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 
Hello, Kate! Just discovered your blog and was amazed why I didn’t stumble upon it before. Great resource for resellers and shop keepers!
I wonder if you accept post suggestion? I’ve noticed that one of your latest posts was about selling on Instagram. It happens so that for the last few months I’ve been involved in the project that helps resellers, thrifters and individual sellers to sell their goods via Instagram. It’s called inSelly and it is a free online marketplace for Instagram. Would you be interested to know a bit more on this topic and maybe share this info with your readers? I’d be very happy to help!
Thanks, Ksenia, for the info. I’m sure that readers who are interested will take a look at your services!
Does anyone have a sample of a Buy/Sell Agreement that I can use? I’ve found a couple on the internet but not explicit enough. Myself and another woman are looking into starting a consignment shop. Thanks!
Hi,
I have a nice high end women’s consignment store and we are struggling because of a cold winter and the usual slow months. I’m considering adding a line of organic soaps & lotions, and possibly tea baskets. I’m wondering if anyone has any suggestions. We need to do something relatively soon, if we are going to survive. Thanks for your suggestions in advance.
I’m opening a Non-Profit Thrift Shop and I’m wondering if you use a CRM (Customer Relationship Management) software and if so which do you recommend? With donors, volunteers, and customers I’d love to have a place to keep track of them all.
Thanks!
Rochel I don’t have a CRM to recommend. Perhaps some of our readers t\do?
Dear aunt Kate,
I recently was in a nearby town and took to opportunity to check out two consignments shops that I had not previously been able to check out. As I entered the second of the two ( that strangely enough are on the same block), which is a thrift shop apparently affiliated with the Catholic Church just down the street, I realized I knew the owner. She has been in my shop several times, I remembered that she had previously told me she ran this shop. I had assumed that due to the nature of this shop she was a volunteer. That’s when the conversation turned strange. She mentioned to me she was looking to move her shop to my town had even called my landlord about a open space in my building. I asked her why would she move this shop to my town, when it is nfp affiliated with this church? Keep I. Mind you she even gave me a business card that said ” proceeds go to catholic schools in this area….donations welcome”, although I did not see this til later, because I had just stuck it in my pocket when she first gave it to me. She then said to me, no I own this shop for ten plus years, it’s not thrift, it’s consignment. We used to support the school when our kids went there. I want to move it out of town, as our town has no money.. However there were no consignor numbers on anything. As I was leaving I thought it was all so strange, but maybe she was buying items outright which would explain the no consignor numbers. However it kept bothering me, but when I took her card out and read that it supported the schools and she welcomed donations I got a very bad taste in my mouth. Then I was sharing this with a friend and they informed me they believe said school closed in the last few years. This whole thing is just blowing my mind. Do people in this town donate to her thinking money is going to schools or the church?
That’s quite possible, isn’t it?
I am wondering what other shop owners do in reference to employees buying inventory before it goes on the rack. Do you have a written policy? I am unsure how to handle it. TIA, Cindy
I hope other shopkeepers will answer you with specifics, Cindy, but what do you see as a problem here? It might be that employees are underpricing the things they want to buy (or that their coworkers want), or that they are receiving a discount which cuts into your net profit. How does a staffer buying it first thing differ from a customer doing the same? Maybe clarifying what concerns you could help us offer some thoughts?
Cindy clarified her concern: “I was just thinking that as a resale shop your customers come in weekly/biweekly to see the change in inventory. However, if the newly consigned inventory is not making it to the floor because employees are purchasing it then I see a problem. Pricing is not an issue as I handle that. My concern is more on the change if inventory.”
Kate replies: It’s unusual to have so many staffers, and/or to have them absorbing so much of the incoming merchandise, that you’re concerned with refreshing the sales floor stock. Perhaps your staff discount is too generous? (You don’t mention your lost potential profit, so that may not be it.) Maybe you simply are not receiving the volume of incoming that you would like? If none of these are the root cause, then all I could suggest as a policy (and it’s one which many shops use well) is that staffers may not use their discount (and sometimes, cannot even buy at full price!) until the goods are on the sales floor for X days. That way, your clientele does indeed see the ebb and flow of “new” goods and realizes that they should shop more often!
Ronnie asks:
I would be interested in starting a discussion about these online consignment stores that see to be opening up every week. Here’s a link to a recent story… http://www.fastcompany.com/3024993/fast-feed/twice-the-consignment-shop-of-the-internet-raises-185-million I think the comment made by Ellie Bates is right on. What do you think? Thanks Kate for a the work you do for us!
Interested in other opinions as well. Would also like to seek thoughts from those who are finding too many Facebook Pages set up for moms, folks, etc. to sell to each other locally, in almost a hyperlocal setting. Kids, Designer, all kinds are popping up, and what does it mean to the local consignment store?
As much as I LOVE following you on Pinterest and getting other ideas online, I am a “magazine maven” and love to hold a magazine as I soak in the tub 🙂
Best reply yet!
Is there such a thing as a “Consignment Store” Magazine?
What are you looking for, Re-Markable?
