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 
Carrie,
Thank you for your thoughts. I was sitting down today and doing the reality check. I live a small city about 35,000 people. The locations I want to be in will not lease to a resale store. So now I have to look at locations that do not have as much foot traffic or they are not surrounded by a complimenting business. I would do much of the same as you, storage units, estate sales and auctions. I think I will have to put most of my money into advertising if I have to go into a location which is off the beaten path. I would like to have a spot with 2000 sq feet and room to grow when needed.
I want to open as soon as possible so I can have a customer base for next fall and winter when business may not be so great.
One of the things I have not looked into is business taxes. Do you or anyone know the best place to start? It seems I spend hours looking for answers with little success.
Thank you again.
Gina
Gina, your state or province is certain to have an office called something like “Small Business Help” which will be MORE than glad to help you with the legalities. And look for a SCORE chapter near you under the SBA online to see if you can find a volunteer mentor who might know something about the resale industry and/or retail.
I’m amazed that in this day and age there are still leasing agents who are hesitant to look at a resale store’s business plan and decide if the prospective business is likely to enhance their properties. Perhaps if you pointed these out-of-date folks to TGtbT.com and HowToConsign.com, not to mention all the press our industry has received over the last few years, they’d realize that resale is a legit, respected, and popular way to shop! Having YOUR business plan and vision in hand will help them understand that you are headed for success and prepared to meet lease obligations, as well.
AFA taxes, the only person I would be taking advice from is a CPA or such that is familiar with your City/County/State taxes. It really does vary.
I would make sure the leasing companies understand what you are doing – I know in my lease it specifically mentions I cannot run a “Goodwill type resale store” – so that “stigma” is out there, it may help to clariffy with them what you are doing. I would go back to the places you wanted to lease from first and try again, before going somewhere with little foot traffic.
AFA as advertising – if you (or anybody here) finds something that works well, please post it. I’ve done a few different things and am now trying a 3rd. None of the other CS’s in town advertise so I’m a fish out of water and strugging to find something, or if it’s even worth advertising at all. Also – be aware of all the people that will want you to advertise with them – I’ve had everything from a Hotel Guest Directory, Scrolling Electronic Billboard to a TV Commercial during American Idol pitched to me.
Beth, you say you’re concerned “if it’s even worth advertising at all.”…. umm, does Coke advertise? Ford? Macy’s? Of course it’s worth advertising: how else will people learn about you, remember you, think your business is worth patronizing! The trick, of course, is WHERE, how much, and WHAT.
ITA! I know I need to do something, but the problem I have is nothing seems to be working. I put ads in my demographic target magazines, which was very expensive and I’ve had 3 people tell me they saw it. I’ve done some GC’s and give aways to some local events like WW’s open house. That only produced some put out people with FREE GC’s, believe it or not. I’m doing direct mail ads now to 45,000 homes, which seems to be bombing as well. None of the other CS’s in town advertise and I wonder if there is a reason for that? I’ve got a few other things in the works and I will obviously keep looking and trying, but again, I am open to suggestions!
Suggestions:
* Use your shop’s internet presence everywhere, including here on our blog which basically attracts shopkeepers. Who knows? Maybe I have my twin fashionista daughters in college near your shop?
* Even if you don’t have a web site (which of course is a MUST for retail businesses today, to look professional), at least have a free blog and use it 2-4 times a week. FB is all very fine and good, but your message is lost in there; trust me. Twitter, Pinterest are other venues for getting you name out there.
* Make sure ALL your contact with the public is “branded”… has the image you wish to give potential clients.
* EXPECT to spend up to 10% of your GROSS anticipated income on advertising as a new shop. Later, 3-4% will be a better budget line item.
* All of the above info with details, and more, is on all my TGtbT.com Family of Sites, all of which are here: https://auntiekate.wordpress.com/2012/07/21/where-to-find-kate/.
I’m sure others will chime in on WHERE to advertise, but here’s the general industry consensus: Welcome Wagon and card decks aren’t worth the $$. Bag-stuffers, TV commercials, and billboards are worth every cent. Some locales use radio. Again, these are general suggestions; not all will work in your specific locale with your specific target market and budget, and you may find your local penny-saver mag is a perfect fit, or Craigslist, or even the garage-sale section of your local newspaper.
Kate-somewhere I saw you comment that you can make a million dollars running a shop. My question is how? 🙂
One dollar at a time ;).
You start, of course, by learning everything you can about how to run your shop or, of course, any business. Then you apply what you’ve learned, and refine it, and look at the results with a clear eye.
Your education can start, of course, on all the TGtbT Family of Sites ( https://auntiekate.wordpress.com/2012/07/21/where-to-find-kate/) and here on the blog (all the best posts hang out at https://auntiekate.wordpress.com/thebesto/ and then there’s all the articles on out TGtbT archive at http://tgtbt.com/archives/index.htm and all the Products at http://tgtbt.com/shop.htm )
Then you devote your complete business attention to your shop. And there is no stopping you, believe me!
Location, location, location. There is no way in my town that I could make a million dollars. Maybe in a bigger town, but not in this economically depressed town of mine. This is the the exact reason I am closing mine. My business has dropped 75% since last year and I can’t afford to stay open anymore. I don’t have the money to work towards that million dollars.
Sorry to hear that, fhem. Best wishes for your future plans!
[Christiane posed an interesting dilemma for her fellow resalers on a post, and I have moved it here.]
Christiane writes:
“Katie, I opened a beautiful Home * Vintage *Consignment Store in Newport Beach, CA. and recently my partner and I parted ways over financial issues.
She left me with all of the debt and I am continuing running the store on very
little money. My question is what is the best way you have experienced to
find a new partner who can buy into the store? I have alone put in around $75,000 and I would like a partner who can bring at least $35,000 in.
Help?”
Kate replies:
Perhaps some shopkeepers who have added a partner in to their going businesses can relate their experiences here for us. I truly have not dealt with anyone who has done this, but I do want to put one thought out there for you:
The monetary value of buying into a business has more to do with its cash flow, past history, and what its future looks like, than with what the current owner has invested in it. So what you need to do is structure the potential partnership so it is “worth” $35,000 to someone who’s interested. While you’re working on THAT, you can let the word out that you are looking for an investor/ working partner/ angel… the terminology would be dependent on what type of situation you foresee… at least as a starting point for discussion and negotiation, once you have some candidates intrigued.
One more thought: going forward, be sure to structure any sort of partnership so that you don’t run the risk of assuming a partnership’s debts on your own shoulders. You have already experienced what that’s like and I am sure it’s not an experience you want again!
My question would be why do you need/want a partner? Is it just for the $$$$? If so, I wouldn’t think it would end well. Someone who is bringing $$$ to the table is going to want a say in everything. Are you willing to do that? They may want to carry different items, price differently, move to a new location, change hours, anything. Your vision may not be their vision. If you are keeping the doors open without one, I wouldn’t be looking for one honestly.
[Note from Kate: I moved Gina’s question here to Ask Auntie Kate from another post. I hope you have some experienced opinions to give her! Just click “reply” to answer!]
Hello everyone,
It’s a cold snowy day in Michigan City,IN, I have the day off and thought I would type some of my thoughts. Any thoughts or suggestions I am ready.
I am working on opening a resale store in the near future. I have read the manual. I am not sure if this is the right place to ask questions or get advise, direct me to right place if it’s not. Here is where I am right now.
I have money saved for 4 months of personal bills and 3 months of the store bills ( estimated).I also have about 2 months of reserved. In the manual it states 6 months and 3 months. I am looking for the right location. I do have most of my fixtures and supplies paid for. Nothing is brand new but looks good. I will have to buy daily supplies, bags, receipt books, taggit guns plus a few other items. I am going to open with little investment in fixtures and display items.
I am so ready for this. I have wanted to do this for about 5 years We have 2 stores in my area, one is designer and the other is lower end, she does very well in her area. I will advertise, join NARTS, the chamber and a womens business chamber like group. I will use facebook and any other advertising I can do. The part that scares me the most is I believe I can do this and make money, but will I have what the city wants and needs? How do you figure out what the public is looking for? I forgot to mention we have a Goodwill and 2 churches with resale shops.
