What should I look at in a ski shop’s consignment and trade-in program?

The first question is ownership. Consigned gear belongs to someone else until it sells, so it should not count as the shop’s stock. Ask for the list of consignors, the items they left and the agreement they signed. Check that the shop’s records match what is on the floor.

Next, look at money. Ask what the shop owes consignors from past sales and when it pays. Unpaid amounts are a liability that your accountant should review. For trade-ins, ask how credit is set, whether it is cash or store credit, and how outstanding credits are recorded. Credits are promises that the next owner may have to honour.

Then see whether the program works. Check how long items sit, how often they are marked down, and whether they bring new customers who then buy new gear. Ask who grades and prices used equipment, and what happens when a safety question arises about an old binding or helmet. A good program has simple rules and clean records. Ask for a sample of recent consigned items and trace each from intake to sale, to see whether the paperwork really matches how things happen at the counter.

Key takeaways

• Separate consigned gear from owned stock, and check that records match the floor.
• Ask what is owed to consignors and how trade-in credits are tracked.
• Look at how long used items sit and who grades and prices them.