I’ve recently taken over a cheapy junk shop, trying to set it apart from competitors by gradually steering this furniture/antiques consignment store into a much more high end venue (lots of funky junk rusty nail stores in this area), while appealing to a more general, wider range of age, taste and budget feel. Rust, chippy primitives in the back, more “entry level” in the mid to back, and unique, stunning pieces toward the front.
Anyone have any suggestion what MUSIC playlist/ genre would be best to convey this “message”? I’ve worked at a new furniture store that successfully played loud disco era music (and noticed they play that genre at the Vegas trade shows).
The building is very old and run down in the Mid-Mountain States (lots of outdoorsy types who don’t get overly fussy with their homes). I’ve had success with unique and appealing visual merchandising in the past but I’m wondering how to convey, musically, a glorious, abandoned beauty-from-past-times feel that will appeal to younger as well as older clients and banish the tired old junk shop impression it now has.
Thanks in advance!
Auntie Kate,
I was online yesterday looking at something that had a link through one area of yours, it was the pictures of consignment shops that you and/or others liked. The pictures were on Pinterest. For the life of me I cannot find how I got to these pictures and would apprecdiate any information you could give about how to get back to that. Thank you so much. By the way, I love all the information you give, and look forward with baited breath to the blog posts that I get in my e-mail. And I wanted to tell you that I have implemented a lot of your suggestions, and feel that they have really helped us.
Kathy Thompson
Kathy, LOVE to get positive feedback! As for Pinterest: Too Good to be Threw maintains boards specifically for shopkeepers at http://www.pinterest.com/2good2bthrew/ (currently 1800 little bits of inspiration!) and I also collect and curate pins for resale shopping lovers at http://www.pinterest.com/howtoconsign/ Enjoy!
Hello Auntie Kate,
Love reading your blog!
What’s the best way to collect consignor’s fee? Once at registration time or monthly? Please share your thoughts.
If you will be charging a consignor registration fee, you can do it as they register as a one-time fee, or it can be a renewable fee for any time frame you think is agreeable to them. There is no “best”… except that I do suggest you charge it up-front. If your purpose for a registration fee is to allow those consignors who will not be profitable to have on board to be able to decline gracefully, “deducting” a fee from their proceeds doesn’t accomplish this.
Hello. I have had my wedding and special occassion shop open just over a year. I’ve worked through many issues but one remains…What do I tell consignors when their item is missing? Theft is such a bigger problem than I ever expected. There is little that can be done about it so it’s going to happen. My contracts say that we are not responsible for theft or damage but I still feel so awkward telling someone we can’t find their item.
Carrie, thanks for your question, it’s a great one!
You need to bite the bullet on this one. Although I wouldn’t say that you should delete the phrase from your consignment agreement about “not responsible for theft or damage”, I would pay for missing items… and here’s the important part
WITHOUT SAYING A WORD ABOUT THE FACT THAT IT HAS BEEN STOLEN.
Starting the “gossip” about stealing in your business is never a good idea… so consider the cost of ponying up as an advertising (or an “anti word of mouth” expense.
Hello Kate,
I was wondering if you had any writings on the accounting side of running a consignment/resale store. I have general knowledge, but I’d love to hear what did and didn’t work for you.
Best Regards.
Thanks for asking, Ashliegh. See all of our Products for the Professional Resaler in the Too Good to be Threw Shop
Hi Kate,
I am planning my 2014 advertising/event calendar for the shop. When is International Resale Day? Thanks, Judy
Good for you, Judy, for planning out your year’s promos! International Resale Day is July 18… the perfect time to end your summer clearance and have a “fall preview” happening. This year it falls on a Friday, so it can be a 3-day weekend type of celebration!
Hi Auntie Kate, I’ve always wanted to open a luxury resale/consignment shop. My mom is allowing me to use one of her storefronts that is in a high traffic small business area. Target and The Nike Outlet are anchors for the community mall across the street. Even though the area is busy, I have a couple of concerns and I hope you can help me.
I live on the Southside of Chicago and the Chinese own the majority of the clothing stores in the community. Most of the shoppers are not in the income bracket to go on North Michigan Ave to buy a Chanel bag and consign it when they are tired of it. So how would I get my merchandise? I know the shoppers would come in to look at a pair of Christian Louboutins and an authentic Hermes bag, but how would I know if they are willing to buy them? I want to target women in the area who want to dress in luxury but don’t mind paying for gently used items. I am one of those women who live in the community and I wear luxury items but I have to travel all the way to the Northisde to go to a nice resale or consignment shop. Of course, the homes on the north side are priced in the millions so the merchandise is endless. I want to put a nice luxury consignment/resale shop in my community and I want it to be successful. Is my dream achievable with the aforementioned concerns?
P.S. There is one consignment and one resale shop within a 3-mile radius of me but the store nor the items are luxury. However, they both have been in business for a while.
Well, I feel that if you are at least 99% sure that a luxury consignment shop would work in your area, then go for your dream. I live on an island and there are way too many shops here. This is not a rich area. A couple of months ago, someone opened a luxury consignment shop and all I hear are complaints about her high prices, and they would never go back. I applaud her idea, but I don’t think she is going to make it. No on has that kind of money here! Good luck!
