Quick Answer (30-Second Read)

Neither is universally better. Choose based on your timeline and guitar value.

Consignment:

• Nets 80-90% of sale price (after 10-20% commission)

• Timeline: 30-90 days average

• No guarantee it sells

• Best for: $5,000+ guitars, no rush

Selling Outright:

• Pays 65-80% of retail value

• Timeline: 3-7 days

• Guaranteed payment

• Best for: Timeline matters, certainty needed

Decision rule:

Complete Comparison Table

The Real Math (Side-by-Side Examples)

Example 1: $10,000 Guitar

Option A: Consignment at Top Shop

Option B: Sell Outright to Dealer

The Comparison:

• Difference: $1,000 more via consignment

• Tradeoff: 60+ extra days + uncertainty

• Is $1,000 worth 2-3 month wait? Depends on your situation.

Example 2: $5,000 Guitar

Option A: Consignment (18% commission)

Option B: Sell Outright

The Comparison:

• Difference: $600 more via consignment

• Per month value: $150-300/month of waiting

• Worth it? Maybe, if you can wait 2-4 months

Example 3: $25,000 Rare Guitar

Option A: Consignment at Top Shop (12%)

Option B: Sell Outright

The Comparison:

• Difference: $2,000 more via consignment

• More significant dollar amount

• But rare pieces also take longer to find buyers

• 2-6 month wait for $2,000 = worth considering

Hidden Factors Most Sellers Miss

Factor 1: Consignment Isn't Guaranteed Money

The reality:

Example scenario:

Factor 2: Commission Rates Vary Significantly

Commission rate comparison:

Plus hidden costs:

• Storage fees after 90 days (some shops)

• Listing/marketing fees (some shops)

• Insurance costs (if not included)

• Repair costs if buyer finds issues

Read contract carefully:

• Commission on asking price or sale price?

• Who pays shipping if remote buyer?

• What happens if doesn't sell in X months?

• Can you withdraw? How much notice?

• Any other fees?

Factor 3: Timeline Uncertainty

Actual consignment timelines:

Factors affecting timeline:

• Desirability of specific model

• Condition and originality

• Price competitiveness

• Shop's traffic and reach

• Market conditions

• Seasonality (slower summer, faster fall)

Problem: If you need money by certain date, consignment = risky. Shop can't guarantee timeline.

Factor 4: Opportunity Cost of Your Money

Time value of money example:

Factor 5: Risk of Damage, Theft, Market Changes

What can go wrong during consignment:

Example: Market drop during consignment

When Consignment Makes Sense

✅ Choose Consignment When:

1. Guitar Value $5,000+

The dollar difference becomes meaningful:

At higher values, waiting is worth more real dollars.

2. You Can Afford to Wait

You have:

• No timeline pressure

• No immediate money needs

• Financial stability for 3-6+ months wait

• Patience for uncertain timeline

You DON'T have:

• Bills due soon

• Estate deadlines

• Moving timeline

• Urgent financial needs

3. Guitar Is Highly Desirable

Strong consignment candidates:

• Pre-war Martin dreadnoughts

• 1950s-early 60s Gibson Les Pauls

• Pre-CBS Fender Strats/Teles

• Rare custom colors or configs

• Documented provenance/celebrity owned

These sell faster → reducing timeline risk

4. You're Using Top-Tier Shop

Best consignment shops:

Why top shops worth it:

• Sell faster

• Better authentication/trust

• International buyer base

• Expert marketing

5. Price Difference Justifies Wait

Run this calculation:

When Selling Outright Makes Sense

✅ Choose Outright Sale When:

1. You Need Money Soon

Any timeline pressure:

• Bills due within 60 days

• Estate settlement deadlines

• Moving in next 90 days

• Urgent financial need

• Peace of mind worth more than extra money

Reality: Consignment can't guarantee timeline. If you NEED money by a date → sell outright.