I am working full time for a retail company and all is well, I just want to make money for me not them.
I got scared as I sat down to figure out how much I will need to bring home close to what I make now. I want to sell a clothes, household items and furniture. I will be consignment, I will also look into buying storage units later.
I feel like I am forgetting something with my plan. It sounds good on paper.
I am open to feed back. Thank you for your time.
Gina
[Note from Kate: this reply to Gina came in while I was e-fiddling, so I’ve moved it here as well. It’s from “Beth.”]
I firmly believe, that at the end of the day, if you believe in what you are doing and it is needed in the community, you will be fine. Long story short, I walked out of a CS a year ago and said to myself, I can do better than that. I should open a store. 2 steps later, I was on the phone with DH telling him my plans for my new store (although I did NOT open a CS).
A year later, here I am. I read a lot and did a lot of research around town. Went to other retail/boutiques and looked at what they were selling, how they were selling it, their store hours, return policy, etc. I did that several times actually. It was and still is a huge learning curve. When I was out of town I would talk to other store owners and gleen all the information from them that I could. (For instance, a fingernail file is a great business card and promotional piece)
I also learned that the #1 rule of retail is if you are not the traffic driver, you need to be right next to one. I’m in a brand new development with a huge new Publix and Academy Sports as the anchors. If I hadn’t gotten this exact spot, I would not have put a store in this development. Not one 2 doors down or across the parking lot, but THIS one. Location is key, IMO.
I’ve had a few people come in and tell me how brave I was to open a store in this economy and ask if I was nervous doing so. I told them no, I honestly didn’t even think about it until they asked. I just knew the need was there and people would see my vision. Which they have – within the first 2 months I had just over 40 repeat customers. No advertising at that time and the Holidays no less.
You will also need to listen to your customers – they asked for a few brands that wasn’t in my “vision”, but I can and have certainly added them. They also asked for “gifty” things, and now stock those as well. I did lots of research coming up with the right things I thought my customers would be interested in and I got it right. The first day I got them in last week I sold 6 of them (many more since).
Don’t forget to keep track of your conversion rate as well. That will tell you a lot. If it’s low, find out why. If it’s high, figure out why and keep doing it. I could go on and on, but again, have faith in what you are doing, do lots of homework, and you will be fine.
I thought of some more for you on my way home.
AFA money before you open: Do you have to put a security deposit down for your utilities? Before you sign your lease – do you have to have a lighted sign? (Huge $$$). Do you have to put down a security deposit and first months rent when you sign your rent lease? General liability insurance required? Make sure you know your total lease, and if you have to pay sales tax on it. A lot of places like to throw out base rent, and forget to mention CAM, taxes, etc until after you sign the lease. You will be working very long hours, make sure there is a bathroom in your space. Make sure your racks will work in your space – there are fire marshall codes you will need to follow. Check to see if a fitting room has to be ADA compliant and make sure you have the space for it. Did you have your store colors done and will they let you use them?
AFA figuring out what the public is looking for: are you trying to open a store like everybody else or fill a void that is needed? I was the latter. I knew if I was taking my teenagers 4 hours one way to shop, I wasn’t alone. Do you know what you want to sell (Brands, etc)? Do you know your price points? Find your vision and keep it. I get people asking me to do kids (nope, don’t know it), knick knack stuff (nope, don’t know it). However, they asked for a few other things and I did it because it was doable and made sense for my vision. (You will also find out real quick that people like to tell you how you should run your store). I bet I went to each store in town 4 times, looking at specific items each time, wrote down what I was looking for and analyzed the heck out of it.
A little tip to take or leave – use your EIN to buy accessories. You can get gorgeous jewelry/scarves/hats for cheap. Use them to dress up your items, and put them up for sale as well. The profit is 100% yours. I only buy ‘one of’s’ – no duplication of anything – and people really love that. It’s a unique accessory that nobody else in town will have. Buy items of all tastes – I buy tons that I wouldn’t wear, but everybody has different tastes. (trust me)
Another tip to take or leave – don’t skip on the extras. I bought heavier kraft bags and had stickers made that I put on each side of the bag. People use them all the time – free advertising. I hand out a sheer organza bag to each and every person who walks out my door – it has my business card which is a nail file, refer a friend cards and my customer loyalty card – and as a bonus it’s a jewelry holder they can use – and remember where they got it. I never let anybody walk out the door empty handed. First impressions are everything – I was looking to give off a certain appearance for my price point, and believe I achieved it. Again, get your vision and keep it, they will come!
Beth, Thank you for all your feed back. I am still working on my financial plan. I know I will not make my current salary for a while I just have to make sure I can pay the bills and have some extra to do some of the things you suggested to build my business. I will keep you posted on the progress.
Gina
Hi Gina,
Just wanted to toss in my thoughts… at some point I think you have to just go for it. My hubby and I opened a store just under a year ago and have found buy outright to be the definite way to go for us. It’s way less paperwork/bookkeeping, and we’ve found many people are happy with less because they get paid immediately. We do about 50% clothes and 50% home goods, furniture, etc. Our opening inventory was mainly storage units and restaurant auctions–there are several websites that auction off things for restaurants and bars that are going out of business. We get a lot of neat things like neon signs, restaurant tables/booths, bar ware, etc. which sells VERY well. We have many repeat customers who want unusual stuff or things to decorate “man-caves” and the like. We keep our prices low and generally aim to pay half of what we can sell for in the store.
Anyway, on the planning/prep side–we decided in Nov. 2011 to open a store, found a location Jan. 2012, and opened March 2012. My husband had been unemployed for 2 years (and I was a stay-at-home mom) so we had basically nothing saved, and didn’t even bother pursuing a business loan because we figured the bank would just laugh! But the unemployment checks were stopping in March so we didn’t have much to lose (literally!). Did I mention we have six kids??
But we’ve had a great first year and have been shocked how easy it is to get inventory at low prices. The store is over 2000 sq feet and we already wish it were twice the size. We happily direct our shoppers to other discount places in town and feel like our variety and prices make us very competitive. We have learned a lot along the way already, so I just want to encourage you that if you go for it, you will learn from trial and error what works and what doesn’t for your area. I think if you are friendly with people, ask their opinion when they come in, and admit to them that you are working hard to make your store a great place to shop, that will go a long way in endearing you and your store to them.
Good luck!
Carrie
Carrie, your story is so inspiring, and it’s great that you are managing to pay 50% of your anticipated selling price for incoming goods yet still pay your overhead.
Before I opened 2 1/2 years ago I sought out 2 different shop owners about an hour away. They are veryyyyy successful , have fabulous shops and were soooooo open to helping me. I truly just introduced myself and asked for their help. You might be surprised how easy it is to ask and for them to day yes. I would strongly suggest to select shops that are far enough away as to not be competition tho. Best of luck to you dear!!!!
Laurel,
Finding a shop out of the way is a good idea, I will be looking into doing that.
Thanks for your advice!!!
Hi Kate,
I just want to say thank you do much for sharing, and teaching and giving me direction through your many posts, social media and your TGTBT Manual.
After reading, researching and re-reading your “Resale Bible” for over a year, I’m finally ready to open my Plus Sized Consignment Shop. I already have a pretty decent amount of clothes in my inventory for Winter, Spring, Summer and Fall (YAY!!). I am currently seeking out a location and believe I have found a good spot in a nice area (Near the University in Charlotte NC). A friend of mine, who is a broker representative, will assist me in negotiating my lease since I am not familair with doing this. I am so ready to make this move, however, I still feel a need to have a mentor to give me advice, support and direction in some areas. I plan on joining NARTS, blogging, and doing ALL of the other excellent suggestions you have given. My question to you is, how do I go about finding a Mentor? I want to link up with someone locally with resale experience that can help me, however I don’t want anyone who is gonna water down my dream or vision. Any suggestions you have would be greatly appreciated.
Congrats, Fonzi, on being close to opening! I’ve asked my resale buddies to come give you their thoughts on how you can find a mentor, and let’s hope they can spare the time to do so
But there’s one thing I want to clarify, perhaps, for you:
YOU’RE LOOKING FOR A MENTOR, NOT A CHEERLEADER. I say that because you said, above “I don’t want anyone who is gonna water down my dream or vision” which sounds like you might not be as open to discussion or constructive criticism as you should be. And THAT is what a mentor’s job IS.
