Cost-Saving Budget Plans for Consignment & Resale Shops

On average this article will save $2,000 yearly in unnecessary expenses.

Long before opening day successful resale shop owners have a budget in place to control expenses. “A penny saved…” couldn’t be more apropos when entering into long-term relationships at business startup – location, lease, software – those things you get locked into and can’t get out of (cheaply).

Mystifyingly this basic tenant of good business management seems vulnerable to fancy websites, grandiose claims and sales schmoozing. In your defense there’s an absolute ton of it so let’s get ‘centsical’.

First, ask the obvious question: “Is any software application worth $1,000?”. How about $6,000? $10,000? There probably has never been a store owner who said “Yes!” when asked if he or she wished to spend that kind of money on a computer program, yet many apparently have fallen for “$99 to start” (and other such entrapments) employed by those hoping to garner $6,000 for software over time. Save your money. Read on!

Not looking to spend that kind of money? Well good! Your fledgling business has a greater chance of success than all before who are today doing ‘something else’ after they watched dreams turn into nightmares with that final lock of the front door – still asking, “Where did I go wrong?”.

How does one go from ‘Grand Opening!” to ‘Going-Out-of-Business Sale’ in 12 short months?

Surely, in hindsight, most would list ‘unforeseen expenses’ as a main contributing factor.

For budgeting purposes, here are some pitfalls to avoid:

  1. Long-Term Agreements
    • Fortunate entrepreneurs find themselves in need of additional space while others discover that a better location is needed. Keep lease terms short.
    • Shy away from credit-card services that require a multi-year contract. What’s the purpose? To lock you in, of course.
    • Know that once you’ve spent the time and money to acquire and learn a software program, you’ll be loathed to go through it again. To minimize surprises after the sale, get all possible fees and rate hikes in writing before purchase so you can push back when those additional fees pop up. As you grow (and you will!) what’s the cost of adding stations, users, other locations?
  2. Endless Payments for Software
  3. Of the primary providers of software for consignment, resale, thrift and malls, Best Consignment Shop Software is the only program with no strings attached for recurring payments.

  • Of late software vendors with ‘annual support plans’ have started claiming that their ‘support plans’ are “optional” so presale they can make questionable assertion that they may never be needed for assistance or software updates (patches). Get real. Everyone using computers, Windows, hardware and software needs help from time to time and when you call the vendor who promoted ‘optional support plans’ the first question will be, ‘Are you enrolled in the annual support plan? No? You must enroll before we continue.’ Others might provide service but charge 50% or more extra because you weren’t enrolled.
  • Getting lassoed into a ‘support plan’ puts the noose around the necks of those who forged ahead unaware that software vendors with support plans have increased fees substantially in the past and quietly reserve the right to continue to do so in the future.
  • Even more recently web-based software vendors have gotten the bright idea of ‘software as a service (SaaS)’ – claiming that software is not a product to be sold for one price (like Best Consignment Shop Software) but an ongoing service which requires a (huge) ongoing monthly expense. Yes, it’s good software but at what price?
  • As you grow so will your requirements for additional a) copies of the software or b) additional users or c) additional locations. You will pay mightily ‘later’ if you don’t ask now what these add-on expenses are.
  • ‘Bait software’ and ‘bait payments’ are designed to lure users in with low up-front costs. Those who employ such tactics are fully aware of the enormous costs that lay in wait well after shops are entrenched in the software.
      1. Individuals As Software Companies

      The policies of every consignment-software vendor are pretty much governed by one individual – maybe two, subjecting users of the software to the whims of such singularity. Case in point: At ‘cosignpro’ the policy of the owner is that users who ask too many questions can be fired and forced to purchase the software again ($1,300) to continue to receive support. If they refuse, there is no refund. The same owner, has, in the past, issued ‘free software updates’ to those who didn’t enroll in the annual support plan with a kill switch embedded, which he refused to remove until his victims agree to pay up. Are you protected?

      Apparently not.