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Seller Commissions

This article describes the process for setting up seller commissions at the company and auction level, as well as the process for creating commission scales and split guarantees. For commissions for Sales Managers, see Sales Manager Commissions

Setting Seller Commissions

Commission Options

Commission Scales

Split Guarantees

Multiple Commissions Per Seller

Assign Commission to Lots

Edit Commissions on a Seller Settlement

 

Setting Seller Commissions                                                                      

Commission rates can be applied to sellers at the auction level or the company level. Commissions must be set for each seller individually. There is not a way to set commissions for multiple sellers at a time. Commissions can, however, be applied to lots in bulk.

Auction Level

Sellers must be checked-in to the auction before the commission can be applied at the auction level. Commissions can be set during check-in. Follow the steps below to add/edit commissions to a seller that has already been checked-in to an auction.

  1. Navigate to applicable auction from the Dashboard, then select Accounting > Sellers.
  2. Click on the seller needing commissions.
  3. Click on the Edit Contract link located under the Seller Number at the top of the Seller Settlement. EditContract1.jpg
  4. Under the Commissions tab, select the commission options for the seller. See below for the additional information on the various commission fields.
  5. Click on the Disk icon in the top right corner of the page to Save. Only one commission rate can be applied to a seller code. If multiple commissions are needed, see Multiple Commissions Per Seller.

 

Company Level

  1. Navigate to My Links > Company > Customers > Create/Edit.
  2. Create a new seller, or enter the seller's name into the Find Customer field and select the seller from the Search Results list.
  3. Click on the Seller Commissions tab at the bottom of the page.
  4. Select the commission options for the seller. See below for the additional information on the various commission fields.
  5. Click the Save button in the top right corner of the page.
  6. Navigate to the applicable auction from the Dashboard, then select Auctions > Sellers to check-in the seller. Commissions set at the company level will automatically be applied to any auction the seller is checked-in to.

If changes are made to the seller's commission rates at the company level after the seller has been checked-in to an auction, the updated commission rates will need to be updated at the auction level. If the seller in question has not been assigned a permanent seller number, this will need to be done manually.

If the seller in question has been assigned a permanent seller number, this can be done by navigating to the applicable auction from the Dashboard, then selecting Accounting > Sellers. Enter the seller's name into the Find Customer field and then select the seller from the Search Results list. Click the Refresh icon in the top right corner of the page to pull the seller's company level commissions into the auction. A pop-up will appear confirming the seller has been updated. Click the Ok button to continue. 

UpdateContract1.jpg

The process of pulling updated commissions rates from the company level to the auction level can also be done in bulk, which refreshes all of the Permanent Seller commission rates for all the Permanent Sellers checked into the auction. To do so, leave the Find Customer field blank and then click the Refresh icon in the top right corner of the page. A pop-up will appear listing all of the sellers that have been updated. Click the Ok button to continue.

UpdateContract2.jpg

If one of the sellers' commissions did not update, navigate to the Permanent Seller's record (My Links > Company > Customers > Permanent Sellers) and click the Save button. Even if the contract is correct and unchanged, the Save button needs to be clicked. Doing so should update their Permanent Seller contracts in existing auctions and ensure that the Refresh button will work as intended for that seller.

 

Commission Options                                                                                

Commission by Selling Price

SellerCommissions5.JPG

  • No Commission: If a percentage commission is not being applied.
  • Fixed Percent Per Lot: Fixed percentage charged on the hammer price of each lot sold.
  • Sliding Scale Per Lot: The commission percentage changes based on the hammer price on the lot. For example, a hammer price of $2,500 will charge a commission of 15%. A scale will need to be created and selected from the drop-down.                                                 CommissionScaleExample.PNG
  • Cumulative Sliding Scale Per Lot: Cumulative Sliding Scale fees work similar to Sliding Scale fees, except that each lot may be charged more than one percentage, depending on the lot's hammer price. For example, using the scale below, a lot with a hammer price of $2,500 will charge a commission of 20% on the first $1,000 (which would be $200) plus 15% for the remaining hammer price (15% of $1,500= $225). This would bring total commission to $425. A scale will need to be created and selected from the drop-down.                                              CommissionScaleExample.PNG
  • Sliding Scale Seller Auction Total: Functions the same as Sliding Scale Per Lot, except that the commission percentage changes based on the hammer price of all lots sold in the auction. A scale will need to be created and selected from the drop-down.          

                          

Flat Commissions

SellerCommissions3.JPG

  • No Commission: If a flat commission amount is not being applied.
  • Flat Commission Per Lot: A dollar amount that is charged per lot sold.
  • Flat Commission Per Auction: A dollar amount that is charged for the overall auction.

 

Min and Max Per Lot Commissions

SellerCommissions4.JPG

  • Minimum Per Lot: A minimum dollar amount to be charged for commission for the auction.
  • Maximum Per Lot: A maximum dollar amount to be charged for commission for the auction.

These fields can be used in tandem with the Commission Per Selling Price and/or Flat Commissions fields.

 

Reserves

SellerCommissions1.JPG

  • No Charge for Reserves: If a fee is not being charged for lots with a reserve price.
  • Charge Per Reserve (always charge): A flat dollar amount being charged to all lots with a reserve price.
  • Charge Per Reserve (no sale): A flat dollar amount being charged to lots with a reserve price that do not sell (pass) in the auction.
  • Percent of Reserve Amount (always charge): A percentage of the hammer price being charged to all lots with a reserve price.
  • Percent of Reserve Amount (no sale): A percentage of the hammer price being charged to lots with a reserve price that do not sell (pass) in the auction.
  • Percent of Last Bid: A percentage of the highest bid received for a lot with a reserve price if the reserve price was not met.

