Recently, I read this Facebook comment. A consignment shop owner was replying to another who was flying cross-country to visit the area and wanted to know “if there are any good shops to visit” in the Portland/Salem Oregon area.
I own … in Salem. We are going on our 3rd year. There is a bunch in Portland but I never checked them out yet. I heard … is good. Most of the high end ones are in Portland.
This statement was such a puzzlement to me… that a shopkeeper open 3 years had not familiarized herself with nearby businesses in the same industry, that I had to Google it.
The two locations are less than 50 miles apart. Where I come from, that’s a nice day trip. Now, I’ve never been to Oregon, so maybe Interstate 5 is an oxen trail, but somehow I doubt it.
Given that the NARTS Conference Bus Tours, where hundreds of shopkeepers pay $50 or so for the chance to visit 6-8 shops in one day and to see how others operate, decorate, and relate, is argumentatively the highlight of Conference for many shopkeepers, what’s going on here?
Why hasn’t a career resaler found the time, in 3 years, to see what other “high end” shops are doing? Isn’t visiting other resalers part of improving a shopkeeper’s education?
I’ve even written a little booklet called Visiting Other Resalers A little field notebook to help you examine other shops with an eye to making yours better. Download it; print out copies to stick in your glove compartment. Learn every time you visit another shop!
because it is so important to see what other folks are doing. You can get the booklet for less than the price of a grilled cheese on the Lunch with Kate mini-Products page.
Auntie Kate The Resale Expert 
I manage a Chicago nonprofit resale shop (thrift shop) and when the director of the store was saying our prices were too high, the shop’s pickup/delivery/antiques expert and I went on a field trip to our main competing thrift shops to compare prices. We saw that our prices were very similar, and reported back. Director was not convinced. We also got more ideas about signage and displays from the five other thrift shops we visited. At one of them, I even found some darling 5 foot tissue paper garland in the shape of colorful parrots–for a buck per pack! Can’t wait to use those in a window display.
Also, I always refer our customers who can’t find something in our store to another nonproft resale shop, less than a mile away. We even keep a stack of their business cards, and they keep a stack of ours, to give to customers who just aren’t finding what they need at our store. The customers are always delighted, and sometimes surprised, to get a recommendation for another store.
Bravo, Heidi! I’m recommending you for a raise! (And don’t forget, when you get a chance, to visit the for=profits as well. There are lessons to be learned in both directions!
.There is a new CS in town. However, she isn’t open Sundays and Mondays. Tue – Sat 10-6. She was in my store last week and told me she can’t be open anymore or she wouldn’t “have a life”. Since I was off yesterday, I couldn’t visit her store. Then I dropped by a new jewelry boutique in town, who, according to her FB, is open Monday – Saturday 10 – 6. Get there and the lights are off, door is locked up tight. Looked at her hours, she is now closed on Monday, but open Sunday. So…..I tried to visit not one, but two stores yesterday to check them out, and never got in either of them. Very frustrating to say the least. With those hours, not sure when I can get back to check either of them out. (I realize this is slightly OT of your post, but I’m still a bit put out by it). For a solid year I tromped around my city, heck even a lot of the good ol’ USA, looking at everything I could see. I can’t imagine opening a business and not knowing what your competitors or other shops are doing (or are NOT doing)….
Thanks Beth, for your input. You’ve just experienced the Monday Holiday Syndrome! Read about it. It’s a shame that businesses like these don’t keep their web sites up to date with changes like these…. why, some don’t even HAVE web sites!
LOL – I get that hint! Working on it……
Who, moi?
When customers of mine mention another shop nearby, then seem embarrassed by having been in there, like they’re cheating on my store, I always tell them I’ve been in there – what a great shop! It’s got such wonderful things….You have to know your market. You would be foolish to think your customers only go to your shop. There is so much to learn out there, even after being in business for 10 years. Plus, I love shopping! Why not go shopping while checking out other shops. You might just learn something that could improve your business.
If I had one piece of business advice to offer a new business owner (now that I’ve been at it for a whole 9 months) it would be this very thing. Other resale shop owners in my region have encouraged me when things have gotten rough, have listened and laughed when I’ve vented frustration, have shared information on how to do things better, and of course have sent me customers. As a small business owner, other shop owners are my only true colleagues. Plus, we all seem to be of a certain breed: kind of quirky, happiest outside a rigid corpoate structure, and brave enough to strike out on our own.
Thanks, Steph, how great to hear this from a new shopkeeper. Here’s hoping for many productive and pleasant years ahead for you!
Auntie Kate,
I am in the midst of preparing a counter offer to buy a high end consignment store from owners with health ailments. The business has been in place for 7 years, two owners, and has a pretty decent following of customers and consigners, After reviewing the books, gross revenue is over $110,000, 1/2 of that goes to consigners, and the net profit approx. $11000 per year after expenses including $11000 for salary, which would be a profit for me since I will be the one working the store. They are asking for a sales price of $34000 but are flexible, Does that seem fair? Or is there a formula to figure out a more realistic amount? Also what are normal fees for attorneys for something like this?
Please let me know what your thoughts are.
Thanks,
Hi Lucy, best wishes on your plan! Perhaps our Product for the Professional Resaler, the Business Valuation Kit, might be helpful to you. As might many of our other sources of information. Let us know how you progress!
I agree Kate, knowing what other shops are doing is important. It is also important to network with those shops. I would rather refer to a local shop than have a customer, consignor flounder on the internet or worse just throw up their hands. Each shop has a unique niche and personality. So go find out what is next door to your shop. You might find something you just have to have or a great idea for display.