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 
Hi all,
I’d love your advice! I own a children’s & maternity consignment store. It’s 2.5 years old. This year it’s become clear that we’re about to outgrow our current location (a well-trafficked downtown area). Our customers would also love to see us expand our size range in children’s clothing, which fits with the idea of finding a new & bigger location.
The trouble is this: I’m ready to try something new! I’m planning to pursue upholstery and furniture restoration, but I don’t want to leave my wonderful, loyal customers up a creek (we’re the only children’s/maternity consignment in town). I am quite unsure how to go about (hopefully) selling my business. Have any of you ever sold (or purchased) a consignment shop before? I don’t expect to make much money off the sale, I just would like to price it fairly and see it continue to serve the area. I would truly appreciate your thoughts!
Hopefully, Laura, you’ll get some first-hand stories about buying and selling here, but I have one BIG question for you? Why sell? Why not hire really good managers who will enjoy running the shop and allow you to go on to your next passion?
That’s a great response, Auntie K! But I think her problem is that they’ve outgrown their space and need to move….but if she can move and give it another year and start finding qualified staff….she’s got money in the bank.
Hi Kate, thank you! Yes, that is a good “big question.” The shop is currently small, and to this point, one owner-operator and a couple of staff is all it has needed/been able to support. Scaling up (both space & age range) is the next step, and that could most likely include a manager’s salary. However, having done that with our mens’ & womens’ shop (this is our second store), I know that I am not up for the challenge again! I’m looking for something smaller & quieter for myself, but don’t want to leave my dear customers in the lurch. I hope that makes sense! 🙂
Laura, where is your shop? My husband and I plan to open a shop in the spring, and have not yet committed to a space. If you are in my state, maybe we can talk!
Hello all! I am back with another question. My husband and I are still in the planning stages of our children’s shop, and hope to be open in March. I am wondering if any of you have done BOTH buy outright and consignment, depending on the item?? I am thinking of maybe doing the clothing and other small items on BOR, and other items on consignment. Is this possible, or a bookkeeping nightmare? Thanks!!
Lots and lots of shops do both, Tony & Karen. That’s why the Manual includes info on both ways of procuring merchandise, and why one of our best-selling Products for the Professional Resaler, The BIG Book of Buying Outright, is a frequent additional purchase for shopkeepers hungry to do it the best way! (PS NOTHING is a bookkeeping nightmare…if you start off with designing your records so they give you the figures you need to succeed!)
I sometimes feel that it is a trust issue. I think they want to know that they are being paid fairly. I don’t like when they do it, but I am extremely transparent with everything and if they have an issue with what I’m paying or not accepting, I will break it down for them. Can be time consuming for some but in the end they leave without feeling like they received “too little”
Thanks, N., for your response to Ellen’s situation, below. I was taking it for granted that before she left, the consignor would receive an itemized and priced list… forgetting that many shops have chosen not to make this a part of their routine. And you are dead right: we don’t want anyone to feel like they received “too little”!
We have an issue with ‘arm crossers’, those cosigners who stand in front of you, arms crossed and watching your every move. We encourage customers to look around while we process their items, but some refuse to budge. We have created displays to act as barriers, but some customers will go so far as to move items so they can watch us enter the information. How do others handle this situation?
Hi Ellen, and welcome to TGtbT.com’s blog!
Re those who want to watch you like a hawk: A technique I used was “Please, go browse or get a cup of coffee in the cafe 2 doors down… I’m feeling like a monkey in a zoo!”
Now that might not be a comfortable thing for you to say, or your consignor might still want to oversee you doing your job. In which case you might want to simply ignore the supervision she is providing.
Depending on the value of such a consignor to your business, I might be tempted to be a bit over-the-top. I’d hold things up to the light and stare deeply and s-l-o-w-l-y at them… until you can gently repeat “This might take a while. Sure you don’t want to relax over THERE while I do my job?”
