Selling counterfeit handbags is illegal. Protect yourself.

In a Fashionista article, the International Trademark Association declared $460 billion worth of counterfeit goods were bought and sold last year. Counterfeit handbags, known as “super fakes” or “Triple-A Fakes,” mostly sell online. The article reveals, “In earlier generations of fakes, one could simply look at the color of a leather handle, the type of metal used for the hardware or the lining and know instantly that it was counterfeit. Now that you can find knockoffs made with the same, or nearly identical, materials, as the real thing, that process has to be much more complicated and nuanced.”

This post is guest authored by Deanna Thompson, Customer Success & Evangelist of Entrupy

My, what a nice ex-boyfriend you had!

The stories people tell when trying to sell or consign a luxury handbag run everywhere. “My boyfriend bought it for me, but we broke up.” “It was my grandmothers and she only carried authentic bags.” Even when a receipt, box and dustbag are present, there is no guarantee the bag is authentic. With the holiday season upon us, counterfeiters are banking on your lack of authentication knowledge to increase their sales. Plus, well-meaning consignors may unknowingly try to consign a counterfeit bag. If you are utilizing Entrupy, however, it will be Happy Holidays for all!

How are you authenticating?

Luxury branded handbags are one of the biggest sources of revenue for a consignment store. Knowing the difference between authentic and fake can mean hundreds or thousands of dollars. Imagine if a potential customer brings you a gorgeous Chanel flap bag which could net you at least a $1,000. Are you going to turn it away because you’re not sure? Are you going to accept it on consignment and spend the next 5 hours on Google trying to authenticate yourself? Or, take photos, email them to an online authentication company and hope they know what they are doing? Sometimes, you can wait anxiously for 2-3 days before receiving a response. Spending hours trying to authenticate a bag is no longer an option.

Bringing authentication in house is key to growth

Turning money away was never in your business plan and it shouldn’t be now. But, if you’re unfamiliar with certain luxury brands or styles, you really didn’t have an option, until now. By utilizing Entrupy to authenticate luxury handbags and small accessories, you now have control of the authentication process. Luckily, you will know in minutes if an item is authentic or not. This will not only free up your time but more importantly, by including a Certificate of Authenticity from Entrupy, those bags are going to sell faster and for more money.

Entrupy’s recent partnership with SimpleConsign

Recently, Entrupy launched a partnership with SimpleConsign. We’re pleased to offer our authentication device for SimpleConsign users at a 50% discounted set-up fee. This new partnership will allow you to grow your luxury footprint. With Entrupy, your store becomes the only place in your community to sell technology-driven authenticated luxury handbags and accessories. In addition, by offering authentication as a service, you create a new revenue stream for your business.

Benefits of Entrupy

• 14-day money back guarantee
• No contracts or commitments
• Flexible monthly and yearly subscription plans
• Authentication time: 4-6 minutes
• Responses received: 60 seconds to 60 minutes
• Financial guarantee on all authentication certificates produced
• Print, text or email certificates
• Hold free authentication events to drive business in to your store

Learn more about this unique partnership at: SimpleConsign Partners

This article has been updated from a previous article posted 8/14

Make your consignment intake policy as clear as possible

In your eagerness to build inventory, it’s tempting to accept every item that a consignor brings to your store. Be selective about the merchandise you accept. Don’t end up with a cluttered showroom and stagnant inventory. Both of these will drive away customers. It’s crucial to create a rock solid consignment intake policy. The merchandise you accept, determines your success.

Where to begin

Everything begins with your store’s branding. Who are you?  You need a complete understanding of your local market, potential customer base and competition to determine the merchandise you offer. Remember, you are your store’s brand. Is it time to do a little re-branding? Read Get back on track by re-branding your consignment store. Determine the type of store you are. Then, you’ll know the items you need to accept. Bear in mind, your consignment intake policy doesn’t require legal mumbo jumbo to be considered a legal and binding contract. Make your policies and your consignor contract as easy as possible for all parties to understand and put everything in writing.

