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Consignment Fees
On this screen, the first choice is to enter the type of
commission you charge. If
you charge a flat rate, then press this radio button, if you charge on a progressive
or sliding scale, then press the second 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.
|
Price Range
|
|
|
|
|
$0.00
|
to
|
$100.00
|
@
|
10.0%
|
|
$100.01
|
to
|
$500.00
|
@
|
7.5%
|
|
$500.01
|
& Up
|
|
@
|
5.0%
|
Please
note that this commission fee schedule is intended for illustration
purposes only and may or may not reflect what you ultimately
choose to charge your clients. The ultimate rate you charge
should reflect market conditions that prevail in you local
market.
Now,
assume that an object sells for $750.00. A flat rate commission
will calculate your commission as follows:
|
Price Range
|
|
|
|
|
$0.00
|
to
|
$100.00
|
@
|
10.0%
|
|
$100.01
|
to
|
$500.00
|
@
|
7.5%
|
|
$500.01
|
& Up
|
|
@
|
5.0%
|
| |
|
|
|
|
|
Sale Price:
|
$750.00
|
|
|
|
| |
|
|
|
|
|
Calculated Commission
|
|
|
|
$750.00
|
X
|
5.0%
|
=
|
$37.50
|
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.
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%
|
|
$100.01
|
to
|
$500.00
|
@
|
7.5%
|
|
$500.01
|
& Up
|
|
@
|
5.0%
|
| |
|
|
|
|
|
Sale Price:
|
$750.00
|
|
|
|
| |
|
|
|
|
|
Calculated Commission
|
|
|
|
$100.00
|
X
|
10.0%
|
=
|
$10.00
|
|
$400.00
|
X
|
7.5%
|
=
|
$30.00
|
|
$250.00
|
X
|
5.0%
|
=
|
$12.50
|
|
Total
|
|
|
|
$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.
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