How to Consign
Auction Software
Consign Definition
To consign is to place a thing in the hand of another to sell while retaining ownership until the sale.
Consign Online
Services typically specialize in selling for others on eBay. They handle everything from pickup to auction to payment.
Examples of How to Consign
Consider the consign of artificial floral consignment selling to numerous small and medium retail floral establishments. Such an arrangement is how most staple merchandise is consigned with a limited assortment of infrequently sold items.
A manufacturer who has developed a novelty to consign for that industry and has no history to use as a basis for showing how it will sell, probably will have difficulty getting it into the wholesaler's inventory.
If a potential consignee is comfortable with current sales levels and gross margin, the maker will find it difficult to convince him/her to carry this item in inventory.
Yet, in a consign sale, the maker can always ask, "What do you have to lose?" The answer is, of course, "Nothing."
How to Spot Price Traps
Normally consignor and consignee have a straight-forward agreement regarding the split of sale proceeds. "70-30" means the owner will receive 70% of the sale price and the seller (consignee) will receive 30%. Watch out for policies which may or may not be fully disclosed.
Add-On Charges
In many cases the percentages are diluted by 'add-ons' of various names. Here are some examples:
- There is a $7 publicity assessment that will be automatically deducted from your check.
- $1 charge to mail unclaimed checks.
- 50c restocking fee
- $1 cleaning charge
In the case of a '$7 publicity fee' - If $50 is processed, your share is 70% or $35 - $7 = $28 and your actual split is 56%, not 70%.
Hidden Charges
Some owners don't mind being a bit unscrupulous when it comes to dishing out a fair deal. One practice is to deduct a 'buyer's fee' (BF) as it's called from the proceeds before applying the percentage. Of course this results in an amount paid that is less than the amount determined by the percentage alone.
For example, if $50 in goods is sold and the BF is 10%, the amount remaining after assessing the BF is $45. If the consignor % is 50%, the consignor will receive 50% of $45, not 50% of $50. One program (consignpro) supports this sort of thing - stating that amounts siphoned off the top won't show up on reports to consignors. Their scheme is to add to the selling price, not disclose the fees to the consignors and pocket the money while the program hides this 'additional profit'.From the Consignpro Website:
Alternatives to Consignment
When all is said and done, all fees are deducted, and your time is spent finding things that are 'acceptable' to the store owner, delivering them, picking up unsold ones... maybe there's better alternatives to consignment.
Charitable Contribution
Check with your accountant. The IRS is less generous than ages ago in regards to deductions for charitable contributions, but if you're in a higher tax bracket and already make other (substantial) contributions, you might be money and aggravation ahead just donating to the Salvation Army or your favorite charity. Maybe you church or school has a bizarre.
How to Consign at Garage Sales
These are becoming more popular as the gasoline, health care and everything else continues to rocket. People conducting them know how to convert unwanted assets into cash and people shopping at them know how to save on purchases. Moreover, garage sales are quicker than consignment and they give you more control over how to fetch good prices for your unwanted wares. You don't need to go to the hassle of holding your own garage sale (and have people invading your space). Find larger garage sales in your area and drop off things for consignment. Offer a sales commission. Of course you won't know how much your stuff for but that's one of the trade offs.
Other Sources:
How to Consign - Wikihow
How to Consign - eHow
How to Consign - BCS
