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 
Kate, I looked at a small space this morning, two usable rooms, only about 600sf at quick glance. I am hoping to do just ladies clothing and accessories, am I way off the beam to think this might be enough space to start out. Small community, rural. Love your manual, and all the pdfs I got, you are amazing.
Sandra
Sandra, using the Resalers’ Survey in the Manual, that 600 sq ft might result in a $52,000 to $170,000 income in current dollars. (The low estimate is based on shops of 3 yrs or less, the higher on the top 12% of performing stores.) Do these figures line up with your overhead and financial expectations?
More important, of course, is the location and visibility of the shop, because that will help forecast traffic flow.
And with a small space, you’ll have to be very careful to carry ONLY those things which sell fast and for a good-enough price. If it helps you, I started in 750 sq ft and carried both childrenswear and womenswear… if one or the other of those were eliminated, I had less than 600 sq ft of either!
My shop is six months old. I’ve been active on Facebook from day 1, but I’ve fought getting a website. I used to be a blogger and I just didn’t think I’d have the time to update a site, do everything the shop requires, update and market on Facebook and Twitter, and do any other marketing efforts. Right now I’m the only employee.
My question is this: what do you use your website for? Do you sell on it? And do you have a free site or did you pay for your domain? I just bought abigailsclosetfairhope.com. I’m not sure what will give me the most bang for the least time spent. Lastly, did you notice your search results improving when folks do general web searches, like consignment shops in Fairhope or clothing stores in Fairhope?
Hi Abigailsetc, I see your new site is a WordPress.com site… that’s a great first step! There’s SCADS of help for turning this into a web site, and if you’re familiar with blogging, it should be a SNAP for you!
As to what resale shopkeepers (and others!) use their web sites for:
* An online business card with infinite possibilities. You hand out business cards, right, to people you run across? Now you can “hand it out” to folks who have never heard of you, AND give them a taste of what your business is all about, in full color and even in motion! It’s a PUBLICITY tool.
* An online brochure for those who are not 100% behind the idea of buying secondhand. It’s a PERSUASIVE tool.
* A PLATFORM for telling more. No one on FB is going to read all the details of your next promotional event… and YOU aren’t gonna wanna keep hammering at it… but a simple FB entry that leads to a page or a post about your event gets the word out SO easily.
* A web site, in effect, is your shop’s PARLOR or kaffeeklatsch … a place where you can chat about things that will develop your shop’s PHILOSOPHY… whether it’s “Look how great this dress / dresser looks with its new owner”, to a great recipe a consignor gave you, or even photos of displays, local news… anything you’d chat with a client about.
* And finally, more and more folks are simply uncomfortable dealing with a small business which doesn’t have a web presence. I mean, how serious, businesslike, upstanding can this shop be, if they don’t even have a web site?
And yes, a web site, especially one done well with key words, alt titles and so on, will pop your shop right up in the search engines. If I’m driving thru Fairhope, will I find your shop? Will I get all the info I need? Will I be intrigued enough to come in? THAT’S what I think a small B&M consignment, resale, or thrift shop needs a web site for. Hopefully, some of our readers will give you even MORE reasons!
what are alt keywords?
Keywords and alt titles are important to know if you are working on your site and want to maximize SEO. They’re not hard to learn or to do, though. I suggest you look ’em up.
I have an opportunity to by an existing clothing, furniture & home accessory consignment shop. It has a good location with lots of parking. There is another clothing consignment shop in the same strip mall area. Would this be a good business decision or would it be better (more cost effective) to start one from scratch? I would like to have the shop become more of a furniture & home accessory store & also offer design help for “real” folks who don’t have unlimited budgets. Any advice would be soooo great!
Hi Lisa! That decision rests on SO many factors, there’s no quick answer. I suggest that you read a book that’s most helpful on examining the worth of a small business, Thomas Horn’s Business Valuation to get the big picture, then use the TGtbT.com Product for the Professional Resaler, Business Valuation Kit, to home in on the aspects that are crucial to resale.
But before either of these, read my Manual to get a feel for what owning and operating a consignment or resale shop is all about.
Let us know how it goes!
Thank you!!!
Seva,
Kate mentioned counting off the floor tiles to get a quick dimensions…you can also count the ceiling tiles…generally 2’x4’…just multiply accordingly!
Hello, I just quit my day job (I had for almost 5 years) and planning to open a furniture consignment shop. I am getting very nervous. Wondering how long it usually takes to start making profit?
Anywhere from a day to never! No, seriously, it all depends on how willing you are to learn, to apply good practices once you discover them, and how hard/ smart/ effectively you work. Read up, research, visit as many similar shops as you can, and start planning now. This can be a lucrative field, but it’s no cake walk. There’s a wide range of talents and skills you’ll need, from appraising your incoming merchandise to managing a staff. Exciting… but also, plenty of areas you have to study up on, and apply every day. Let us know how you’re progressing!
