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– came across your site via pinterest. My husband and I are looking into opening an “vintage and upcycled decor” store based on our experience flipping “flea market” decor. We do not plan on doing consignment, and I wondered if you have specific resources that would speak to our endeavor. Also, what keywords might bring up info for us on your site? Thanks so much!
How exciting, Amy! You can get lots of info on the resale industry, of course, in my manual, Too Good to be Threw, and our other Products for the Professional Resaler.
Both this blog and my web site have search boxes, and this blog, too, has a tag and category search function built in, so you can cruise our info at your pleasure. I invite you as well to follow TGtbT on Facebook.
Be sure to keep us up to date on your progress!
Do you have a recommendation for consignment software? Thanks!
Hi Candice, I assume you’ve read the Manual and my discussion on choosing software as a potential or brand-new shopkeeper there? Your next step would be trying out the free trials of various companies; links to those I am familiar with, and my thoughts on which to choose, are on the TGtbT.com Links Page at http://tgtbt.com/links.htm#products
Hello everyone! First time poster and not sure if I’m in the right spot but I’m seeking some adivice! My husband and I are two shakes of a lambs tail away from buying and existing shop that has been open for almost 9 years. Advice I’m seeking on is mismanagement of money owed to consigners. Accounts have been open for years and there is money owed in excess of 25k suggestions on potential new buyers taking on all this debt. Money has been used and seller assumes new buyer will carry the debt. We are located in CA. What happens if owner just closes shop?
First, congratulations on your impending purchase! I’m sure you’ll be making changes to suit your goals and possibly aligning your operations with those recommended in TGtbT The Manual. You’ll want to let folks know the WIIFM for your changes, even if it’s just operating hours, so I’d suggest you send a “looking forward to serving you” letter to all consignors, containing a “thanks for the memories” note from the old owner and introducing the new! I’d also suggest that they come in to meet you… so expect to happily pay out whatever’s owed as you meet and greet. In fact, this is an ideal way to get past consignors active and happy with you anew.
The $25,000 accounts outstanding would, of course, be a debt the business owes and therefore deducted from the selling price, since you indicate the current owner will not square these up as part of her parting duties. Don’t treat it any differently than you would a past-due amount from the electric company!
Let us know how it goes, and welcome to the industry!
Hello! I hope everything is well! First off, I know the answer to this question will vary state-to-state 🙂 But I wanted to see if you’ve had any experience with this situation.
A shop about 3 miles away from me has a clause in their contract that states “any money not claimed by the consignor within 12 months is forfeited by the consignor and becomes property of the store.” When I was talking with my accountant before opening, I remember asking “what happens to money unclaimed by consignors?” His overall impression was that no matter what, any money owed to anyone will always be owed to that person. But why would a shop put this into their contract if it’s not enforceable? I’ve seen 2 other shops in my state say this as well.
Have you ever encountered stores doing this? I’m hoping you have some advice on this, although I am thinking the answer will be “talk to your state/lawyer” 😉
Many stores do this, Abby, and it’s basically so that consignors will come back and ask for their money! The shops desire to continue the relationship, and what better way than to have a consignor come in and ask if they have any money! In other words, this phrase is a marketing tool, not a legal matter.
For more on the whys and wherefores of writing your consignment agreement in a manner designed to build loyalty check out TGtbT The Complete Operations Manual.
In Arizona, we are to send it to the state for unclaimed monies.
It is my opinion…monies are always the consignors, so … rather than tell them to contact the state and go through the red tape, it converts to store credit. Each month, I go back a year and any un-used monies, I set it as a non-payable i.e. store credit.
Interesting! I was just thinking of this the other day for my contract. I see many places say “At the end of 12 months, money not picked up by consignors will become property of XX.” So if they just say this to get people to pick up the money, does that mean even if they come in 13 months later that store still has to give them their money, even though they signed a contract saying it’s now property of the store? I re-checked the manual but didn’t see this touched upon!
You’re right. I don’t touch legal issues. After all, I don’t have an LLD. My career is selling old clothes 🙂 , ya know, rags to riches 🙂 Discuss this with your local attorney, and make a decision that you are comfortable with for your business.
Oy vey the shoes are everywhere! Is there room in betweur hanging clothing? Like infant sizes hanging above the larger sizes. Try putting one long shelf in between the racks. Customers see them and you utilize wasted space.