If you can look at this relationship as learning from someone who’s got more experience than you, you’ll learn a lot and have someone to discuss pro’s and con’s with, who can offer you insight into aspects and consequences you may never have thought about.
But if you’re looking for unequivocal approval… as my honey would say (and I mean this kindly) “get a dog!”
I know you didn’t mean this as it sounds, so here’s my remark as an e-mentor: stay open to all sorts of advice…. if you don’t click with a local resale shop owner, perhaps you WILL click with a shopkeeper with other merchandise, or a businessperson in another field altogether, or someone who has a shop JUST like you imagine, but in a different marketplace.
Hi Kate,
Thanks for clarifying my comment for me Kate. I really don’t want a cheerleader, and I don’t want to come across as such. I am really “VERY OPEN” when it comes to constructive criticism. Although I may not use all of the suggestions I get, I am open to hear ALL of them. I need all the help I can get 🙂 Thank you so much for asking others to reach out to me. I appreciate it 🙂
The chamber of commerce was a huge source of helpful and inspiring business owners that had been through it all. Find some other speciality consignment like baby or furniture or handmade that way someone just like you doesnt feel threatened. Two of my very best are local shop owners and we started out just by meeting and networking. Narts will be great!
Ritzyragz,
I will deifinitely make a trip down to my local chamber of commerce. I’m sure they’re full of advice and resources for me. Thanks for your advice!!
First off Fonzi, when you join NARTS (and you can,and should, join as a provisional member, even if you don’t have a store yet), you have access to their “Ask a Mentor” section. Here you will find a list of generous members willing to share their time and expertise. It’s divided into many areas of interest including “Plus Size.” I am located 3 hours north of Charlotte and would be glad to have you spend a day in my shop.
Sylvia,
I really appreciate you reaching out to me. I would love to come by your store one day in the “very near future”. I’m sure that would be very helpful for me. What is the name of your store, and where are you located?
Fonzi, If you are able to swing it, I’d seriously consider going to the NARTS conference in San Diego, CA this (is it June?)… I’ve never actually been but hoping to go this year for my first time. I’ve heard it is a great place to be, to learn, to hear things… Even heard as far as you should stay in the hotel they suggest because of the conversations you will hear in the elevators that you won’t get at other hotels…
Next, you said you’ve been reading and re-reading Kate’s “bible”.. re-read it again 🙂 Do you have any of her other products? There are a number of them that would help you out from pack-aways to FBC’s to seasonal things… Buy them and print them.. I’ve bought a great many of them and that was on 2 computers ago but never printed.. 😦 Yes, I’m missing most of them.
Third, start a Facebook page and blog before even opening.. Make sure you get business cards printed with those addresses on them as well.. Watch out for the “sales people” that swear that the Yellow Pages is still in HUGE use and remember, most advertising people try to sell you can be negotiated to a lower cost.
I don’t know who is around you with similar product but that is the nice thing about the internet.. You can easily search for similar and bookmark pages to help you along the way. Create a buzz about your store before you open, too.. Sooooo many ideas…
If you haven’t already check facebook and the internet for various groups, organizations, etc to join or be a part of.. I am a member of a facebook group called Resale Connect, https://www.facebook.com/groups/197118813684022/
Oh, and once you have your name picked out, why not become a Clickable Link on http://www.howtoconsign.com 🙂 Ok, that’s probably about it.. I’m sure there’s a limit on length of replies and I’ve probably already passed it up.
Jon,
Thank you so much for your helpful information. I will make sure to use your helpful suggestions. I will be joining NARTS next month and will definitely use all of the resources they have to offer. Again thanks!!!! 🙂
Hi Kate,
Reading your testimony has truly inspired me. Hello my name is Denise and I live in Charlotte, North Carolina. I am a single mother of a vibrant, 7 years old son and he keeps me on my toes. I have always loved retail. My first job was working in retail and I loved it so much I stayed awhile, over ten years. I love retail, because first I am a customer service oriented person regardless what environment I am in, secondly, see the smiling faces on customers when I assisted them in making a choice about an outfit and lastly I am very creative and I loved when I had to change out the old merchandise with the new, making new displays to invite the customers to buy the clothing. Well I got out of retail and started working in the corporate world. I love that too because I still dealt with customers. However, when my son was born seven years ago my path and passion changed. I went back to school and received my BA and MA nevertheless, my passion for retail remained the same. God gave me the vision to open up my own children’s resale/consignment store seven years ago. Today in 2013 that vision still remains in my spirit and this year I am going forth with God’s vision for me. The week before New Year’s Eve I cried morning, noon and night, because the feeling of hopeless came over me. I was thinking about all the monies God placed in my hands and basically blew it away. As I am now researching the costs to start a consignment store, God gave me what I needed then. However, being a stingy, looking at the now and not later person I felt as though I was a failure. Nevertheless, when the New Year came around I dusted myself off and began doing research on how to start my own children’s resale/consignment store. I love shopping and finding a bargain especially when it comes to my son. This is a scary ride for me and I am so glad that I stumbled upon your website. I currently do not have the funds now but I do know with God at the beginning, and middle I will have a strong end. Thank you for your inspiration
My. You’re welcome, and best wishes for your future plans!
Hi, my name is Gina. I do not have a store yet. I am saving my money and looking at locations. I am scared and my husband does not think we can make enough money to survive. I have been in the retail world for about 35 years, working for someone else making money for them, if there is a profit I want it. I have a comment on promoting your business. I shop resale stores when I can. So do you wear the clothes you sell? Has anyone complimented you? Do you say this was $4.00 is my shop? Most comments are” my custmers are by word of mouth”, well you should be the loudest. Do you drop your kids off at school, go shopping, work out, does your husband have female co workers? Give out your business card everywhere you go. Give 10% off first time buyers or with this card. You might only break even for a while but word of mouth will bring in more people without the discount. I think it was Martha that said the smelly, junky store was doing better, not that you want to lower your standards but the reason you are a resale shop is to offer a quality product at an affordable price. So give them what they want. I have read several times not to offer only items you like but what your customer wants. Your store might be just what you want but if you are not selling then it is not what the customer wants. What would make you shop in your store? What is your neighbor selling? You are the cheapest yet best advertising you can get.
I want to open my store in the next couple of months. So I have spent every moment possible looking for a store front and reading everything I can. I have been talking to friends who are getting excited because they want more than yard sale money for their items. I am so ready for this. I am going to get one of my friends to help with the computer stuff (facebook, blogs and so on). In turn I will give her a discount on merchandise or a bigger % when she brings in her items.
Happy selling to all of you. I can’t wait to be a fellow resale owner.
Thanks for letting me share.
Gina
Thanks, Gina, for your input, and we look forward to welcoming you to the community here on AuntieKate the Blog , at TGtbT.com, and of course, to directing shoppers your way thru HowToConsign.com !
Congratulations Gina on opening your shop. All your points are valid, but I can also say what works for some shop owners don’t work for others. Different towns have different customers etc. I have to compete with the smelly Goodwill down the road, but I refuse to offer my items at a lower price than that just to get people in the door. I’m not going to make any money selling things at a bargain price. I am going on two years now and it has been a struggle. If you are opening your shop, please, please, please, have money elsewhere to live on because you can’t live on what you make in your store. I am fortunate that my husband has money coming in because there are months that all I could do is buy groceries once a month. It is a constant struggle to make sure the consignors are paid and have enough money left to pay the bills, rent etc. There are days where I’ve cried and stressed about whether I should close or not, but I’m just stubborn enough to keep at it. I have taken a part-time job at night to help out. I realize this is not all experiences, just mine. I don’t have young children at home and I am glad because I couldn’t have done it if I did. I have built a great customer base and consignor base also and my shop it like a boutique. I have all my items color coded and sized. I get compliments all the time about how nice the store is. It’s just me, but I refuse to price my items like the Goodwill. The only time I mark down is when it’s been in the store for a certain time and at the end of the season. If you price an item at 4.00 and then mark it half, you’ll have to sell a lot of dollar items to make a profit. Also don’t forget the J months, they are going to be slow. I realize there are lots to think about and I wish you all the success in your shop. This is just my experience so far and your’s could well be very different.