2. Guitar Value Is Moderate ($1,500-5,000)

The math becomes marginal:

3. You Want Certainty

Guaranteed sale means:

• No price negotiation risk

• No "will it sell?" anxiety

• No market change risk

• No shop relationship management

• Transaction complete, move on

Value of certainty is personal but real.

Some people will accept less money to have decision finished.

4. Guitar Is Common/Less Desirable

Slower consignment sales:

• Common 1970s-80s guitars

• Student models

• Refinished instruments

• Heavily modified guitars

• Common configurations

These might sit 6-12 months or never sell.

Outright sale makes more sense.

5. Local Dealer Offers Fair Price (70-80%)

Example:

If dealer offers 70-80% of retail:

• Difference from consignment (85-88%) is small

• Timeline benefit (days vs months) significant

• Risk reduction valuable

• Convenience factor matters

Decision Framework

Step-by-Step Decision Process:

Step 1: Timeline Assessment

Step 2: Value Threshold

Step 3: Desirability Check

Step 4: Calculate Dollar Difference

Step 5: Risk Tolerance

Step 6: Effort Tolerance

Step 7: Dealer Offer Assessment

Decision Matrix

Real Seller Stories

Story 1: Consignment Worth It

"I had a 1959 Gibson ES-335 worth about $35,000. Local dealer offered $26,000 outright.

I consigned it at Carter Vintage for 15% commission. Took 4 months, but sold for $34,000.

After commission: $28,900. Extra $2,900 for waiting 4 months was worth it to me—I wasn't in rush and that's real money."

Lesson: High-value, desirable guitars with no timeline pressure = consignment makes sense

Story 2: Outright Was Right

"I inherited 8 guitars in estate. Total retail value maybe $30,000.

Could have consigned for more but would take 6-12 months and I'd be dealing with it the whole time.

Sold entire lot outright to specialist dealer for $22,000. Done in one week.

The $5-8K I 'left on table' was worth being finished and having cash immediately."

Lesson: Convenience, certainty, timeline can be worth thousands

Story 3: Consignment Disappointment

"Consigned my 1972 Les Paul for $8,000 at local shop with 20% commission.

Sat for 3 months with zero interest. Dropped price to $7,000. Another 2 months, dropped to $6,500.

Finally sold at $6,200 after 6 months. After $1,240 commission, I netted $4,960.

Dealer had offered $5,200 outright at beginning. I waited 6 months to get LESS money."

Lesson: Consignment isn't guaranteed to beat outright sales

Story 4: DIY Reverb Success

"Specialist dealer offered $4,800 for my vintage Martin (valued around $7,000).

I listed it on Reverb for $6,500. Sold in 6 weeks for $6,300.

After Reverb fees and shipping ($480), netted $5,820. Extra $1,020 for my 10 hours of work felt worth it."

Lesson: DIY consignment (Reverb) can split the difference

Questions to Ask Consignment Shops

Before you consign, get answers:

1. What's your commission percentage?

   • Is it negotiable for high-value items?

2. Commission on asking price or sale price?

   • (Sale price is standard and fair)

3. How long do similar guitars typically sit?

   • Ask for specifics on guitars like yours

4. Can I withdraw if I change my mind?

   • How much notice required?

   • Any fees for withdrawal?

5. What happens if doesn't sell in X months?

   • Required price reductions?

   • Storage fees?

6. Who pays shipping if buyer is remote?

   • Out of your proceeds?

   • Buyer pays?

7. What insurance coverage do you have?

   • Theft, damage, natural disaster?

   • Full value coverage?

8. How do you handle price negotiations?

   • Do you consult me before accepting lower offers?

   • Or authority to reduce up to X%?

9. What's your marketing approach?

   • Just in-store?

   • Online (website, Reverb, social)?

   • Email list to collectors?

10. Can you provide references?

    • From recent consignors?

    • Similar value guitars?

Get everything in writing: Contract should spell out terms, commission, timeline expectations, insurance, withdrawal rights, fees.