I have a children’s resale shop and I am having a tough time trying to display shoes. I have on the wall slanted shelving but it is just not enough. I have thought about putting them in bins in sizes but I really don’t like the idea of the clutter. any suggestions?
Hi Joy! I put your Q on our FB page. Maybe someone will reply, maybe even post some pix if they can. Take a look: https://www.facebook.com/2Good2BThrew/posts/1516054108426978
Hi Kate, I have been open for 6 years, and owe a lot of our success to your manuel especially, books and advice! We recently installed cameras at our store, and have now caught people stealing, after they have left. We reported it to police, but do not know who the people are.My question is, would you recommend putting their picture on Facebook, or in the store, to help catch them? What would you say on the picture?(It is legal in our state to post their picture, one party consent) Thank-you for any advice!
Ann, this is a question with 2 sides. Side One, which we’d all like to think of as probable, is that someone sees your post, knows the perp, does her civic duty, the police go and actually arrest and charge that person named. Meanwhile, while you’re asking about the thief, all the other thieves see you’re hard on crime and are loath to steal from you in the future.
Side Two is all your consignors and potential consignors see the post and are concerned that their property that they’ve entrusted you with, might actually get stolen!
I don’t see a win-win here. I think the only thing you can do is make sure your staff really look at the tapes, and if a likely perp comes BACK, stick to her, learn all you can about her, get a license plate # if it’s safe to do. I assume that the camera company has told you to use stickers saying something like “Smile. You’re on camera”?
Thank you Kate! It did cross my mind about consignors thinking their stuff could be stolen. I think I’m going to say that because recieving money for their consignments is our top priority, all shoplifting will be investigated and charged.It might still scare consignors, but the thought of letting a theif go is unnerving. Love your advice!
Hi Kate! I have been open for about 5 months now and doing well. Over the 5 months though, we have quickly learned what will and will not work in terms of our contract and have rewritten in quite a few times. So, what is the best way to get all consignors on the same page for our most current terms? Should we just make a contract that consignors complete every single time they come in (we’ve been trying to avoid all this paperwork).
If you have a resource that explains this, let me know! I have the manual but it doesn’t mention anything (or I can’t find it) about making changes to the contracts.
Hey Kelly, If you’re feeling the need to edit your consignment agreement, you could probably benefit from one of our Luncheonette Products at http://tgtbt.com/luncheonette.htm , specifically Making a Change in your Consignment Agreement.
I would steer WAY clear of “rewriting it a couple times”, especially in your first 5 months. And for sure, don’t get sucked down the read-and-sign-every-time…. very un-user-friendly! Decide on a new agreement, have it apply to all consignment henceforth, and stop changing your minds 🙂 !
I know, I know!! 😉 The previous changes were very minor and didn’t really need to be resigned. But now we want to add a clause about consignors being paid out automatically monthly if there accounts hit XX amount, as well as if accounts are inactive for XX amount of time, as we’ve learned that people will drop things off and then never show up again! Therefore, we know we will need to have consignors resign the contract. Thanks for your help! I did buy the file and it was super helpful.
Glad it was helpful. You might want to revisit the discussion in the Manual as to why each part of the same\ple agreement is in there, and also, if you’re having difficulties with payouts and Drop-&-Runs, those areas as well.
Many shopkeepers find that a re-reading of sections of the Manual is beneficial from time to time. Something that you glided over, or didn’t quite click, at one point in your journey, could be super-helpful months or years down the road!
Hi Kate, so sorry to bother you about this again! One thing I noticed wasn’t answered in the file (or wasn’t obvious to me) was: at what point is it OK to implement the change. Do I make the change, for example, starting March 1st regardless of if the consignors have come in to sign the new contract? Would that open a potential “can of worms” if I start paying people only 40% instead of 50% if it wasn’t originally agreed upon? It’s easy for the people who don’t come back often and their accounts have nothing on them, but the people with items they brought in just before the change?
You have the patience of a saint to answer so many (repeat) questions every day. We are all thankful for that 😉
Any changes would be going forward, not retroactive, to be fair. Things consigned under your prior agreement would be subject to its provisions that they agreed to and signed for; a new agreement would take effect from the day IT was signed. Consignors would receive and sign as they bring in their next consignment.
So if Consignor 123 had items before the change and after, the 2 batches might be treated differently. If item #34 was consigned under the old contract, and sells now or in the future, it gets the provisions under which it was consigned. ONLY items consigned under the new agreement get the new provisions.