Reviewing merchandise

No two consignment shops are exactly alike which increases the thrill of the hunt for the shopper. That being said, there are no industry standards for a merchandise intake procedure. The process can be handled in a number of different ways.

a.) Limit Items Many consignment stores place a limit on the number of items they accept from each consignor. Between 15 and 30 items is a reasonable number. Read Come with me to the Twilight Zone of inventory management to learn the dangers of too much inventory.

b.) Drop & Run  This consignment intake policy allows the consignor to leave their items giving the shop a longer time to review and price. Setting an item limit with this system is also helpful. Order a packet from Too Good To be Threw to promote this policy here.

c.) Designate a Time and Person Establishing a set appointment to meet with a particular salesperson is another way of streamlining your review of items. This method is excellent for high-end stores with extremely curated inventory.

d.) Concierge Service Again, this process requires an appointment. Review merchandise at the consignor’s home and accept only what appeals to your customers.

Regardless of your procedure, be clear about whether you require designer labels, trendy styles or seasonal merchandise. State if you’re looking for particular sizes or items for a specific gender or age group. Above all, explain to consignors that your customers drive your guidelines. Therefore, you must be particular about the items you accept.

The consignment period and terms

If you have implemented a sliding scale program, let consignors know up front. One model may look like this: “The consignment period lasts 90 days, with a 25 percent markdown after 30 days and a 50 percent discount after 60 days.” This is also the place to note your pickup and donation policy of unsold items.

Clearly state your consignment terms. A 60/40 store split is the most common. However, there can be exceptions to the rule for more expensive or truly rare items. Read How to write Consignor Contracts aka don’t get bats in your bathroom for more information. Some consignment shops add an Item or Buyer’s Fee which they either do or don’t disclose to their consignors. With Memo Pricing, a set price is established ahead of the item reaching the sales floor. Easily add these fees in your POS system like SimpleConsign.

Instructions for bringing items

Clothes should be brought in on hangers. This allows you to quickly inspect the garments. Outline your expectations that items must be free of tears, stains, missing buttons and odors. Be sure to outline in your acceptance policy what you won’t accept too.

For furniture stores, give clear guidelines for when and where items can be received. State your terms clearly if you offer a pickup service. If you only accept items based on photos submitted first, make sure prospective consignors understand the rules.

Require an ID

Although it rarely happens, you must protect your business from selling stolen items. Along with extensive contact information, including home and cell phone numbers, mailing address and email address, you should also photocopy the consignor’s driver license or other form of ID. Finally, get a signature on everything. This will help to make your acceptance policy as airtight as possible.

Rebranding your consignment store isn’t as difficult as you think

For just a moment, stop. Take a deep breath. Slowly exhale. Now, step back and look at your consignment store. Is it what you envisioned? Does it reflect you and your personality? Are you selling the merchandise you intended? Is the look and feel of your shop just what you wanted? If the answer to these questions is “No,” get back on track by rebranding your consignment store. Don’t let the term overwhelm you. Rebranding doesn’t always require starting over. Often, it’s those little tweaks that get you closer to your ultimate vision.

Determining your strategy

Depending on your personality, there are 2 ways to go about tackling it. You decide which is best for you.

1. Eat the elephant one bite at a time  For some, approaching a task is best done in small bites. You make lists and check assignments off as you go along. Smaller jobs mean less stress. With so little time available, setting a time frame for completion and separating tasks into manageable “bites” is easiest for you.
2. Throw an elephant-eating party Dividing and conquering is your modus operandi. Not wanting to drag out the process, you want to get it all done at once. But, that requires divvying up the responsibilities. As Achieve The Green Beret Way says, “you find others to help you with it. This might be outsourcing, it might mean finding partners, paying affiliates, or even bartering your skills for assistance. Getting outside help with these big chunks will make it go much quicker and you will get the results you wanted while you still remember why you wanted them.”

