It’s time to break out your most comfortable sweater and fall scented candle, autumn is here. Fall is an exciting time, the weather is changing, the leaves are turning red, and Halloween is right around the corner. With the arrival of a new season, everyone is ready to restock their closet with cardigans, sweaters, and boots. The New York Times‘s Penelope Green wrote the article “The Age of Consignment” highlighting the shortening life spans of items and speaking about the biggest names in consignment. We truly are in the age of consignment. With the rise of Facebook Marketplace and similar stores, consignment is now widely accepted.  The global pandemic also played a big part in this realization. This only means it is the perfect time to market on consignment. Here are 3 ways to “pumpkin” spice up your consignment store this fall.

#1 Spice up your consignment store this fall with sweater sales

We all love sweaters, whether they’re oversized or fit just right they are the ultimate fall piece. This fall, spice things up with sweater deals such as buy one get one half off. This deal gets me every time, I end up buying more because the deal urges me to seize the opportunity. Take a look at what your competition and surrounding shops are doing as well. You must know what you’re competing against to have a fair fight. Feel free to use this graphic we made!

#2 Spice up your consignment store this fall by encouraging consignment

The beauty of consignment is that every item is unique, not only that it is also fairly priced, unlike most popular stores. Your customers can still find trendy pieces for the fall at consignment shops and they won’t match every other girl or guy in town. This also gives the customer the opportunity to buy more with their money. Remind your customers that there is only one of everything, they can’t go home and think about it because it will be gone by the time they come back.

#3 Spice it up with fall decorations

As I was walking downtown during the weekend I caught myself being drawn to all the stores that decorated for fall in their big windows facing the street. This is such an easy way to attract people, like myself, who love the fall spirit. While you have the customer’s attention with your decor, promote your sales out there as well to complete the summoning of customers. You can find cute decorations anywhere you go, Walmart has many affordable options such as these plaid fabric pumpkins and fall maple leaf string lights that are sure to help your store look festive.

Save any images: right-click and select “save as.”

For more consignment shop ideas, click here. 

This post was updated from the original August, 2016

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 your best consignors are until you study your sales and 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 merchandise? 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 Two words…White Glove

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. They sense their importance and feel appreciated. 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.

Cailin Laughlin, our personal customer launch specialist

By offering a white-glove pick up service, make sure that you’re capable of taking as many items with you as possible. 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. containers or even a lock box to place them in. The consignor won’t be happy when he/she sees you tossing them into the back of your car. White glove means you treat the customer and their merchandise carefully from beginning to end.The white-glove treatment goes a long way in building loyalty and trust. At SimpleConsign, we’ve added a white-glove specialist, Cailin Laughlin. Her official title is Customer Launch Specialist. She takes every new customer completely through our start up process. Customers don’t leave her and move on to Tech Support until they fully understand the system and its capabilities for their store.

#4 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? Use Survey Monkey‘s free plan to send and analyze surveys

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.

Head to your local consignment store now and make some money!

I imagine you’re like me. You longingly peruse magazines promoting organization, minimalism and decluttering. The bottom line…we have too much crap! All of us. Whether it’s fashion purchases or keepsakes we need to let go of, we’re inundated with stuff. It’s time to head to the local consignment store and make some cash. When you sell through a consignment store, you’re placing your items in the hands of a merchant. That merchant in turn displays, promotes and sells your items for you. You receive a portion of the sale depending on your agreement with the store. It’s that simple. Need more proof?

1.) Limited hassle

Well yes, you have to gather up your items and take them to the store. After that, the consignment store handles 100% of the sale. Make sure you know the policies of the store you’re consigning through. Clothing must be free of stains and odors, and often hung on hangers. Generally, furniture consignment stores require photos in advance before accepting your items. Plus, the store may only accept certain brands or seasons. Know the rules before you go. Thankfully, the consignment store already has an established audience. No need for you to find buyers.

2.) No Risk

There is literally zero risk to you. If the store offers you money upfront to purchase and resell your items, they’re known as a Buy Outright or Resale store. A consignment store will look through your items and accept those they know their market wants. Try not to get your feelings hurt when that one-piece bathing suit that looks like an avocado doesn’t get accepted. Deep down, you knew you shouldn’t have bought it anyway. It’s time to donate it. However, you will get your money when your other items sell depending on your contract.

