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I invite you to “comment” to this post if there are ideas and concerns you wish to share with your consignment, resale, and thrift peers. I do hope, as well, that you’ll answer the concerns of others here. You can even choose to reply to a specific comment (old or new) if you want to add your viewpoint.
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Hi, Kate and others! I would like your suggestions and thoughts on my current situation. I am the only shop in town that is a “true” consignment shop. We carry clothing, furniture, decor, and vintage/antiques. Recently, several other resale shops that are more like flea market types have started taking in consignment. My shop’s split is 50/50. The other shops are only charging 25% which is very appealing to some, of course. However, our shop is much nicer, displayed very well, extremely busy, and we tend to get higher prices for like items because of these things. I know and understand these important points but it’s hard to make it clear to a customer just seeing the huge percentage difference. The other shops also allow the consignor to price their own items and basically have no guidelines such as length of consignment, etc. Also, the other shops do no advertising or marketing what so ever. As of right now, I don’t feel threatened by these shops but I certainly don’t want to discount them. Do any of you have any thoughts as to what I can do to ensure that we continue to be the best option for consignors?
We discussed this in our staff meeting this weekend. Here are our thoughts and plans: We are computerized which seems to impress consignors-no one else in town is. Customers seem to trust us because of this. We will be adding the added benefit of earning more on consignment by using store credit. Many consignors often spend their proceeds in the shop any way. We also are focusing on customer service by being the very best, by always being problem solvers even when it’s not necessarily within our “job description.” (A couple of the other shops have a reputation for being hard to deal with.) We are expanding our consignment days to 5 days a week. Previously, consignments were accepted 3 days a week. We will change the focus of some of our marketing to focus on the ease of consignment and percieved value of items that our shop can bring. Of course, this is the short list of what we discussed. Does anyone else have any thoughts? Thanks in advance!
Staci Risher
Nifty Vintage & Consignment
All good points, Staci…as long as you REALLY emphasize these over & over again to potential consignors. I mean REALLY…. in every ad, social media, website page, bag stuffer, DR signs…
Isn’t it funny how “computerized” is a big selling point? I remember when we first started using software (the 1st or 2nd yr it was even available!)… just because the shop name was printed on each tag, customers remarked “oh you have your own tags now!”… like we’d been using Macy’s tags before then
Point is, use the points that people respond to, like “computerized” and “24/7 access to your account” (if you offer this.)
I especially like to point out to people that 50% of a good price, say $30, is $15… but a poorly-run, no-traffic store might offer you 75%… but they won’t be able to sell the SAME thing for more than, say, $10… the consignor getting $7.50, “OR ONLY HALF of what OUR expertise will make your items worth. worth.” But that’s a hard sell, and “75% of what/ 50% of what?” is kinda a belligerent statement… so maybe sticking to a “your items will sell for more in MyShop because [bullet points]” is best.
Wondering today and haven’t thought this out completely but I thought someone here may have some experience or thoughts?
I have a very expensive opportunity to reach my target market. It is a mailing to people with newborns and those who have babies turning one from an organization that they joined and has a high level of trust and excellent brand.
I thought sending cash would be a great idea. I’ve seen this discussed before and this seems like a really good application. By cash I mean $5 gift card.
For a kids store this is a great target because they are have newborns and one year olds and we need to keep getting new customers as our good customers outgrow us. So, if we can impress when they come in and I strongly believe we can then they have great value.
I figure (off the cuff) maybe a 50% response rate. Who doesn’t use free money in a shop where they know they can find something? The people that wouldn’t come are those who think used is just disgusting but of course we offer new as well and they could sell items to us. There are also some folks that might be too far away.
Assuming 50% return it looks like a cost of about $16 to get that targeted and potentially valuable customer in our store. That seems really reasonable to me.
There are many other things included as well, monthly facebook posts, two newsletter articles and more but the real value is in those mailing.
Would you do it? My other question is about the gift cards? Is it necessary or could just do a postcard saying it was worth $5? It seems the gift card is more tangible and portable.
Thanks for your thoughts!
Hello Everyone,
so it’s even harder to view everything plus it’s real slow. Been open now almost 17 months and it’s growing steadily which I view as a good thing. Looking at receiving an award at the State Capitol this month 
I have actually been thinking a lot about expanding this year. I have not thought about it in detail but rather am going with my gut ….it hasn’t failed me before. My thought is to start off renting some space in another children’s resale store in the city. For those of you I haven’t met, my shop is primarily BOR MATERNITY. My shop right now is about 30 minutes north of downtown. Totally different demographic downtown(exciting! higher end brands I love it) I wouldn’t have the $$ to just open up another shop but I have a lot of demand in that area and get a lot of customers from there but they would shop more frequently if they were closer to me. I haven’t gotten far into the thought process yet but wanted to pick your brains and see if anyone else is doing this 
It would be temporary to test out the waters for a little while until I could afford another location….I don’t like missing opportunities. I would rather fail than not try but I do my research first (You guys are my research 
Thanks in advance for any input
Catching up here. I get a little confused with all the posts, and my laptop at my shop is a MINI
I soft opened my consignment shop Revolve a few weeks ago and am planning a Grand Opening and Ribbon cutting in conjuction with the Chamber of Commerce later this week. I was wondering what some of you ahve done at your grand openings, do I have sales or a give away? Do I have alot of food or be low key? I am open to any ideas. Also one other question- as I have been taking in items I have been using the general rule of thumb of 30% of orginal retail price when pricing most items…but I am questioning…for items like jewelry and other accessories do you still us that rule of thumb…seems like since the wear is not the same as clothing that I could ask I higher price…also vintage and antique items…still use the same rule of thumb. Thanks for any ideas and advice.
