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 Kate, this is a question, I hope I am posting it properly. I didn’t find anything about this in a search on your page, so if I missed somewhere where this question is already addressed. Please let me know.
I have a few VALUABLE consignors who have been telling their friends how well they are doing selling their things in my shop. What’s happening is that some of these ladies show up in the shop with a bag of stuff FROM THEIR FRIENDS. I don’t like this at all. I am already very picky but I ratchet that up times two for this type of consignment,which leaves my valuable consignor with the burden of having to deal with the rejects. They don’t like that but eventually they learn to edit before coming into my store with a box of filthy broken shoes from ‘their friend’.
I would rather have a direct relationship with all consignors because then if they are coming in and out of the store I have the opportunity to sell them something. And we can work together to make the experience rewarding for both of us.
Frequently my customer is also taking money for their friend as well, which feels very uncomfortable and in the worst case scenario could become a big headache.
I am about to update my consignment policies for 2017 and I am planning to include a NO THIRD PARTY CONSIGNMENT RULE.
My question is: Since some people may not read my new consignment document thoroughly, what’s the best way to tell a valued customer with an armful of her friend’s unedited pile of stuff- sorry take it away and tell your friend to bring it in herself…..
Thanks!
Michele McGlone
Michele, I think you’re forgetting, in your quest to not upset your successful consignors, the basics of consigning.
Your consignment agreement, in which the owner of the goods agrees to consign to your business the items for sale and under which terms the owner of the goods signs the agreement.. is between your business(the consignee, the entity to which goods are consigned) and the person who legally owns those goods (the consignor).
LOL! Get it? Simply say, to your good-samaritan consignors, that they are indeed wonderful friends to take on the burden from their friends, and to recommend and praise your business and you adore them for it… handing them a gift of some sort (perhaps from your Celebration Basket, perhaps a $5 or so gift certificate)…. BUT:
To protect your business and livelihood, the owner of the goods consigned must enter into this legal agreement, by signing it on your legal premises, and that you’d love to meet these folks and greet them face-to-face.
And your punch line? “Ms. Ideal Consignor, I cannot allow you to place yourself in legal limbo by being an undisclosed third party here, as I know all you’re wanting to do is help a friend…”
Will that work? Hope so!
Hi Kate!
We are deciding between using tag color markdowns, (we do go around marking them 25% or 50% at the appropriate times), and instead using the preprinted date markdowns. The blog entry I found of yours regarding this topic is from 2011, I was wondering if your thoughts on this had changed? I agree that customers need to instantly know if an item is on sale, but does having the date on the tag matter? It would save us a lot of time not manually marking down…
Thanks!
Jasmine
What Goes Around
Hi Jasmine, thanks for asking. The only system of MDs that I consider worse than telling people that if they wait they can get it cheaper (which is what printing MDs on tix does) is…
You guessed it, making them do markdowns in their heads (read this and this.) Now it sounds like you are using your tag colors solely as an internal tool to direct your staffers to what needs to have a markdown written on a tag today/ this week. That’s a time saver, for sure, and is fine as long as you don’t have to constantly answer “what price are yellow tags?”
Human nature has not changed much since 2011, don’t you agree? If I want something that’s $50 now but if I wait 3 days I could get it for $40… wouldn’t I be tempted to not buy it now? Or wouldn’t I be tempted to demand a discount “After all it’s only 3 days and I won’t be here so you’d better sell it to me now”… or, at the VERY least, I say to myself “The heck with it, I like it, it’s worth $50 to me, I would waste time coming back & besides someone else may get it”… so I’d buy it at $50, and feel just a little less pleased with that shop in the long run?
For more on markdowns, here’s the search results that I used https://auntiekate.wordpress.com/?s=math
Thank you for your feedback! I subscribe to and love your blog!Jasmine BaillioWhat Goes Around
You’re welcome, Jasmine. If you haven’t read the Manual recently, there’s a lot more about markdowns and the marketing value of them there.