Step 1

If it’s easier, think of it as a “re-fresh” rather than rebranding your consignment store. Move from the inside out and start with you, the consignment store owner. As I’ve said often, you are your store’s brand. Read, 6 tips to build your secondhand store’s brand to understand that people emotionally identify with people, not stores. Does your store convey your personality? Answer this question…”My personal brand is _____________.” If your store reflects you then move on to Step 2. If not, dig a little deeper. Here’s a free workbook that you can download that may help you. Your Personal Brand Workbook.

Step 2

The most important part of any consignment store is the merchandise you have to offer. Are you selling items that fit your brand or at least the brand you want to become? The items you sell need to be curated according to your brand. Make a clear list of the merchandise you are willing to accept and items you won’t accept. Read How to tweak your consignment acceptance policy.  Be willing to offend some customers and consignors when items don’t meet your new standards. Reward your top consignors who consistently bring you items that fit your image. Move merchandise out quickly that doesn’t meet your brand standards and begin building new stock.

Step 3

Take a close look at your physical store. It also needs to reflect your brand. If it doesn’t, start researching other locations in neighborhoods that more closely fit you and the clientele you want. If you’re in the right area, check to make sure the look and feel of your store is in line. A fresh coat of paint in a new color may be all you need to add that brand identity. Read How your secondhand store can use color to sell more.

Step 4

Although a bit more challenging, take a closer look at your marketing efforts. A logo change is a big commitment. Perhaps it’s something as simple as adding a new tag line. Slowly begin to create marketing pieces that better reflect your store’s brand. Changes to your website can also be made slowly. New blog posts and a different style of photography reflect the new you. Or, your emails can take on a fun, zippy pizzazz they’ve not had before.

One last important point

Rebranding your consignment store should never be done lightly. As Business News Daily adds, “The ultimate goal of any rebrand should be to grow the company by better serving your customers. Sometimes that requires putting client services ahead of the rebrand. That isn’t necessarily a bad thing.”

It’s time to make some consignment resolutions for next year

A fresh start. A new beginning. A clean slate. We always begin a new year confident we’re going to do better than the last. This year, resolve to make the necessary changes to your business within the first 30 days. No delay. Here are 6 areas you may need to concentrate on.

1.) Building a stronger team

Success for brick and mortar revolves around top notch customer service. You need a team that’s committed to your vision. To build commitment in your employees, show dedication first. Invest in training in 2018. Improve communication. If you have employees who are not team players, it’s time to cut the cord. Read The ultimate guide for hiring the best part-time employees. Reduce employee turnaround and theft by sincerely caring about your team. Read How to nurture your best and most motivated employees. Strengthen them and the rewards will be great.

2.) Improving your inventory

Are you confident you’re offering the type of merchandise your market wants? If not, now’s the time to find out. Your consignment resolutions must include reviewing your top-selling items, top consignors and customers. Update the list of items you will and won’t accept from your consignors. Create a written policy and stick to it. Read How to improve your resale shop’s inventory with 1 word, okay maybe 2. If you’ve accepted merchandise that isn’t selling, mark it down and move it out. Resale as a whole needs to up its game if we are going to compete for retail dollars. Let Goodwill, Savers and the Salvation Army take care of merchandise that is donate-only quality. Consider carefully how you want to be viewed and build your brand through the type of items you sell.

3.) Updating your physical store

Here’s where you need a critical eye. Stand outside and take a serious look at your store. Is your signage clear? Are the windows clean? View the entrance of your store as a first-time shopper would. When you enter, is it cluttered? Does the shopper know immediately where to go? How does your shop smell? We get used to the everyday smells of our homes and businesses, but they may not be appealing to others. Commit to a regular schedule of cycling merchandise through your store with a sales rack placed in the back. Look at your ceiling and your floor. Can you improve the lighting? Even a change in paint color on one wall can make a store feel fresh and new. Read 6 quick and easy changes that will improve store design.

4.) Refining your marketing

This year, create an event calendar. Assign a staff member to be in charge of each major event you will be hosting. Have them prepare their email campaigns and social media strategy in advance. Remember, consistency is key. It’s better to dominate 2 or 3 media outlets than do a little in every one of them. Read Consignment marketing on a tight budget. Consider adding direct mail to your marketing mix. A postcard or 2 with a coupon could be just the incentive someone needs to try your store. Collect as many email addresses as possible and begin segmenting those into smaller groups. The open rate for emails with targeted messages is always much higher. Look for new ways to advertise such as Facebook Live.