Be sure to highlight the changes for your consignors as they receive and sign. Make certain they are clear on it.
I am opening up our store in May and having issues trying to find a person or a place where I can get a white check out counter. I am in Phila area. any suggestions
Um, white paint? Don’t know the style or branding of your future business, but some suggestions from our Pinterest Boards:
Is your style funky? https://www.pinterest.com/pin/8655424256455106/
Eco-conscious? (I’m guessing this counter is faced in Pergo flooring) https://www.pinterest.com/pin/8655424256454968/
A budget-friendly idea: https://www.pinterest.com/pin/8655424253725062/
Hope that helps! best wishes on your new shop!
ok Kate…tomorrow the 23 of Jan. 2017 I am getting the keys to my very first vintage shop…..what is the best way to sell most of my 60-70’s clothing? I am very nervous. I thought about renting dresses and hats and having dress up parties….hmmmmm. any suggestions
The best way to sell your merchandise? For cash LOL… no, seriously, take a look at Selling More to More People More Often, one of our best-selling Products for the Professional Reskler. See all our Products on our Shop Page, too. Renting’s fun, but be sure that you are able to recoup any financial loses should rentals not be returned, be returned late or in bad condition. (Tip: You will never have enough flapper dresses or men’s fedoras!)
Hello,
I am a brand new consignment owner! I have my shop and presently doing all the beautification on it. I just ordered your book and can not wait to get it. Its just my immediate family of 3 that are doing all this work. my day consists of work in the shop and evenings on how to start a consignment business. I have been a consignor for years to the only shop in town that closed over a year ago. Ive been fortunate that the owner has spent some time mentoring me and will even contact her clients announcing my new venture.
My question is until your book arrives are there valuable websites etc. that I can start researching on. I am also trying to weed through the idea of consignment software and don’t know how to choose. Any and all help would be greatly appreciated.
Thank you so much
Kathie
@ The Ruffled Closet
Hi Kathie, I just got back from the post office, mailing out your manual to you! I am sure that you have spent DAYS here on the blog and also on my web site, which has articles, Products, tips and even links to the various software vendors (and also, my POV re choosing a program for your business)!
I know you’ve learned on my TGtbT.com site that most of our Products for the Professional Resaler are available as PDFs (which I call PDQs because they are 🙂 ) and that these focus on specific aspects of the industry. Start your research!
Happy New Year Kate and fellow shop owners! I hope you are all doing well!
I have been running my small shop for 3 months now and things have been going so well! Despite all the hard work, I have been enjoying meeting all my new consignors and customers and growing my business 🙂
I do, however, have a tiny problem and I know if I don’t figure something out soon, it could very well get out of control. What do you do with consignors that just grind your gears? I have 2 separate examples of people that I have to hold my tongue around since I truly can’t afford to be “tough” at this point since I’m so new and building my reputation, but I’m worried I may actually be hurting myself/not being stern enough instead.
Example 1 is a woman who has been a fan since day one! She has only consigned 2 things and purchased once, however she comes in many times per week to “hang out”. She is always asking me to hire her as well, to which I am very honest and upfront that I am currently not looking to hire. I know how important these friendship relationships can be (per the manual!), but it’s becoming a real time waster – time I desperately need to spend growing my business. I told her one time that I was a bit busy and was sorry I couldn’t talk more (hoping she’d get the hint), to which she replied “that is why you should hire me if you’re so busy” and continued being my chirpy little shadow. How do you handle these types of customers/consignors, or do you just “suck it up” and be as friendly as you can.
Example 2 is a woman who comes in once a week to consign ONE item. She comes in with her ONE item and each time gives me an earful about how my policies/procedures/systems “don’t work for her.” She’s constantly complaining about how I do things differently than Place A and Place B would never do this and Place C has a great system, etc etc. Even to the point where she lies about things just to try to convince me to change my procedures. For example, apparently i am the “only shop in the area that doesn’t personally call each consignor a few days before their consignment period is over so that they can know when to get their items before we take them from people”. She “shouldn’t have to keep track with a piece of paper I give her and I should keep track and call her instead.” I know for a fact that NONE of the other shops do this since I used to be a consignor for years at these places. I usually just politely thank her for her suggestions and say I’ll keep them in mind. Out of the 172 consignors I’ve gotten in the last 3 months, she’s been the only one to complain about anything (maybe the others complain but not to my face lol).
