Advice for your consignment, resale or thrift shop is as close as your computer: Just Ask Auntie Kate!
Update June 2016: There are now about 700 comments on this page, and while they are completely fascinating, it can be difficult to find your specific issue. For more guidance see our Products for the Professional Resaler, covering over 30 areas of resale shopkeeping.
Also, check out the articles at Too Good to be Threw in our Back Room. They might have the info you’re looking for.
In the tradition of Dear Abby and Ask Ann Landers, we present Ask Auntie Kate. Well, actually, it’s Ask Auntie Kate and her resale industry buddies, because I expect you… yes you, Dear Reader… to chime in with your thoughts, experiences and perspectives. Don’t be shy. People ask questions because they want answers.
To keep questions and responses together, you need to be sure to hit “reply” when you’re reading the post that you want to, well, reply to. Otherwise everything gets all mish mashy and tops hang off their hangers and placemats are stuck in with the pillow cases and tags get lost and it looks like a mess.
Yes, Auntie Kate will reply to your most vexing problems, most heart-felt concerns, your secret shames and undiscovered desires. After she gives her friends a chance to put in their 1o-cents’-worth. So ask, answer, or opinionate away.
Auntie Kate The Resale Expert 
hang them outside.
Kate,
Do you have any suggestions for getting a musty smell out of clothes in an inexpensive and timely fashion?
Thank you.
What about putting them on fall scarecrows??
I have a question. We are in Michigan and it’s starting to get chilly. With football games and such we would like to start putting out donated winter hats, mittens and scarves, but are looking for a unique way of displaying them. Last year we just hung them on peg hooks, but this year I would like to find something “cooler”. Any ideas?
P.S. we have no money for new display racks, but can get very creative with what’s available
Lori,
Hats, mittens, mufflers look great if you have some space to put a clothesline! (We used the depth of a disused window and strung the line back and forth at about a 30-degree angle to maximize space.)
Be sure to use clip clotheslines made of plastic, not the all-wood friction-based versions, which tend to snag soft knits.
And color-coordinate for more SHOP SIZZLE! http://tgtbt.com/shop.htm#7
We often speak of the deep discounts retailers are employing to clear their inventories and how dramatically that has affected our pricing.
Sometimes we reference reports we have run which show how few of a particular label have sold at a certain asking price point. This reinforces a notion of our professionalism.
Other times we speak of their items having to compete with hundreds of other blouses on our rack for customer attention.
We will say that it is a waste of their time and ours if we put items out at some price that is not perceived as a value to our shoppers.
I have been in the upscale resale ladies clothing business for over 5 years. I have been using your tips and suggestions for many years and love them. Now I have a question. Many of my consignors or potential consignors think that their items are SOOOOO valuable and that they will get close to what they paid for the items. We try to explain that used clothes are like used cars and they depreciate in value, even the items that still have tags on them. Is there an easy way to explain how pricing for resale items works? Are there any points or tips that we can use to help our consignors understand that we can usually only get 25% of retail for an item??
Kate,
I’m about ten years from retirement and know that I will have to work once I retire. I’m really good at finding great deals. Friends often tell me that I had an eye for quality. I shop thrift stores, non-profit retail stores and yard sales. Many times I have sold items online at a profit. My goal would be to open a cosignment/thrift store in the near future. However, I still work full time and am limited with the time I can devote to the project. My daughter and daughter in law will help with the project but they’re time will be limited as well. I’m concerned about the time committment. I am beginning to write my business plan now and have found a great location for the shop. But I don’t want to move any further unless I know I can devote the time needed to the project. What in your experience has been the time committment>
Can you give me an idea of how much money is needed to open a consignment store. I know you’ve said 6 months expenses for business & for personal. Some people have told me they started for as little as $5000 and another said I would need well over $75,000. Rent in my area is in the $1500-2500 range for a high foot traffic spot. There is a store out in the country on a main road for $500 a month. It was a gift & home decor store but wasn’t run properly and closed within a few years. I’m just need a ballpark figure of what a person can be expected to have on hand to start out. Thanks!
