Likely most business plans for start-up consignment stores start with an accounting of monthly business expenses and an estimation of income based upon some fixed percentage of sales to be paid to consignors (owners of items consigned).
Sounds logical but the percentage to be paid to consignors might be better determined by focusing on an economic concept referred to as 'the point of diminishing return', or, "At what point does adding one more percentile to the store's share result in a reduction in a reduction in store profit.
Using fertilizer as an example, at what point does adding one more unit of fertilizer result in a reduction in yield per unit of fertilizer?
In the consignment world, of course consignors would flock to a store offering a 90% payout (which some stores might pay on high-end items and to relatives, friends and charitable organizations). So, at 90% payout, can the shop be profitable?
If the payout is dropped to 80%, how much will store income increase (with monthly expenses and all else remaining the same), then, at what % do consignors start turning away?
Today's 'high tech consignment software programs' provide flexibility in setting the consignor percentage, so while there might be a fixed 'default' percentage paid on most items to most consignors, with Best Consignment Shop Software a different percentage can be assigned to each consignor and to each item, so if someone's $2000 bedroom set is sold for $1400, the store might do better with 30% ($420), giving 70% ($980) to the consignor, encouraging the consignor to consign more items. Dare say that a 50% ($700) payout won't pack the same incentive punch.
BCSS also allows stores to 'reason' with consignors in that a software feature allows the store to deduct expenses 'off the top' before applying share percentages, the rationale being that expenses (advertising, rent, utilities, etc.) related to the endeavor of selling others' wares should be shared between consignor and store.
Another special feature allows the store to deduct a set percentage from credit-card sales prior to settling with consignors, in effect shifting the cost of the convenience of credit-card payment to those being convenience - the consignors. Of course the counter argument is that the store is also benefiting from this payment method, not having to keep as much cash on hand, no losing money in change-due errors, and perhaps having an added measure of protection against employee theft.
The most recent addition to BCSS is a method of rewarding consignors with a bonus percentage for settling for store credit. The bonus can be based upon the consignor share or the amount of the sale.
An upcoming feature will be Reward Points - credit that shoppers will accumulate with each purchase which can be used to make purchases.
Best Consignment Shop Software features added options to payouts which provides more flexibility in the store's plan for sharing sales proceeds with its patrons.
Take a look at how to send large data files using free websites.
The Simple Design of BCSS Intro
Intro Computerizes Simple Consignment Steps
The Add-Consignor Screen has a pleasing design and provides for a variety of input. In reports or lists consignors can be grouped as active or inactive, by birth month, birth date, unsold-items option, User Date, User Text. They may be sorted by ID, name, account balance, date of last item, sale or settlement.
New-Consignor Entry Screen
The Agreement may be printed from the input screen or at a later time. Each Consignor Record can have its own Consignor % and Unsold-Item option (donate, destroy, return, transfer to shop). Each consignor can be marked as Active or Inactive, to receive mailings and/or sales reports.
Print Sheets of Avery-Style Price Labels - 3 across - 10 down On the Main Menu select Labels. Click on Price Labels to start the process of printing labels. Click on Price Labels Help for illustrated instructions. This is the input screen for printing labels. To use a partial sheet of labels, enter the # of the next label on the sheet. Example: With 7 labels used, enter 8. Left and top label margin settings may be adjusted on this screen.
Sales and Professional Invoices Are Easy to Process
Intro has handy Function Keys across the top. (not shown) Just press F6 to start a new sale: Tax can be adjusted for each item. Pay Methods are cash, debit card, deferred, Discover, gift certificate, MC and VISA. New-Sale Screen: For convenience, 'Cash Sale' will appear as the customer name (but can be changed). The same may be marked an Non-Taxable. Discounts are entered at POS. 'Change Due' is auto-computed and displayed which greatly reduces math errors.
Settle One Consignor or Batch Process Settlements
On the Main Screen Press F7 to settle 1 consignor: or select Batch Settle: (on the Main Screen) Check one, none or all items to settle. Batch print checks and settlements. Batch-Settlement Screen: Enter notes in the box to be printed on settlements. On the Batch Settle Screen, the # of consignors selected and the total settlement are displayed. Batch settle for one type of payment (cash, PayPal, store credit, gift certificate). Deduct a set amount from each settlement.