Consignment Software Reviews

Important Questions Every Consignment Store Owner Should Ask

Before selecting consignment software, know the long-term consequences of choices. Here's an example of a critical question many store owners forget to ask:

What happens if annual service fees are not paid?

Possible answers include:

1. "There are no annual service fees." (This is the ideal answer!)
2. "Nothing happens. There's no penalty." (Not as good as no fees, but acceptable)
3. "Support requests are referred to a 'forum'." (A concerning answer that suggests limited support)
4. "Software updates are denied." (A major red flag! Some vendors actually do this)

With most software programs, the cost after purchase far exceeds the initial purchase. This is especially true of 'software as a service' - neverending monthly payments to 'rent' the software.

Is Web-Based (Cloud) Consignment Software Right For You?

Web-based consignment software is often marketed as the modern solution, but is it really the best choice for your business? There are two important considerations:

First, if remote access is your primary reason for considering cloud software, you should know that many desktop solutions now offer free remote capabilities without requiring endless monthly fees. Free remote access solutions can be paired with one-time purchase software to achieve the same functionality.

Second, cloud-based solutions typically involve ongoing monthly fees that never end. Over time, these subscription costs can far exceed what you would pay for a desktop solution with a one-time payment. For many small to medium consignment stores, the financial math simply doesn't favor cloud solutions.

Before committing to any web-based consignment software, carefully calculate the total cost over a 3-5 year period and compare it with desktop alternatives. Many store owners are surprised to discover how quickly cloud subscription fees accumulate into significant expenses.

What Does Consignment Software Really Cost?

The advertised price of consignment software rarely reflects the total cost of ownership. Many vendors display prices well below what you'll actually pay both upfront and over time. Here are some common hidden costs to watch for:

• Excessive hardware markups (often 30-50% above retail)
• Additional charges for cables and shipping
• Fees for services craftily excluded from "annual support"
• Hardware support fees ($100 after just 30 days)
• Training fees ($100/hour in some cases)
• Per-incident support fees ($45) if you opt out of annual plans

Some vendors use a "bait and switch" approach, advertising a low initial price like "$99 to start!" while hiding the true costs. Before purchasing, ask specifically about upgrade costs, additional station fees, user limits, and all potential future expenses. That attractive starting price is often just the tip of what I call the "priceberg."

For a comprehensive breakdown of true startup costs across different consignment software options, including both advertised and hidden expenses, see my detailed True Startup Costs comparison.

Annual Service Fees: The Hidden Profit Center

Annual service fees represent one of the most significant long-term costs of consignment software ownership. These fees typically range from $100 to $500 per year and often increase over time. What many store owners don't realize is that these fees can quickly exceed the original cost of the software.

More concerning is how some vendors enforce these fees. Common practices include:

• Denying critical software updates if annual fees aren't paid
• Charging "per-incident" fees ($45-100) for support if you don't pay annual fees
• Increasing annual fees for multiple computers
• Regular price increases without corresponding value improvements

The most customer-friendly consignment software options either have no annual fees at all or make them truly optional without penalties. Before purchasing any software, get clear written confirmation about what happens if you choose not to pay annual fees in the future.

Remember: software that costs $500 with $200 annual fees will cost you $1,500 over five years, while software that costs $800 with no annual fees saves you $500 over the same period.

Are Software Updates Free and Unconditional?

Software updates are essential for maintaining security, fixing bugs, and adding improvements. This seemingly minor detail can have major implications for your business over time. Before selecting consignment software, you must understand the vendor's update policy.

Many vendors use updates as leverage to force continued payment of annual fees. If you stop paying, you lose access to critical updates. This practice effectively transforms what was marketed as a "one-time purchase" into a subscription with a different name.

The best consignment software providers offer free, unconditional updates to all customers regardless of whether they pay for optional support services. This approach respects that you purchased the software rather than merely renting it.

When evaluating software, ask specifically: "If I choose not to pay annual support fees in the future, will I still receive all software updates?" Get the answer in writing to avoid unpleasant surprises later.

Do You Actually Own the Software and Can You Resell It?

Most consignment store owners assume they own the software they purchase, but this is often not the case. Most software is sold as a "user license" that only permits use of the software—you don't actually own it and cannot legally resell it.

This distinction becomes important if your business changes or closes. With true ownership, you could recover a portion of your investment by selling the software. With a non-transferable license, that investment is simply lost.

Some vendors create confusion by saying "Yes!" when asked if their software can be resold, while omitting mention of provisions that make resale practically impossible. These might include:

• Transfer fees that approach the cost of new software
• Requirements that the original owner facilitate the transfer
• Mandatory training purchases for the new owner

Before purchasing, ask specifically: "Can I resell this software if my business changes, and what are all the conditions and fees associated with transferring ownership?" The answer will reveal whether you're making an investment or simply an expense.

Hardware Considerations for Consignment Stores

Hardware costs represent a significant portion of your initial investment in a consignment system. Many software vendors also sell hardware, often at substantial markups compared to retail prices. Understanding your options can save you hundreds or even thousands of dollars.

