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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 Scales

Split Guarantees

Multiple Commissions Per Seller

Edit Commissions on a Seller Settlement

 

Setting Seller Commissions                                                                      

  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. 
  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.

 

Commission by Selling Price

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  • 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: The commission percentage builds based on the hammer price of the lot. The rate is a cumulation of the current tier plus all lower tiers. For example, a hammer price of $2,500 will charge a commission of 15% (current tier) plus 20% (previous tier) for a total of 35%. 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

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  • 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

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  • 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

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  • 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

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  • 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.mceclip13.png

 

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 edited on the Seller Settlement for individual lots. This is recommended if there are just a few lots that need to be altered.

If there is a large number of lots that need a different commission rate, 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. 

 

Edit Commissions on the Seller Settlement                                             

Once commissions have been applied, they will appear on the Seller Settlement in blue. Commission percentages cannot be edited on the Seller Settlement, but totals can. To see the totals, click on the Columns button in the top right corner of the page and then click on the Comm Total 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 total. The value must be a dollar amount- a percentage cannot be entered in this way. The new value 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.

 

 

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