Special Considerations

Collection/Estate Sales (Multiple Guitars)

Multiple guitars changes math:

Hybrid approach:

• Sell common pieces outright (fast, done)

• Consign rare/valuable pieces (worth wait)

• Best of both strategies

Tax Implications

Consignment:

• Receive proceeds when guitar sells

• May be taxed as capital gain if substantial profit

• Shop provides documentation

Outright:

• Receive payment immediately

• Same tax treatment

• Simpler documentation

Consult accountant for:

• Estate sale situations

• High-value transactions ($10,000+)

• Basis calculation (what you paid vs. sale price)

What Edgewater Recommends

Our honest guidance:

We'll buy outright if:

• You want certainty and speed

• Timeline matters

• You value convenience over maximum dollar

• Fair wholesale price makes sense

We'll recommend consignment if:

• Guitar worth $7,000+

• No timeline pressure

• Highly desirable (will sell relatively quickly)

• Extra return (vs our offer) justifies wait

We'll recommend DIY Reverb if:

• Guitar $2,000-6,000 range

• Comfortable with technology

• Have time to invest

• Model sells readily online

We won't pressure either direction. We'd rather give honest advice and earn trust than make sale that's not right for you.

Conclusion

No universal "better" option.

Right choice depends on your specific situation:

Consignment wins when:

• High-value guitar ($7,000+)

• No timeline pressure

• Desirable model

• Top-tier shop available

• You value maximum dollar over time

Outright wins when:

• Any timeline pressure

• Moderate value guitar

• You value certainty over potential extra return

• Fair dealer offer (75%+)

• Common/less desirable model

• You want transaction finished

Best decision = fits your life, timeline, and priorities.

Run the math, consider timeline, evaluate needs, choose accordingly.

Get Your Free Evaluation

We'll give you:

• Honest market value assessment

• Our outright purchase offer

• Estimated consignment return

• Recommendation on which makes sense FOR YOU

• No pressure, just information

Call (440) 219-3607 or submit photos online.

FAQ

Is consignment or selling outright better for guitars?

Neither is universally better. Consignment typically nets 80-88% of retail (after 12-20% commission) over 2-6 months with uncertainty. Selling outright pays 65-80% in days with certainty. Choose consignment for high-value guitars ($7,000+) when you can wait. Choose outright for timeline pressure, moderate values, or when dealer offers 75%+ of retail.

What commission do consignment shops charge?

Commission rates: Top-tier shops (Carter Vintage) charge 12-15%, regional specialists 15-20%, local music stores 20-30%. Online platforms (Reverb) charge 5-8% plus shipping, but you handle everything yourself. Always get commission rate in writing before consigning.

How long does consignment take?

Average timelines: $2,000-5,000 guitars take 60-90 days, $5,000-10,000 take 75-120 days, $10,000-25,000 take 90-180 days, $25,000+ can take 120+ days to over a year. Highly desirable models sell faster. Common or overpriced guitars may never sell.

When should I sell outright instead of consignment?

Sell outright when: you need money within 60 days, guitar value under $5,000, you want certainty over maximum return, guitar is common/less desirable (slow consignment sales), or dealer offers 75%+ of retail value (gap from consignment becomes small).

What are the risks of consignment?

Consignment risks: guitar may not sell at asking price or at all, timeline uncertainty (may take 2-6+ months), market value may drop during consignment, potential damage or theft while at shop, shop could close, and you may need money before it sells. Read contract carefully for insurance, withdrawal rights, and fees.

How much more does consignment make vs. selling outright?

Typically $500-3,000 more depending on guitar value. Example: $10,000 guitar might bring $8,500 via consignment (after 15% commission) vs $7,500 outright—a $1,000 difference. For $5,000 guitar: ~$600 difference. For $25,000 guitar: ~$2,000 difference. Actual results vary based on sale price, commission, and timeline.