Kerr
Hi Kerr,
Congrats on your business! How exciting. I would not have any type of sale during a grand opening. I try not to have too many sales period except when needing to clear out some clearance and seasonal items. What I found worked great was to tell everyone what a great deal your items are and how everything is on sale EVERYDAY! Also, communicate to consumers the vast variety and quality of your items and that shopping frequently will find them the best stuff.
I think that a giveaway would be great. Maybe find a non-competing local business that draws your same customers and ask if they would donate a giveaway for your grand opening. They may even be able to advertise it for you to their own customers. I do a lot of cross promoting with shops in the area and it works wonders! I have had photographers donate sessions, salons, artists, massages….I also donate prizes to other local companies that are more established to help get my name out
Hi Kerr, Think about the goal of your Grand Opening. I assume it’s to get people talking about your business, to make your shop stand out from the crowd and to encourage word-of-mouth? Perhaps even to attract media notice?
Honeyb is right: promoting your new business by marking down items on which you’ve set the price just doesn’t make sense. Why would a shop “admit” that their prices NEED marking down to be incentive? Will giveaways or “alot of food” accomplish your aim with this event… or is there something else that will get folks talking about the new shop in town? Even if you have to delay things for a few weeks, I think you can make a bigger splash than the average “Grand Opening” of any business.
There is no general rule of thumb of any percentage of original retail price (heck, there’s no such thing as “original retail price” is there?), so be guided, instead, by what a specific item is worth to your clientele, in your town, at this point in time. Don’t be afraid to charge more for something that is in more demand. That’s the whole “law of supply and demand”
!
Best wishes going forward on your new adventure!
I’m just catchin’ up here, and maybe I’m missing something but sales of our Christmas/Holiday sweaters rocked this year. We put them on a 4-way with some matching bottoms, put a big sign that said “Holiday Sweaters & more…”, and that was all she wrote! We didn’t call them gorgeous, ugly or anything else – just what they were. We always are listening to our customers and what they want — and let’s face it, “Ugly” Christmas sweater theme parties were the rage last year and even bigger this year. In my book, that makes them “IN” style. Kim and Wendy, I know you’ll think I’m crazy, but in one of my October/November E-Mail newsletters, I actually put “Christmas Novelty Sweaters” on our “Things our customers are asking for”…list. Got in a total of 83…sold 77 and that’s not counting the “beautiful” red/green plaid pants, skirts and other “holiday” printed items. Average selling price of these sweaters was $18…
FWIW – Just another point of view for an issue I missed here on “Open House”.
We have a small T-rack of Christmas novelty sweaters. Like anything else, we listen to our clients and if we find there is demand for something, we try to give it a shot. There is huge demand for these sweaters – we make no mention of “ugly” of “gorgeous” — they simply are on display – and the only ones I have left are the simplest, “nicest” ones! I know this post is after Christmas (sorry!) but I don’t see this as a one-season fad. I had lots of college-age kids in here looking for the sweaters, and almost every one of them walked out with other items.
Kate, 2.5 years into the Consignment Business, the biggest point of advice I can give anyone is start a Diary…. I only wished I started it earlier. The Diary allows you to see your busy time of the day, week or month, it assists you with running sales, and scheduling staff. But most of all today it made a light go off… I offer free gift wrapping, which at times can be quite tough due to the busy time of the day. Therefore, I know during this week of Xmas I am the most busy in the afternoon, so I will start allowing customers to pay for their order and pick it up the next day, this will allow me to do the wrapping in the morning when I am slower! New Years Resolution is to be sure to write in my diary every day, and if I miss writing in it, put why so I can be prepared the next year. By the way, I also include the weather in the Diary.
Almost ready to open our store. Didnt know for tax purposes which would be better to open before end of year or wait till 1st of 2012? Help
What would I do? I would call my accountant and ask for advice
Great question to talk to your CPA/ tax advisor about. S/he will have better info than we will, especially because the answer could well depend on a variety of things such as your business structure, personal finance situation, even your local.
If you do decide to open between now and January 1, use this time to get yourself comfortable with operating your shop on an hour-to-hour basis… don’t expect big crowds right now, with so many devoting their time to shopping at places they know.