Are all of you using facebook to the greatest advantage? My county has this group on facebook: https://www.facebook.com/groups/perrycountyindianaclassifieds/. I can post up to six ads a day for FREE and I usually get in one or two depending on how busy the store is. I literally just started fb albums for items (as many as I have time to put up) upon the request of my customers who use this site. I was just putting up an item here and there, but considering how many people have come in based off pictures of items on my fb page I have to agree its a good idea. I do both consignment and buy outright (despite Auntie Kate’s advice, but in my defense its in our contract that if a consignor doesn’t pick up their items within 7 days of their expiration they become store property and that’s free store merchandise for next year!) and I have had the rare seller claim they can get more money on this site at which time I point out how much they are spending in gas and the lack of safety found in meeting a stranger in a parking lot and then thank them for taking the time to present their items. They usually huff out, but within 2 weeks are back to take the offer. I just wanted to point this out because I hadn’t seen a post on here yet about these type pages and they’re popping up everywhere!! Your county may even already have one and you may not even know it!
Great, Eileen, thanks for the thoughts! (Although where you got the idea that I would disapprove of combining consignment and BOR, I don’t know 😉 ) How do you promote that community page within your customer base so as to keep it well-read… how do the owners of that page draw traffic? Another good way to promote your business, and of course we all can use THAT!
Quite honestly this page existed before my store moved to the community. It has around 5k followers and everyone who uses it is already there looking to shop! (or sell) My home county has one too and I didn’t even know it until a consignor pointed this page out to me in the first week I was open in my new town. This group has become so popular that it’s not uncommon to see over 500 posts on a weekend. It’s more a grass roots thing where a few people started it and then people just latched on. They really want an easy and convenient way to sell their stuff and the two existing store in my town just weren’t working for everyone. I suspect it had something to do with consignments by appointments they had to schedule 4-6 months out. People will always find an easy way to sell their items even if they have to make it and today it’s so much easier for them not only to make a way but to make it for free.
There is a Facebook group in the next county over from me and they are rapidly growing with over 3000 members. I’m not aware of one in my area but they are all around the country. They don’t promote at all, they grow by invites to friends and family. The members add items for sale to photo albums. The members can shop by category/albums or watch for exciting new items as they appear on the wall. They then comment on the pictures regarding measurement, price etc. and then private message for pickup arrangements. If you don’t check frequently you miss the really great deals. Many members are stay home moms and most comment how fun and addictive the site is. Many like that they are making friends in the process too.
I have been wondering what the impact of these sites might be and I am glad to hear that they can work to a stores advantage. At first I was worried but I have noticed that as this particular site grows so have some of the problems such as people not leaving money for porch pick ups, people showing up with half the agreed amount and people changing their minds and backing out of deals. As well more charity cases are popping up asking others if they’d be willing to lower prices or give for free because of their situation and its making members very uncomfortable. It seems like it won’t be too long before sellers will be running to their local stores for relief.
where does Eileen live? I see the facebook group in perrycountindianacalassifieds. I live in Crawford County Indiana and I am wanting to open a shop in Milltown. I would love to visit her shop and get some ideas. I am considering buying your TGTBT manual but at this time my husband is off work with a broken shoulder socket and we are on very limited income for the next few months
. I have an acre with a moblie home on it that we have lived in for 14 years. We are moving to the country in the Spring and I would love to use this as my shop. I know what the utilities and the taxes are and this place is paid for so no rent! It is located on one side of the river and there is a canoe rental on the opposite side of the river with lots of tourists from all over the country. Any ideas would be appreciated. I have worked for the last two years part time in a little shop in town but the owner is not fexible and a lot of people will not come back.thank you so much.
Hi Kate, I was wondering if there is a way to tell how old a piece of clothing is, other than the obvious. I’ve been told that places such as Platos Closet and Clothes Mentor can tell by the RN #. I’ve tried to research this but came up with nothing. Everyone says they won’t take anything older than 2-3 years. How can they really tell?
Hi Marina, RN# are the manufacturer, and of course, if you are really in to fashion, you know what manufacturers are in or out of business in what years. Kind of a roundabout way to do it! To be honest, why fret over this? If it LOOKS like what’s in the magazines and stores now, isn’t that what your shopper wants?
This “must be bought new within the last X# of years” is simply a way for shopkeepers to pre-prepare their consignors or sellers that things must be up-to-date. The phrase is for THEM, not YOU. It should NEVER be the sole reason you take anything, so I would suggest that you spend more time learning what your clientele wants, and less time worrying about whether it was manufactured in 2009 or 2011… and of course, the more you are in this business (and devoting serious time to watching trends, styles, colors) the easier it will be to realize that the item before you is or is not likely to sell. Hope that takes a load off your mind!
Thank you sooooo much : ). I feel much better. This was one of the things I was worried about. I have been planning my dream store for nearly 2 years now, just need to find the perfect spot!
I always read your posts, I love them! Thanks again.
Well, I just realized that I haven’t posted anything yet that’s been uplifting and then I disappeared from the boards entirely. I am sure a few who had read my previous questions we probably sure I went out of business. In short I did move to the strip mall across from the Wal-mart. I haven’t posted because…well….I’ve been so freaking busy!! It’s done wonders for my store. I’m turning a profit and staying so busy that I had to start coming in at 7-8am to have empty rolling racks for the day when I open at 10am. In fact, I’m doing well enough that starting with our spring/summer switch I will start buying some things outright with the goal of being total BOR by the end of next year. I have another really awesome expansion planned for the spring of 2014 which is going to take a year to get planned, remodeled, up & running. It’s not another store, its not online, but it is really cool. I will be keeping a lid on it until I at least get phase 1 of it done though and have pictures. So in a little over a year what have I learned: 1. Location, location, location. Not to be harsh, but if you put your store in a place where people don’t have a lot of extra income to spend then you’re not going to get a lot of revenue. 2. DON’T take people personally. They are just trying to get what they want and if they think they can manage that better by belittling you then they will, but in their minds they are doing nothing wrong and won’t understand why you’re on edge the next time you speak to them. 3. TRACK what sells and what doesn’t. What is popular in one area of your county likely isn’t what people want in another. If you’re the only shop or one of few in your area and you’re competing with Goodwill then you have to know what’s selling. I use a spreadsheet and list items in three categories: Green (you can probably raise these items up a little bit the next time you mark them because they are going out the door), Yellow (you’re pricing on these items are about as good as it gets), and Red(we’re pulling too many of these items and the price needs to be slowly adjusted down so we’re getting them out the door more quickly). 4. Facebook Advertising is Your Friend, But Word of Mouth is Better. I don’t have one of the huge channel letter signs, but thanks to facebook’s affordable advertising I got people in the door. Those people told their friends who didn’t have facebook. I am now doing almost 20x’s the sales (I am not joking which really does make the first location look really pathetic.) as I was doing at the old location. 5. SOFTWARE. It makes it easier and there are fewer mistakes. Spring for it because it’s worth it. I use Simple Consign because I don’t have to worry about computer crashes and I can access the full software from anywhere. My final word of advice, is simply to find what works for you. These boards have been really helpful, but every store is unique. Listen to the majority on somethings though, like hand-mark downs are must. Past that I think somethings we do have to learn the hard way because those great ideas you had starting out can prove to be not so great really quick.
Thanks Eileen! You’ve been so generous with your points (#2 is a lesson we ALL have to learn, including me!) I also love the green/yellow/red designations for staffers… so easy to remember. I would, however, add one point: Use your shop name and URL everywhere, including on your Gravatar! Who knows… a shopkeeper reading this entry may have a lot of friends near your shop that she’d like to send to you! https://auntiekate.wordpress.com/?s=gravatar
I also need to learn, for myself, that as you say “somethings we do have to learn the hard way”… ’cause I have a REALLY hard time understanding why people are SO resistant to doing things MY way (joking, guys.) After all… click this.
