Unlike BCSS, some consignment software is sold as a front for endless user fees and add-on fees after purchase. The initial payment ($695-$995) is highly promoted on website home pages but is only a fraction of payments over time.

Consignment Software Shopping Tips

If you were to buy a $600 stock or bond, you would be overly protected by a very watchful and powerful SEC and NASD. Every detail of the transaction including all costs, parties involved and especially potential risk of loss must be fully and accurately disclosed prior to purchase. If these things are not distinctly disclosed, someone may lose a job, pay (heavy) fines and go to jail.

When it comes to buying consignment software you could spend much more than $600 but no one is watching out for you.

Stock brokers are rigorously qualified by background investigation and tough examination. A software programmer on the other hand only needs a computer, an Internet connection and a 'company name'  to try his hand at selling software.

'One-Legged Software'

With the exception of BCSS and Liberty, consignment software is written, maintained, updated, supported, marketed by and dependent primarily if not solely upon one person (typically an individual operating from home). Some have day jobs with something to fall back on if the software thing doesn't work out.

Your risk? You pay $$$ for 'his' software. Like many before 'him', 'he' discovers there's far more to selling and supporting software than just writing the program and putting up 'his' website. 'He', your money and support for 'his' software disappear when 'he' steps into the ring and discovers that competition hits very hard.

Software Risks

It would be nice if the SEC and NASD were breathing down the necks of those soliciting software, but they aren't. Consequently, 10 things happen routinely in our industry which are outright acts of fraud (contrivances to manipulate for financial gain):

1) First and foremost, 'annual service fees' are a hoax. Vendors who provide reliable software and who maintain and improve the software with updates rarely hear from their users. Users should not have to pay $100-$300 per year 'just in case' they might need a question answered or a problem fixed.

Prior to purchase, unscrupulous vendors tout annual service fees as optional and updates as Free!. (Updates are bug fixes and minor improvements.) After purchase users discover 'arm twisting' - Service is denied and those 'free updates' are withheld if annual service fees aren't paid.

Users who think they will buy the software and never need something fixed are accustomed to using software from reputable software companies who don't play these underhanded games. Reputable companies fix known issues and issue free updates without holding service for ransom. Users who manage to avoid annual service fees eventually find out that there are big 'per incident' fees lying in wait when a problem does arise.

Any software company charging annual service fees, fees for additional services and excessive fees (like $300 per networking station) is practicing this form of price and customer manipulation. The revenue derived from the sale of their software is minor compared to add-on fees over time. (Read how one programmer forced users into paying 'optional' annual fees.)

2) Programmers attempt to hide their singularity with misrepresentations of themselves (like Wilson of Consignppro, operating from a Florida condo while claiming to be a CEO of a corporation with multiple offices in large cities with popular names). RJF Software stands for 'Ronald J. Funnel' who has a day job and sells consignment software part time.

3) Programmers hide the long-term cost of their software by failing to provide written full disclosure of all fees prior to purchase.

4) Programmers hide adverse policies in hard-to-find places disclosing on sub-sub web pages or in a disclaimers somewhere that the buyer is only renting the software (via a 'software license'), will not own the software and can't resell the software except under very unlikely circumstances. This is an important disadvantage which should be disclosed prior to purchase in an acknowledgment signed by the purchaser.

5) One programmer ('Bill Hawkins') disguises cost by including features for layaways, special promotions and buy outright in his demo (giving the impression that those features are included in the software) then disabling those features if/when his software is purchased. Sometime later users discover his contrivance. 'Bill' charges $180 to add the features back, so the advertised price of $395 on his home page is really $575.

6) Vendors prey upon busy start-up entrepreneurs. Example: There's lots to think about when first starting in business. Last on your mind might be, "How many more computers will I need 3 years from now?" If it's 5 computers, 5 additional copies of the software will cost $1,475 and annual service fees will skyrocket. Vendors who practice this scheme know exactly what they are doing and purposely avoid highlighting this important issue prior to purchase.

7) A new BCSS Diamond purchaser generates $595 in sales revenue for BCSS. There are no ongoing fees. Each new Consignpro customer is worth about $10,000 to Wilson (simply because of add-on fees). This certainly explains why bashing us is part of his sales pitch.

8) Programmers fail to mention the inherent risk of being subject to the whims of one individual. Wilson refused a customer service and required that she buy the program again (another $1,000) to continue service (for which she was paying extra) simply because she required more help than the average user. He bragged openly in a forum about 'firing customers' because they were more trouble than they were worth by his estimation:
(http://www.damn-ur-spam.com/tgtbt/tgtbt.htm).

9) Programmers try to exploit their users by heavily marking up products associated with the software (like hardware and website services) and comparing their marked-up prices to nonexistent 'List Prices' and to other providers with even higher prices.

10) While some vendors have been bringing price competition to the consignment software arena, providers like Liberty and Consignpro have been substantially increasing fees. Liberty users can now pay from $179 to $2,340 PER YEAR just for 'support'.

Protect Yourself

• NARTS membership is paid. There are no membership qualifications. Wilson at Consignpro claims that NARTS is a 'watchdog group' and membership 'assures professionalism'. NARTS director: "I do not know of any Industry Association that has the power to approve of marketing and operational methods of a member company." On the contrary, every 'industry association' not only has the authority but the obligation and responsibility to monitor and punish unethical members. NARTS does neither.
• Demand a written full disclosure of all potential fees and all 'special provisions' that haven't been otherwise brought to your attention. Don't buy the software if you don't get a written disclosure. Liberty and Consignpro should make it clear that you would not be purchasing their software but only paying for the right to use their software.
• Unethical programmers refuse to put things in writing because they know doing so will give you legal recourse against them when you discover they misrepresented themselves, their competitors and/or their products and policies. You would also be able to provide your credit-card company with proof that you had been swindled and could get a full refund of your purchase IF you have a written misrepresentation of the truth in hand.
• And lastly, note that in the 'Too Good To Be True Forum' the consignment software vendors with the highest prices (Liberty, Consignpro and 'Best Consignment Software' (a mimic of our name, Best Consignment Shop Sofware) are allowed to solicit unsuspecting newcomers without full disclosure of their price gouging. Kate Holmes and these providers conspire to exploit forum visitors.