Good luck with your new venture!
well we have decided to wait, so we dont have to file taxes twice. and now our racks are on back order. what type of racks do everyone use? I have a long narrow space so really wanting to use standards that attach to wall or outriggers . has anyone found good prices on these?
Hello Everyone! I am days away from signing a lease agreement to open our first Children’s consignment/Boutique shop. Like propbably most, we are sooo excited but scared too! From Everything I have read, ( Thanks Kate and Everyone else on here!) I believe I have found a good location, but I thought I would ask all the experts their opinion. We found a 2700 sg ft shop, located in a historical down town, population is about 18,000….Attached to the building is: a all Natural Baby Boutique, Dentist Office, Tux and Bridal Shop, ( NEW), Women’s Boutique and a Ballet. There is the City park about 1/4 mile from the location. I know there are so many factors that will dictate the Store’s success, but how does everyone feel about these shop’s surrounding the business?? Is it worth the extra $400 a month to be in a downtown area with these types of surrounding business, or would it not make a big impact to be a few miles away from these shops? Help!
You didn’t tell what the other option is–the lease you are about to sign. From what you said, the mix of businesses sounds good for a children’s store, but we would need to know the location and type of setting for the other place. Are there more businesses there to draw more people to you? A few blocks can make a big difference in a business. Let us know more details.
oops…it says Bella09 above.That was me. Jen
Kerri-
The lease we are leaning towards signing is the building in the main down town area of the city. It has about 14 businesses attached to it. It is the location I described above. Some of the surrounding businesses are: Bridal and Tux Rental, Ballet Studio, Dance Studio, Women’s Gym, Dentist,Women’s Boutique,Hallmark,Mexican Restaurant, Children’s Boutique ( store carries mainly organic and all natural children’s products, unique gifts, and host Baby Showers). The City also closes the street a few times a year and host special events, which fills the downtown with people. We have, The Manual and have done alot of research and believe these are strong surrounding businesses. Our main concern is meeting our monthly budgets. Do you feel these are strong businesses to have near us?Do you think they will help support that extra $400.00 a month, plus the extra cost of renavations inside the building, as well?We would also have to invest more money renovating the inside of this buliding then the other building. We are leaning toward this buliding beacuse of the surrounding business. Do you think we are making the right decision?
The location down the street has a cell phone co, and an Insurance Agency near it. It would not have nearly as much foot traffic, but would be visible for people driving into the down town area.
We appreciate your help,time, and advise.
Jen-
I think the downtown location sounds better for a number of reasons. You have a nice mix of businesses and restaurants. Closing the street forces people to walk by your shop. Lots of foot traffic–which is a huge plus! The location with the cell phone company and ins. agency does not sound like businesses that are going to help attract customers for you.
As far as the extra $400 per month–if you break that down to a daily amount, it becomes much more doable. If you are open 6 days a week, and your split is 50/50, you really only need to sell abut $31 extra per day to make that $400 in rent. I would think the foot traffic alone will bring in more than that.
I know you are planning a children’s store, so one VERY IMPORTANT thing to consider is your parking. (I have a kid’s store so I’m speaking from experience here) Mother’s do not want to have to schelp their stuff a long way to get to you. They don’t want to have to park on the other side of the street, in the snow or rain, and try to cross the street carrying the baby, holding onto the screaming todder, the exerscaucer and a big of clothes. So make sure you have good parking!
I wish you the best of luck with your new venture–it’s lots of fun!!
Kerri Radicella
Childish Things
I know this is late, but I’ve had a Maternity and Children’s shop in a Downtown for over 12 years now. I have Never regretted it. I like the neighborly aspects of the independent business owners. And the Festivals and Events that bring in Bus Loads of people cant be beat.Many of these people come back through out the year, and tell their friends who live in the area.
“Ugly Christmas Sweater Debate” The first time a customer came in my store and asked if I carried ugly Christmas sweaters, I looked her square in the eye and said, “Ma’m I don’t carry ugly clothing”. I have never carried ugly clothing Christmas or any other time of year; I pride myself on carrying in-style mall labels that are sought after by all of our shoppers. With so many people asking for ugly Christmas sweaters should I re-think my decision not to carry ugly Christmas sweaters? Then my mind goes to …. if I put up a 4-way with a sign that says “Ugly Christmas Sweaters” and one of my consignors sees their beloved sweater that is too small on them now on a rack that says “Ugly” ARRRGGGHHHH! Then if I just mix them in with the regular sweaters people will think I now am carrying any old thing and will argue with me more when I won’t accept their 1990′s big shoulder pad fuzzy sweater. I can hear it now…”You have other old sweaters out there why not mine?” What’s your thoughts should we carry ugly Christmas sweaters to make a few extra dollars at the holidays or stick with our guns that we only carry in-style current clothing?
IMO for all the reasons you pointed out it is a bad idea. If you wanted to make a few bucks you could always take them in and sell them on Ebay where they can go for big bucks. Or possibly buy them low and keep them stashed away and only pulled out for the people who are looking.
Happy Holidays. Now off to my own search for the most hideous of holiday sweaters!