Hi kate: I’m thankful for your blog, website, Facebook and Pinterest info (did I miss something – oh probably. Anyway, I like it all!). Recently, we’ve experienced our first thefts. Now, I know this happens in every store and I have been able to calm my staff (who are all volunteers) by stressing that I know they are attentive and careful and that this is just an unfortunate, but sadly normal occurrence. What I have not quite figure out is how to handle this with the consignor whose items were stolen. We lost two antique bottle and both were from the same consignor. Do I tell her to let her insurance cover the loss, or do I pay her as if they were sold, or is there another option I have not even realized yet. I’d appreciate your and your readers suggestions. Thanks so much for all your help – both received and yet to come.
Hi Cheryl, It’s such a violation of the trust you’ve built up with your shoppers, isn’t it? I remember the time my manager discovered that the only person who could have stolen HER consigned shoes was a customer we all adored. Not sure she’s gotten over THAT situation YET!
Here’s the crux: what result do you WANT from the given situation? Obviously, you don’t want to have that consignor bad-mouth the shop, and you don’t want to give her a REASON to, either. So I suggest you pay her, and NOT tell her that they were stolen. As I say in the Manual, “consider this an advertising expense.”
But you have an added twist, in your situation: volunteers. And there is NO way to get THEM from not spreading the word around the shop and around town that something consigned, was stolen. You say you have that aspect covered, but for others who may be reading, I’d suggest a little note on the volunteer (non-public) bulletin board, couching, in careful and optimistic terms, what’s happened and how you handled it. Channel your inner grandmother (for example, “that thief must have needed the bottles more than they needed their self-respect”). This will not stop the gossip, but might give them the words to say about the “news”.
Hi Kate,
I have owned my shop for 4 years now and I have had this issue a couple of times before. I lady comes in with a large item and as I am putting together an offer, another lady walks over and says “I’ll give you $x for that.” I buy outright and this was a potentially large profit to be made on this item and both parties found no problem with coming to my store and stealing my business. How do you handle these people and what can I do to prevent it?
[Note: This reply was featured on Ask Auntie Kate, so it may be a repeat for some viewers.]As hard as it is for an entrepreneur to believe, many folks have no idea that they are doing anything wrong in this situation. Or at least, that’s what they will claim when you step up to assert your rights here. They might even get belligerent, and say something like “It’s a free country.”
To which all you will be able to say is, “My store is not free, and if you’d like to pay my overhead and work 10+ hours a day, you can make deals in my shop. But until then, please do not interfere in my earning my living here in the business I have created.”
The person you might need to treat kindly here is the person who came in to sell the item. Chances are she’s embarrassed and conflicted about saying basically the same thing to that would-be buyer: “I came here to sell this to Ms Shopkeeper, and I don’t want to deal with you because you’re being pushy and you’re probably trying to rip me off with a low-ball offer.” Apologize for the incident and assure your seller that you are here to fairly valuate her underloved items and to find a marketplace for them “that is fair and reasonable and is not going to pressure you into accepting an offer from a stranger.”
If, as you say, in your case the seller did accept the buyer’s offer and money was exchanged, you most definitely need to approach both parties and explain that this is private property, and if they want to buy and sell amongst themselves, they should avail themselves of the sidewalk, “like the drug dealers and porn sellers do.” Yes, I think you should say exactly this. You need neither of these people; let them know that their behavior on your property was out of bounds and they have thereby lost the privilege of interacting with your business in the future. Then ask them to leave.
Hello Auntie Kate, and Everyone Else!
Should I be upset when consignors come in and ask for their cash and tell me they’re going to spend it elsewhere? — Yes, they really say that. I really feel like they don’t appreciate the fact that I’m spending my days selling their stuff for them – and they’re just using me like a bank! 😦 Can I pour on the guilt and use the ‘my store is not free’ argument you mentioned above? Or is this one of those things I just have to suck up and deal with as part of the consignment biz?
Aw, honey. They are NOT “using you as a bank”… they are PAYING YOU for the services you provide, and simply asking for dispersal of the funds from the transaction you facilitated by having your shop! Why on EARTH would you think that they are obligated to buy something from you? It’s YOUR job to make your merchandise SO irresistible that they, with cash in hand, scream I MUST HAVE THAT!
Now of course that won’t happen every time. No matter how great a merchandiser you are. So just thank them for their trust in you, and silently hope they go buy something elsewhere that they decide, next year, they don’t need, and they bring it in for you to SELL FOR THEM and make a profit doing so!
Besides, pouring on the guilt doesn’t work. Otherwise, I’d be getting a diamond bracelet for Christmas, and believe me, I’m not.
Hi Kate,
I looked into transferring my domain to wordpress. They are not accepting any more domain transfers ‘at this time’ they say. I can ‘map’ my domain to my blog, but the domain still has to be hosted by someone – so I’d have to pay for both.
Greetings All, I have noticed that a lot of shop owners post on thier FB pages as if it was personal. I try very hard to not say me, my, or I on my post,. I will say we if someone who knows me has a comment directed towards me personally. Business is okay, but I stuggle with the fine line of professionalisim and relatability with my boutiqe clients whaile using FB. What are your thoughts about using first person in social media post?
Kellee, Your posts look very informative, about your shop. But clicking madly away as I am wont to do, it seems that you not only have a consignment shop, but that you run a charity AND sell beauty products… perhaps of your own making? You sound like someone with a lot of energy and a lot of personality and a lot to SAY. I would USE those personable attributes in your social media… that’s what makes people WANT to shop local. They want to be FANS OF KELLEE. So I vote use first-person in social media: “We’d hoping to see you at…” “We’re so tickled that…” YOu did it so beautifully in the few blog posts you have… do it on FB and Twitter, too…. and better still, make most of your social media mentions point back to blog posts, where your message gets across more one-on-one than on other social sites.
Hopefully, some other folks will tell you what THEY think here 😉
Kate I have another dilemma. I had a lady in the shop yesterday that I had never seen before and she had her little girl with her. She was looking around the store and after about 5 minutes I noticed she headed toward the bathroom with her daughter. I was waiting on someone else and I saw out of the corner of my eye the lady fooling with a skirt on a hanger. Well this morning when I was straightening the racks, I found a skirt and an empty hanger. It was shoved in the rack where I have the fall jackets hanging. I put two and two together and figured out the lady had taken the stuff in the bathroom, when I wasn’t looking, and shoved something in her purse. I know it was her because it dawned on me that this was the skirt that I saw she was fooling with when she came out of the bathroom. To top it off, she also took a nice crystal bracelet that I had just bought to resell. I shouldn’t have had it where I did, on the table by the door, but I had made a display of all the crystal jewelry that I had. I know in my gut it was her. The sad thing is that she was telling me how she was teaching her 3 year old manners. Well I guess she was teaching her how to steal. I am now going to have to get some video cameras but how is that going to deter someone from taking something while they are in the dressing room or sneaking into the bathroom when i wasn’t looking? Does anyone have the dummy cameras or the real thing? It won’t do a bit of good to put up signs for shoplifting because they won’t read them. I was so mad I was crying. I just can’t get over the gall of some people. I put an employees only sign on the bathroom, but obviously she didn’t bother to ask. Sorry for the long post, but I am really frustrated.
Martha, what’s wrong with a lock on the bathroom door? Gas stations used to do it; why can’t you? I’d do that before investing in cameras, dummy or real. Prevention is much more likely when you don’t provide a blind spot rather than try to “scare them straight.”
Kate, your wisdom as usual. Why didn’t I think of that! It’s just what I need to do.
Kate, I’m back again. My business is the pits. November I was 2000.00 short of last year and December doesn’t seem to be shaping up any better. I go home sick and depressed every night. I just don’t know how much longer I can do this. I have consignors bring me stuff then they are put out when they don’t have the money they thought they would. If I don’t sell it, they don’t get paid. I am seriously thinking of throwing in the towel. I have done everything humanly possible to get business in here. People in my town just don’t support small business which is really sad. I am sad that I have to give up a dream that I have wanted for a long time, working for myself. I thought I was offering a nice boutique consignment shop, but I guess I was mistaken. If I had the money (to move again) I would take it 20 miles up the road and I could certainly do better. The children’s consignment shop owner in the town in closing her doors on Dec. 21st after a year. She just can’t make it selling 30.00 a day. I am crying as I write this, I don’t know what else to do.