Hello Auntie Kate,
Since the summer is very slow, I’m planning to take a week vacation next month with the kids. How would I tell the customers? I don’t want tell them I’m closed for vacation. Or is it ok to do so? Thanks.
First of all, Joan, congratulations on honoring your work/family balance! (And have a lovely week off.)
As you know, I would never recommend that you use the word “closed”, even if you won’t be open, because the public always interprets that as “closed forever.”
Second, I’d play up the reason that you will be otherwise occupied: “The kids grow up so fast; I want to make memories with them during the week of August 2 to August 9” Who could fault THAT? 🙂
“We’ll be back, refreshed, ready for fall on August 10”
It’s important, too, to have a plan if you are a consignee, for the consignments you have. Will you add a week to the consignment period, so your consignors don’t feel at a disadvantage?
And finally: I’d set a goal, if I were you, to have staff that can cover your breaks (and any emergencies that come up!) Running a shop totally on your own is difficult, and can be the direct cause of financial failure… so when you get back from your respite, start working on the goal of having help in that area!
Thanks for the quick response, Kate!
I do have two reletively part-time employees. I am not sure if I want them to manage the store for a week while I’m gone.
Love your blog! Always go here when I’m stuck or need inspirations.
That’s great! Now you need to figure out if you can train them to do so, if you can alter your operation while you’re gone (e.g. “we won’t be accepting consignments that week; we’ll be open from 12 to 5 only” whatever works, so that folks can still help you pay the rent but your staffers can cope), or if it’s not worth the headache/worry…
If it makes you feel better, my mother closed her 2 shops from last-day-of-school til first day… she had 4 kids!
Q:Hi Kate, the owner of a resale boutique asked if I would be interested in buying her business, she is asking over 85K for it, however rent is 1500K month to month, no lease. It is a good location and why she is selling for that much, she paid about 70K when she took it over from prior owner that owned it about 12 yrs, so well established … is this a good deal? Friends in business of mine say no, what is she ‘selling’ as none of the clothes are actually yes, she does not own the space, she rents, included is the data base of consigners, computers, software to keep track of inventory, sales etc, price tagging equipment, mirrors, clothing racks, phones… she put about 12K in since she took it over, makes a profit around 50K a year after taxes, rent consignee payout. I am a client here and love her shop and she is busy every tome I go in or call, help please, advice please! Don’t want to get in over my head or if this is a bad deal, says landlord is great, but I am concerted what if rent is upped, could be risky! Thank you, Dana
Hi Dana, How exciting for you. First thing you need to do is see her business tax returns to verify the numbers she’s putting forth.
Then talk to the landlord. A month-to-month rental is risky not just ’cause the rent could increase, but because you could be asked to leave at any moment.
How much she PAID for something she’s selling is of no importance, but the cash flow IS. Another thing to consider is that the inventory software is often NOT transferable to a new owner… talk to the company that sold it to her and see. (Also see if it is as up-to-date as you’d like… or even, if you LIKE that software over another.)
Finally, with that info in hand, ask yourself what $85,000 could get you if you started from scratch. And when you could guesstimate you’d be clearing $50K yourself in a year, after looking how she defines that dollar amount.
I recommend the Business Valuation Kit as a starting point for you. It’s available on our shop page at TGtbT.com/shop.htm (and forgive me today, my site’s acting up, so if you can’t get there, try again later 😦 )
Be sure to come back and let us know what your future holds!
Hi kate! I’m brand new to the business and have your “bible” to good to be threw. I refer to it all the time and have ALL my questions answered but one. If you could pick one consignment software, what would it be?
Hi Bobbie Jo, and welcome to the industry. The short answer to your question is on page 201-202 of the manual… that is, that choosing software is a very personal decision, and I can’t choose for you and that MY choice might be all wrong for you. But more importantly, reread page 82, the section titled “Wait a minute… Shouldn’t I use a computer for all this?!” for the most important thing I can tell you at your stage. The one that can make SUCH a difference down the road.
Hope the fact that I’m “not” helping… helps you! (And that that remark doesn’t sound TOO “Auntie” to you!)
