Consignment Agreement

Resale Services, LLC
DBA Valley Park Resale and Flea Market, DBA Marketplace Resale & Consignments
20 Meramec Station Road, Valley Park MO 63088
[Version 5c, updated 3/2016]

CONSIGNMENT AGREEMENT

TERMINOLOGY:

Business Space (tm) Booth Space: A Single, specific location in the store, assigned to an individual vendor.

Vendor: A person or company who rents a booth space paying a specified rental fee and commission.

Rental Fee: The agreed fee for use of one or more specified booth spaces within the store

Commission: A fee paid to the company based on a fixed percentage of sales.

Sales: The actual selling price of one or more items, not including state and local sales taxes.

Sales Tax: As required by state and local law, sales tax is collected on all sales and is paid by the customer.

Month: Any calendar period beginning the 1st day of the month, ending on the last day of the month. For prorating, a month is considered to be 30 days.

Merchandise: Any item for sales at the store.


General Description of Consignment Policy:

Our store provides limited consignment opportunities to sellers who do not wish to rent Business Space ™ Booth Space. When you consign with us

  • You agree to provide not more than five items at any one time
  • For a period of 12 weeks per item
  • Each item should be expected to sell for a minimum of $10
  • We will use mark-down pricing on consignment items, with a 10% reduction in price every three weeks, beginning the first Sunday after we inventory and tag your items.

All items for consignment must be approved by an owner. We will evaluate your items on the following basis:

  • Items are clean and in sellable condition. There should be little or no sign of wear unless appropriate for the type/age of item.
  • Consignment items will be selected based on liklihood of selling, available space, and priced-to-sell.
  • Smaller items should be brought to store by appointment, or during open-consignment hours. Larger items may be photographed and emailed to info[at]vpfleamarket, attn: Brett or Diana.

Commission Upon Sale:

We offer two consignment rates based on your level of involvement:

  • 25% commission for consignors who have researched a fair price, and we are in agreement. Fair pricing can be based on eBay sold values, collectors ‘book’ value, comparison to current retail pricing, or other 3rd party source.
  • 50% commission for items that we research and price. This option is best for consignors who are either unfamiliar with an items value or do not have time to price. You are interested in a better return than through donation, but aren’t as concerned about selling for a particular price. Our goal is to price items fairly, to sell quickly.

12-Week Selling Period and Mark-Down Calculation:

Our stores use point-of-sale software that calculates the mark-down pricing, beginning with the first Sunday after your items are entered into inventory. For example:

  • An item is accepted for consignment on Friday. It is entered into inventory and tagged before Sunday, so Sunday begins week 1.
  • At the beginning of week 4 the price drops 10% from the original price, and again at weeks 7 and 10.
  • Weeks 13 and 14 are the pickup period for unsold items, at which point we begin to liquidate the item.

Monthly Sales Report and Payment:

The company will provide a statement detailing your sales during the previous month, available by morning the 10th of the new month (if the 10th is a Sunday, the report will be ready the next business day.) The report details total sales, commission withheld, and any payments made to your account. Your original item tags are returned so you can see what sold.

A check will be written for your sales minus commission. Checks expire after 90 days, and are dated the last day of the selling month. It is our policy to not replace lost or expired checks; electronic banking makes it possible to deposit a check with no bank markings, placing the store at risk. Exceptions are rare, are soley at the owners’ discretion, and would likely include the store deducting a stop-check fee equal to the actual bank fee.

Treat your check like cash.
We are not responsible for loss or expiration.

If you prefer to receive your report and check by mail, we will deduct $2.00 from your balance for postage and handling.

Unsold Items

At the end of the 12-week selling period, you may reclaim your unsold items, or we can discuss a price adjustment and reset the start date. After 14 weeks, we may begin lowering the price to liquidate the item, and we will continue to honor the commission at the selling price.

Removing Consigned Items Before Completion

This agreement includes a 12-week selling period. An early removal fee equal to 25% of the original selling price will be charged to you, and must be paid prior to removing your merchandise from the store. This fee is waived if the company requests ending the agreement early.

INSURANCE AND LIABILITY:

Insurance to protect against your loss, theft, or damage of your inventory is the responsibility of you the vendor. Resale Services LLC, its members, or any other representative of the company is fully released from any legal action resulting from loss, theft, or damage of personal property.
W-9, 1099-Misc, and Taxes:

Federal tax law requires us to submit a 1099-Misc form for any vendor whose gross sales are equal to or greater than $600 in the calendar year. We therefore require all vendors to submit a W-9 when starting to sell with us. The store may at its discretion temporarily hold a payment until the W-9 is received. For any tax related questions, please consult your tax advisor, accountant, or the IRS directly.

DISPUTES:

It is inevitable that some sales will be disputed, or we simply make a mistake when calculating your sales. We will resolve these quickly and fairly. Disputes must be communicated within the first month immediately following the report.

ALLOWABLE SALE ITEMS:

You may present any variety of items, new or used, for consignment except as follows: No pornography, alcohol, weapons or ammunition, drugs or medicines, food without expiration dates, or re-packaged foods, drug paraphernalia, live animals, counterfeit or pirated items, flammable or hazardous liquids, stolen items, and any item requiring a special sales or handling permit, or prohibited by Federal, state or local law or ordinance. Candles and incense may be sold but not lit for display or demonstration.

Resale Services, LLC reserves the right to make any decision regarding the appropriateness of any and all items for sale in the store.

Booth Renters and Consignment:

Booth renters who sell merchandise outside of their Business Space ™ Booth Space agree to sell using the same terms as described here with a 25% commission. It is important to have approval for any consigned item, and all information in this Consignment Agreement applies to you and this merchandise.