Common areas where consignment software vendors inflate costs include:

• Computer hardware (often 30-50% above retail prices)
• Barcode scanners and receipt printers (markups of 100% are not uncommon)
• Cables and accessories (often treated as high-margin add-ons)
• Shipping charges (particularly excessive for Canadian customers)
• Installation and setup fees (for hardware that's designed to be plug-and-play)

The best approach is to purchase software from vendors who provide detailed hardware specifications but don't pressure you to buy hardware from them. This allows you to shop for the best prices from reputable retailers who offer better warranties and return policies than most software vendors can provide.

For specific hardware recommendations and typical price ranges for consignment store equipment, see my detailed Hardware for Consignment Stores guide.

Credit Card Processing Considerations

Many consignment software vendors promote "integrated" credit card processing as a convenience feature. However, this integration often comes with significant downsides that aren't immediately obvious:

First, processing rates through software-integrated solutions are typically higher than what you could negotiate independently. This is partly because software vendors receive kickbacks (often called "referral fees") on every transaction you process—a fact that many vendors don't disclose.

Second, integrated processing creates vendor lock-in. If you later want to change payment processors to get better rates, you may find yourself unable to do so without changing your entire software system—an expensive and disruptive prospect.

Third, integrated processing raises PCI compliance questions. Does the software store customer card information? How is that data secured? Many vendors can't provide clear answers to these critical security questions.

The best approach is to select consignment software that allows you to use any payment processor you choose. This preserves your flexibility to negotiate better rates and change processors if needed, while also creating a clear separation between your software and payment processing for better security.

Understanding Who's Behind the Software

Most consignment software programs have been developed by and remain largely dependent upon a single person, despite marketing that suggests otherwise. It's common to see websites, toll-free numbers, and company names presented in first-person plural ("We")—all designed to create the impression of a substantial organization.

In reality, the longevity of many consignment software products depends entirely on one individual. Over the past decade, at least half a dozen such developers have disappeared from the market, leaving their customers without support or updates and forcing them to purchase and learn new systems.

Before investing in consignment software, research the company thoroughly. Look for evidence of multiple team members, a physical business address (not just a P.O. box), and a substantial history in the industry. These factors don't guarantee longevity, but they reduce the risk of your software becoming orphaned if a single developer moves on.

The most stable options tend to be either well-established companies with multiple employees or newer companies with transparent ownership structures and succession plans.

Evaluating Software Support Quality

The quality and cost of technical support can significantly impact your experience with consignment software. You can learn a lot about a vendor by examining who they are associated with and who they refer you to for services outside their direct scope.

A software vendor with reasonable prices who refers you to free and fairly-priced services is demonstrating that they prioritize your business success. Conversely, a vendor with high prices and annual fees who refers you to associates charging $100/hour for basic services is clearly not acting in your best interest.

One revealing example is a software vendor charging $1,300+ for their program while promoting a "computer specialist" who charges $100/hour for technical help—double the standard industry rate of $50/hour.

The irony is that paying premium prices rarely gets you better software or superior service. It's simply money lost to marketing hype and inflated profit margins. Even more concerning, many of the highest-priced options aren't actually developed by companies at all, but by individuals looking to maximize profits from the consignment community.

Before purchasing, ask for references from current customers and inquire specifically about support experiences and any additional costs they've encountered beyond the initial purchase.

My Recommendations Based on Experience

After years of experience in the consignment industry and extensive research into available software options, I've found that the best approach for most new store owners is to start with a low-cost program that covers essential features. This strategy minimizes your initial investment and learning curve while allowing you to upgrade as your needs and store profits grow.

Based on my experience and the experiences of hundreds of store owners I've advised, here are the key factors that should guide your decision:

• Prioritize software with no annual fees or truly optional support plans
• Choose vendors who provide free, unconditional updates to all customers
• Avoid integrated payment processing that locks you into specific providers
• Purchase hardware from retail sources with strong warranties and support
• Select software from established companies with transparent business practices

Quality consignment software is available for as little as $400 with free support. Hardware can be purchased at reasonable costs with full 2-5 year warranties, free shipping, and free technical assistance. Professional computer services are readily available for well under $100/hour.

Software priced at $1,000+ with annual support fees and numerous add-on charges rarely provides proportional additional value. In most cases, you're simply paying for marketing and inflated profit margins rather than superior functionality.

Test Your Consignment Software Knowledge

How much do you know about consignment software? Take my Consignment Software Awareness Quiz to test your knowledge and identify areas where you might need more information before making a purchase decision.

This quiz covers key considerations including pricing structures, hidden fees, ownership rights, and support policies. It's designed to help you recognize potential pitfalls and ask the right questions when evaluating software options.

After reviewing the information on this site, take the quiz again to measure how much your understanding has improved. Being well-informed is your best protection against making a costly software decision.

Questions or Need Personalized Advice?

If you have specific questions about consignment software or would like personalized recommendations based on your store's unique needs, I'm happy to help. As a store owner myself, I understand the challenges you're facing and can provide practical, experience-based guidance.

Contact me directly at:

Email: mischelle@consignment-software-reviews.com
Phone: 606-789-1661

I'm committed to helping fellow consignment store owners make informed decisions that support their long-term business success.