Recently some consignment, buy-outright, and thrift shop owners and managers have been debating about
how shops are run.
If a consignment shop is left with unsold, un-reclaimed goods, what should be done with these?
If a buy-outright shop pays low prices for goods offered them and then turns around and uses a markup higher than the seller thinks fair, what is going on?
If a donations-only thrift has merchandise they sell at thrift-store prices to a consignment or BOR shopkeeper, knowing it will be resold for a profit in that shop, what should be done here?
Tell us your thoughts about any or all of these situations.
The gorgeous watercolor painting is “Conversation”, by Carolyn Latanision, from copleysociety.org
I am a consignment store owner. I have a printed signed agreement with my consignors. It states, among other things, the length of consignment (90 days) and a 10 day grace period to pick up their unsold items. It states clearly that the items will forfeit to the store on the 11th day if we do not hear from them prior to that. We will find their unsold items for them and wrap them if they call a day or 2 ahead of their arrival to pick them up. I also tell them that if I take the trouble to do that and they don’t show up to get the unsold items we will donate them to a local charity in 2 days. I give them a website address, email address, store address, a store phone number, a fax number, and consignor website to keep track of their items.
I make all the details point clear and re-interate that this is a consignment store. 85 to 95% of my inventory turns over in those 90 days. I do not have room to store their stuff indefinitely. The storage business is across the street. It sounds harsh but it’s business just like any other business, but not really. It’s hard to enter into a contract with people who won’t read the contract and then have the wrong expectations. I tell consignors straight out, “I will do my best to display and sell your items but you need to keep track of them.” You can’t be wishy washy. Don’t let your customers run your store. Make the rules and then follow them yourself. IMHO ; )
I have a thrift store that brings me their western wear and I consign it under their name. I can make them more money selling it than they can selling it themselves. They make thousands of dollars a year consigning with me. In return, I send them all my donates. (It helps that they pick up the donates :).)
Thanks Kathy, I totally agree that a thrift selling goods at the price they set, to anyone, including a person who will resell it, is perfectly legit, as you say.
In fact, I will go you one “better”…in a manner of speaking! I think there are thrift shop managers/ administrators who do their employing charity a GREAT economic and moral DISSERVICE by not actively cultivating their relationships with these professional pickers. If the thrift manager knows that For-profit Phil will buy every pair of designer jeans or couture items immediately, why would they NOT let him know they have some to sell? Why, there are even thrift shops who subtly or blatantly DISCOURAGE the sale of the goods they have valuated to such resellers.
And, tit for tat. If Phil is being kept abreast of incoming goods at the thrift, he owes them a debt of gratitude, which can be paid in many ways…even ABOVE and BEYOND showing up quickly to purchase such goods, paying cheerfully, and acting kindly. I don’t think it would be too much to expect that Phil do everything in his power to advance the charity’s mission, whatever it is.
I believe if a donations only Thrift Store wishes to sell goods to a consignment store, it is perfectly legit. Those who donated to the charity operating the store were no doubt hoping to make a difference for the non-profit organization by donating. That store will still earn profit on the goods if they sell the overage to another source. It will then be helping the original charity.
The consignment stores who donate the unclaimed or unsold goods to a local charity Thrift Store are greatly appreciated and this allows the product to continue to help someone in need. I would think a consignment customer would enjoy knowing this is the practice, and that if they cannot make money on their unwanted items, someone in need can get some good from it.
Kathy
Regarding BOR, if a seller think a price is unfair then they should not sell their items. For childrens resale this is much more information than they get up front than from a consignment store.
What the sellers don’t see are the items that we took by mistake with the hole or the item that we paid $5 for and sold for $1. They don’t see the storage area where we put out of season items that we buy every day. They also don’t see the 20 people behind them selling the same things. Supply and demand.
In the end I try to make people feel comfortable that it is only an offer. There are always going to people who feel ripped off and generally speaking it is about them, not me or my business model.
Thanks, Wendy, I totally agree. But there is a cultural norm, alas, that we need to address: women (the majority of sellers in any pass-it-on scenario) have been raised to BE AGREEABLE even when they have doubts. Because many women will say “yes” to an offer and then later feel taken advantage of, I think it’s a necessity for any BOR shop to preface their offer, every everlovin’ time, with something like
“Now, I am going to tell you how much I can pay you for this batch, but please remember, you are welcome to refuse my offer. You won’t embarrass or annoy me. It’s your stuff. Will you accept $X for this batch?”
That way, you are pointing out to them that it is THEIR decision.
Doesn’t solve all problems, of course, but it helps!
I own a consignment shop. I have been in business for over 12 years and I too have the same problems where people want their items returned to them. They sign a contract telling them they have 1 week after their time is up to come and get their items. And out of 3,500 consignors only about 100 want their items returned and perhaps 10 actually come to get their items.. I had a lady one time tell me not to donate her items she would return for them, we called her several times and she always missed her appts. Finally after a few weeks she stopped in and actually told me to donate the items.. I was furious ! I have a closet full of items that were never picked up..
I have decided that this year will be different. I am no longer taking any consignments that want their items returned. Its too much work.. If you have 3,000 + consignors that is 3,000+ attics and basements. And if they wanted their items, they would still be in their attics and basements taking up space… As far as selling what isn’t picked up I agree we should be able to do so.. I have yard sales and benefit sales and I take the stuff that isn’t picked up to these sales. After all I have to still pay rent, and pay employees..In my contracts, I have it that if the items aren’t retrieved in a week they are mine to do with as I please. I know shops that do this with the money that is owed to people as well. I have people that are supposed to come back to pick up their checks and never show up. I donate that money and send them the receipt.
