A question people pose to me: What would you do if you were opening a consignment or resale shop now?
Things have changed from when I opened my consignment shop. And I have dispensed advice on how to open a consignment shop, have had uncountable visits here on my blog as well as Too Good to be Threw The Premiere Site for Professional Resalers and HowToConsign.com Turn your Cluttered Closets into Cash, done numerous consultations and talked to literally tens of thousands of shopkeepers.
So, for inquiring minds
What would I do, if I started a consignment shop today?
* I’d find the most pedestrian-dense location, with great visibility and easy access into a large parking lot. Pedestrians are important. Traffic driving by at 50mph on their way to the interstate entrance (or to Walmart) does me no good. And I’d have as much space as I had staff to cover it: I’m thinking 4000-6000 square feet of selling floor, with 6-8 people on duty. Every cent I’d pay for all this would be a real ROI.
* I’d make it look GOOD…but not TOO good. Don’t want folks intimidated or thinking that they’re paying for the fancy fixturing. And I’d make it flexible, so I could move things around… a lot (hope a couple of those staffers are strong-backed and easy-going!)
* I’d carry womenswear of all sizes. A variety of “life styles” from Glamour Queen to A Tromp in the Country. And I’d merchandise my shop exactly like that: Life-style areas… that change weekly. None of this mixing sequin tops with corduroys or Coach bags with Judith Leiber.
* But only interesting stuff. I think everyone’s up to their necks in looking like everyone else.
* I’d also carry decorative household items, with just enough big furniture pieces to make a great setting for the smaller stuff. I’d hew to the size rule: If two women in a SUV can get it in and out, it’s eligible for consideration. That means yes to the dresser, no to the TV armoire; yes to the easy chair and ottoman, no to the Barcalounger. Along the lines of what one shopkeeper used to use as her tagline: Eclectic Enhancements – Sophisticated Furnishings & Accessories – Architectural Oddities – and Cheeky Whatisits
* I’d encourage artists to consign. It’s another reason for folks to shop my store: local creations, and another band of enthusiastic word-of-mouthers, the artists themselves. I’m thinkin’ gallery-opening events. To which the artists would invite their clique, a new audience for my shop. And yes, I would exercise my artistic eye as to who gets exhibition space.
* My consignment period would be 45 days. I’d buy-outright a lot: out-of-season, small-ticket items, stuff like that. In fact, I’d probably aim to become 90-100% buy-outright within a year, once I had a grip on what my marketplace wanted and at what price they wanted it.
* I’d advertise like MAD. I’d start off the business with a ton of money (I don’t want to stand around with nothing to do, gimme the fast lane!) and I’d one-on-one market out the wazoo with want-list merchandising, broadcast e-mails, postcards and media advertising. My main audience to reach with this: consistently-shopping regulars and those who only occasionally have a need for my goods.
* For my regulars, my fans: appropriate social media. Done well. I’d learn more about it before I did it. The only thing worse than poorly-done media ads/ commercials/ in-store communications is poorly-done social media.
* I’d add other services ASAP. Rentals. Re-designing your wardrobe or your home. I’d gather a group of professionals to recommend for allied services (tailors, furniture-renewers, closet organizers) and make them into a focus group for me, as well as enthusiastic business boosters. I’d do presentations for groups for a modest fee that would be donated to a charity of my choosing.
* I’d add an outlet store in a less-advantaged neighborhood with less-expensive, more functional goods for those who need utility not fashion. This would be my primary way of paying back all the advantages I have.
* I’d add a capitalist, monetary contribution to my community. Training young folks on small business. Having internships for students. Perhaps even micro-loans; certainly a clearing house so that those who yearn to can connect with those who’ve done it successfully.
Then I’d retire. Oh wait, I am retired.
Things I wouldn’t do if I were starting a consignment or resale shop today.
Auntie Kate The Resale Expert 
Even if new, Auntie?? I’m not concerned about what I buy used…but if I go to, say, The Gap and buy a bunch of tees and then screen on them (or not!) and then resell, will mean old Mr. Gap come to get me?? 🙂
I’m sorry, I missed that class where it said that even though you buy something, the person who sold it to you has a say in what you can do with your possession. Does Chevy get to say you can’t put flames on your truck and offer it for sale? Joann Fabrics, that you can’t whip some calico into an apron and sell it? Does Mr. Gap say “You can buy from me but you may not resell it for any reason”?
Of course, I am not a lawyer and am not offering legal advice here.
YOWZA! ask and ye shall receive. I am researching resale shops as I am about to take the plunge…
My concept will be very boutiqu-ey with some used-some-new-some-I-made-myself-etc stuff. Thrift, but minus the yellow-arpitted tee shirts and grass stained knees. I do love to sew and I often “re-work” things I get at AmVets…I am a great picker and I can always find an amazing treasure.
Here’s my main concern: How do I get around the rules regarding buying something somewhere and then reselling it at my store? ARE there rules?? Help??
Glad you found the TGtbT.com Family of Sites for the Professional Resaler, Wendy! Don’t miss http://TGtbT.com and http://HowToConsign.com
As regards rules… do we live in a totalitarian state yet? Methinks not. If you acquired something legally (I’d steer clear of copper plumbing pipes 😉 ) and you’re selling it legally (that is, paying what your government demands in taxes), you are free to dispose of your own property.
If you’re concerned about laws and regulations in your particular locale, visit your state’s Small Business help on their web site.
Hi My name is Maritza and i am looking forward to opening a consingment store is taking me a little time. Trying to read and learn everything about it. I do by and sell from home. and i am going to start by selling on line. Because i work full time.