Not your style? A draw-shut-able curtain will do it without embarrassing anyone. Any consignor who pulls that curtain back open is, as we would tell her “still too attached to these items… why not take them back home to enjoy for a bit until you are ready to leave them in our capable hands to sell to other?”
Hello!! My husband and I are at the point where we are looking at locations, and we will be opening in a town with a population of about 40,000. It is not a suburb of a major city, but rather surrounded by cornfields. There is one other children’s resale shop in the town, and it is a “big name franchise” one (They do BOR). It is located in a very busy area near the large mall, which is where I would also prefer to be. (There are many, many smaller strip malls near the mall area.) My questions is, would it be better to be by the mall near with the competition, or on the other side of town, in an older strip mall, closer to residential, and away from the competition?? Also, we have not made the final decision if we will be BOR or consignment. Thanks!!
Hi Karen, You ask Near or far from the competition? I’d take a look at traffic patterns for your target customer instead. Where will they be driving, at what time of day? How easy well it be to turn into the location? Even side of the side is important. More on this in Too Good to be Threw The Complete Operations Manual for Consignment & Resale Shops.
If you haven’t made the decision on whether you will buy your inventory or accept it on consignment, there’s a chapter on that in the Manual, as well as a stand-alone Product for the Professional Resaler, Buying Outright, which will help you make that decision. Basically, the points you need to mull over at this stage in your business are: #1 Do I know what I can sell a particular item for? and #2 Do I want to invest my capital in inventory or something else?
Thanks Kate!! Not sure if it is a typo, but I’m not sure what you mean by “Even side of the side is important”. I have read the manual, and not quite sure what you are referring to. 🙂
We have been reading the manual, doing our research, and are still really debating the BOR vs. consignment. I forgot to mention we are a children’s shop, and it seems most that we have visited are doing BOR. We asked the community what they prefer, and most of the responses were BOR, or to have a choice.
Anyways, I was mostly wondering about the location issue. Can you just clear up for me what you meant by even side of the side? Thanks!!
Karen
Even “which side of the street” is important… sorry, I didn’t proofread!
Why which side of the street is important: How easy is it for your potential customer to turn into the parking area for your location? Does she need to make a left turn? Since YOUR potential customer is most probably the mother of school-age children, is it a nice easy right turn into your shop… on the way home from picking up her kids in the afternoon, or dropping them off at school in the morning (and of course, your business hours come into play here too… will you be open when she can easily stop in?)
Or, if she’s a working mother… are you on her way home from work? Being on the right side of the street when she’s going to work probably doesn’t help… who has time to drop in when there’s a tight time frame?
Some retail analysts even insist that the south or west side of the street is best, because it’s more likely to be sunlit… but I live in the tropics, and east or north is the shady side of the street, which is what we seek!
My daughter and I are in the process of getting things together to start a resale clothing store in our area and I am wondering what you have found is the best computer system for tracking and selling your goods?
Congratulations, Linda! I am sure you’ve spent a lot of time exploring all the information about this industry at my Too Good to be Threw site at TGtbT.com … on the Links Page, there’s some info re selecting “the best computer system” for your business, and in the manual, even more info! Best wishes!
Many people have told me, since it’s a resale shop to not accept returns. Make sure everything is in working order before the customer leaves. I’m not to sure about this, although I will try my best to provide quality used items. Also, would you recommend selling used car seats? Even though they would not be expired, worn or have any open recalls. I’ve read a lot online and many have said that if someone is in an accident and the carseat was found to be faulty, they could sue me? My business will be an LLC, but I don’t want to miss out on any sales !
Hi Louise, Of course, returns aren’t just because something doesn’t work. It could also be because it doesn’t fit Cousin Terry or its the wrong color or little Dana wouldn’t be caught dead in int! For these (and more) reasons, I suggest that you use the Approval System, as discussed in my manual, Too Good to be Threw Complete Operations Manual for Resale & Consignment Shops.
