on memo

adv. phr. on consignment; by informal agreement. Subjects: English, Business, Retail, Jargon

Editorial Note: This term is particularly common in retailing of jewelry and precious stones.

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Citations: 1988 Steve Jordon, Bill Batson Omaha World-Herald (Nebraska) (June 5) “Borsheim’s Move to Regency ‘Beyond Hopes’”: The purchase from the salesman is an exception in a business where buying goods on “memo” is the norm. Instead of taking merchandise on consignment, or memo, Friedman and his buyers bargain down the price, buy it outright and then pass some of the savings back to customers. 2003 National Jeweler (Oct. 15) “Gemprint debuts memo system” vol. 97, no. 20, p. 53: Gemprint Corp. has introduced a new inventory software system specifically for diamond dealers who send and receive memo goods on a regular basis. Called the ISi Verification System, the software uses the Gemprint diamond identification and registration technology to track and verify stones that are shipped on memo and later returned. 2004 Lindsay Pollock New York Sun (New York City) (Oct. 7) “Leighton’s Goodbye is Christie’s Gain”: “Whether he was selling shoe laces or wine bottles or jewelry, you had that sense of credibility.” Mr. Esmerian, an early believer, gave Mr. Leighton jewelry “on memo,” or on consignment, to sell. 2006 Voxant Fair Disclosure Wire (Oct. 17) “Q3 2006 Charles & Colvard Earnings Conference Call—Final”: Those shipments are made to creditworthy customers who then manufacture moissanite jewelry and in turn ship that jewelry to creditworthy rails retailers—again on memo.…This is a form of consignment selling, and we do not recognize or report those shipments as revenue unless and until the retailer and our direct manufacturer report to us that those goods have been sold or other conditions of a specific memo agreement have been met. 2006 Bag Lady University (Nov. 5) “National Authority For The Ladies Handbag Industry”: “I can’t afford to ship on memo. Now, can I sell you anything?”…Unfortunately this buyer probably got his consignment merchandise next door. For there is a good deal of business done on memo in the handbag industry, as it is done in some other industries. And always it is an indication of unsoundness in the distribution plan of an industry.…The bad effects of consignment selling on the manufacturer are apparent. But it also hurts the retailer and the public. The retailer who buys on consignment is not so likely to be alert in his buying and selling operations. Whatever he doesn’t sell he can return. And so he may become careless. He hurts his competitors, too. For while they have to keep on selling the stock they have paid for, the consignment buyer can throw his stock back on the manufacturer and shortly offer the public new merchandise—probably “bought” on memo, too.

Posted 15 Mar 07 | Permalink | Tell a Friend