Neither of these are consignor I care to keep (they don’t shop and bring me 1-2 cheap things a week) but I’m more worried about them saying negative things about me! Being so new, I can’t afford that. That being said, I want to know how to correctly handle this so I can perhaps nip these things it the bud in the future.
Thank you so much for all of your wonderful advice! It has helped tremendously. And thank you for your time to read my post!
-Kelly
Kelly, it’s great to hear that things are going well for you. Dealing with the public can sometimes be a challenge, but it’s all part of the job, isn’t it?
As to the 2 you mention, perhaps it would be kindest to take them quietly aside and say to #1, “It’s nice that you want to keep me company, but I have work to do, so I’ll have to beg off our conversation, have a great day”…. “What, you say? I should hire you? Well, I can’t afford to pay you, but I’ll show you where the vacuum and the toilet brush are. Did you bring your rubber gloves?…”
and say to #2, having gathered her items and prepared her pay out: “I appreciate your input, but I think that you will be happier dealing with a shop with policies you prefer. You’re always welcome to shop of course, but it seems we’re just not the consignee for you.”
In other words, it’s okay to “fire” clients. Just do it with the same care you’d extend to a distant relative or a friend.
And yup, there will always be people who say unkind things about your business. As long as YOU know you have been polite and not done anything to be ashamed of, you’ll be able to roll with the (sometimes unjust) aspects of being a retailer. Here’s to a great future for your shop!
Thank you so much for your reply! It is very helpful. I am relieved to know that “firing” consignors is a true option. Although I hope it’s a long time before that needs to happen!
Are you aware of any current forums that exist? I see mentioned throughout your blog posts about Facebook forums, or forums on other sites for people to discuss all things consignment, but all of those pages have long been removed.
Kelly, the only FB group I am really active in is the NARTS group, which is members-only. To join the association, go to NARTS.org
Hi Kate, I have a question I didn’t find anywhere, unless I’m phrasing it wrong in the search. Our biggest pain in the neck is consigners who want their clothing back after the consignment period is over. We know a few shops who will not accept items if the consigner wants them back and that doesn’t seem right either. It takes a lot of time and $$ in man power to pull these items especially when consigner shows up unexpectedly during busy times to pick up. We started routinely running reports and pulling at the beginning of the week to prevent the disruption which helps but what is the best way to handle this? Should those consigners who are a “return” be charge a fee?
Lynn, I have some strong words, so wait until you’re feeling hearty.
* Do not, not, not, pull OD (out-of-date) items as a routine manner. EVEN if you suspect Consignor #3468 will waltz in at your busiest time.
* Do, repeat do, alter your consignment agreement to include something along the lines of “If there are any unsold items that you wish to retrieve after [whatever your consignment period is], please call 24-48 hours before you will come in so we can gather them up for you.”
* Do make super super sure that you are not inadvertently giving out the message that unsold goods must be picked up. Many shopkeepers don’t realize they are doing this. (Wording is all! On your agreement and in person!)
I think you will find that RetReq (“Return at Request”) items dwindle down to a few consignors a week, easily managed. For agreement wording, verbal cues and WHY you should give folks the option without requiring them to PAY for their own stuff back, see the Manual.
Do you have a post on marketing and advertising. Is there a book. I have been open 1 1/2 years and my sales are up but would like to know some new methods. Thank you.
Hi Joy, thanks for asking. You can sort posts here on the blog by using the drop-down list to the right (if you’re on a desktop computer) or at the bottom (if you’re on a smartphone). Just tap/ click the subject that’s there under “Read More About”. There’s also dozens of Products for the Professional Resaler and articles on my web site TGtbT.com.
Our shop has starting receiving art and this is certainly uncharted territory. Some are originals, some reprints. How do you price these donations? Thank u!
The Internet is a wonderful place to look things up. A few words from my experiences, too: 1- There’s never enough wall space, so be sure to price so they MOVE. 2- Make sure that any prints don’t look “too” blue. They fade incredibly easy, and for some chemical reason, the blue is the last color left. 3- When in doubt about the artwork, price (and MARKET!) these goods as though they were simply frames… which can be very expensive. We had great success marketing these as “recycled frames” to art students! 4- Add a monster. Seriously: https://www.pinterest.com/pin/98586679318141125/
Thanks so much for your help. I am going to try this the next time she comes in. I really like the idea of handing her the hangers because it’s like you’re trying to help. Thanks again!