My sincerest sympathies, Martha. I know we’ve “chatted” here before, but alas, your shop URL, social media links, HowToConsign.com listing is not visible on your posts, and you do not use your Gravatar to link, so I will just radiate good vibes throughout the continent to you.
Thanks Kate, I’ll work on those. I am just stubborn enough to want to not give in, but how long can you go just breaking even or not selling anything.?
Hi Martha, sorry to hear that things are not going well. You aren’t alone because I am in the same boat. Hang in there…I am trying to get by every month since the summer time. After a couple bad months, you begin to lack the motivation and you become depressed. I’m trying to get out of that funk and brainstorm ideas of ways to get customers in here and talking without spending more money on advertising. I pay for a couple different advertisements but more than anything, my customers tell me that they heard about it from someone else. My goal this month is to focus on that and find ways to to get them talking. Give them a reason to come in and then get them to love me. I don’t know what the future holds but I do know that there is a lot more to my life than just my business and that keeps me from taking my troubles home with me and it gets me up each morning with high hopes. I did notice that when things were bad for a couple months, my attitude changed and I wasn’t as friendly to customers as I used to be (I didn’t notice this for a while) I’m working on a lot of things to turn that around. I also pray a lot. Not for my business just to succeed, but for things to go the way they were meant to. If I was meant to have this business then it will work out but I just need to put in the work and keep pushing. Not saying that you don’t, I just want you to know that you are not alone. I am hoping that things pick up for you 🙂
Thanks Honey B, it truly is depressing and I try everyday not to focus on it. I have advertised, Facebooked, and everything else I can think of. I have a really nice store and I don’t understand why people flock to the Goodwill. Our Goodwill is nasty and it stinks. I try not to get upset with the customers and I usually don’t until one asks me if that’s the lowest I can go, then I say yes with gritted teeth. I truly wish I had the money to move again, because I would get totally out of this town and go north about 20 miles and do much better. Good luck to you also.
Does anyone allow employees to being their children to work with them? I have always said no unless I have had an emergency and call someone in last minute for a couple hours and they have no sitter. I bring my kids every day with me, but it’s my shop. It’s a blessing and a huge burden at the same time. I have a new employee and she has asked if she could and for some reason I feel bad saying no but first, I am paying her to work and focus on customers and second, I don’t want anything to happen to the child while her mom is not watching her and helping customers. Just wanted to see what you all thought.
I can relate to this one- I have my 2 year old with me everyday in my store- and every other week during the summer my other 2 children as well (all boys- 9,7,2) the whole reason I hired someone to work without kids (a younger person) was because I need someone to be there “focused on the customer” and getting the little projects done around the store that I can’t do with my kid(s) there. If I hire someone else to come in with kids, then they will be in the same spot (assumingly) that I’m in ; distracted, cleaning up messes, dealing with tantrums, needs/wants, nap time, etc…. so I should just suck it up and do it myself at that point and not lose money in payroll. I think the “occasional” need for an EE to bring their child to work is ok- I mean we ALL have things that come up and need employers to be understanding ( one of the things that creates EE loyalty)
I think you have to do what’s right for you- and it sounds like your need is in someone focused on your store and your customers!
Thanks everyone! I have told her no and always tell everyone that when I post an opening. I’m a little upset that she even asked because I told her no to begin with and she didn’t argue but was trying to convince me that her child was well behaved etc… So I just stuck with “I’m sorry, no”. I appreciate the feedback
I bring my 8-month-old daughter to the shop every day and I think you hit the nail on the head with “it’s a blessing and a huge burden.” Does she want to bring her child every day? Sounds like you already have at least two kids there every day…anymore seems like it would be a huge distraction to everyone. My daughter is a huge hit with most of our shoppers, but when there are other kids in the shop with their parents, it gets to be a bit much and feel like I have to apologize to other shoppers. I normally wouldn’t advocate for different rules for the owner and employees, but in this case, I think you are justified in saying no. Just make sure you can list the very specific reasons and not just say “it’s my shop”. If she’s only asking after accepting the position, surely she has made other arrangements. Now, if she only wants to do it occasionally, like when a sitter cancels or a day off school or something, I would probably allow that with rules on where the kids can play and that sort of thing.
Tracy – Resale Therapy
http://www.resaletherapyboutique.com
http://www.facebook.com/resaletherapyconsignment
Thanks Tracy! I too always feel like I have to apologize to customers. I mean my 2 year old just learned how to push open the door and he ran out in the middle of a transaction so of course I had to go after him!!’ that was scary. One of the reasons I opened this business was to be able to stay with my baby and it’s worked but there are many days that customers tell me I’m lucky and I have a hard time smiling and saying “yes I am”, but I really know that I’m blessed for the opportunity.
Wow! Again, you’ve said it perfectly…”I have a hard time smiling and saying “yes I am”… 🙂
No way, no how do I allow someone to bring their children. Ever. I assure you, that your insurance does not cover anything dealing with an employee’s child if something were to happen.
Martha, a bag sale would be hard since you’re consignment. What about a buy more, save more sale? Buy 1-5 items and save 30%, 6-10 items and save 40% and 11+ items save 50%.
Do you have pics of your shop? If you’re comfortable posting them, maybe we could give you feedback about how to update things a little.
How long have you been open now? Is it unusual for you to be this slow, or is this pretty typical for your shop?
Kate, I am a heart-wrenching dilemma. June and July have been TERRIBLE as far as sales go. August doesn’t seem to be fairing any better yet. I am really struggling with whether I need to close the business or not. I have done any and every type of advertising I can think of to get customers in the store. One day I sat here and sold exactly 3 dollars! I can’t keep doing this. I really wanted this to grab hold and now it just seems to be time to throw in the towel. Consignors are getting upset because they have no money to pick up and I try to tell them that business is slow. There are other consignment stores in town but they are more like thrift stores. I don’t know what else to do. I am to the point of tears now. I really love my store and put my heart and soul into it but I don’t know what else to do. Has anyone else on here gone through this?
Do you have a Facebook page? If not, Make one tonight. Take a ton of pictures of your shop. Unique items, cute outfits, things that’ll make them go wow! Then look up local resale groups in your area and ask to join. I have 11plus . Post pictures of your merchandise in each group. I do this by posting pictures to my page and then sharing them with each group. You could also make albums within each group. This has helped my business tremendously over the past year. If you want to see my page for ideas, it is http://www.facebook.com/kidstuffdekalb
Thanks, Vickie. Maybe Martha might want to link her name when she comments here to her site and/or FB, and make a Gravatar too. Can’t hurt!
Here’s a post with some good tips on turning FB into a sales motivator: https://auntiekate.wordpress.com/2011/10/20/getting-action-from-all-that-facebook-time/ and another about why a business NEEDS a Gravatar (and how to do it) https://auntiekate.wordpress.com/2011/09/28/tired-of-being-a-mystery-man-or-a-man-at-all/
I do have a Facebook page and I post on there often. There are no resale groups in this area. Business is just way down from this time last year.
Martha, what’s your page link and where are you? I didn’t realize There were resale groups until a friend turned me on to one and from there I became obsessed(kinda of ) linking to as many as I could find including the regional ones and all the neighboring counties. Have you posted flyers everywhere? Daycares, laundromats, coffee houses, grocery stores, even walk the neighborhoods(or offer teens you know some pizza and pop for a few hours) putting out your flyers. You’ll want to include a Coupon or something/anything for when they come in(Kate’s what’s in it for them statement always is running threw my head every time I make a flyer or email. Perhaps pair up with a popular local bakery and offer a sample size cookie or other treat at your shop in exchange for advertising their business in yours.
