End of the month, and the makers want paying
You stock a dozen local makers: a potter, a jeweller, a card designer, someone who makes candles, a woodturner. Each brought stock in on sale or return, and it is recorded in a notebook with a price and a quantity. The till records sales, but some makers' items share a button on the till, so the sales report does not say whose candle sold.
At the end of the month you work through the notebook, the till report and a quick look at the shelves to work out what each maker is owed. It takes an evening. A maker queries a figure, and you are not sure you have it right.
Consignment stock is not like normal stock
Sale or return stock belongs to the maker until it sells. Tills are built for stock you own, so consignment is usually tracked alongside, not inside, the till.
- Makers' items are not always set up individually on the till.
- Stock brought in and taken back is recorded in a notebook.
- Commission rates vary between makers.
- Monthly statements are worked out by hand.
- Makers cannot see what has sold without asking.
What informal consignment costs
Paying makers wrongly, whether too much or too little, damages relationships that are central to a local shop's identity. Makers who feel unsure about their payments may take their work elsewhere.
It also takes the owner's time every month, and stock that has been taken back or broken is easy to lose track of.
How we build a sale or return ledger
- Each maker has a record with their commission rate, payment details and agreement terms you set.
- When a maker brings stock in, each item is added to the till with its own code and linked to that maker, with labels printed if needed.
- Every sale of a maker's item is logged against them automatically from the till.
- Stock taken back, broken or given as samples is recorded, so the maker's stock count stays right.
- At the end of each month, a statement is produced for each maker, showing items sold, prices, commission and the amount due, ready to pay.
- Makers can have a private page showing their stock in the shop and what has sold, if you want to offer that.
| Task | Notebook | Sale or return ledger |
|---|---|---|
| Stock brought in | Written by hand | Added to the till, linked to the maker |
| Sale | Mixed in the till report | Logged against the maker |
| Stock taken back | Crossed out, maybe | Recorded |
| Monthly statement | Worked out in an evening | Produced automatically |
| Maker queries | Checked by hand | Answered from the statement |
Your agreement with each maker, including commission and what happens with breakages, is yours to set with them. How consignment is treated in your accounts is for your accountant. The ledger records what you agree.
The month end with a ledger
At the end of the month, you open the statements, check them and pay each maker from the list, through your bank or accounts software. Makers receive a clear statement of what sold. Queries are answered by pointing at the sale on the till.
Makers who can see their own sales tend to bring new stock when their line is selling, which keeps your shelves fresh. When a maker's agreement comes up for review, you can look at how their work has sold across the year, which makes it easier to have an honest conversation about space, prices or a different range.
New makers can be set up in minutes, which makes it easier to try someone new for a season without adding to the month-end work.
Signs your sale or return needs this
- Makers' stock is tracked in a notebook.
- Several makers' items share a till button.
- Working out payouts takes an evening each month.
- Makers have queried their payments.
- You are not sure how much makers' stock is in the shop now.