New Business Ideas and Concepts Rotating Header Image

A Job Of Consignment Resale

A Job Of Consignment ResaleToday, there is a job as consignment reseller. This job is to accept items owned by others and offer them for resale at tag sales, at yard sales, and over the Internet, and also to receive a portion of the proceeds from the sale. Don’t accept an item if you don’t feel you have a reasonable chance of selling because of lack of demand or because the seller wants to put an unrealistic price on it. Maximize your profits by cherry-picking items that will sell quickly at a good price. Do not accept items that might subject you to unreasonable liability: very expensive things, fragile items, guns and other weapons, tools that are obviously broken, and the like. Take care to maintain a close inventory of items you have accepted for sale; each should be marked with a code that identifies the owner and refers to a listing of the minimum price. You will be responsible for paying the owner if an item is lost or stolen while in your possession.

Include in your agreement with the seller provisions for return of the item if it does not sell within a specified period of time. Many contracts specify that if the owner does not pick up an unsold item at the end of the for-sale period, the reseller can dispose of it at any price and pay the owner only the reduced yield. In dealing with your client’s property, seek to limit your liability for damage or loss to the actual replacement value of items in your possession. You should protect yourself against claims for sentimental value or loss of use.

Controlling Your Costs Of Your Business

Controlling Your Costs Of Your BusinessYour structure should help you determine financial status. While organization cost control takes many forms, the most simple is the employee/profit ratio. By clearly accounting for all employees and matching headcount to profit, you determine a cost or profit ratio. In simple terms, each employee is worth how many dollars in profit. This is one simple method to determine how you are doing at the macro level. By changing the number of employees you can raise the ratio in either direction. Add more people to do more work or add more people who become costly overhead. Reduce people and your profit goes up.

Profitable companies are catching on to this trick and cutting out layers of management and employees in the distasteful process called downsizing. This practice has sociological implications far beyond the short-term increase in profitability. Downsizing gets great responses from Wall Street because it looks at short-term profitability. Downsizing, however, has a serious effect on employees’ morale.

Employees see greed as the management driver with no loyalty to the people who created the success and subsequent wealth. It further deepens, widens, and anchors the distrust chasm between management and employees. Employees distrust companies that downsize in good times, quickly projecting what will happen when times turn bad. While reducing structures does reduce overall costs, care must be taken to avoid repercussions in other areas. One example of a trade-off in reducing headcount by downsizing is the loss of institutional memory. There is no way to calculate the damage done to organizations by the excessive downsizing and subsequent loss of intellectual capital. Don’t make the same mistakes. If you plan to restructure, then do it wisely by carefully thinking through what you stand to gain or lose.