5.) Adding technology

This year, add at least one new item that will improve business operations. Whether it’s a new POS system (ahem, such as SimpleConsign), new label or receipt printers, or a time clock system for your employees, upgrade now. How is the efficiency of your cash wrap? What about your intake process? Be willing to shake it up and make the necessary changes.

6.) Taking care of you

Even though this is the last consignment resolution listed, don’t wait to take care of your physical and mental health. Create a calendar. Add time for yourself away from the store. Treat it like it’s an appointment. Working smarter, not harder isn’t just a catch phrase. It means you are recognizing the need to delegate and trust the employees you’ve hired. Set boundaries for yourself. Read How to beat the resale business owner blues.

Happy New Year from Team Traxia!

This post was revised from an original post on December 26, 2014

Updated on 4/12/2021

Do your homework to avoid these common mistakes consignment shops make

Although no obstacle is insurmountable, there are common mistakes consignment shops make that may cause your business to fail. Here are 5 of them.

#1) The most common mistake consignment shops make…choosing the wrong location

It is all about location, location, location. Knowing the demographics, like age and income of possible shoppers in your area, is key to choosing the right location. Statistics show that nearly 75% of your business will come from the residents in your store’s immediate neighborhood. Don’t choose your location based on price alone. Consider the parking and traffic patterns. Take a close look at other businesses nearby. Is there a well-known restaurant, store or gym around the corner? Look for businesses that will draw foot traffic. Read 5 steps to a successful consignment business to learn more about choosing the right location. If you find yourself in the wrong location, now is the time to make the change. Don’t wait. Go where your shoppers are.

#2) The wrong merchandise for the right market

You’ve chosen your location, but now you have to fill it with merchandise. Incorrectly managing your merchandise is one of the common mistakes consignment shops make. Too little merchandise and you look like you’re going out of business. Adding too many items to your sales floor will also hurt you. Shoppers don’t want to fight racks and hangers to view your merchandise. Poorly constructed or flawed items that make it onto the sales floor will damage your reputation. At least twice a month, review your inventory for expired products. Move items that aren’t selling to a sale area in the back. Start having a critical eye for what you will and won’t sell in your shop. Read How to manage your consignment inventory. Review your sales data and see who and what are your top sellers.

#3) Pricing merchandise incorrectly

You know the struggle, if you price the merchandise too high, you risk losing sales. If it is too low, the business will struggle to make a profit. Generally, clothing is tagged 30 percent off the original retail value regardless if the item was worn or not. Follow basic pricing rules like ending with the number 9 (as in $9.99). Don’t make your discount schedule too difficult to understand. Shoppers tend to follow the path of least resistance when it comes to figuring out price, so make your prices as understandable as possible. Offer merchandise in a wide variety of price ranges. Then, there is something for everyone. If your merchandise is priced right, customers will have a sense of urgency to buy because they know it won’t last long. Read 4 tips for setting correct price points.

#4) Unwritten policies

It’s critical that you develop concise, yet detailed written policies for consignors and employees. Not sticking to those policies is another one of the common mistakes that consignment shops make. Determine how long an item will be on the sales floor before a price reduction. Tell your consignors when they will get paid (typically at the end of the month) and how (cash, check, store credit). Let them know what will happen if their items don’t sell. Offer an intake sheet that outlines the contract and requires a signature. Have your consignors fill it out and list every item accepted into the inventory. Every employee and consignor must clearly understand how the intake system works. Read How to tweak your consignment acceptance policy. You’ll also want to develop brochures and a FAQs section on your website listing your policies. For your employees, make sure you have a clear employee manual. State your policies on vacation and sick days, social media use and such things as shoplifting, etc.