Re car seats: I wouldn’t sell these. Some shops do, others don’t. Be wary of cribs, too: follow the CPSC for info on these products, recalls, and more.
Best wishes on your new venture!
Hi Louise,
I wanted to add on car seats that you may find it almost impossible to get insurance if you sell car seats or cribs. We sold neither but almost couldn’t open just because we couldn’t find insurance. There are those who do sell them here but they have been in business for a longer time selling them so they are, in essence, grandfathered in.
I will say that used car seats are probably one of our most requested items, but even if we could resell them it isn’t a business I’m interested in. We instead work with a local charity to get them usable car seats and on a program to recycle expired car seats.
As far as equipment goes and returns, we do not accept returns on equipment. We check it well, but if someone brings something back there has never been a case where we have not taken it back if it is faulty. In other words, the message is, no you can’t buy the swing and try it out for your baby, but if for any reason you find it doesn’t work as expected we don’t expect them to be out the money. We also decided to stop taking monitors and humidifiers and that type of stuff. The used ones were just too unreliable.
Hi, Auntie Kate and other resalers! I’m so happy to have stumbled across your site. My father-in-law owns a thrift store in a small tourist town (summer is feast, winter is famine :-/). I believe he experiences quite a bit of shrink (theft) because his store is a straight-to-the-back kind floor plan with a few side rooms. He has installed several security cameras but there are still quite a few blind spots on the sales floor. I feel that following the basic rules of customer service (greeting customer, checking back with customers a few times during their visit, etc) is the only other thing he can do to try to get theft under control. Do you have any additional suggestions, tips, or ideas in regards to keeping theft to a minimum? Thank you in advance for your knowledge, it is greatly appreciated!
Hi Jana, Can your father-in-law pinpoint where the theft is taking place? That might help him in placing mirrors, strolling through, or even moving goods which are easily stolen. High light levels, even if there’s no one observing, tend to make thieves feel exposed, too. I’m sure he’s considered or uses glass cases, security chains, and placement of goods already. I’m assuming the side rooms cannot be physically altered?
Hope that’s a few ideas for him to work on!
Kate – My store sells children’s clothing and baby gear, so we get a lot of kids in the store. We’ve always had a “play” area for kids, and a year ago when we expanded, we allowed room for a corner of the shop for the play area, away from the sales area (although our sales floor is only 1200 sq ft). We have movies, toys and coloring for the kids.
My question for you is, how do I deal with the parents of kids who take our for-sale toys off the shelves, open packaged sets and spread toys around the store? We’ve posted signs pointing out our play area. I ask in a friendly tone if they would mind asking their child to stop playing with the toys, to not let their child drive a Power Wheel around the store, or to kindly not jump on a $300 animated animal. Yet, some of these parents are quite offended that I mention anything. Most are very understanding, but I’m not sure to do about the others.
Stephanie
Stephanie, I am sure you have done all you can to remove temptation from the reach of little ones, including high shelves, glass-doored cabinets that require an adult to open, and so on.
The only thing I would think is left is to tell oblivious parents that their children are welcome to play in the play area you have provided for the kids’ enjoyment and the parents’ comfort, but that any for-sale item must be paid for before a child can use it.
If a child is involved with a piece of merchandise, ask the parent to step up to the counter to pay for it… or ask her/him to guide the child away from your livelihood and into the play area that has been carved out of your retail space to avoid this very scenario, in whatever method they choose.
You should not have to sacrifice your financial well-being for the sake of parents who are not training their children. Keep that in mind, and you will find it easier to speak up. They’re offended that you are protecting your business, and quite possibly the safety of their child? So be it.
HI Katie, I decided to start my consignment shop. I have a question for you. I am looking to purchase software. I found two that look pretty good BCSS is a one time fee for the software. Then I looked into mac programs (I am better using a mac) and I found a whole system with cash drawer, swipe pad, and ShopKeep POS software for $649, but then I pay a monthly fee of $49.00 for the shopkeep. I want something user friendly. Have you ever used these programs and what is you opinion? thanks
Julie, here’s the TGtbT Links Page section on software companies I have found reputable, and a note about how to choose one for your business. I don’t know anything about Macs.