Also, take preprinted flyers with coupons to all large businesses that employ large numbers of women. Hospitals, schools, office buildings etc. introduce yourself to the receptionist and ask if you can leave coupons for their female employees? Personally Invite them to your fabulous store!!!!! Best wishes
I’m so sorry things are so stressful. We can definitely empathize with you, or more specifically, my mom can. We opened our shop back in September while I had a full-time job. My mom sat in the shop day after day with next to no shoppers and was just so depressed all the time. We were barely SELLING enough to cover half the expenses. After paying consignors, we were left with next to nothing. We finally had to face the fact that we chose a bad location. We spent two months, seven days a week getting that shop ready, so deciding that we had to move was a very tough decision. We’ve been in our new location only two months and we are already selling enough to cover 2/3 of our bills, though we’re not even close to being able to pay ourselves. I am working at the shop full-time now, so I handle the marketing while helping with everything else. So, with all that said, my advice would be to take a good look at your location and ask yourself if another location with more foot traffic would help and also decide if you have the skills to handle the marketing. If not, consider looking for a partner to complement your skill set. Good luck!
Tracy – Resale Therapy
http://www.resaletherapyboutique.com
http://www.facebook.com/resaletherapyconsignment
Thanks for your comment. I have already moved and I can’t afford to move again. I am still paying the bills from that. I do have flyers out and I am going to put more out. I am working on my website so I am hoping that will work. I am planning a fashion show with a children’s consignment store in town and I am hoping that will help.
Martha, We were right there with you 4 1/2 years ago. We didn’t even make enough in Nov & Dec of 2007 to pay the rent… and the rent was only $300 a month. First, we prayed (hard and alot!), second – we decided it was time for a move and to ramp up the advertising. We ran a month long bag day sale to generate some much needed cash. With that cash, we paid for some inexpensive classified advertising in a couple of news papers – then, in order to generate more cash, we started devoting a lot of time getting the word out – networking and such. Now, we have Facebook – do you have it?? If not, GET IT! Great way to get news out – use Craiglist to advertise item(s) for sale in your shop, and you can always list larger items on eBay for local pickup only. Good luck! Try not to get discouraged… you’ll have those days. I don’t know where you’re located, but in Ohio, we’ve had SCORCHING HEAT for the past two months that leaves everybody indoors. Our shoppe it located in a tourist-y town, so we usually fare pretty well during the “J” months, but we’ve been down considerably in the past two months, as well.
Hi Martha, I’m so sorry that you’re going through a tough time but don’t feel like you’re alone. I have had a horrible last 2 months and am just taking it day by day and gritting my teeth through it. I’m determined to get through the Summer and I am making plans for next year to help boost sales. I know that I will need to generate lots of word of mouth and buzz during June and July by having something fun going on for people to talk about, but I’ve also decided that I will turn a lot of focus to online sales during that time. Been in business 2 years now and I knew it was slow last year but this year I’ve just spent more than I should have. Lesson learned for me. Like Joe, I too do lots of praying. We had our big anniversary event on Saturday and I did ok but still 1/2 of what I was pulling in on Saturdays in April and May 😦 I handed out a ton of coupons that expire at the end of this month to get people back in right away. I wish you the best as I always wish on other shop owners.
Hi Martha – Yes, I’m going through exactly that…I recently moved, twice actually! I was in a large 2 story barn for 4 years, 1000 sq feet, with a bathroom, and my overhead was super affordable – the only drawback was that people ‘thought’ we were in the boonies – I had some steady customers, but I really wanted more foot traffic. Then I met a woman who was excited about going into business with me, suggested a move, and started looking in the next town over. She found a great spot, a little smaller, with low overhead, again, on the 2nd floor of a ski shop, and the owner was ‘so grateful’ (so she said) to have someone upstairs. Our husbands painted and put up the racks and helped us move in…we were there for maybe a month until we discovered that the landlady ahem: crazy! And was making ridiculous demands…telling us what we could & couldn’t sell, what our window displays should look like…and constantly taking space away from us that we were paying for. SO we found another spot, even smaller this time, and the rent was $100 higher, but the landlord was highly recommended by many people I knew. So….moving again…but my ‘partner’ was suddenly unavailable, so my husband and I did it all, (including painting the new place!), and an out-of-state customer/friend who happened to show up at our old location while we were moving and offered their help. 🙂 We moved in one day, set up within one week, and re-opened. And then my partner decided she ‘couldn’t do it anymore’ because she didn’t want to be tied down. So here I was in another town, alone with the business and I was pretty upset. Business started out great, and then it dropped right off. I’m not even making ends meet (rent, utilities, paying consignors) – I’ve had a couple of ‘loans’ from my husband, and there is no profit left for myself for being out of the house for 5 days/week. It is very discouraging, and I’m right there with you, because I know what it is to put your heart and soul into a business and feel like you’re doing everything right and still not getting enough business. I’ve got the website, Facebook page, which I’m constantly posting on, and twittering (LOL), and I think I’m on every free site to advertise out there. I belonged to the Chamber of Commerce when I was in the barn, but now I can’t afford it, plus they never sent me much biz (2 people in 4 years). Advertising in the paper works about 50% of the time I place an ad. I have 450 people on my Facebook page, but I don’t see that many people in my shop. I have 250 people on my e-newsletter list, but only 30-40 people read them when I send them out. There is a large thrift store down the road, but they’re not a ‘nice’ store…it’s smelly, dark, expensive for a thrift store and they have a lot of junk, yet they’re parking lot is always full. There’s another consignment shop in the next town over, but the owners made some negative innuendos about my shop in their article in the paper…they consider themselves ‘high end’, but from what I’ve heard from other people, my shop is better. So why is it my parking lot is empty??? I was actually kicking around the idea of ANOTHER move, to a bigger city, about 45 minutes away, where people are walking downtown on sidewalks, with purses in hand, wanting to shop and spend money, but the rent is double what I’m paying now, and I’d need someone to partner with me to make it work. I’m actually embarrassed to admit that my business is failing! I probably didn’t make you feel any better, but just so you know, you’re not alone.
Thanks for answering. It hurts the heart doesn’t it. I had thought of taking on a partner but then I thought that we would have to split everything and there is not enough business for two people. I can’t afford to move again and I am hoping and praying every day that it will get better. I have given myself a time frame of December. If it doesn’t look better by the end of December, I am going to close it up. I can’t keep being stressed out like this. I have a nice shop and great items but I can’t keep taking on more consignors and not selling enough to make it profitable. I have cried many a night over this and I am not going to do it again. I can’t afford the effort anymore.
Hi Martha – Where is your shop located? Maybe we can help each other out…bounce ideas off each other…especially as there are no resale groups near either one of us! My shop on Facebook: http://facebook.com/clothespinsconsignmentboutique Looking forward to chatting with you 🙂
Reading your post scared me a bit (I’m not open yet) and made me start rethinking a lot of what I’ve learned. I hope you don’t mind I visited your website and Facebook and I offer the following suggestions from a new set of eyes if you will, in hopes that they help you and others now and me later as I know down days will happen.
Re website
About us page:
Words above picture do not line up with picture – too far to the right.
Words under picture mention convenient location but picture shows a nice mountain.
Consignment Guidelines:
If you must have limitations, I would consider Kate’s suggestions of using wording more customer friendly.
Contract details make the terms more daunting. Maybe summarize into guidelines or have actual contract available as PDF download or on another page??
I did not see a map and I noticed you are not open after 5pm on any day. Maybe 1 day just an extra hour so women could stop after work.
Love the idea of supporting local artisans and your shop now page!
Re Facebook:
At quick glance it looks like all the necessary elements are there and that you post with pics and tips regularly and you have a lot of likes!
Possibly add prices now and then on new items to entice, such as 2 for $20 while they last.
Invite all those who haven’t made it to the new location to do so on some special day for 2 for 1 deals on scarves and free cookies or something else enticing.
Maybe offer small gift certificates for people who bring in whatever item you post as needed or gift certificates to those who bring a friend on a particular week.
If you have a lot of likes, then they like what they see and they aren’t bothered by your post and thus unlike you. The hard part as you indicated is getting them in to shop. What comes to mind with all of Kate’s training is to check your basics, what you present to the public both inside and out. Then present and promote the uniqueness that only you offer. Always remember too, the customer wants to know WIIFM. Promote in an upbeat and fun manner, promote promotions and promote with others. Do your artisans promote you? Do any of them do DIY demonstrations or trunk shows of new lines?
Laurel and Vicky had good ideas re flyers. Search Kate’s site as well, she has tons of information available in her guides and posts many for free or for way less than other gurus out there and her information is specific to resale!!