Well, I DO hate to repeat myself 😉
You see, 6 months’ business expenses & 6 months’ personal expenses can be as low as $5000 (think of leasehold expenses as $200 a month for the utilities only in your uncle’s empty space he’s not charging you for… and no need to contribute to your family’s living expenses, but you need $400 a month for walking around money)…
And well over $75000 is not unreasonable either, with different personal considerations.
Remember, we aren’t talking about start-up funds here… which you need too… equipment, fixturing, fix-up, advertising, supplies….)… which would be in addition to the 6 months’….
HI Crazy,
I’m not sure if I understand your question: you plan on keeping the shop full of merchandise how? Once you sell the stock you have now what’s your business plan for replacing it?
Hi Auntie Katie,
I am a 28 year old woman from a small town. I have a fulltime job however it has always been my dream to open a resale boutique of which I am planning to do so in the near future. My small home-town has not one clothing resale boutique for adults much less like the one I am dreaming of opening. I have been buying displays at garage sales, even found some in a dumpster 🙂 and do not plan to use major financing. I am slowly making a name for myself even though I have not even opened yet. I am saving and saving to have the 6 month ahead that you suggest. I have found a nice (needs love) shop in the historic downtown area with great display windows and a touch of the towns history for almost nothing a month including utilities. The main shop is around 750 sq feet not including the hallway to two different rooms (dressing rooms) a bathroom and an office in the back. There is also an upstairs (accessed from a different door from outside more than likely be used for storage) I am trying to think of ways to make sure money continues to flow in each month even if I am not selling the clothes accesories I have BOR. I haven’t come up with anything besides consigning to keep stock up and or rent areas of the store out for handmade jewelery or candles etc from others in my community. Is this something I should try? or should not even consider? How do I get people to want to rent areas or consign to me? Is it too much to try to keep up with record wise??? (not planning on buying software anytime soon 🙂 )
thanks for your advice in advance
Hi Auntie Kate:
Thanks for responding. I’ve committed myself as a BOR to eliminate the paperwork and the liability of guarding someone else’s stuff for an extended period of time. In my cases, I do buy them at reasonable costs and yes, I do limit inventory intake also. At times, selecting very specific merchandise only, paying in store cash only, or not accepting at all for a period of time.
It’s my first time owning a business and some close friends told me that it’s pretty normal for a business to be in such stage in the early years.
Thank God the store has been quite self sufficient except for the last few months in a row. It’s a bit slower than last summer, but more steady.
In your honest opinion, if you were to own a store in such situation, for such time in business, would you keep it going or would you come to a conclusion that it’s probably not going to work?
I try my best to keep positive thoughts hoping for the best and advice from an expert like would be very valuable.
Auntie Kate:
I opened a BOR kids store 1.5 years ago and after all this time, I am still seeing more red than black on the book. Is it too early to give up? Should I continue on?
I’ve not taken any pay from the store, but have expanded on fixtures, shelves, advertising, and getting more items in the store.
My goal of having $8K of sales in a month from a roughly 1000+ sq ft store was only met twice during the course of 12 months.
I haven’t hit break even point and am at a dilemma of whether or not I should stay in business.
People like my store, I’m at a busy major intersection and at a medium-range area for foot traffic within the shopping center.
I think I have a store that people love, in a good location, I offer great pricing, but I’m not quite getting new comers into the store even though I advertise in local kids publishings, Facebook, google, and occassionally CL.
Please advise.
Hi helpme,
It’s hard, isn’t it, when you can’t even break even. You’ve set yourself up in a difficult situation, starting out as a buy-outright. Hard to know what to PAY for your inventory when you have no background in what it will SELL for. I admire you for going this route…
I think.
For example: are you truly set up to buy from those who are willing to sell for a low price, or do you limit incoming/ hours/ amounts so that only those most determined to get top dollar frequent your shop? (I am assuming that you DO NOT “pay” a “percentage” of “what you will sell it for”… since there is no way of telling THAT! 😉 )
Does your web presence truly motivate new shoppers (for example, with a photo of your shop’s exterior, interior, map, etc)?
And of course, you cannot rely upon the Internet solely for advertising… you mention kids’ publications, which is great, but have you inc\volved your shop with places/ organizations/ activities/ environments where your target customer, moms, congregate?
