Consignment Store Mistakes You Might Be Making

If your consignment store isn’t doing as well as you think it should, there are some consignment store mistakes you might be making. Here’s a few of them.

Location

Choosing the right location can be tricky. You don’t want to pay too much, but it may be a location that affects your business if you go with a cheaper option. It’s natural to think about price at first, but really you should focus on the surrounding areas. Is parking easy or convenient? Are there successful businesses nearby? Asking these questions will give you a good idea about whether that is a good location for your store or not.

Merchandise

Now you have a great location, and customers are coming in, but your merchandise is what will seal the deal. It can be hard to figure merchandise out, but it takes a little bit of experimenting before you perfect this skill. First of all, you need the right amount. Remember, quality over quantity. A store that looks empty doesn’t represent your shop well, but a store with too many items will also drive away customers. Customers don’t want to step into unorganized chaos. They want shopping to be straightforward. Second, you have to get the right merchandise. This is where you have to experiment a little. Using SimpleConsign, you can track the progress of your sales to see what is selling best. This information will tell you what your audience wants from you. It may take a while, but it will help you in the long run.

Price

Now that you have the perfect location and merchandise, the next step is price. Your items have to be reasonably priced, or your customers won’t see a reason to come into your store as often. Your prices should have them feeling good about their purchase. The general rule for consignment is to price an item 30% less than the original retail price. This goes for any item, used or not. Another general rule is to end the price with a 9.

Policies

A written policy for your consignors is vital for clear communication. Make sure your consignors know when and how they will get paid. They should also know how long an item will be on the sales floor before the price goes down and the protocol if an item doesn’t sell within a certain amount of time. Create an intake sheet that your consignors have to sign, meaning they have read and agreed. Your policies should be understood by your employees as well.

Costs

Lastly, while opening a consignment store is a fun adventure, you have to be practical. You have to save a lot of money and come up with a good business plan. You may be great at one aspect of the business, but you’re not or the other way around when it comes to finances. If this is the case, get some help from an outside resource to ensure your business is successful. A good business plan and being smart about finances are essential to run a good business.

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Paulette Squicimari