We have a consignment store in rural NC. Sales have pretty steady but we do have a problem. We limit clothes to 25 per consignor because our store is small. We sell some clothes but we are overwhelmed with so many clothes…we change tag colors each month. when the clothes have been in the store for 30 days we reduce them 25 %. What can we do to sell more clothes ? We are jam packed..Thanks!
Sue, it’s always a challenge to find the space for all the great clothes people want to pass on, isn’t it? Here’s a couple of thoughts:
1- Using the space you have to better merchandise your wares. We have a Product for the Professional Resaler, The Essential Guide to Using ALL Your Space, which may help you find some more room.
2- Being “pickier” about what you accept. This works best if you have been diligent about keeping records of what sells best abd what just sits, and if you have a long-enough history to make such statistics meaningful.
3- Using your markdowns as a better selling tool. Apparently you use the “green tags are 25% off, purple tags are 50% off” way of indicating price reductions? That’s not the most-motivating way to do it. Lots of posts here on the Too Good to be Threw blog about that, and of course the topic’s addressed in the Manual at length.
4- Widening your audience so you draw more shoppers in. This could be anything from more advertising and promotion to longer shop hours to special promotional events to carrying something (or providing a service) that gives you a broader customer base. For example, back in the day when I opened my shop, I had a used-book section which drew folks in who wouldn’t have come in to see used clothes 🙂 but once they were in, became full-line customers!
5- Other ideas include reducing prices sooner than 30 days; pricing lower to start with; promoting multiple sales with a Frequent Buyer Card type of program.
You’re blessed with enthusiastic suppliers, and I hope you can goose your sales up to the point where you no longer have to have an artificial numeric limit that inconveniences them and messes with YOUR head! (See a blog post on how those limits caused even this weathered-old consignee to “think wrong”! It’s here: Kate Learns Something New.
Thanks for replying Kate. I have a great location.
I have store front in the middle of town with huge display windows that I keep changed often and looking clean and colorful. I am next to a very popular restaurant. I have lots of local folks that bring me there clothes but never buy. I carry all the top name brands of clothing mainly for kids, I launder everything that needs it. I have a play area for the kids and tv with cartoons playing. I carry baby equipment and maternity clothing also. I have handmade items from local crafters and seamstress. I have a good response with the customers I have but there just aren’t that many local customers there to purchase. I may try to hold some sort of event soon. Maybe that will help.
I have a Facebook page you can look at Peek A Boutique, West Jefferson, NC
Thanks
Lisa
Sounds great! Do your customers, or potential customers, know all that? Or are you “the best kept secret”? 🙂 I find that sometimes, shopkeepers confuse promoting their business with bragging on themselves, and are way too modest and humble to tell folks, over and over, what a great place to do business your business IS!
Now if your marketplace is too small to support your shop, that’s another story… you either have to spread your net wider or tailor the business to the market you can reach.
Hi Kate,
I love your site and follow closely. I own a children’s resale shop in a small rural mountain county for the last two years.The only one in town actually other than the local Goodwill. We depend a lot on tourism to make ends meet. This has been a long winter with tourism ending early last year. My problem is getting more local foot traffic in the store. I have implemented advertising on Facebook, local free papers and radio, dropped flyers everywhere. I have ran frequent shopper cards that i punched. I ran giveaways and even bought new items for baby showers gifts along with new women’s dresses and new clothes for the kids. I am afraid if things dont pick up or I don’t think of something soon I will have to close. Do you have any other ideas that may help getting local folks in the shop? Any advice wold be greatly appreciated.
Thanks
Lisa
Lisa, have you tried promotional events of some sort? That might be the extra little motivation that your neighbors need to come explore your business.
Besides that, why is it that people don’t come in? Are you in an out-of-the-way location? Are your business hours such that it’s hard for folks to come shopping? Does your store front not tempt folks to come in?
Have you developed a mailing list of folks who do come in, and do you use it often to send info that might motivate them?
The key here is… why AREN’T they coming in, and why AREN’T those who do come in, out there telling their friends they MUST see this incredible place? What’s stopping them… either the never-been-ins or the been-in-once-weren’t-impresseds?