3.) Save Time

Have you ever tried to sell something online by yourself? You take pictures and post them on a local Facebook swap group. Buyers ask questions. Does it come with any accessories? Do you have the original box? Will you take less? The beauty of selling through a consignment store is you don’t have to negotiate with the buyer. There’s no responding to emails, phone calls or Facebook questions. No need to arrange to meet the buyers somewhere safe. Everything is taken care of for you.

4.) Best Price

Without experience, how do you know the best price to ask? A consignment store takes the guesswork out of pricing. I once advertised a mini chest freezer for sale. We had used it for a few years, but it was in pristine condition. Having spent very little for it, I charged $45. The page lit up. “I’ll take it!” “Can I pick it up now?” “Where are you located?” I quickly realized I hadn’t charged enough for it. Stores know what the market will bear and the best price to charge.

5.) No Shipping

When selling through a consignment store, you don’t have to calculate taxes or shipping costs. Plus, there’s no packaging or trips to the post office. All you do is pick up a check or go out to your mailbox.

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Want to share why consigning makes more sense with your own audience? Download our FREE infographic below and share it on your website or social media to inform your customers! Be sure to tag us on social media or link back to our website!

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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.

Yes, I had a bat in my bathroom

I had just finished my morning tea and was headed to our master bathroom to dress for work. My husband had showered, dressed and eaten all before I rose out of bed. My turn. As I slid open the pocket door to the bathroom, I noticed something brown on the floor. I approached and found it breathing. I frantically closed the door and called my husband, “Oh Lord, it’s a bat! Come home! There’s a bat in the bathroom!” You’re probably wondering what this has to do with learning how to write Consignor Contracts.  I’ll show you.

Don’t leave the door open. You never know what will fly in

A full week before discovering the bat, we’d had a glorious evening visit from 12 of my husband’s cousins. The weather was gorgeous and because there were so many of us, we turned the AC off and left the door to our deck wide open. So, that explains how the bat got in. The same is true for your consignment shop. If you leave the door wide open, agreeing to accept everything and anything, you never know what’s coming through. Make your consignor contracts detailed and clear. Here’s how.

Essentials for all Consignor Contracts

No matter what type of merchandise you sell, all consignor contracts should include certain essential information. Big or small, your store needs to state specifics to minimize confusion. Plus, the more detail you provide, the less disagreements you’ll have. Add your store name, address, phone and email to the contract because consignors may have items at more than one store.

Consignment Period and Split

State clearly the period of time you will consign their items. Most stores offer a 90-day selling period. However, others may only agree to a 60-day consignment period. Clearly list your store splits. Whether you choose a 40/60, 50/50 or tiered split, let the consignor know what to expect. If you allow, let them know they’ll receive a higher percentage for using store credit.

Pricing and Markdowns

Are you willing to let the consignor help you price their own items? Some stores do. Others state very clearly that they set the prices based on current trends, condition and brand. If you have a set discounting schedule, make that clear as well. Add a statement that says you reserve the right to reduce the selling price at any time. Include the right to add additional markdowns for special sales or promotions. If necessary, add a statement to your contract that tells the consignor they will receive their percentage based on the final selling price.

Payments

How consignors are paid is one place where consignment stores really differ. One store never mails checks and requires consignors to pick up funds no later than 90 days after the end of the contract. Other stores pay consignors only when they have a balance of a particular amount. This could range anywhere from $10 to over $100. Often stores that are willing to mail checks charge a nominal fee (perhaps $1) if the consignor chooses not to come to the store. One store requires the consignor to contact them first to receive payment. Make sure your consignor contracts clearly define what will happen to the money if the consignor doesn’t pick up their check.  A statement such as “unclaimed monies will be forfeited 6 months after the consignment period ends” puts the responsibility clearly on the consignor’s shoulders.

Intake Conditions

Almost all clothing consignment stores require clothing be brought in on hangers. Those hangers are not returned so consider providing a consignor with a bundle of hangers for their next consignment. Most furniture consignment stores require thorough photographs before accepting any items. Again, this is an area that will help you avoid future arguments. State clearly, on your contract or online, the brands you do and don’t accept. Make it clear, merchandise that is no longer in style, not cleaned and pressed, has a foul odor or is stained and damaged will not be accepted. If you only accept items seasonally, publish those dates specifically.

Expired Items

Many consignor contracts state merchandise remaining after the consignment period automatically becomes the property of the consignment store. Some stores allow for a “grace period.” Others require the consignor to keep track of the selling period. They are also responsible for retrieving their items before the end of the contract. SimpleConsign offers an upgraded consignor access called Consignor Central. When a consignor logs into their account, it automatically notifies them of expiration dates.

