Consignment Policy

From MakeICT Wiki
Jump to navigationJump to search
Retail is when MakeICT sells something owned by us.
Consignment is when we are brokering something that someone else owns.
MakeICT will collect sales tax. MakeICT will report sales. MakeICT will remit sales tax. Items that are being sold by an entity that has a retail sales tax permit are not an exception. Items that had sales tax paid once already are not an exception. The only possible exceptions would be something that we do not require a payment, but only suggest a donation. So, for example, we are not selling 3D printer filament, we are allowing a voluntary donation to spend on more filament.
Consignment agreements
We require a signed and dated formal agreement with each consignor that specifies how much space they may use, that items and signs must be attractive and appropriate. Prices, item names, and seller's name must be firmly attached to each item. Consignment fee will be 20 percent of sale price (sales tax added separately). Agreements will state a beginning and ending date, and cover a duration not exceeding six months. Agreements can be extended at expiration when both parties agree. MakeICT will retain discretion to move, pull, or place time limits on any or all items in the display area. Access to the building for stocking, arranging items, or counting inventory by a consignor will be the same as any other access to the space, in other words our key policy, membership policy, and guest policy are not altered by anything involving retail or consignment sales.
Signage will be in place to instruct purchasers where the payments go, and what needs to be written on the envelope or in the comments when making payment online.
Space restrictions
Each consignor will start with a three foot length of space (half of a cabinet width), which can be adjusted upward if justified by their sales volume. There are some three foot and one six foot long glass shelves available to add more surface once the six available spaces are occupied. The glass shelves are not the full depth of the cabinet, and cannot hold heavy items. It would be better to have empty space, or space used to sell MakeICT items then to have vendor items that sit unsold too long.
Sales procedure
Purchases are generally self service and on the honor system. The purchaser will place payment into the drop box near the front alarm panel using the envelopes provided there or will be made using the online payment site
Record keeping
Each transaction will be recorded. Transactions include placing of stock into the sales area, each sale, and withdrawing of unsold items. Records will normally be kept by two parties, and available to a third party when requested. Placing and withdrawing items will be recorded by the seller and by MakeICT, and sales transactions will be recorded by the buyer and by MakeICT. A binder with sample forms will be provided in the sales/consignment area. Electronic records will be preferred.
Minimums and maximums
No item will be accepted for consignment with a sale price below $5 (five dollars), or above $100 (one hundred dollars). Pricing should be done as 'including tax'. Prices should be multiples of $0.25 (quarter dollars). Calculating pricing can be done by a number of methods, see appendix for examples. No single space should contain less than $100 (one hundred dollars) or more than $1000 (one thousand dollars) worth of items at any given time, lockable (but shared) storage is available, but only a very limited amount of storage is possible.
Discounts, coupons, price breaks, and similar
None allowed, except when agreed in advance, as a part of a consignment agreement. MakeICT gift certificates are only intended for paying MakeICT charges, and not for consigned items.
Exceptions, cancellation
Exceptions to this agreement must be proposed in writing, and approved by the MakeICT Board of Directors. The Board may review this standard agreement from time to time, and may cancel this agreement without notice. Both seller and MakeICT agree that cancellation by either party will not result in any obligation beyond payment of amounts owed for transactions that occurred while agreement was in effect.

Appendix one
Pricing example 1. An item for which the seller wishes to receive ten dollars. The item will need to be priced $12.50 before tax. With tax the buyer would pay $13.44. This item round up to a multiple of $0.25 would be listed as $13.50 including tax. The tax is then 0,94. 2.51 goes to MakeICT and the seller receives 10.05.
10.00 / .80 = 12.50. 12.5 * .075 = 0.94. 12.50 + 0.94 = 13.44
13.50 / 1.075 = 12.56. 13.50 - 12.56 = 0.94. 12.56 * 0.20 = 2.51. 12.56 - 2.51 = 10.05.
Example 2. Seller want item to be priced $25 with tax. The item will be $23.26 before tax. $4.65 goes to MakeICT and $18.61 to the seller.
25 / 1.075 = 23.26. 23.26 * 0.20 = 4.65. 23.26 - 4.65 = 18.65.

Approved by the board on February 20, 2017