In addition to these soul-searching questions, who in your community thinks your shop is not for them… and what can you do about that? Grandparents, foster parents, Secret Santas, even doll collectors who need to expand their dolls’ wardrobes?
Is it time to widen your merchandise to include adults?
Lots to think about!
Hi Auntie Kate,
We have implemented several new coupons/promotions this year to try and they all have been a big hit with our consignors and shoppers alike. We already do progressive markdowns during our 90 day consignment period. While we realize we cannot always run promos in which the consignor shares the discount for the shoppers, we want to make sure we are watching our dollars closely. I recently read your advice to offer a $5 gift card on $25 purchases rather than $5 off that purchase and we are going to start using that idea. Here are a few other coupons/promos we run, wanted to get your thoughts…
~$5 off purchase coupon for new consignors (valid for one week).
~$5 off purchase coupon called “Be Back Again”. We give these out to customers when they don’t find anything when they come to shop,to encourage them to come back to shop and we tell them “we get 100’s of new items daily!” (valid one week)
~$5 We love our shoppers coupon. Valid one day only and we usually do it as a “Come see what surprise we have for you today! But hurry, it’s today only!” This has generated customers calling friends/family while they’re in the store saying “You’ve got to get in here right now!”
~Facebook check in 10% off purchase.
~SMARTgirls Lady Loot- similar to kohl’s cash. We have a 10 day shopping period where for every $25 a customer spends they get a $5 off of $15 coupon. BUT the $5 off $15 coupon is not valid until the following month, during another 10 day period. Thus driving sales in both months with one promotion.
~When new consignors come in they get two referral cards that state “I love SMARTgirls, You will too! This card gets $5 for me and $5 for you!” (unsure if we should offer these more widespread and not just for new consignors?)
This may sound like a lot of coupons/promotions and it is not exhaustive but they are the new ones we’ve rolled out since conference last year. We don’t offer all of them all the time but a few we do (i.e. facebook check in, new consignor, referral cards).
We’ve been more on top of our promotions game since conference last year and our sales numbers have consistently been up for the past 6 months over the previous years numbers. BUT we wanna make sure we are choosing promotions wisely for our bottom dollar as well.
Also, do you have a number of recommended promotions/sales per month?
Thanks so much for all you do! Your wisdom and even just this platform for resale professionals to share on is immensely beneficial! Sorry for being longwinded!
Hi JoAnne, First, thanks for the compliments!
And yes, it does sound like a lot of coupons. While I realize that consumers today LOVE to feel like they’re gaming the system, so to speak… I’d make all the conditions a WHOLE lot simpler for everyone (you, staff, customers) to understand.
Here’s my best advice: The $5 off future purchase for a special event promo is great. In fact, I’d suggest you create a recyclable “$5 SMARTbucks” to use for events… and for any other usage you feel merits doling these out (her birthday? when she tells you she got the job/ got accepted into the college of her choice/ got rid of that cheatin’ man :)? )
Beyond that SINGLE multi-use coupon, I’d institute a card-based FBC. (None of this “virtual” frequent buyer discount stuff… you want them to carry/ see that punch card!!!!) And with this, you can do a “free” punch for anything you like: consigning, bringing in her house guests for a shopping spree, helping that other customer, whatever.
Great suggestions! Thanks SO much!
Do the consignor and the store always split discounts the store chooses to set?
Sami, nothing is “always” in our industry 🙂 It depends on your Consignor Agreement. My recommended agreement is covered in great detail in the Manual. It’s simple, transparent, and proven to be compatible with building your business and assuring profit and goodwill.
Dear Kate, I have a huge quantity of clothing to sell or consign. All the consignment stores in the area only take a few items at a time. Can you suggest where I might find either a buyer or consigner who will take a large quantity at one time? Thanks. I appreciate your help.
Catherine, beyond pointing you to the HowToConsign.com Resale Shop Directory, which may or may not solve your problem, I really don’t have an answer for you. I counsel against shopkeepers setting an arbitrary quantity limit on incoming, but not everyone listens to me 🙂 !
