Tracking and Reselling Clothing Inventory
Best Consignment Shop Software processes consignment, resale, retail, rental and layaway.Consignment
differs from resale
in several ways:
- Ownership of clothing articles and accessories remains with consignors. Resale items are usually purchased outright with ownership passing to the shop owner upon purchase (from individuals). (Buying from businesses like wholesalers, suppliers and manufacturers is 'retail'.)
- 'Settlement' is the process of paying clients for merchandise. With consignment settlement takes place after items are sold, usually at the end of the month following the month of the sale. Sales proceeds are split between consignors and the shop owner. (BCSS allows for variable %s.)Resale 'settlement' takes place at the time merchandise is purchased. Ownership of articles passes to the shop when payment is made and items are delivered.
- Consigned clothing is typically automatically (or manually) discounted as time passes and articles remain unsold. Resale software commonly has provision for multiple discount schedules that can be applied per item or per category.
- Our resale software has two tax fields for shops in jurisdictions which have more than one taxing authority. The program also allows for clothing to be tax free, taxed at variable rates and taxed 'at or above'.
- Resale ('buy outright' or 'BOR') is purchasing (used) merchandise from people. The resale store pays upon delivery and takes possession.
- Shop-owned inventory is less likely to be automatically discounted. Discounting is left for negotiation between buyer and seller. Our resale software allows for items to be discounted at POS by line item or by invoice, either by percentage or by dollar amount. Invoices can be tax free for resellers.
- Retail is purchasing (new) clothing from businesses (not people) like designers, importers, wholesalers, etc.
- Rental in the software can be the leasing of mall floor space (booths at flea markets, trade shows, etc) and the renting of clothing like formal wear, prom dresses, wedding apparel, etc.
- Layaway Any transaction in our resale software can be designated as a layaway purchase. Typically a down payment is made, a payment schedule is proposed and items are delivered with the final payment. An additional fee can be added for the 'extra work' involved in administering such transactions.
Resale Software Features
A good resale program will have features for minimizing data entry. BCSS can import inventory and client records that are already in spreadsheet form. Otherwise clothing items can be entered in an input screen and price labels can be printed at the time or later. For lots of items, data-entry clerks can enter items on spreadsheets and send those to the store for import.
Price hang tags and labels can be printed from sheets using a standard black/white ink printer or they can be printed from rolls using a thermal label printer. The tags and labels can have barcodes which can be scanned at POS for fast checkout. Barcodes can also be scanned in the program to locate an item record.
At POS an item can be entered in one of 5 ways:
- Scan a barcode.
- Enter an unlisted item (not in inventory).
- Enter an Item ID.
- Select an item from a dropdown list.
- Select an item from the Inventory Work Area and use 'Item to Invoice'.
Pictures of items can be taken, stored in the program and recalled at POS (to help avoid tag switching).
Receipts can be printed on plain paper or on rolls of thermal paper using a thermal receipt printer. Stores with 'no-return policies' can save quite a bit by not printing receipts.
Clients who opted to be paid for sold items in store credit can use their store credit at POS to make purchases. If the amount of credit exceeds the amount of the sale, the latter is deducted from the store-credit balance and the balance remains. If the opposite is true, the store collects the difference.
Payment options at POS are store credit, credit/debit card, cash, check, gift certificate and PayPal.
Bolster Profits with Software
Use the software to build good will and repeat traffic by granting a bonus for store-credit settlement. There are several advantages:
- Added value, fostering good will, reputation and referrals
- Funds remain 'in the store' and encourage sellers to become buyers, increasing sales.
- Fewer payments by check saves time and costs.
Recover Credit-Card Costs
You've done a lot to make it possible for the people in your community to turn their unwanted belongings into cash: research, licenses, lease, utilities, help, software, hardware, equipment, supplies, labels, racks, shelves, insurance...
Enough already. Should you also be expected to pay all of the credit-card cost? After all, everyone involved benefits from the efforts you've made to make credit-card purchases possible: application, fees, commitment, administration. It's may not be too much to expect everyone (sellers, buyers) to pitch in infinitesimal amounts to help cover this cost.
How? Set a small % in the resale software to be deducted from credit-card sales only. (The deduction won't apply to other forms of purchases like cash and check.) Set another small percentage (where allowed by law) to be added to sales purchased by credit card. If consignors chip in 1.5% and sellers add 1.5% that's 3% per month every month in literal additional income to you. Yes, you'll have the challenge of getting everyone on board and for those who would rather walk away than participate, exclude them individually within the program.
There is a 3rd option included in the optional bundle: Set a % to be deducted from all sales prior to applying consignor splits. ('Buyer Fee').
These three options are available separately in the program for $19.95/mo and that too can be passed on to sellers and buyers.