The Computer Peeps, an independent support service who I would trust with my entire business (both in skill and integrity) has an article you might want to review: http://thecomputerpeeps.com/consignment-software-reviews/
I have many years of retail experience and a small accounting degree. I know I could make a store very successful. My question is, can you have a business and still raise a family? My only hold back now is I have a 2 1/2 year old son and would like more children. Over the years, I have passed on two businesses were the owners were retiring. I regret not buy them. How would one manage having a business, raising small children and them being in school. Any tips or advice would be great. Unless I hired someone, I would not have steady help.
Jane, having never had small children, I’m probably not the best person to ask 🙂
But the biggest draw-back to running a retail business is that you MUST have regular business hours and your SHOULD have lots of ’em… which means, a mother would be hard-pressed to try to run a shop on her own. Is there a reason you wouldn’t include employees in your business plan?
Hi Kate…Love your blog! I’m considering opening a resale/thrift store because I love finding a deal but, have zero experience in retail. My background is interior design. The catholic school down the street from me has a small building they use for a thrift store and I’m about 95% certain it is not a money maker. Very uninspiring. Plus it is a destination shop with only residential traffic. I was going to approach the school about me renting the building out, paying them a small rent, and taking over the store. But, now that I’ve read your blog, I’m concerned about driving traffic to the store. Do you think craigslist advertising and garage/yard sale advertising on the internet could drive people to the area? I found it off of an A frame sign at a busy intersection 2 blocks away while our garage sale hunting. Of course, this is all predicated on the school accepting the idea in the first place. I thought I could help them raise money and me at the sale time…thank you for your advice!
Eileen, that’s great out-of-the-box thinking, taking over an existing shop. And you are wise to note that the location will stay the same, no matter who/ how it is being run. If the market you want to appeal to is in the habit of reading Craigslist regularly, or watching the garage sale notices on all the various places that might apply, I’m sure that will help.
But as you yourself experienced, the sign in a trafficked location is what led YOU there… a valuable lesson in and of itself! Let us know how it goes. I’ve had friends who have donated their shops to a NFP… but I’ve never had the opportunity to follow an entrepreneur taking an NFP over!
Hi. I have had a consignment shop for 16 years and it is truly my passion. I want to figure out how I can improve my space so it looks “nicer”. I have a challenging space and have no idea who to contact for help. Do you have any ideas? Thank you
Hey Carrie, glad you found Too Good to be Threw! Check out the 30+ Products for the Professional Resaler at the TGtbT.com Shop. In particular, you might find Shop Sizzle and Using ALL Your Space helpful! And poke around here on the blog and on my web site for lots of tips to use as well!
Hi, Kate I took over a consignment store 8 months ago. It wasn’t easy to make it look like a boutique but with help I did it almost free from store that closed down. Well, keeping the store hrs was hard since I have children. So, I decided to get a partner 4 months later. She’s is amazing but loves spending her own money into the store. It’s great but I can’t contribute as much since the store is my only job. My husband covers everything in our house. Well, business is growing slowly we decided to hire one partimer 2 days a wk that’s 100 a wk. She’s leaving back to school in August so I was thinking of taking over does 2 days and get pay instead since we aren’t able to get pay yet. I do most of the store hrs. Is that the right thing to do?
Hi Crazy (I hope you don’t mean that literally!), Congrats on a growing business. Isn’t it so rewarding to see your hard work paying off?
As to whether partners should be recompensed for actual floor coverage hours is something that you and your partner and your respective lawyers should have addressed in your partnership agreement. Didn’t talk about it? Get your agreement out now, sit down together, and make whatever adjustments you both feel are necessary at this point.