 

No Sale

SellerCommissions2.JPG

  • No Charge for No Sale Lots: If a fee is not being charged for lots that do not sell.
  • Charge Per Lot: A flat dollar amount being charged for every lot that does not sell (pass) in the auction.
  • Percent of Starting Amount: A percentage of the Starting Bid that is charged for every lot that does not sell (pass) in the auction.

 

Commission Scales                                                                                   

Create/Edit Commission Scale

  1. To create a commission scale, navigate to My Links > Company > Accounting Settings > Scales - Commission and click the Create New Scale button.
    • To edit an existing scale, select it from the Choose a scale to work with drop-down.
  2. Enter a Name and Description for the commission scale.
  3. Enter the commission percentage in the % field. See below for information on Split Guarantees.
  4. Enter maximum dollar amount in the Up To ($) field.
  5. Enter the minimum dollar amount in the Minimum ($) field.
  6. To add another line to the scale, click the Add link and complete the fields for the additional line.
    • Click the X to the right of a line to delete it.
  7. Click the Save button.

 

Apply a Scale to a Seller

  1. To apply a scale to a particular seller, navigate to applicable auction from the Dashboard, then select Accounting > Sellers.
  2. Click on the applicable seller.
  3. Click on the Edit Contract link located under the Seller Number at the top of the Seller Settlement. 
  4. Under the Commissions tab, select one of the three radio buttons to apply a scale. See Creating Seller Commissions for more information about each option.
  5. Use the drop-down to select the desired scale. Click the Show link to the right of the drop-down to view it.                                                                                  SellerCommissionScale.PNG
  6. Click the Disk icon in the top right corner of the page to Save.

 

Split Guarantees                                                                                       

With a Split Guarantee, the auction company guarantees that they will pay the seller a certain amount (before or after an auction) and anything owed to the seller over that guarantee amount is split between the auction company and the seller. Wavebid provides users with the option to use a commission scale to create a Split Guarantee. However, If the guarantee isn't met, the seller commission will need to be manually adjusted.

A Split Guarantee is created and applied to sellers the same way as any other commission scale described above.

 

When entering a Split Guarantee commission scale, the Minimum ($) field should be left blank. An example of a Split Guarantee would be 0% commission up to $100 (guarantee amount), then 50% commission up to $999999999999.                                                   SplitGuarantee.PNG

 

Manually Changing a Split Guarantee   

If the Split Guarantee price isn't reached during the sale, the seller's information will need to be manually updated.

  1. Navigate to the appropriate auction from the Dashboard, then select Accounting > Sellers.
  2. Click on the applicable seller to open the Seller Settlement.mceclip12.png
  3. Scroll down and click the Add Credit link to balance out the remaining amount up to the guarantee amount. For additional information on adding credits, see Seller Settlements. AddCredit1.jpg

 

Multiple Commissions Per Seller                                                              

Wavebid will only allow one commission rate to be applied to each Seller Code. If a seller needs to have multiple commission rates, the commission can be applied to the lot(s) directly, or edited on the Seller Settlement for individual lots. 

If multiple Seller Settlements with different commission rates are desired, the seller can be assigned multiple Seller Codes. Each Seller Code can then be given its own commission rate. The appropriate Seller Codes can then be assigned to lots as needed.

For example, Bob Customer is a seller/consignor and his firearm lots should have a 40% commission rate and his ammunition should have a 20% commission rate. Bob can be checked in to the sale twice, once with Seller Code 25 with a 40% commission, and once with Seller Code 26 with a 20% commission. When cataloging, Seller Code 25 should be entered on the firearm lots, while Seller Code 26 should be entered on the ammunitions lots. When checking the seller in the second time, the seller's name must be entered differently than the first time. For example, Bob can be entered as 'Bob Customer' the first time and 'B. Customer' the second time. At the end of the sale, Bob will receive two Seller Settlements, one for Bob Customer with Seller Code 25 and one for B. Customer with Seller Code 26.

Adding multiple Seller Codes to the same seller check-in page will not allow for multiple commission rates. The seller must be checked-in twice. 

 

Assign Commission to Lots                                                                      

The commission attribute will first need to be turned on in order to assign commission at the lot level.

  1. Navigate to the applicable auction from the Dashboard, then select Auction > Edit Settings.
  2. Check the box to the right of the Commission option under the Auction Attributes list. CommissionLot2.jpg
  3. Click the Disk icon in the top right corner of the page to save.
  4. A Commission % field will now be visible in Lot Builder under the Lot Details tab at the bottom of the page. This field can be used to apply commission to each lot. The commission must be entered as a percentage. To add commissions to lots in bulk, use the Lot Bulk Actions page.  CommissionLot.jpg
  5. If the value entered into the Commission % field differs from the rate on the seller's contract, the commission will appear with two asterisks (**) on the Seller Settlement as a way to indicate that it has been altered.

If a commission if not entered into the Commission % field, the lot will use the commission in the assigned seller's contract.

 

Edit Commissions on the Seller Settlement                                             

Once commissions have been applied, they will appear on the Seller Settlement in blue. The Comm % and Comm About By % columns cannot be edited on the Seller Settlement, but the flat rate and total can. To view either of these columns, click on the Columns button in the top right corner of the page and then click on the Comm Total or Comm Flat header so that it is white. Columns in white will appear on the Seller Settlement, while those in blue will not.

Click on any blue value and enter a new commission amount. When editing the Comm Flat column, the value must be a dollar amount- a percentage cannot be entered in this way. When editing the Comm Total column, the value must be a percentage. The new value entered will override the original amount. If a commission has been manually altered it will appear with two asterisks (**) on the Seller Settlement. To revert a commission back to the default, click on the blue value, leave all fields blank, and click the Ok button. For more information, see Seller Settlements.

AlteredCommissions.jpg

 

 

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