After all these years, I didn’t think there was anything new to learn about
resale. But my volunteer job at a consignment-only, not-for-profit shop has proved me wrong!
You’ve heard me preach forever about the disadvantages of item limits on incoming. It’s inconvenient for the consignor, she selects the wrong things to bring, the best consignors won’t put up with it, and so on.
Well, here’s another reason to NOT have item limits:
It messes up YOUR head.
The shop where I’m working has a 20 item limit. Canny consignors bring in 25 or 30 things. So what did I find myself doing? Choosing the 20 “best” items from those offered. After all, the consignor interprets the 20-item limit as I am entitled to bring in 20 items. . . and so, kinda, did I.
Even if that meant I was accepting things I wouldn’t accept if there was no limit. Without limits, I’d choose the 2 or 12 or 22 best. I’d choose what would sell and not accept the things that wouldn’t.
But no, I was taking 20 from each consignor, even if the last few were not things I really thought I should. And I was forced to reject some mighty fine stuff once I had gotten to #20 with the folks who offered the 25 or 30 really good things.
By thinking “20 item limit” and mentally turning that into “20 from each person, regardless of quality”, the “bad” were driving out the good!
Is that any way to run a consignment shop?
This article was originally run on TGtbT.com, and is reprinted here because it is more important than ever to operate any retail business with care and thoughtfulness.
Auntie Kate The Resale Expert 
Never limit!
Our average consignment ends up being 20-30 items but that’s after we go through all they would like to bring in. A lot of work when they bring hundreds of items but you end up with a store full of only the best! In the end it’s worth it!
As a furniture consignment shop we have never limited the number of items our consignors present. We also take consignments during regular business hours. My idea has always been, if they clean it out and want to clear it out, I want first dibbs. It work for us.
I will admit that during the summer season, there are days I wonder just how crazy I really am. Especially when I am making my thru the path that becomes our back room. But it’s Christmas everyday at Home Enhanced and my customers love the new influx of items.
[…] Kate Learns Something New […]
[…] Kate learns something new. […]
[…] How your consignment rules can mess with your head […]
[…] It’s fair, that is, NICE, to limit the number of incoming items so that everyone who wants to be a consignor gets an equal chance. Oops. Turns out that could be an excellent way to go bankrupt, as I discuss here. […]
[…] business are in the Manual, so I won’t repeat them here. But there’s another reason: Read about having numerical limits messes with YOUR head. And we all know the last thing we need during busy times is one more brain […]
I have people asking is that your best price on things
Does anyone else have that trouble? What do you say?
Interesting thread. I tend to agree with Danni about limiting the number of items. I think what we all have to understand is that each shop’s circumstances are different. For example, if you have a smaller shop with a lot of consignors there’s probably no way you could allow unlimited consignments, especially if you have a “no appointment” policy.
I changed to a 30 item limit last year and it’s proven to be a good decision. I never had a consignor complain about it and the quality of consignments has not declined.
I remember when we had a “no limit” policy and it seemed that the quality of consignments was actually poorer. I think this was because the consignors gave little or no thought to what they were bringing in. This just threw everything in the car and hoped I would take. With a 30 item limit, they’re now more selective about what they bring in and as a result the quality of consignments improve. This also makes for a happier consignor because I end up taking a larger percentage of what they bring in.
Anyway, my two cents…
Different strokes I guess. But in our smaller store we don’t limit # of items and I think we’re pretty efficient and selective as well. We had to develop a system of course, and train the staff.
We have a large bunch of consignors that drive an hour out from ‘the city’ (where there are tons of other shops like ours), about 4 times a year. Like many consignors, they clean and clear out all at once. They want to get rid of it all at once – they want it out of their closets and house. These people bring all the designer label stuff our customers love and the increasing number of shops b & m and online are all scrabbling.
Why do they (or their housekeeper or husband) drive an hour through heavy traffic? Because we don’t require an appointment and we don’t limit the number of things they can bring.
These consignors, before finding us, were forced to take 25 things one place and 50 things another place etc. It’s not uncommon to hear new consignors say they gave up doing that and just donated their stuff somewhere (or gave it to the housekeeper to deal with) – until they found us. Now I get ALL their stuff and I love it. And, they are the easiest consignors – don’t want their stuff back if it, for some reason, doesn’t sell – and aren’t hard to deal with. Even better – they keep spreading the word about our stores.
As ‘competition’ for quality used stuff grows with more and more people opening stores and online sites; and, given all the myriad ways these days for people to sell their stuff themselves – we strive to do everything we can to make consigning with US as easy and profitable as possible and keep ’em coming back.