Former shop owner (buy outright) …
I made an offer, they either accepted or didn’t … their choice. They got paid immediately and were on their way. What I then did with the items was up to me. What I paid was a %age of what I felt I’d be able to sell the item for (not everyone does it that way, but it worked for me).
I take my kids stuff to a buy outright store. I prefer that for many reasons … I get paid asap, I know what they are taking and aren’t taking, and there’s no waiting and wondering to see what will or won’t sell.
ALSO … I’ve taken things to a consignment shop. I have no idea what she accepted, she donated the things she wouldn’t accept, unsolds were donated, I checked in a few times and only a few items had sold, after a while your balance was zeroed out if you didn’t pick your money up … I had to take the shopowners word for all of this (no, no contract, no paperwork of any type … I wasn’t attached to the items I took in so it was fine, but I wouldn’t do it again if I were actually hoping to get some $ .. just didn’t feel professional and I have no way of knowing, or even guessing, if she was being legit).
Hi, I know from experience that BOR, and Consigning both have advantages and disadvantages. But to do either, is a personal choice. I had a consignment shop in california during the seventies. I bought outright and never had a problem with the price that I was willing to pay for an item. I offered my best price, and it was usually accepted. I also bought from thrift and second hand stores always with a discriminating eye. You really cannot afford to buy retail, so you must by off-price or thrift. As for my customers, I always price fairly and never had a problem.
I did, however, have a problem with clients returning to pick up unsold items. Everyone who responded is right, you have overhead must be paid, regardless of if you can sell a client’s items. I think a shopkeeper has the right to dispose of the items anyway they wish, and if they can make a few dollars with a $dollar bin, so be it. Thanks
Speaking as a BOR shop owner, the market is based on supply and demand as well as buy low / sell high principles. I purchase items from my suppliers at a price that I consider fair with those principles in mind. I then assume the risk that those items may not sell at my full price or even at all. My suppliers sometimes have a price in mind that they expect to receive. The majority do not really care, they just want a little something for it rather than donating. I present them with a fair and reasonable offer and remind them that it is just that, my offer and they are under no obligation to sell to me. Some refuse…most do not. But they have a choice and it is not forced. What is the difference between what I do and a used car lot does? We are here to make a profit right? Otherwise we would be a non-profit business.
Before going BOR, I did consignment. In the beginning I had the same fears you are speaking of. I was afraid to do ANYTHING with those consigned items! Afterall they were not mine…even though my contract said they were after 60 days. Well, let me say after several months and SEVERAL boxes and garment bags full of clothing and other items waiting to be returned and no one EVER coming to pick up I realized Kate was once again right! Why do I waste MY time and efforts to pack everything up when no one comes to claim?? I began leaving those items on the sales floor to sell for a few extra weeks. I could then at least recoup some money that went towards payroll and supplies that was used to present those items for sale. Every consignor was handed a copy of the contract as well as a receipt which had the contract end date noting it was their responsibility to pick up by said date. In 5 years of consignment I had 3—THREE people who would ALWAYS pick up their unsolds! 5000+ consignors and only 3 faithfully picked up!
As far as a donation only thrift shop, I shop my area thrifts quite often for my stock. Reason #1, their goal is to turn their donated stock into cash for their charity or organization. They also price accordingly based on supply and demand as well as liquidating as much stock into cash as quickly as possible. Reason #2 the majority of my customers are not “thrift” shoppers. They find great items in my shop that they would have never found at the thrift. I am providing great items for MY customers while supporting the thrifts in my area.
Sorry for the long comment but felt the need to explain 😉
Tracy@MBFC
People who are consigning, or selling their items to a buy outright store, or donating their items want them out of their house. They are items that are usually no longer needed or wanted. Here’s my take on the 3 situations listed:
Consigning–if a person wishes to reclaim their items, they should do so. If the person does not reclaim their items, then I feel it should be a shopkeeper’s option to try to make some kind of sale out of them to recoup the cost of consiging that item. You (the reader) may feel there is no cost since it is a consignment store–but indeed there is–the cost of the labor to look at the item, to enter the item into the system, to tag it, to put it on a hanger or out on the salesfloor, etc. Employees must be paid whether or not an item sells. Rent must be paid, lights must be paid for so you can see while you shop in the store, etc. So I feel that if the shopkeeper wishes to keep trying to sell something, that’s fine. If a consignor really doesn’t want the shopkeeper to keep it, then they need to reclaim it–that’s their part of the deal. I also feel that if the shopkeeper does keep the item on the floor, even if the consignor comes in late to pick it up, the item must be returned to the original consignor.
Buy Outright–The seller should look around a shop before selling their items. Get to know the pricing of the place. If you feel you are offered too low a price, then you have the right not to sell your clothes to them. But–keep in mind that chances are, not everything you sell to the store is going to sell in turn for the shopkeeper–so while you may feel the offer is low–it may be that the shopkeeper is being quite generous by buying items from you that she knows will not sell well, but is taking a chance that she (or he) can get at least a little bit for that item.
Donations to thrift stores–First, the person donating the clothes (or other items) has the option to take them to a consignment or BOR store–no one is telling them they must donate them. So, they can make money from their items if they wish to do so. Second–the thrift puts a price on the item–they choose the price. If a consignment or BOR store feels they can make a profit from this item, then it’s a win-win situation. The thrift makes money and the store purchasing the item makes money. It all helps the economy–even better if it’s a local thrift. I see no difference in this than I do in a consignment or BOR store going to garage sales to get items. As long as the seller (thrift, garage sale owner) is happy with what they sold the item for, then the next store should not be criticized for selling at a profit.