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The commission screens included in the EZLister.net system
permit the entry of flat rate commissions, sliding scale commissions,
or combinations of these. Furthermore, you can specify who pays
auction and payment processing fees. It is also possible to
set up a default commission schedule applicable to the majority
of your clients, or a specific commission schedule for consignors
or items on a case by case basis. This allows a consignment
store operator total control over his operation by quickly and
easily adapting fees to reflect a specific case at any time.
When entering consignment commission schedules, the first choice
is to enter the type of commission you charge. You can select
a flat rate or a progressive (sliding scale) commission by selecting
the appropriate radio button. To illustrate the difference between
the two, let’s look at an example. Assume that the commission
schedule you decide to use appears as follows.
Illustration of Possible Consignment Fee Schedule
|
Price Range
|
|
$0.00
|
to
|
$100.00
|
@
|
10.0%
|
|
$100.00
|
to
|
$500.00
|
@
|
7.5%
|
|
$500.00
|
& Up
|
|
@
|
5.0%
|
Please note that this commission
fee schedule is intended for illustration purposes only and probably
will not reflect what you ultimately choose to charge your clients. The
rate you charge should reflect prevailing conditions in you local
market.
Illustration of Flat Rate Consignment Commission
Now, assume that an object sells
for $750.00 and you charge a flat rate commission. The total
commission due is calculated as follows:
| Price Range
|
|
$0.00
|
to
|
$100.00
|
@
|
10.0%
|
|
$100.00
|
to
|
$500.00
|
@
|
7.5%
|
|
$500.00
|
& Up
|
|
@
|
5.0%
|
| |
|
|
|
|
|
Sale Price:
|
$750.00
|
|
|
|
| |
|
|
|
|
|
Calculated Commission
|
|
|
|
$750.00
|
X
|
5.0%
|
=
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$37.50
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Note that the total commission
is $37.50, or 5% of the total price. The commission rate used
reflects the price bracket containing the final sales price,
or in this case, the $500 and up price bracket.
Illustration of Progressive Consignment Commission Rate
Now, assume you charge commissions
based on a progressive scale. A progressive rate commission
will calculate your commission as follows
| Price Range
|
|
$0.00
|
to
|
$100.00
|
@
|
10.0%
|
|
$100.00
|
to
|
$500.00
|
@
|
7.5%
|
|
$500.00
|
& Up
|
|
@
|
5.0%
|
|
|
|
|
|
|
|
Sale Price:
|
$750.00
|
|
|
|
|
|
|
|
|
|
|
Calculated Commission
|
|
|
|
$100.00
|
X
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10.0%
|
=
|
$10.00
|
|
$400.00
|
X
|
7.5%
|
=
|
$30.00
|
|
$250.00
|
X
|
5.0%
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=
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$12.50
|
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Total
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|
|
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$52.50
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This is a similar concept to the sliding scale that eBay uses
when calculating its final value fee structure. The commission
rate for each of the identified brackets is charged against the
portion of the total sales price that falls in that price bracket. This
results in the consignment seller receiving a significantly higher
commission.
How EZLister.net Handles Commissions with Deposits
In the EZLister.net system, under the Consignor menu, Add Consignments
option, the Add New Consignment Item screen allows a consignment
store operator to modify the default commission schedule for
a specific item. This screen is similar to others that appear
at appropriate points in the system except that this one addresses
the issue of deposits. It contains a field, labeled Deposit,
where the operator can enter the appropriate deposit amount required. Under
this field are two additional fields each with a checkmark box
associated permitting the selection of one or the other. Selecting
the one labeled "Commission Plus
Deposit" instructs the system to calculate the commission
using the parameters specified, and to add the deposit amount
to the result. In effect, this means that the deposit was non
refundable regardless of the outcome of the auction. Selecting
the field labeled "Commission Less Deposit" instructs
the system to calculate the commission using the parameters specified
and deduct the deposit amount from the result. In effect, this
means that the deposit served as a down payment on the consignment
commission. Again, the decision whether to charge deposits,
and how to apply them at settlement is up to individual operators. EZLister.net
provides the flexibility to implement the final decision taken.
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