Auntie Kate, I live in a smaller town with one major industry and a college. I own the building where I have my resale shop. I have had some success but am still struggling after 6 years. I can’t seem to attract the college crowd, I have to keep prices really low just to get folks to shop and more and more people are buying and selling through on-line selling groups. Plus, I am trying to do everything single-handedly since there is no money for employees. There may not be any simple answers on turning things around. I guess I just want to know that there are others out there like me – solo shop owners trying to pull their business up a very big hill.
Thanks for listening, Mary Loden, Nu2U Consignments, LLC
Hi Mary, I think the road to entrepreneurship is always uphill, so yes, you have plenty of company on the trek! If you’ve had some success, and are still enjoying it, and continue educating yourself, that’s the best plan you have. A bit of my philosophy here, and a paraphrase of a well-known Einstein quote: “Struggling to grow your business: doing the same thing over and over again and expecting different results.” In other words, perhaps looking at your methods, principles, operations might help you modify some of your stumbling blocks on that uphill climb.
Quick story: When I first opened my shop, my free-standing building had 2 storefronts: One More Time, and an architect’s office. My hours were 10 to 5. After just a few months, the architect ambled over and said “You wouldn’t believe how many people try your door after 5.” I immediately changed my hours to 10-6, and he was right! I was missing all those potential shoppers who stopped on their way home from work.
I’m curious to know the average time frame between concept/business plan and store opening for everyone. I’m trying to establish a timeline of events and how long to plan for the actual store opening. Thanks!
Sami, how exciting for you! I doubt an “average time frame” will help you, since you are obviously ABOVE average 🙂
As you can read in the introduction to TGtbT the Manual at http://tgtbt.com/manualintroexcerpt.htm it took me less than a month. But I had found the perfect location and I had my business plan all figured out (well, in my head)… plus I was over-the-top gung-ho to get in there and show the world (AKA the idiots who fired me) what a success I could be.
There are others who gradually eased into the business, so their time frame could be years. What’s important is that you feel ready in your situation before you open (and that you’re not getting married in 2 months or having a baby next week!)
I’ve been in the resale, craft and antique biz for 15 yrs… Have had booth space been a manager at an antique shop for 3 yrs… I have an opportunity to purchase a building that has some income already coming in from a barbershop and a billboard sign with the possibility of renting out apartments upstairs that still would leave room downstairs for a shop… I want to be able to have vendors to sell their product along with mine but hate the idea of individual booths… How can I have them bring their product in and let me display it in such a way that it would be more pleasing to the eye …to our customers and yet each vendor would be treated fairly and how much they brought in …
Debra, have you considered simply consigning items from craftspeople? You accept what you learn will sell. Things that you don’t find sell, or items where the craftsperson wants more than you can price and profit on, or quantities that you haven’t got the space for, you don’t accept.
What are your thoughts on renting a resale space in a resale “mall”?
Nancy, these are the things I’d examine:
* Does the mall attract your target market? ENOUGH of your target market? Investing hours of “hang-around” time to see who’s coming in, how long they stay, traffic patterns, are they buying and what? would be a good thing to do. Make yourself a little checklist and tally away!
* How do the financial figures look?
* Have you spoken at length with other vendors there about their experiences with the head of the business, advertising, social media, whether they find it stupendous?
* What type of time/ money commitment is involved? If there’s a legal agreement to be signed, does it unduly restrict your freedom to sell whatever… does it protect you from others encroaching on your niche, once they see how successful you are?
* Have you spoken to regular folks? Do they know of the place, what’s their impression, do they shop there? Why, why not?
Let us know how this progresses for you!
Auntie Kate
I have owned a childrens thrift shop in a rural area in NC for the last toe years. I have read all your information available and implemented a lot of your ideas in my store with a lot of success. I have a great location for my store. We are a tourist area so most of my sales are from out of town folks walking through our small town. The local folks bring me clothes for me to purchase with no sales. Any ideas on how to boost sales in the slow tourism season to get more local sales?.