As to whether it’s the “right thing to do”, personally, I think so, yes, assuming that the partnership is 50-50, the financial investment is 50-50, and one person is actually running the shop significantly more often than the partner and so on… hard to say whether it’s the right thing to do for your specific situation. Remember, the right thing to do is always the thing which the participants feel good about (or at least comfortable with!)
This was the way some friends of mine divvied up their 50-50 business…. they were both in family-building mode, so for long stretches of time, one worked a lot more often than the other, then they switched roles (I think they had stair-step kids!)
Customers will come if your doing a good job.Is there parking? Is the neighborhood safe? As a shop owner I feel the business owner sts the tone. Hopefully store has no invisible space that you can’t watch.
Owner/operator almost 30 yrs
Janice- Yes there is plenty of parking and it is a safe neighborhood. It is a small community but people will travel 30-45 minutes to get there. Thats what I know of, maybe further.It would just make me feel better if someof those darn shops would fill up! Just nervous I guess!
I am thinking of purchasing an existing consignment shop. The owner is ready to retire. The shop is in our county seat but located downtown which has a lot of empty buildings. Their books seem to look good and they get plenty of consigners and customers. How concerned do you think I should be about the dying downtown area?
I should also mention that there are two other small thrift shops and 2 restaurants downtown plus other business type places. We counted and there are eleven empty buildings. Some have been empty a few years and others have closed up in the last year. It makes me a bit nervous, but on the other hand i dont want to scare myself away from something!
A “dying downtown” is certainly a warning sign, Dee. I don’t know the terms of your intended purchase, but of course, buying a business doesn’t mean it has to be in the same location. What are the terms of the lease you would be looking at?
And if you want to buy the customer and contact lists, the name, the equipment, and so on, can you do so without assuming the remainder of the lease there… and how much would the business be worth if you decided to choose another, more trafficked location?
Eleven empty buildings out of how many? Does the town feel deserted, are people afraid to wander the sidewalks there, are the empty storefronts kept clean and attractive? If folks aren’t shopping downtown, where are they doing so, and have you looked at those areas?
To help you quantify the value of this business, check out The Business Valuation Kit in our Products for the Professional Resaler shop. It’s written to give resale shopkeepers a beginning point in negotiation, on both the buying and selling sides.
The owner is only open to selling the building, not leasing it, and there is an additional cost for the “business” part of it. We live in arural area basically and in this town there is the old downtown area and a more trafficed area on the highway thru town that has 2 grocery stores and gas stations and banks basically with no buildings really there to lease. Its not an issue of safety and it is respectible looking, but we just do not have the businesses in the community to fill them up. I would say eleven out of maybe 30 storefronts or so are empty.
So you are buying a building and you have to pay for the business within? Or are you buying a business and have to buy a building to get it? That’s really 2 investments, so you need to examine it that way.
I wouldn’t venture to give you business real estate advice… but if you are basically interested in having a consignment shop, perhaps it might be better to lease one of the vacant spots, rather than tying up your money in real estate, and start a shop of your own. Only you can decide if BOTH things you’re buying will be advantageous!
Keep us in the loop… we love hearing “the rest of the story” 😉
Thank you so much for your input! I You are right, it is two investments and I feel as though I am buying the name more or less. They have such a good reputation and I fear starting from the bottom up! But there is a price to pay for starting higher! Just hope I can do as good a job as she has. I will keep you posted! Thanks!
Kate, we’ve been praying and praying, struggling to make ends meet and still after two years, Kids Fashion Jungle is still always on the brink of closing its doors. As our 2 year anniversary approaches we are contemplating really hanging it up for good. Everyone seems to like the store and that encourages us to persevere. 99% of our customers return, but we just don’t have enough base customers to become a solvent business. Last month was our best month losing only $4.96. I contacted NextGen last year and they wouldn’t even work for us because the numbers didn’t crunch although Dexter had been the fastest growing city in Michigan 2 years in a row and the school system is so big that there are only 2 grades in each school. My question is, where do we get started when selling a resale store inventory/fixtures/etc?
