I have Shopify Pro for my brick and mortar store. I am renting space within my store to another vendor, sort of a store within a store. We will be running that vendor’s products through my Shopify register and will get 10% of her sales to offset accounting fees. I’m not sure how to organize this arrangement in the Shopify POS system. I’m concerned if I put COGS at 90% of the price, my profit margin for the business will look really bad, even though gross sales should go up and expenses go down because I’m getting “sublease” income. I can’t find any way to separate her sales from mine using a Gross Sales report. I thought maybe I could treat her business as consignment, but the margin on consignment is usually much better than 10%, so I’ll still look like a disaster to an accountant. Or, maybe I could treat her area as another location? But it looks like the products would have to be “transferred” from location to location at check-out? Will that be too slow and cumbersome for the register? Any ideas how I can keep the two businesses separate, at least reporting wise, so I can manage my business separately.
Hi Linde,
You can use the “Product Vendor” to separate the stocks between both of you. That way when you pull your daily report, you can then filter by vendor to get the figures for the stocks on both sides.
Whereas the other option like you have mentioned would be the Location method. It shouldn’t hold you back because stock transfer should have already happened during the start of the day, or end of the day. Thought be warned that since this is a “different” location, you might have to use POS lite for it.
The first option would be the most ideal, in my opinion.