#5)  Not counting the costs

Decide immediately if your shop is a fun, enjoyable hobby or you intend to truly build a business. That decision will make a difference in how you plan. Just because you like to shop, know a good bargain when you see one and have a basement filled with stuff, doesn’t mean you’re equipped to open and run a consignment shop. It’s been suggested that a new business owner have at least 6 months of living expenses set aside ahead of time. Problems can arise, but having a safety net not only keeps you sane, it also relieves a lot of pressure. A solid business plan is essential no matter where you are in the process. Maybe it’s time to pull it out again and take another look. Read How to improve a mediocre resale business plan.

It all seems like common sense, doesn’t it? However, in the midst of making exciting decisions for a new business venture, we often lose sight of the practical aspects. It’s never too late to re-evaluate your choices though. Do a little homework and put yourself back on the right track.

For more on running a successful Consignment Store check these blogs out:

The 7 Reasons Consignment Shops Fail And How To Avoid Them

Updated on 4/12/2021

Want a successful consignment business? Start here

1.) Develop a business plan

A successful consignment business begins with a solid business plan. It outlines your overall vision. The time you invest in creating this document saves you money and keeps you on track for the long haul. According to Entrepreneur.com, a consignment clothing store requires $3,000 – $10,000 to launch. Then, it takes at least two years to work out all the kinks. Carefully consider your business structure, consignment policies and your goals for the future. To learn more about financing, read Build a Strong Consignment Business – Step 1.

 2.) Research the neighborhood

Remember, it truly is all about location. That’s why it’s so important to become very familiar with the neighborhood you’re considering. By visiting the local city hall and gathering as much information as you can regarding income, age, marital status, etc. You can make sure there’s a market for your type of store in the area. If you aren’t comfortable talking to a competitor, at least browse their store and marketing materials. Then, contact similar businesses in other cities or states. When your market has a lot of second-hand shops or a large, well-known shop will be in direct competition, think about ways to make your store unique. Find your niche, by reading Build a Strong Consignment Business – Step 2.

3.) Acquire an outstanding inventory

To become a successful consignment business, you need to attract consignors with quality merchandise. Don’t open the doors before the shelves are full. Shoppers will hesitate to come back. However, if you fill your shelves with inventory shoppers aren’t interested in, they won’t return either. By knowing your neighborhood and its demographics, you’ll know what merchandise to offer. Advertise for consignors in your local newspaper. Do website searches. Plus, scour yard sales, auctions, estate sales, business liquidations and thrift shops for good deals. Learn to bargain and negotiate. These skills will be needed when interacting with consignors. Read Tweaking Your Consignment Acceptance Policy and Inventory Management: Because You’re Running a Business, Not a Museum to learn more about your inventory.

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4.) Design an attractive store

Often times shoppers form lasting impressions of your consignment shop based on the layout of your store. No matter how well-stocked the store is, if it isn’t clean, bright, organized and attractive, customers will find another place to shop.Visit your favorite retailers and see how their merchandise is laid out. Place must-have seasonal items in the front of the store. Sale items and everyday products are in the back. Display smaller items that cost less than $10 next to the register. These impulse purchases can add up to significant sales each month. It’s also important to vary how you display your items. Changing up the same merchandise makes it feel new and different. For more merchandising tips, read 6 Tips to Improve Store Design.

5.) Seek community support

Reach out to your community for support. Team up with other businesses in your neighborhood to offer cross-promotional services and discounts. Dry cleaners or tailors offer excellent cross-promotional opportunities for a clothing store. An aspiring jeweler could sell original accessories that complement a formal wear shop. Or, you could cross promote with a hair and nail salon. A children’s consignment store should partner with a local photographer for a customer appreciation sale. A furniture shop always benefits by having a solid relationship with a moving company. To learn more about partnering with other shops in your community, read Pros and Cons of Teaming Up with Other Resale Shops.

Think outside the resale box

To become a truly successful consignment business, look for every available opportunity to build your vision. Join organizations such as the National Association of Resale Professionals (NARTS). Get involved with your local Chamber of Commerce. Find ways such as Shop Small Saturday to encourage your community to shop local. Do your homework and you will be successful.