Hi Paul and Tamara, I’m sorry to hear that your business isn’t working out for you.
If you are simply wanting to sell the stuff that is in your shop now, I really can’t say. You know your town and marketplace better than I ever could, and whether there are people who want what you have to sell. Here’s for the best possible outcome for you, and a bright future!
Thank you Kate! The Manual has been very helpful. I get possession of the building July 1st so I am on pins and needles 🙂
I’m just getting started and I’m choosing to go consignment. I ended up with a much bigger retail space than I anticipated so I need help filling it! 🙂 I don’t have the money for the software right away so I’m a little nervous about that part, hoping I don’t get overwhelmed trying to keep track of everything.
Wow, Gina, I am impressed with your foresight!
A bigger space than you envisioned = perfect. Every consignment shopkeeper is silently applauding you: you ALWAYS need more space, after Week One or Two. But I admit, that cavern looks WAY too big for a while. Keep an eye out here on the blog, I’ll be posting What to Do When You Have Too Much Space ideas soon.
And kudos to smart you, too, for not spending your opening budget on software. For two reasons: One, it’s better spent getting going in the business, on advertising and fixtures which will be flexible down the road. And two: You shouldn’t buy something so crucial to your business when you really don’t know what will be important to the way you run your business. That’s why I recommend, even in this day and age, that new shopkeepers delay choosing which software to go with as long as possible. You won’t get overwhelmed if you use the system in the Manual… after all, I used it for 12 years and 12000 consignors before it was available. Yes, you will certainly want it (such a time-saver, and for those shopkeepers who utilize the reports a real tool!) but it’s better to delay and choose wisely, than choose blindly and be “stuck” with a system which feels awkward and intrusive to your way of operating.
Need new software for my store after using Stoker since 2006.
Checking out Consign Pro, Consignment Shop and AAIMsi.
Do not want to be online. Please RSVP
Janice
West Main Consignment Lansdale, Pa
Hi Janice, Since you’ve been on software for many years, you know which reports, which type of tags, and so on you like, and which you don’t particularly like. You’re in the ideal situation for choosing a program which feels intuitive to you and which will be a step up from Stoker. To help you focus, why not make yourself a chart: things you MUST have, things that might be nice, things you really do not like… and compare and contrast, as they told us in school!
Hope that helps!
I’m curious to hear the pros and cons of consignment vs BOR for a new resale store.
Hi Kristen, I was hoping that you’d get a variety of replies here before I put in my 2-cents’ worth, but what the hey. Here’s mine:
Pros of consigning: You get to learn on other people’s dime, so to speak… what will sell, at what price and how fast… and what no one seems to want, even though YOU think it’s a terrific item at a great price. If something doesn’t sell, all you’re out is the processing time/expense and the space it inhabited for the consignment period. (Although, of course, you need to factor in the disappointment of consignors if/when you don’t sell the things you thought you could.)
Cons of consigning: You are stuck with whatever percentage you have set, in your consignment agreement, as your cut.
Pros of buying outright: Once you’ve bought it, it’s yours. Sell now, hold for a better selling time, combine/ recombine as your market wants. Profit margin is set by you, not a consignment agreement.
Cons of BOR: The $ invested. If you are willing to invest many thousands of dollars in stock that you have no idea that your shoppers will want, and confident in pricing these goods, BOR may be the best way to go. Another con: Confidence to offer a price for a batch which will neither insult nor discourage the supplier from continuing to use your services.
My take on all this: a new shopkeeper doesn’t have the knowledge to BOR, especially since the dollars laid out can easily go south as s/he learns what the marketplace truly will buy. BOR can be very profitable… once that shopkeeper feels that s/he has a handle on what to buy and how much to sell it for and when to cut losses and mark it down.
Thanks so much for your detailed and informative reply! I’m looking forward to reading the manual (I’m waiting–as patiently as I can– for it to arrive!) for more juicy nuggets of your knowledge. 🙂