I would hesitate to move again as you lose customers and have to re establish yourself. Downtowns may seem nice but as you said cost more. They are often full of window shoppers, have bad parking and may not be appealing to consignors. I think your store looks cute and unique, easy to remember. So unlike the sea of boring strip malls in my area.
You’ve come along way and you should be proud of your accomplishments! Remember why you started, review your notes, what works what doesn’t, do more of the first and none of the latter. Promote, promote, promote and things will pick up. I wish you continued growth!
Thanks Andrea, always good to have another set of eyes looking! (For readers, Andrea is addressing her comments to clothespins71. To save you hunting, the web site Andrea’s talking about is http://www.clothespinsonline.com/index.html )
Clothespins71’s name here on the blog is linked to her blog (click on her name above to see) which is not active, rather than her web site. (To link your name fill in the “website: ___” with the URL that you want visitors to go to.) Her gravatar, the “grey ghost” picture (see my thoughts on THAT at https://auntiekate.wordpress.com/2011/09/28/tired-of-being-a-mystery-man-or-a-man-at-all/ ) leads to… umm, her gravatar, as it should, but the gravatar lacks links to her web site and social media. Perhaps editing that would give a bit of a boost to her search engine optimization. Here’s mine to show what you could do: http://en.gravatar.com/auntiekate
Small improvements, but they take little time and certainly help. Who knows what shopkeepers are reading Auntie Kate the Blog and plan to visit your area soon, or have customers who mention your town, and you can say “Oh, you MUST visit Shop X…”
Great points Andrea. You will find as you get into your business that you will certainly have to change things. I’ve changed my consignment agreement twice now. I’ve also become really picky on what I take and it has worked for me and my consignors appreciate it. One piece of advice I can give you is don’t over stuff your racks with clothes. My consignors appreciate the fact that they don’t have to have popeye muscles to move the clothes around to see something. Kate’s advice is priceless. I know though that lot’s of businesses in my town are suffering. I am down compared to this time last year. I am hoping that fall will be better. Good luck on opening your business.
Kate – I’m sitting down with my bucket of pumpkin spice coffee and I just went through the gravatar and updated and added links, etc. 🙂 And now I’m on to Andrea’s ideas…although I have yet to find a ‘company’ (?) to host my website that I actually like and is easy for me to use. I’ve tried 4 or 5 different ones. If anyone has any suggestions, that costs about $100 a year, I’m all ears! Andrea: the mountain on my ‘about’ page is Mt. Snow, the ski resort that is up the road from me (that I can see from my window…) I liked putting a pic of the mountain up rather than a pic of the 7-11 across the street! Although, when people ask where I’m located, I mention 7-11 and they know exactly where I am. 🙂 Unfortunately, with the consignment guidelines, I have been ‘nice’ until I’m blue in the face, and I’m still brought items that are stained & outdated. When I’m tactful about no-thank yous, I get blank stares. Like, really? You don’t take stained clothes? or Really? You won’t take my stonewashed mom jeans from the early 90’s?? UGH! Actually, I just had a new consignor here, same thing, had to give back more than half of what she brought in because the clothes were stained. I ‘gently’ explained why and maybe she could use my favorite stain spray and bring them back when they were cleaned…she came back with more items, again, stained!! Seriously?!
I do have a map on my biz cards, and FB page, but adding one to the website is a good idea….UMMM, very few , if any, of the artisans promote me. I ask them to…I even hosted an artisans night for them…but I did all the leg work, all the invitations, all the set up. They didn’t bother to pass the word, so it kind of flopped. I try to keep up with the social aspect on FB, but that was what my partner was doing…she had the experience with the facebooking, twitter and blogging…and it does get overwhelming trying to keep up with all of it. Same with planning events for my shop. AND I live in a small town, and it’s so hard to get the locals in , unless you’re in their circle of friends. 😦 I also hear rumors that people think I’m ‘expensive’, or ‘I didn’t know you were a secondhand shop’.
I do like your promotion ideas…I think I will put that into practice..
Thanks for your time…I’m always open to suggestions & ideas!
How’s about a website that costs either $0 or $15 or maybe $18 a year, that has incredible online forums to help you, and that would post automatically to your FB and Twitter? That gets better SEO than anything you could possibly pay for? That, if you’re crafty, will pop up whenever someone uses a search engine for something as non-shop specific as “foliage tour” or “Mt. Snow”? That you can set up in a weekend, yourself, and alter as much as you like… 2-3 times a week, or more? Simply design a WordPress blog as your web site. http://tgtbt.com/blog/
On the other point: You say: I also hear rumors that people think I’m ‘expensive’, or ‘I didn’t know you were a secondhand shop’. These comments cancel themselves out, right? So ignore them. If you hear these comments first-hand, give out your “come shop, you’ll be amazed and astounded” discount or free-gift card (or, if you aren’t up for having another business card, just write on the back of your current one) If you’re hearing these 2nd-hand, smile and thank the commenter. And ignore.
As for your artisans: people do what’s easiest for them. You made it too easy for them. Try again with a different structure.
Clothespins, you can find me at https://www.facebook.com/hopkinsville.sweetrepeats. I look forward to hearing from you. Also, I had a really good day today to make up for all the crappy one’s I had further in the week. I am working on a website now, but I can’t get it to my liking because I am too anal about how I want it to look. I look forward to hearing from you. I know one thing that has helped me tremendously is putting my mannequin outside with a new outfit on every other day. Until it gets too windy and she falls over.
Clothespins, I am using Weebly to set up my website. It’s really easy to set one up and I can customize it like I want. I agree with you on consignors bringing in stained and outdated clothes. I politely give them back and they still bring them back stained and out dated. I just tell them now that I can’t sell them and if they want, I’ll put them in the donate pile. I have to re-inforce this about once or twice a month. I also am in a small town and it is run by a select few that don’t mind bringing their clothes in to be consigned but they would never, ever buy second hand. We’ll just have to keep plogging along and hope it gets better. I am planning an open house soon and I hope that will bring in some customers. If you could get you a mannequin and set her outside that might help. You can buy a plastic one from Store Supply for 99.00. Dress her in something funky or paint her bright orange so she will be noticeable. I once dressed mine in leis and a grass skirt when it was 110 outside.
To Martha@SweetRepeats, believe me I hear you! I have owned my store for almost 1 year now, and have gone through some very tough months. I am a single mom with a tight budget to begin with, but wanted to pursue this dream. I am happy to tell you that things have turned around for me and are finally on the upswing. I have had a Facebook Page since I started. I can say that it is truly 20-30% of my business! I post pictures of most things that come into my store, and let me tell you…the women have rushed in to buy many of those items! They constantly tell me that they LOVE being able to shop from their desks! I also update my store’s website frequently to keep it fresh and exciting. Google Places has been phenomenal as well! So many people find me by having searched “consignment shops” on their smartphones! I’ve worked really hard to get my search engine optimization up there, and it has helped so much! I also have my Facebook posts directly feed into my Twitter account. I have a Pinterest Page for my store, and also an Etsy Store. I truly believe I would not have made it this far without Social Media. I don’t have signs up for my store due to town ordinances, and am on an “off-street”. So, that has been hard, Thus, the social media work has kept me afloat. I also am surrounded by tons of thrift stores in my town, so I must compete with them as well. So, all of this to say hang in there if you can! Try social media, as I know it will help you so much!! Good luck to you and keep your chin up!
Hey Kate, I’m thinking of having a stuff a bag sale and I am thinking of all you can stuff in the bag for 20.00. How do I pay my consignors for the stuff in the bag? Would I still pay them the 50%? It seems to me that I would lose money that way. I’m doing this to get rid of the summer stuff that is still sitting on my racks. It’s been a really slow two months.
Martha, most shops only use bag sales to sell items which are out of dates. You must, of course, abide by the agreement you have with your consignors if you are planning on clearancing things still in date. Perhaps before you make any plans, you might want to examine all your clearance-sale options, such as those discussed in Bag Sales, Dollar Racks & BOGO Deals/ Clear It Out & Clean Up… there might be a better option for you that’ll suit your situation to a tee (pun intended.)