Thank you for your time answering my questions. I really want to buy your book. I do love researching furniture, so at least I know that area is under control.
Will keep in touch. Thank you so much,
Hi Auntie Kate,
Oddly enough, I have been looking for a location for a furniture consignment store for the past 2 weeks, and ran into an existing antique shop owner that is looking for someone to take over the space in a week or two. It is a fabulous location with decent parking. However, it is around 1700 sq ft/exterior and around 1450 sq ft interior. What do you think about this size? I was looking for a minimum of around 3000 sq ft./ more space more profit. However, it is my first shop and maybe a smaller shop to get started? Thank you for your time!!!
Seva
Seva, since your first Q was re how soon you’ll be making a profit, I will assume that you’ve worked on a business plan and cash flow projection. Using the figures from this newly-available space, how does it look? Just to help you get a feel for what you could do in 1450 sq ft, visit as many shops as you can around that size (tip: if that “sample” store has floor tile, it’s really easy to count off the dimensions… )
Sure, more space = more profits, but also more overhead… everything from utilities to staff!
Auntie Kate, Thank you, again. I guess it is hard for anyone to help make these decisions without actually seeing all the variables in person. Hard decisions. Thank you for your advise.
I have been working on a business plan and cash flow, however, I find it impossible to get realistic numbers until I actually open the doors.
Most of the other seemingly successful furniture consignment shops in our area have at least 3000 sq ft. This existing antique shop that I can just walk into actually used to be a a charming smaller consignment shop. Great center city location in upscale neighborhoods. I find that the most popular furniture selling items are couches and dining tables which take alot of floor space. I will just have to take the chance and move forward. Thank you. Seva
Happy Mothers Day to All,
Hello again, thank you, I received your book and enjoying it. I have another question, please? I am reading your financial survey section and most of the statistics are based on resale clothing shops. I will be opening an upscale furniture consignment shop, do you think that I can apply these surveys statistics to my business? I assume my average ticket item will be a lot higher than a dress. On the other hand, a piece of furniture takes up a lot more space then a dress?? Thank you for your help. Seva
Seva, there were not enough responses from furniture-only shops to include them on this survey, so you will have to make some contacts yourself and do your own research if you want things like dollars/sq ft, /hr, etc. Why not try contacting some shops through FB’s Resale Connection and ask this Q there?
Thank you again for your quick response.
Seva
Just bought your book and can’t wait to get it!
Do you have different advice for a startup consignment in NYC where rents are much higher than the rest of the country? A retail space that is 350 square feet can be over $6000 / month in rent.
Thanks!
Marisa, your manual is already in the mail! As for advice for NYC? Sell small stuff. Sell it fast. 🙂
Check out Liberty consignment program. It’s expensive but we have tried several and this is the best one for our needs. They even offer training in Florida at their headquarters.
Hello Auntie Kate,
I owe a Consinment store in Seattle Wa, for four years now and I believe it is time for a new consinment computer program for our computer to keep track of sales and consinger information. What would you recomend? We would like something user friendly, I’ve heard of a computer programing convention held in Vages for this sort of thing, do you know anything about about that?
Hi Megan, Please visit my Links Page for links to the programs I am aware of, and try putting them all through their paces. You’ll also see, there, my thoughts on which program might be right for any given shopkeeper!
How do you suggest going about finding enough start up inventory? If most of my future inventory will come from my customers this can be difficult without any customers yet.
Hi Megan Rebecca, thanks for joining in! I am not sure why you think most of your future inventory will come from customers…. if by customers you mean people buying things from you. I think we can all agree that shoppers and suppliers are not a 100% overlap (and, something comforting to you: you do NOT need a “full store” to open!). Have you had a chance to visit Too Good to be Threw’s Start a Shop page yet, where this question is answered in short form? And of course, this concern is addressed in much more detail in Too Good to be Threw The Manual.
Great thank you! And by customers, sorry wrong word, I meant people bringing me their items. And yes, I’ve been to your site and I’ve already purchased the handbook. Thank you.
No problem… I can understand that you just wanted to hear it again! It’s scary, looking at an “empty” storefront and hoping that somehow, you’ll have stuff to sell!
Hi Megan,
I, too, was unsure where I would get my starting inventory and then I found that it wasn’t hard at all! Like Kate said, you don’t need the store to be full in order to open. Once you put out the word to friends and family, you’ll find that you can easily acquire some items from their closets. Consider offering a higher percentage back to friends to become your first consignors or some other benefit? I’d also suggest putting a little money into inventory if you have good options like yard sales, estate sales, outlet stores, etc.
Here’s a personal blog post I wrote a few months ago that answered that same question for my shop: http://9adventures.wordpress.com/2013/01/18/where-do-i-get-my-starting-inventory/
Good luck!
Melissa
Thanks Melissa! I’ve loved your blog. Have you ever gotten your shop open?