Hi Christine,
I can only share my experience. I sold higher end kids stuff online and had in mind that I would sell the same in my store but I had an idea that the neighborhood and my clientele were really going to drive the decisions that I ultimately made. While my neighborhood is great for resale (very green-minded and sensible) it isn’t fancy.
There are other neighborhoods that can get better stuff more consistently. I try to find a happy medium. We don’t sell low-end stuff, but what we get is more middle of the road. When we do get high end stuff, it sits for longer. It is harder to find the person who appreciates that a $50 dress is a good deal because it cost $200 new.
I think if you have concerns about that which seem valid, then try it out but be flexible and don’t box yourself in with positioning. For example, don’t name your shop “ONLY LUXURY GOODS”. Keep it neutral so you can adjust as necessary. Don’t turn away non-luxury goods. See what sells.
Caveat – I know nothing of women’s consignment or luxury goods, nor am I the type to want a Chanel purse even it was given to me.
Good luck!
Janice,
Why do you say that? We have sooooo many of those kind of consignment stores in this little bitty town that I do not think one more will make it. I think that formal wear will make a positive impact. We just need to practice a lot of Kate’s ideas to get ahead of the one other formal wear consignment store in town..
Sandra
Greetings,
My partner and I are interested in opening a children’s consignment boutique in London, yes London. I am American and recently re-located while my partner has been in London for nearly 20 years. Both of us are surprised that consignment doesn’t really exist here. There are used ‘marketplaces’ where people can bring and sell merchandise, thrift stores (called charity shops), but no consignment stores! My partner has been running a used children’s market for the past year (sellers purchase a booth and sell their used children’s items. There is a small fee to enter the sale). These have been successful, and we have completed some surveys that so far tells us that people would definitely shop/sell in such a store.
I have many questions, the biggest one being, is it a good idea to open a consignment store when the vast majority of the population do not know what one is?
Welcome, Danilphillips! Whatever happened to dress agencies? Admittedly that was many years ago, but I do recall dress agencies (Brit Eng) around… I don’t know how legit or up-to-date this is but: http://www.dressagencydirectory.co.uk/
As for not many around… there will be an education curve, but that just means more PR for you! Go for it!
What does their contract say? Have you introduced yourself to them? How is your relationship with them? And is December 15th close to their expiration date? Are you doing this with your new consignors as well? I’m assuming that you have new consignors in the last two months?
If you were going to stick with December 15th for whatever reason, I think I’d try to frame it differently – emphasize that they have a CHECK waiting for them and a fabulous selection of Christmas items they can pick up when they pick up their items – this way you aren’t adding yet another item to their holiday to-do list but you are giving them something (their check) and an opportunity to get some of their holiday shopping done for (what they think is) free.
That said, I wouldn’t be asking everyone to come get their stuff right now. If you must clear out everything, I’d have a big sale right after the new year, and start taking new spring items at the same time. But that’s me. I’ve learned that image is HUGE and that one bad experience will send them talking about you to all the other shoppes and all their friends. A good experience, however, leaves you sitting pretty going into the new year, and with a ton of good will when your customers are cleaning out their closets.
What does the contract from the previous owner say?
I took over an existing kid consignments shop 2 months ago. And most consignors don’t know when their items expires. I decided to have them pick their items the week of december 15 after that all items become store property. The store was opened in June and I took over in October. I renovated the entire store and got rid off a lot of stuff since they weren’t clean. It was in bad shape. It’s a good idea to give them a week to pick up items? I need to get ready for spring in January and start fresh with new clothes since a lot of them are asking me when to drop off spring clothes.
Hi Jess, When DO their consignments expire? Why don’t they know?
What’s with Dec 15… how will they know THIS if they don’t know their expiration date? What’s the point of Dec 15? It sounds like if everyone picks things up, you won’t have much to sell?
One more thought: giving your consignors, many of whom haven’t had the time necessary to feel loyalty to you as the new owner, another task to deal with in December wouldn’t be image-enhancing, in my opinion.
I took over this store 2 months ago. The previous owner didn’t give them a date on when to pick up the items to some consignors. So, they came in saying that they don’t know when the consignment period expires. I know some of the consignor expired in October and December based on when I took over and when the store opened his doors. It’s a mess since there isn’t a system for me to check. Everything was done by hand. I have the contracts but no date on it. I still do it by hand since I only have 73 consignors until I get my POS system in place…my store is only 700square footage.
Wow, sounds like you have your work cut out for you! The only thing I can think of is for you to contact those people who have goods in your shop and rectify this. You might wish to send out a generic snail and/or email letter introducing yourself (if you haven’t already done this) and asking them to stop by at their convenience to meet you and arrange for the proper handling of previously-consigned goods.
Then, on a case-by-case basis, you can adjust what’s going on. Chances are, many of these folks won’t care… in which case, you could set up a system whereby, if you don’t touch base with them before [some date after the holidays] you will [do whatever you think will improve the image of your business with unclaimed goods.] Add a pot-sweetener: anything from “We look forward to accepting your spring items” to “please accept from us $5 in store money as our welcome gift when you stop in!”