Opening a new business? Be sure to read our Getting Started Success Kit. Sign up and start building a better business today.

How to woo the best consignors to fill your shop’s shelves

You know the dance. You’ve been here many times before. A potential new consignor walks through your door and wants to consign the items she has brought in. She’s sizing you and your shop up while you’re taking a close look at her too. An abundance of clientele and inventory is wonderful, but what if you are accepting the wrong type of merchandise from the wrong consignors? Find the best consignors with items that will sell quickly in your shop. It’s all about timing and attitude.

#1. Know your market

You won’t know who the best consignors are until you know what is your best-selling merchandise. It doesn’t matter if you have a ton of items or the most expensive items, it’s about having the right items. How do you determine which items are the right items? Take a look at your sales data. Your POS system should have a wealth of information for you. SimpleConsign, for instance, has a Dashboard that allows you to view your top consignors based on the number of items they’ve sold, the average price per item sold or your split by items sold. In addition, you can see your top items sold by category and even down to the brand. Once you know who your best consignors are and the merchandise that flies off the shelf, it’s time to court them.

#2 The “Remarkable 50”

Create a club. Women particularly love to belong to special, exclusive groups. According to Bridget Brennan, author of “Why She Buys,” women are the gender of gratitude. That’s so true. We love to thank and we love to receive thanks. So start a special club for those Top 50, Top 25 or whatever number of consignors. Offer them an exclusive peak at the newest merchandise, perhaps an extra 5 or 10% discount or a better split. Plus, throw in a special shopping party just for them. Some type of “appreciation program” will go a long way in keeping those top consignors coming back.

#3 The all-important survey or questionnaire

In most cases, your consignors are also your customers. Getting feedback from your best consignors shows them you value their input as both. Women in particular notice the details of a shop and if they’re given a chance, they’ll happily tell you about them.  Sending surveys or questionnaires requesting their opinions assures them you care about their experience with your staff or with the consignment process as a whole. A bad experience with either of those will likely result in a good consignor never returning. A questionnaire also gives you the chance to make amends, if necessary. At the end of every survey or questionnaire, ask for referrals. Do they have friends that might be interested in consigning too?

#4 One word…Concierge

When you make it easy for your best consignors to do business with you, it’s a win/win situation. By going to their home, you’re able to view all of their items. You can offer suggestions and even discuss pricing if you’re so inclined. If you find an item they may not be ready to consign, let them know it would sell quickly when they’re ready. No matter what, make sure that you are capable of taking as many items as possible with you on that day. If you’re visiting them regarding furniture, have someone with you to assist in loading your truck or van. If you’re taking expensive clothing, purses or jewelry, have special clothing bags or containers to place them in. The consignor won’t be happy when he/she sees you tossing them into the back of your car.

A fun way to reward your best consignors is with a special challenge. Read Build your inventory with a surprising consignor challenge. By courting your best consignors, you’re assured of having quality merchandise that sells quickly in your shop. Give them a little extra attention and it will pay off.

A little brain power helps you sell smarter, not harder

The old saying is “work smarter, not harder.” Many of our clients have shared the same story… the amount of work that is required to run a consignment or resale shop is astronomical and often, they’re running out of steam. Every small business is plagued with the day-to-day responsibilities of paying bills, managing employees and creatively selling. Our industry has the added workload of overcoming pre-conceived notions, building brand recognition and delicately dealing with the treasures of others. So, in my infinite wisdom, I’ve come up with a lovely acronym that will help you sell smarter, not harder.

PAUSE

I have a theory that you can’t streamline your sales until you clearly define who and what you are. By having a clear vision of your business model, you automatically make selling easier. So, I’ve put together PAUSE. If you can determine these 5 aspects of your business, you will save yourself a lot of time.

P=Product

By clearly defining the main product you offer, you’ll save time. You won’t deal with consignors and merchandise you don’t want to sell. You won’t be tempted by the van load of potential items that just pulled up in front of your shop. If it doesn’t fit your product model, it’s much easier to turn away business. Plus, when you clearly state the merchandise you do and do not accept, there’s less possibility of conflict.