Hi Kate,
Yep, the store has been open since March 1st and profitable from day 1 thanks to all your advice! 🙂 http://www.rethreadscville.com
-Melissa
Well, of course, I KNEW that 😉 Just thought that perhaps, you forgot to tell your blog readers! And way to go, profit from Day One! That must have been a heck of a day! We wish you many more…
I figured you knew that, Kate, but then I thought “well, she does follow a lot of different people, she may not remember me!” 🙂 That blog I linked to is my personal blog followed by friends and family. They are all well aware that ReThreads is now open and that I’m too busy to update it these days! One day…
Hello dear, I am in the process of opening a new resale boutique in Ft Lauderdale area and seeking a great manager, who knows computer and can decorate. Where is the best place to look. Do you think Craigslist is a goog place to put an add? Thank you so much
Flo, as always, with any type of communication, you need to consider whether the person you seek (to employ, to come shopping, to consign) will see, read, and think credible that particular type of medium. Personally, I feel you’re looking for a highly-qualified person and that this kind of person isn’t looking for a help-wanted ad on Craigslist. But, of course, there’s always the exception to the rule, so perhaps it wouldn’t hurt. To avoid being overwhelmed by totally UNqualified applicants, though, be sure to set some self-sorting system up, an application process whereby you can deter all but the completely serious job seeker.
Too much is when your customers cannot move comfortably through your store. If their butt brushes on anything while shopping, they will move quickly away from that area. Aisles between fixtures should be a minimum of 3 feet of empty space between. If you’re so crowded that people do not feel comfortable shopping, it’s time to get more selective in what you accept. Is there a category of merchandise that doesn’t sell well? Eliminate it to make room for the faster moving goods.
I am a furniture and decor shop. Here is what we have found. Color code your decor items. It makes shopping easier and customers will love it. Keep clutter off your flat surfaces. Less is more, a well placed centerpiece or pretty collection will sell the furniture and the decor items.
Be very selective on what you accept. We no longer accept items that cannot be prices at $9 of more. That helps weed out the lesser items. Hope that helps. By the way my shop is 2500 sf and is furniture and decor only.
You might take a look and see which is more profitable, and concentrate on those items. We don’t do any type of clothing, accessories, etc. Keeps the branding of our shop so much easier.
Expanding on Beth’s comments…chrome (racks) is your enemy…you need a little play on the racks, with the customer able to have a couple of inches as she moves through the stock. On the other end of the spectrum, too much rack exposed gives the customer the idea that you are out of stock. It is always ebb and flow with resale, whether you are talking about customers, incoming stock or stock on the floor. You have to have a plan on how to minimize either extreme, take mdse off the floor, add or subtract racks. We are at the beginning of the season…you racks should be filled…maximize now, not at the end of the season when you are taking a loss on heavy promos.
I can only speak to clothing. Every once in a while I have people comment – you don’t have enough stuff, you have too much stuff. Some of the comments are back to back and contradictory. It’s like pricing – you try to find that thin line balance – but some are going to think you are too high, some think you are too low. I just make sure I have fresh stock out at all times – the stuff that hasn’t moved for a few weeks I pull for a few days and put fresh stock in it’s place. People are less likely to say anything while they are busy digging through new items. 😉 I think if you are seeing people have to physically push with the racks with all their weight to flip through them or are just “peeking” at the clothes, you might have too much.
People in general do not like clutter- they can’t make decisions and get overwhelmed with too many choices and then shut down and can’t decide on anything and then buy nothing. Time is precious for all of us. Streamline and get rid of the stuff that they can pick up at goodwill or a thrift shop. Or decide what you want to be- a lovely consignment shop or a cheap thrift shop. Two very different images and brands. Less is more- be organized and decisive. Purge purge purge and do not accept to begin with. Write down your standards or an acceptable items list and stick to it. Always a work in progress. I did this and then my shoppers could ” see” our beautiful products! It works also read “why we buy?” Costco theory vs Walmart. Good luck
Hi Ginny, I find it’s too much when customers can’t walk between racks or items without fearing knocking something to the ground; or when the racks are so jammed they can’t move the clothes on the rack to see the items. Your problem sounds like a happy problem, and Kate has lots of suggestions in her resource materials, on Pinterest, and on her blog that can help you figure out how to best display items. Good luck!
thanks for the comment, I think they thought it looked cluttered
Hi Ginny, I’m jealous: I can’t imagine what fun it must be to have 2,500 sf of stuff (my shop is only 1,000 but it’s feeling cramped)! I wonder who is it who told you that you have too much stuff? If it’s customers saying that, then they are probably just feeling a little overwhelmed by how much there is to look at each time, and i bet they will be back for more very quickly since they know they couldn’t have seen it all in one shopping trip. I doubt it’s a bad thing! Curious to hear what Kate has to say on the subject, though!
I have a question, is there ever a time when you can have too much inventory ? I have a 2500 sf shop and it is loaded with clothing decor and furniture and business is good ,however i have been told I have too much STUFF,how do you know when it is too much ?