Thanks
Lisa
Hi Lisa, thanks for visiting our blog. I know what you mean about tourist season being so much better than “off” season. A few solutions:
Start a Frequent Buyer Card program for locals, so they have that card in their wallets which will make them think of YOU when it’s time to shop (try our FBC Kit for quick implementation);
advertise locally in whatever ways are available (including simple non-tech things like forming alliances with local groups who have the same target audience, such as schools, daycare, kids’ sports);
and using your Facebook page as an invaluable resource for local citizens with local news, event notifications, tips and helpful ideas.
Hope that helps you make your business all you DREAM it can be, as we say on TGtbT.com!
I recently purchase a consignment shop that I have now worked at for 3 years. We have always had trouble finding a good way to drop offs that do not back us up! Do you have any suggestions on what to do?
Drop-&-Run consignments are a blessing, not only to time-pressed consignors, but to shopkeepers as well, who can better manage staffing and work loads. We cover the best ways to manage these effectively in our Drop-&-Run Layouts Kit. “Drop offs” CAN be a nightmare if not set up the way we suggest, and that might be the situation in your shop.
Hello I work in a consignment store in Seattle for my family and we are looking to update and change our software system, do you recommend any that are up to date and user friendly?! We have looked at a few but don’t know what to go with. Please help. Thank you!
Hi Megan, Thanks for visiting the blog. You’ll find a list of software vendors on my Links Page at Too Good to be Threw. I strongly suggest you test drive any that look like possibilities, since “user-friendly” is a personal decision… find one that “thinks” the way you do. Oh, and be sure to check out the reports function on your choices, since that aspect of data accumulation is VITAL to growth and profitability!
Auntie kate- How can I cover/ brighten brick walls at my church thrift shop? I cant use paint or anything permanent- it is toooo dark in our shop. HELP!!!!!!
Hi Sherry, thanks for following Auntie Kate!
Have you examined all the possibilities of adding lighting to counteract the brick walls? That’s probably the most cost-effective way to balance dark walls.
Other thoughts: if the walls are not being used to support clothing racks, hanging curtains flat against the walls might lighten things up (and provide softness and noise reduction, too, if that’s a plus in your situation.)
The idea of “false” walls, wallboard on a framework that pressure-fits the walls, could be do-able too, if you have some volunteer carpenters willing to make these! Of course this takes up some depth, and these false walls won’t be sturdy enough (without anchoring into the brick) for attaching hanging rod systems from… but they’d be fun, easy to repaint in seasonal colors, and perhaps showcase artwork and other wall art.
Come back and show us your solution when you’ve made the chpice!
Kate – my biggest dream has ALWAYS been to own a consignment/resale boutique. Which start-up strategy would you advise…business loan to cover start-up and 6 months of overhead? Or continue saving until I personally have enough for start-up and 6 months of overhead?
Hi Toni, Excellent question. That’s up to you of course, but I’m thinking that you will have enough to worry about and think over without the added burden of a loan repayment. BTW… it would be much wiser to have 8 months’ worth of overhead tucked away, along with your opening budget (plus a 10% contingency) and whatever your personal situation needs re living expenses. Lots of folks made it, of course, without this financial cushion… but lots more have gone out of business just when their shops were poised to take off, because there was no money left. I’d hate to see you handicap yourself like this.
Hello Auntie Kate,
My question is I currently own upscale consignment shop going on my third year unfortunately I have decided to close business and I wonder is there a link or place to sell out some or all your boutique/inventory items that another new shop owner may be looking for?? I know these items are costly and sometimes you have to go all over to get enough inventory to start. I have over 10,000 items and very nice jewelry counters, lighting, security cameras, etc. Cash drawers POSX system. Is there a place to help other shop owners get a start at a good price? Thanks, Carrie Lance DEJA, VU’ ALL OVER AGAIN, LLC.
Hi Carrie, there’s a Facebook group for “Consignment/ Resale Owners Classifieds at https://www.facebook.com/groups/244351459021951/ You’ll have to ask to be added. Tell ’em Kate sent you!