A=Apart

Knowing what sets your shop apart from your competition also makes selling easier. Look at all your competition, not just consignment and resale shops. You are competing for the same consumer dollars that large retailers are. So, knowing what advantages you have over them or could have over them is important. Are you open later? Do you offer concierge services? Free delivery? Free parking? There is always something that sets you apart. If not, add something.

U=Unique

Charles Revson, founder of Revlon, used to say he wasn’t selling makeup, he was selling hope. Realizing the uniqueness of your merchandise helps you to tailor the look of your shop, your marketing and what items you choose to offer. It’s known as your USP or Unique Selling Proposition. You aren’t just selling “used furniture.” You’re selling a chance to have “better quality at a more affordable price.” You aren’t selling “secondhand” clothes. You are selling “the brands you crave at a price you can afford.” Our industry is poised to become the number one choice of the Millennial generation because of their affinity for environmentally-friendly products, but we have to be the ones to convince them of our unique selling proposition.

S=Shopper

Understanding your shopper is also necessary. Who do you want to sell your merchandise to? Who is it that wants to buy your merchandise? Those 2 questions must have the same answer. Knowing the demographic information (gender, age, geographic location, etc.) and psychographic information (attitudes, behaviors, pre-conceived notions) about your potential target market will help you tailor your marketing. Don’t waste dollars on advertising to the wrong consumers.

E=Essential

Your shop must fulfill an essential need in both your community and for your shoppers. Shopping is merely solving a “problem.” Everyone has a problem. The problem could be an empty wall in my living room, or having nothing to wear to an important event on Saturday. If your shop is located in a community with a large retirement population, the essential need is to provide an outlet for downsizing. If you have a young neighborhood surrounding your shop, by all means offer maternity and children’s wear. The bottom line is your shop and your merchandise must fulfill an essential unmet need or want. Determining those will help you focus on a target market and message.

Take time to PAUSE. By figuring out these 5 business essentials, you’ll sell smarter because your focus will be clearer.

The modern age of pickup and delivery

Lounging alone on my back deck late one night, I heard a distant buzzing sound. It was like the hum of a model airplane. Sure enough, within seconds, something appeared in the air from around the front of my house. It hovered with green and red flashing lights and then, as if it had seen me, zipped back to where it came from. Of course, no one else saw it and no one else believed me…until we started talking about Amazon’s Prime Air delivery drones. The FAA is having their say on drone delivery for now, but I believe the future is here and unfortunately, it makes a lot of high-pitched whining sounds.

The pickup and delivery service dilemma

When a must-have item can’t fit in the car of your customer, what are your options? You could offer to generously store the item for a week until the customer can make delivery arrangements. However, this nice gesture can cost you valuable storage space and possibly a sale. What if you have a consignor who is downsizing and would love to consign a large dining room set but doesn’t have a truck? Do you turn down the possibility? Consignment stores that regularly sell large items will find it worth the investment to offer pickup services for consignors and delivery services for shoppers.

Few consignment store owners have the resources to purchase their own truck, pay insurance and hire experienced movers. If you can’t afford to offer the service yourself, then negotiate a special rate with a local moving service. Select someone who can move anything, ranging from heavy furniture to bulky artwork to valuable collectibles. You can either make the transportation arrangements yourself, which is more likely to secure the sale, or provide business cards to your customers, who can lineup their own services.

Before you decide to provide pickup and delivery services, be sure your consignment store policies cover the details.

Pickup services

When a consignor does not have the means to transport large items to your store, you first need to verify that the merchandise is worth the fees. Have the consignor email you a detailed description of the item as well as photos from various angles. If necessary, charge an additional fee for an in-home assessment. Make it clear in your terms of service that drivers, upon arrival, have the option to refuse merchandise that is not deemed salable.

The consignor can pay for the cost upfront or you can deduct it from the consignor’s fee. You will also need to agree with the consignor that if the item does not sell, they will either pay a delivery fee to have it returned to them or the piece will be donated to a local charity.