Fees

If your store plans on adding a buyer’s fee, paid by the purchaser, make that known. This reduces confusion about the final percentage the consignor receives. If you offer online consignor access, charge a small monthly fee for consignors to view their accounts. SimpleConsign’s consignor access is offered in real time. State clearly any fees for pick-up, in-home evaluation or services required to repair or clean merchandise. Read 5 consignment fees to boost your bottom line.

In the End

A black plastic bat that is still attached to the shade chain in my office

I made the mistake of emailing my fellow Traxia team mates to tell them I couldn’t come to work because there was a bat in my bathroom. When my husband came home during lunch, he attempted to find the bat. But, no such luck. I was able to change my clothes, brush my teeth and put on a small amount of makeup while my husband stood guard. When I finally arrived at work, my office was covered in black plastic bats. Bats were on the ceiling, in my desk, on my printer…everywhere. Yes, they’re a lovely bunch of guys!

At the end of your consignor contracts, inform the consignor that you are not to be held responsible for missing or damaged merchandise for any reason. They must realize the risk is theirs if they choose to leave their items with you. Make sure you have a complete list of their consigned items and have them sign. Get everything wrapped up tightly.

When he returned home after work, my husband once again attempted to find the bat. Sure enough, it was curled up in a laundry basket under his painting clothes. He gently scooped it up with a T-shirt and carried it outside. Be careful when you leave your doors completely open. Whether it’s a little brown bat or consigned items, you never know what will come through your door.

Teach Generation Z consignors how to make money early

Now that resale and consignment shopping have joined the mainstream, it’s time to begin raising up the next generation of consignors. Generation Z kids were born in the mid- 90’s to the early 2000’s. The oldest are in their early 20’s, but it’s never too early to begin teaching about the benefits of consigning and shopping at your store. Generation Z is extremely careful with their finances. They’ve seen the devastation of the recession and the incredible college debt their older brothers and sisters have. They want no part of it. This group demands good value for their money. Which, of course, means consignment. Why not begin teaching Generation Z consignors and shoppers now? Encourage their desire to make money and their need for beautiful clothing at a great price.

For the younger ones

The youngest Gen Z’s are just reaching their teens. For years, they’ve studied how it’s their responsibility to take care of the planet. From carbon footprints to greenhouse gases, they are constantly learning different ways to conserve energy and take care of their neighbor. Although it isn’t taught in the schools, purchasing consigned clothing is one of the many ways to reuse, recycle and reduce waste.

If you’re a clothing consignment shop, take a day where you share statistics from the textile industry. Secondary Materials and Recycled Textiles offers the following infographic to teach about textile recycling. In addition, they have some fun children’s lessons on how much it costs to buy used clothing.

EcoWatch also has educational materials that show the dangers of fast fashion to the environment. Greenpeace has gone so far as to rate the clothing companies that are and are not attempting to limit the toxic chemicals in their clothing manufacturing. The good list of businesses removing chemicals includes brands like Adidas, Burberry, H & M and Levi Strauss. Tell your consignors your looking for those brands and share with Generation Z why you’re offering them.

Attract the younger Gen Z’s through fun events and special incentives

I know many of you have Rewards Programs. We talked about the importance of using them to build customer loyalty in last week’s post. Why not do the same for potential Generation Z consignors? Consider using one display rack or a small section of your shop that’s strictly merchandise for young shoppers from young consignors. Make it a special club or a specific event held a couple of times a year. Reward your youngest shoppers with special discounts or extra loyalty points for choosing consignment over stores at the mall. Begin to build a consignment following.

Do you have a really popular young athlete, musician, designer or blogger in your community? Bring them in to your store for an event. Offer snacks and have a number of fun projects they can participate in. For instance, teach them how to upcycle an old t-shirt, run an eco-essay contest or sponsor a canned food drive. Be sure to post a ton of pictures on social media. Any of these would be perfect back-to-school promotions.

For the older Gen Z’s

If you want to court the older Generation Z’s, you’ve got to find out what they’re reading. In January of this year, Who What Wear put together a list of the best bloggers for every age of fashion. There were 3 listed for 20 somethings. One, Shine By Three, is quoted as saying, “Knowing where to put your hard-earned cash in the current retail climate where branding is everything and cost can have absolutely no correlation to quality, can be bloody stressful.” Another blogger, The Blonde Salad, covers everything from clothing and hairstyle trends to vacations and people in the news. All 3 are a fascinating look at the next generation.

