Despite the benefits, there are challenges to consider. One of the primary concerns is the cost—shelf rental fees are fixed, meaning crafters must pay regardless of whether their products sell. Some shops take a commission on top of the rental fee, which can cut into profit margins.
Limited control over product presentation is another factor, as shelf space may be subject to the shop’s layout and branding restrictions. Sometimes competition within the store can be high, with multiple crafters showcasing similar products. There is also the responsibility of restocking, ensuring displays are attractive, and monitoring sales to determine if the arrangement is financially viable.
What Should I Be Aware Of?
Before committing to a shelf rental, it is essential to carry out some research. Does the shops customer base match yours?
Understanding the rental agreement is crucial, including costs, contract length, and commission structures.
Crafters should inquire about any display restrictions and how payments will be handled. Some stores actively market their sellers, while others place the burden of promotion on the individual crafter, so it is important to factor in marketing efforts when deciding if renting a shelf is a worthwhile investment.
It's also important to remember that while you may not need to be present, this is your business. Many shops will promote crafters, but you also need to be pushing your goods online and offline.
You will need to closely monitor what's selling and ensure that you have enough stock, and also swap out stock that isn't selling so well.