Delivery services

Your written store policy should state that the customer is responsible for the furniture fitting in their home. If the item must be returned, they will be assessed another delivery charge and a restocking fee. You can also require the piece be reconsigned under the customer’s name.

Two types of delivery are “Curbside” and “White Glove.” Curbside delivery means the customer is responsible for taking the item(s) off the truck and moving them. White Glove is a full-service offer where the shop is responsible from start to finish on the delivery and set up of merchandise. Here is a sample Delivery Agreement Form.

Concierge services

Pickup and delivery doesn’t just apply to furniture consignment shops. Many clothing consignment shops offer a concierge service. A representative from the store, usually the owner, sets an appointment with the potential consignor to review their items.

Average Fees

Average fees vary widely across the nation. They can range from $25 to $100 per trip. Set your pricing based on location. You might charge a reasonable $30 for a 10-mile radius and $50 for a 20-mile radius. Add a per mile fee that covers pickups and deliveries further away. In most states, delivery is a service and is nontaxable. Additional fees can be assessed for top-floor apartments and bulky, heavy items, such as sofas and dining room sets. Be sure you also clearly state the days of the week and time of day that pickup and delivery is available.

Your POS system should be able to add service fees to a transaction. With SimpleConsign you can choose between a flat service fee or an hourly rate.

Is it time to review your store’s consignment acceptance policy?

In your eagerness to build inventory, it’s tempting to accept every item that a consignor is willing to place in your store. However, when you’re not selective about the merchandise you accept, you not only end up with a cluttered showroom, you’ll also have stagnant inventory. Both of these will drive away customers. As a result, create a clear and concise consignment acceptance policy.

Where to begin

First of all, realize your policy doesn’t have to have legal mumbo jumbo to be considered a legal and binding contract. Make your policy and your actual contract as easy for all parties to understand as possible. Begin by identifying yourself and your stated purpose.

Your review procedure

No two consignment shops are exactly alike which is what makes them so successful. That being said, there are no industry standards for a merchandise intake procedure. That process can be handled in a number of different ways.

a.) Limit Items Many consignment stores place a limit on the number of items they accept from each consignor. Between 15 and 30 items is a reasonable number. Read Come with me to the Twilight Zone of inventory management to learn the dangers of too much inventory.

b.) Drop & Run Policy This allows the consignor to leave their items which gives the shop a longer time to review and price. Setting an item limit with this system is also helpful.

c.) A Designated Time and Person Establishing a set time to meet with a particular salesperson is another way of streamlining your review of items.

Regardless of your procedure, be clear about whether you require designer labels, trendy styles or seasonal merchandise. State if you’re looking for particular sizes or items for a specific gender or age group. Above all, explain to consignors that because your customers’ preferences drive your guidelines, you must be particular about the items you accept.

The consignment period and terms

If you have implemented a sliding scale program, let consignors know up front. One model may look like this: The consignment period lasts 90 days, with a 25 percent markdown after 30 days and a 50 percent discount after 60 days. This is also the place to note your pickup and donation policy of unsold items.

Also, clearly state your consignment terms. A 60/40 store split is the most common. However, there can be exceptions to the rule for more expensive or truly rare items. Some consignment shops add an Item or Buyer’s Fee which they either do or don’t disclose to their consignors. Others use Memo Pricing where a set price is established ahead of the item reaching the sales floor.

Instructions for bringing items

Clothes should be brought in on hangers. This allows you to quickly inspect the garments. Outline your expectations that items must be free of tears, stains, missing buttons and odors. Be sure to outline in your acceptance policy what you won’t accept too.

For furniture stores, give clear guidelines for when and where items can be received. If you offer a pickup service, make sure those terms are stated clearly as well. If you only accept items based on photos submitted first, make sure prospects understand the rules.

Require an ID

Although it rarely happens, you must protect your business from selling stolen items. Along with extensive contact information, including home and cell phone numbers, mailing address and email address, you should also photocopy the consignor’s driver license or other form of ID. Finally, get a signature on everything. This will help to make your acceptance policy as airtight as possible.