People like your store… but just not ENOUGH people spending ENOUGH money… right? Focus on that, perhaps.
Anyone out there with ideas to Share with helpme?
Hi, Auntie Kate, I’ve gathered a small but well-chosen mix of interesting furnishings (both original and ones I’ve “refreshed”). I don’t want to open an entire store of my own, but wish to rent shop space in someone else’s store to sell my finds. I just purchased your “Big Book of Buying Outright” and “Resaler’s Guide to Furnishings and Home Goods”. Do you have any manuals or other resources that specifically address renting space in someone else’s shop? Like those antique stores that let people rent stalls or spaces in the shop–but I don’t have antique furniture, per se; just a mix of vintage and modern items that are unusual, creative, and make great conversation pieces!
I don’t know if there are any such places I can rent here in the Minneapolis/St. Paul area, but if there aren’t any furnishings stores with space to rent, I bet I could partner with an existing store or shop of some other kind to sublease a bit of their space.
Hi Jennifer, Are you focusing on “leasing space” instead of consigning for any specific reason? Perhaps because you’re envisioning each of your pieces making the rest look good, display-wise? Here in Florida, the days of the “antique mall” or “craft mall” (as in someone leasing out booths for a rental fee and a cut of the sales action) are long gone… just didn’t seem to suit the changing retail world. But it may be different in your area.
I look forward to hearing more about your quest for retail attention! (Oh, and your PDQ order went out PDDDDQ! 😉 )
Hi, Auntie Kate, yes, I think they’re long gone around here in Minnesota too! I can’t seem to find anyplace like what I was hoping to find.
And yes, you’re exactly right, I feel my items would sell better when shown in a grouping, because they’re all small case goods with unique features like interior storage or really funky design. If someone was interested in one of the pieces, then the others might appeal to them as well!
I guess since I’m coming up empty on “craft mall”-type spaces, I’ll move forward with my idea to lease out a cute corner of some other type of business. Perhaps partnering with a cool vintage store that could use some of my pieces to display their items for sale?
Thanks!
Jennifer, If you have enough items to make it worthwhile, how about creating a “trunk show” which consignment, resale, even non-profit thrift shops could promote, as a special event in their space? A “Ladies’ Night Out” special offering? You’ll have to play around with a business model and figure out how this would be profitable for both you and your space-host, as well as irresistible to her/his clientele… but I think it could be a winner!
If your creations are too large/ heavy/ fragile to cart around, you could of course hold an event yourself in a rented hall or some such, and PARTNER with some resalers whose clientele is your target market. Make a “Night of 1000 Possibilities” type of presentation… a fashion show, in effect, of stationary pieces!
Hello Auntie Kate,
I’m trying to start a womens consignment shop and think I have no clue how to my stock wisely. I feel I may be over bidding for items. Is there a simple rule of thumb I can refer to that will help me with this major confidence zapper?
Thanks,
Island Gypsy Clothing
Dutch Harbor, Alaska
Hi Jennifer, Seems you left out a verb up there, so I’m guessing when you say “over bidding” that you are purchasing some beginning stock and are afraid you haven’t left enough room for profit? Be aware that if you plan to be a consignment shop, you do not need a large opening stock, as you will quickly attract consignors. The main reason for a decent opening inventory is to show folks what it is you plan to sell… so be ultra-choosy on what you will have as examples. Bypass what you think will be “basic” stock and spend your money on items you really think your market will want to buy. And take heart: read our Start-a-Shop page on TGtbT.com for some encouraging thoughts!
Dear Auntie Kate:
I just found your site and the amount of useful information is great! I’m an aspiring consignment shop owner, the type of shop I want to open is to resell gently loved designer goods. However, the challenge I’m facing is that I’m not very skilled in telling what is real from what is fake (I don’t want to end up in jail for reselling fake goods, I do not condone the buying of these products either.) Knock-offs have become so abundant and like I said I don’t want to sell a knock-off and not only get in some serious trouble but also get a bad reputation for my store. I was thinking of trying to do a internship at a local consignment store? Any advice on where I could learn some of those skills would be greatly appreciated!