After careful testing, we decided to limit consignors to 25 items. In the past when we had no limit, we would often get overwhelmed with consignments and it did nothing but hurt our relationship with both consignors and customers.
We’re a small shop and do not have the room to handle more than 25 items, especially since we don’t require appointments (our consignors love this). Now our store is neater, more organized and more EFFICIENT which means better customer service and increased margins!
No way we’ll go back to no limit. I just can’t imagine allowing unlimited items. BTW, we’ve actually seen an increase in the quality of consignments and as a result we’re seeing improved sales even in this lousy economy!
Isn’t it wonderful that we all get to run our own businesses our own way? I am glad you’re comfortable with your decision.
[…] how I found yet another reason not to numerically limit incoming goods when I was forced to follow a rule that makes no sense. […]
I agree with Elizabeth. My motto is: One article of “junk” (not the exact word I use) breeds 10 more, those ten breed 100 more, and so forth. Before long, all you have room for is “junk”.
I have a small consignmenst store and I do limit the amount of items to 75 per consignor. I have written in my agreement the types of items I will accept and if I do not believe one of their 75 fit the profile it is tossed or donated. They have already agreed to this and I have never had a problem. I will occasionally label an item “vintage” if it is outdated but in excellant condition.
excellent points, elizabeth. thanks!
That would be a big mistake to ever start something like like with your consignors. If you don’t let them know that you are the one who runs the show right from the start, they will be the ones deciding what you take and don’t take. You can still have good relationships with your consignors without having to accept every item they think is great.
Why would you want something in your store if you really believe it wouldn’t sell or if it were outdated? Here’s the problem with that…
You have some out of style coat hanging in your store that you are doing the 30 day test on. A potential consignor comes into to your store to browse around and get ideas for items she could consign. She sees that old coat and thinks well I have one just like that and she brings her old coat in too. Then you have 2 old coats. Get where this is going? You couldn’t tell her no because she sees that you already are selling one like that. It would be a never-ending cycle.
It’s ok to tell them no. If your nice and don’t seem snobby about it, they won’t take offense to it.
i wasn’t thinking of totally irrational and disrespective consignors, or items that were grossly unacceptable (stained, worn, broken, etc). that i wouldn’t tolerate of course. i was thinking more of nice-enough consignors who brought mostly good stuff with the exception of a couple things that were out of style for example; not everything someone wanted to sell for free at 100%. 😉
i would only offer this option once per new consignor. if an “iffy” item is consignor-priced at 100% and doesn’t sell as i advised, it would be a lesson learned for the consignor. if it DOES sell, lesson learned for ME. i’m afraid suggesting a ridiculously low price as a compromise would be insulting.
maybe i’m just overcomplicating things or trying to be too nice. if so, i grant permission for a scolding. bring it, auntie kate! 😀
i’m just really concerned about the best possible service and relationships. it’s so rare these days……
Sandy’s warm. If the store gets the item free if it doesn’t sell in x days (90 or 120 to be sporting?), she’s on to a gaming element that could be fun. More seriously, the bet sounds like a tool one could use occasionally to make a point.
Perhaps I am misunderstanding your idea:
If a consignor is totally irrational and disrespective of your business decision, you will invite her to have, rent and commission free, retail space at your expense? Space which therefore will not be making you money, space that contains something you think your clientele wouldn’t want, that would besmirch your business’s reputation?
Where do I sign up to put everything I want to sell in your shop, at my price, free, whenever I want, and reap 100% of the selling price? 😉
Now, I am probably reading your suggestion wrong, but here’s what I would recommend, if you were on my site, http://www.tgtbt.com , Too Good to be Threw:
If she’s being irrational and you cannot seem to get out of a “I believe this isn’t something I have the customer for” situation, you COULD say, “Well, I’ll be happy to try it at $X”…$X being a ridiculously low price….”but wouldn’t you rather give it to a friend/ take it to a charity and get the tax write-off, instead?”
i have an idea about the sticky situation of refusing items for consignment. i’d love to hear what everyone thinks!
what about this…..if a consignor seems especially adamant that you accept something you’re certain won’t sell, why not let them price the item themselves with the agreement that if it sells within 30 days, they get 100% of the price, and if it DOESN’T sell in 30 days, they either have to take it back or allow it to be donated. that way, the item only stays in the store for a short time, and the consignor gets the “chance” they want.
yay or nay?