Reward Consignors for Store-Credit Settlement
Settling with Consignors for Credit
Conventional (or simple) consignment software programs usually provide settlement payment options of cash, check or gift certificate.
There are several advantages to settle with consignors for store credit:
- Sales proceeds are kept 'in house' to be used for future purchases.
- It's convenient to keep track of amounts outstanding.
- The amount of paper work is reduced.
- Cash does not need to be kept on hand for settlement purposes.
- Checks do not have to be written and distributed.
- The administrative complexity of gift certificates can be avoided.
- Having the ability to offer this form of compensation (and keeping it all straight) adds a degree of professionalism.
People often prefer 'cash in hand' to balances scattered here in there in various places where they shop. It does require a certain amount of trust to forego immediate gratification in favor of a store credit (that may become an issue of controversy if seller and store records one day disagree, or we simply forget about it - because many store owners don't provide reminders that balances are on hand).
Sellers may be willing to ignore the additional 'risk' of settling for credit if they are given an added incentive, like a 'bonus' yielding a greater settlement amount over cash - for accepting store credit.
Dynamic Software Options
The better resale software programs include an option to add an additional amount to a settlement for payment by credit. The bonus is expressed as a percentage and is set in the program's setup configuration. When store credit is selected as the method of payment for settlement, the program knows to add the bonus amount.
A dynamic option in BCSS gives the store the options of basing the bonus on total sales or the settlement amount.
For example, if the consignor % for cash settlement is 50%, the consignor's share of $100 in sales proceeds is of course $50.
However, a 10% bonus for store credit could be $10 (if based upon total sales) or only $5 (based upon the settlement amount).
Best Consignment Shop Software allows each store to choose either option.