If you like that idea, Lyndsey, look how one shop’s taken my suggestion from the Manual and made it even better! https://auntiekate.wordpress.com/2015/09/10/a-customer-gift-that-lets-them-help-you/
HELP!!! I really could use some advice on how to handle a sensitive situation! I own a children’s resale shop. Most of my inventory comes from my customers because I buy items for cash and store credit. I purchased my shop from a previous owner and I am fairly new to the business. I am very picky about the items on the sales floor being clean and in like new or gently used condition. Recently, I had a customer who came in with several bags and boxes of items to sell for store credit. After having the items in the shop and going through several bags which were filled with not quite clean clothes I began looking in the boxes. What I came across at that point horrified me. They were infested with cockroaches, and not only a few, A LOT! I thought oh my god! This could ruin me! My town really needs an affordable place to shop for children and I’m it! What to do! I contacted pest control and cleaned, cleaned, cleaned! The problem is, this customer has come in several more times attempting to sell items for store credit. My unwritten rule here is that we will buy items for store credit any time because we always want to have that option open to individuals who may not be able to afford to go to a retail store and pay cash for items their children need. The client is very nice and definitely in need of the assistance but I simply can’t afford to take the risk of infestation in my shop. With social media and networking a customer seeing a bug in my store could ruin me, not to mention its dirty and gross. The last few times she has come in with items to sell I have just made excuses. I don’t really know how to handle it or what to say to her. I can;t even imagine a situation in which this could go smoothly. I could really use some advice on the subject. Thank you!!!
Lyndsey, It sounds like you purchased a batch without examining it fully while the seller was present? Had she been there, this situation would not have arisen… because she’d have seen the roaches too. You also would have had the opportunity to either ask the seller to wash those “not quite clean” clothes before offering them to your shop, or mentioned that because the items will need laundering, the purchase price will need to be adjusted downward.
Please keep in mind that you are running a business, not raising a family. Yes, your town might NEED “an affordable place” but please don’t take it on YOUR back to provide the sweat equity for free. If there will be prep work involved in good you buy take that into account and tell the seller that a cleaning fee will be deducted from your offer… and make it a reasonable fee for your time, effort, and washing machine wear and tear.
Be careful not to take an additional real or assumed burden on because “the seller needs the money” lest your too-generous offer puts your balance sheet in the red. If a batch is not profitable, do not buy it. Your shop won’t help anyone if you go out of business because you stay up nights doing laundry or chasing roaches or trying desperately to figure out how come there’s no money left at the end of the month.
Also, keep this in mind for the future: roaches ADORE the glue in cardboard boxes. For that reason, boxes (and brown grocery bags) need to go in the outside dumpster immediately. Never let cardboard boxes sit in your shop.
The customer was looking around the shop while my husband and I went through her items. He saw the roaches but was unsure of how to handle the situation. When he showed them to me I was so disgusted, but the purchase was already made. I would think that the customer would have to know that she has a bug problem because there were several of them in the boxes. I absolutely learned a tough lesson from the situation. Do you have any advice as to how to handle the customer and how to explain to her why I am no longer interested in purchasing from her. Being that it is a delicate situation, I don’t really know what to say or how to approach her.
How about “Ms. X, unfortunately the last batch of goods you brought me created an infestation problem here. Yes, that’s right, there were cockroaches in your boxes. I know! I was as surprised as you are!
“To avoid such a situation, if you wish to sell to me in the future, I’ll ask you to prepare your clothing by freshly washing them … yes, that means within a few days of bringing them in… it’s a bug egg situation…and hanging them on hangers so we can both avoid a bug problem in the future.” You will say this while handing her some hangers to overcome that objection, and f course, you will say this to her in a way that others will not overhear you.
Hope that helps.
I would like advise on how to make my Consignment counter run more effiently without consignors wating
Jackie, I’m so happy that you are most concerned about “consignors waiting” and that, indeed is the important thing here! Accepting can be a bottleneck, which I address both in the Manualand in the Product for the Professional Resaler, Accepting and Pricing. The short answer(s?)? Expand the hours you accept consignments to avoid traffic jams. And/or fully utilize our Drop & Run system. I devised it for my shop and saved my sanity, never realizing that consignors would praise it to the skies!
Can anyone give me some resources for purchasing customer paper bags with handles? Also tags… Thanks!
Hi Tammie, Have you explored the resources on my Too Good to be Threw web site? We have a lot of links that I’ve found, and that other shopkeepers use, on the Links Page.
Absolutely brilliant, thank you so much!!!