Thank you
Welcome Maritza! In your learning process, with all the Products for the Professional Resaler and the many articles and ideas on our web site at TGtbT.com , I would also suggest that you look for an internship with an existing consignment shop. Dealing with people in a bricks-and-mortar store is a lot different than selling online, and the experience will be well worth it! Best wishes, Kate
I am SOOOO excited to be opening a store soon. I’m even MORE GRATEFUL for your wonderful advice here and your book is incredible!
One question, in our area there are no pedestrian rich shopping centers. Even downtown most people drive everywhere. So, I have two options. I can locate in a shopping center right off the freeway and right across from America’s favorite big box store, for around $2500/month or I can locate closer to the center of town, near a grocery store but in a less visible/popular shopping center for around $1700/month. One of the goals of my business was to help people in the south end of our area have a place to consign/resell. I’m thinking that option 2 will only serve our small city.
Thanks so,so,so much for what you are doing! It’s invaluable and I am so confident that with your advice we’ll be awesome wherever we locate!
Hi greenbean! This is an excellent question!
One thing to consider: if all else is equal (which of course it isn’t)… the $800 per month difference in rent works out to less than $40 profit per day… and perhaps that’s how to think about it.
The name of my shop is helping hearts thrift shop & donation center. People donate their unwanted items & I sale them & donate a percentage of daily sales to the child abuse & neglect council in Port Huron, Mi. Should i be purchasing these items? The people that are donating these items are very aware that i am a for profit shop. At my shop we also work with the local shelters & donate items that are needed to the people leaving the shelters and getting their own apartments. We do not charge them or take vouchers from any other charities for these items. We do not receive funding from or receive any government grants. Also how do I keep inventory with so many items being brought in… Please any suggestions would help so much.
Hi Cathy, Sounds like your for-profit shop is helping your community in many ways…that’s wonderful! If your donors are fully aware that they are giving these things to a for-profit business, I think it would be insulting to offer them money for their gifts. Your questions would be better answered at Sharing on TGtbT.com, Too Good to be Threw’s discussion board of resale shopkeepers. It’s at http://www.tgtbt.com/w-agora/index.php?site=tgtbt&bn= and I look forward to your participation there!
Great advice. I want more.
Thanks, Gwendolyn. Until we meet again, enjoy
the 750+ posts here on Auntie Kate the Blog,
the 100+ pages of info on Too Good to be Threw at http://tgtbt.com
and the consumer-oriented informational articles and Clickable Map & Directory at http://HowToConsign.com.
If that doesn’t overstuff you,
check out my favorite tweets at http://twitter.com/2Good2BThrew/favorites and the HowToConsign favorites.
Oh, and there’s Facebook stuff too: http://www.facebook.com/sarasotakate and the TGtbT and HTC Facebook pages.
I’m exhausted just THINKING about it. Oh, did I mention the 50+ Products for the Professional Resaler at http:/TGtbT.com/shop.htm ?
[…] If I started today… […]
HAVING THE HARDEST TIME FINDING AT NAME AND CAN’T AFFORD THE BOOK YET, STILL IN THE FIRST STAGES AND MY BUDGET IS RUNNING LOW. ANY REFERENCES TO A FREE NAMING SITE OR ANY OTHER IDEAS???? i WOULD GREATLY APPRECIATE THE HELP. THAT IS THE ONLY THING HOLDING ME BACK FROM GETTING MY LICENSES. THANKS IN ADVANCE ???
BEST REGARDS AND CONGRATULATIONS ON YOUR SUCCESS. I LOVE YOUR SIGHT.
STEPHANIE
Hi Stephani, If you can’t afford the 499 Names for your Resale Shop TGtbT.com publication, why not simply search for consignment sites, and take a look at what’s around? You can also see names on my HowToConsign.com Clickable Map & Directory and take a look at the NARTS directory as well.
If your budget is so constricted, I would not advise you starting your shop just yet. Without the monetary cushion, you’ll be spending a lot of time, effort, and self-pride in something that might wither for lack of funding.
Thanks for the encouragement and words of wisdom. I’ll keep you posted.
I’m not sure it’s the economy that would be the determining factor here. People will always shop resale, although your supplier/ customer mix may vary depending on the public Zeitgeist. My shop did well when there were mortgage interest rates of 15+% and national unemployment rates over 10%, and it did well years later when bejeweled Rolexes were the only watch to own.
What’s SO terrific about consignment is you can make any necessary economic change quickly and basically without upfront cost.
Moving’s always scary: the uncertainty, the costs, additional ad and marketing expense, the “lost” customers…but I’d judge readiness to move on what you have available to spend…and how much business you might be missing by staying where you are.
(Of course hard times SHOULD be making landlords more flexible, and I don’t see much of THAT.)
Your views regarding location and hiring extra employees has me intrigued. I have been scouting new locations that have more foot traffic but I am worried about having to pay the expense of moving, the cost for build-out, new signage, sales lost during the store move, plus having to pay triple the amount that I am currently paying for rent. I know I should be looking at ROI but it is still a little scary. Do you think our economy has recovered enough to make it worth the while?
Don’t forget about delivery!
Maybe 90% should fit in the trunk but there’s a real need for large pieces out there. Fill the void and offer delivery in partnership with a local delivery service. Win win my friends.
[…] February 19, 2010 by Auntie Kate (Don’t miss the companion piece to this post, If I started today…) […]
Thanks for the great post! I opened only this past Saturday and it is encouraging to see that I have made most of the choices you would make today. Love the idea of “if two women in an SUV can’t carry it, it is not for me” in regards to furniture. Can’t wait to see tomorrow’s post to be sure of what not to do as well.