Hi Bre,
Hopefully you have immersed yourself not only in the links on the TGtbT Links Page about fakes, but done some Googling on your own. Also, here on AuntieKate the Blog, we highlighted a video by a consignment shopkeeper on how to tell a fake. And lots of resalers are now requiring original receipts for goods which are commonly knocked-off. Finally, look at, touch, and talk to new-merchandise salespeople about the real thing… if they have time, they are usually more than happy to show you exactly WHY the real thing is better.
Hello Auntie Kate!
I may have an opportunity to take over a small town resale shop, however, it doesn’t sound like they are making a whole lot of money, and the one that was open in town before them closed down. This time the owners are closing/selling due to major health issues in the family. I think they are covering costs with a small profit above and beyond that. I am concerned with a couple of issues, though I have been a resale/consignment shopper for years and it has always been a secret dream of mine to own my own consignment shop, I am concerned with being able to make enough money to live off of, and concerned with getting better quality and style of items into the shop. In addition, are there any sources of financing for someone with average credit out there? I had some money in savings, but it has since been sapped by my being out of work for several months after a bad accident. Any tips you could give would be greatly appreciated!
Hi Lisa, I’m assuming that you are not putting any money on the table for this business? And that you’ve seen their financials and tax returns?
I cannot suggest that you start a resale shop, nor any business, without start-up costs plus 6 months’ business overhead and 6 months’ personal expenses (if applicable)… but then, I am very conservative with YOUR money and time/effort investment. Have you gone thru our StartAShop page at http://tgtbt.com/startashop.htm ?Have you read the Manual? http://tgtbt.com/manual.htm
Hi, How can you make small space work for you in consignment??
Only accept small things? (Sorry, couldn’t resist!) Great question, Rachel.
Using every inch of your space is always crucial, no matter how much space you have. Bulky racks, a mishmash of fixtures that command more attention than your merchandise, too-large sales/intake areas are common mistakes here. As is not using walls to their fullest potential.
This topic is so important that we’re devoted a complete Product for the Professional Resaler to it. The Essential Guide to Using All Your Space is here: http://tgtbt.com/shop.htm#23
But leave enough butt-space too… narrow aisles or racks jammed together make shoppers uncomfortable, and an uncomfortable shopper leaves. And that’s something you don’t want them to do!
Watch the colors you use in your shop, too. http://www.tgtbt.com/color.htm
I still need a “resource” for wholesale jewelry and scarves – — don’t have time right now to “blog” – — – – –
Hey Steph, Congrats on being so busy! Have you explored the resources for wholesale accessories I provide at http://TGtbT.com/links.htm ? Fashion and style info on our Womenswear page http://tgtbt.com/womenswear.htm (including wholesale districts in NYC, LA, etc)
BTW it takes little time to monitor AuntieKate. Subscribe to us (in the upper rt column on this page) or opt into “notify me of follow-up comments via email” with a check mark (under every comment.) That way, you’ll get email alerts on the info that will be most helpful!
I have a women’s clothing re-sale shop – – it’s not consignment – I procure and own the inventory – – I need a couple of resources for ( cheap ) jewelry and scarves, which I would like to sell new — – – – my shop just made it through its’ first year ——————— ( whew !!! ) any resources ???
thank you
stephanie carroll
WEAR IT AGAIN RESALE
What do you do when someone shows up saying their belongings are in you store and their stuff was stolen from them? Then, the police shows up.
This happened twice lately. One lady’s stuff was in the store for 2 years!
Hi Janet, What a bummer. Do I understand correctly, that a non-consignor claimed that merchandise on your sales floor was hers and had been stolen from her? If you are a consignment shop, you have the name and contact information for the person who consigned it, and that’s what the police would want. They will also, probably, confiscate the goods until ownership could be proven between the alleged owner and the alleged thief… nothing you CAN do. If you purchased these items from a stranger as a buy-outright shop, as long as you were following legal procedures, you’re still okay… except that you’re out the cost of the goods of course when they are returned to their rightful owner.
As for your “2 year” comment… does that mean that your shop has been custodian of these items for 2 years? You must have really cheap retail space!