Nab the older Gen Z’s through digital

What do you do to get these 20 somethings shopping in your store and consigning their items? This is where digital comes in. When a 20 something enters your shop, approach them with your iPad or smart phone and begin taking notes. Keep track of what they like and what they buy. With SimpleConsign’s photo app, you can even take their photo and add it immediately to their account. Be ready the next time they come in to review and revise.

Stay informed on the brands that interest them and message your consignors to bring in those items. Set up a Facebook page that’s for age 30 and under only. Promote those brands that appeal to 20 somethings and encourage sign ups to get information on new arrivals first. Especially encourage Generation Z consignors to bring in merchandise that appeals to that group. Use Instagram and Twitter to highlight current Gen Z shoppers and their latest finds. Host a fashion show for back-to-school in the fall.

Does it sound like too much trouble?

This may sound like a lot of work for very little immediate gain. However, each generation from here on out is fully aware of the beast known as Amazon. If you are going to compete, you’ve got to stay relevant. Whether you target the age group that’s learning more and more about our environment or you go after young adults, make sure your salespeople can talk the talk. Begin teaching Generation Z consignors and shoppers early and you’ll have customers for life.

P.S. Even the blogger for the 60 somethings, Not Dead Yet Style, in an article titled “Almost Free Frugal Fridays” listed going on a “rambling session at a thrift shop” as one of the best ways to spend an almost free frugal Friday.

This article originally appeared in our SimpleConsign newsletter from 2013. I’ve updated it for you today.

When you tell consignors no, you should never have to say “I’m sorry”

I was reading a blog post about a woman’s experience with two of her local consignment shops. The title of the blog post was “Consignment Shop: Fail!” She used words like “demoralized,” “woes” and “failure.” Even the comments said, “I feel your pain” and “…it was so stinkin’ demoralizing.” The post ended with, “From now on, I’m donating everything to charity.” How do consignment shop owners let potential consignors down gently? Is it even possible? Confrontation is never easy, but there are better ways to tell consignors no thank you.

It all begins with you and your shop

You have to be secure in your consignment shop policies. When the rules are clear and written down from the start, it’s much easier to say “no thank you.” Before you ever begin accepting items for consignment, make a thorough list of what you will and will not accept. Not only does this help you turn items down, but it also establishes up front what type of merchandise you will be offering in your consignment store. Always give clear and concise reasons why you can’t accept their items based on your policy. Do not waiver!

Step 1.) Start with a compliment if possible

Even though you may disagree with my choice of the pink elephant peanut bowl, it speaks volumes about who I am. Everyone wants to be affirmed and when it comes to personal possessions, a consignor feels especially vulnerable. Begin your answer, whenever possible, with a solid compliment. Then, follow up with “I” never “you.” An example given in “13 More Things Your Consignment or Thrift Shop Won’t Tell You” from the Reader’s Digest is, “That’s adorable, but I don’t have a market for it.”

Step 2.) Get to the point when you tell consignors no

Do not waiver in this next step. Get to the point immediately. Handle a consignor’s items with appreciation, but speak with firm resolve. Don’t beat around the bush. You need to have the strength of your policies behind you. Don’t lecture, but use a conversational voice when you tell consignors no. It’s easier to receive. If possible, stand on their side of the counter when chatting with them.

Step 3.) A thank you goes a long way

If the first 2 tips don’t help you win their acceptance of your courteous rejection, remember respectful communication should always rule. Thanking them for taking the time to bring in items is essential to building relationships. If there is push back from the consignor, always maintain your cool. Avoid any escalation of emotions. Return kindness for kindness, but never return rudeness.

Step 4.)  Never say, “I’m sorry”

Your policies are set in writing. You’ve given a straight answer and spoken with confidence and respect. When you tell consignors no, there’s no need to apologize. You didn’t do anything wrong. Don’t feel guilty for not taking items that neither fit your policies or your store brand. In the end, if you do, you’ll be the one to suffer.

Step 5.) End by offering encouragement

Maralee McKee, the Manners Mentor, suggests ending the conversation with an encouraging word. Perhaps the items don’t qualify today, but you never know what they’ve left behind. By leaving with a good experience, a potential consignor isn’t likely to write a nasty review or blog post. Plus, they may return with friends and family ready to do business with just the right merchandise you are looking for.

For suggestions on how to deal with customers who surprisingly aren’t always right, read “In resale, the customer is always right, right?”

What makes a successful consignment shop owner?

Updated on 4/12/2021

1.) Decide it’s a business, not a hobby

A number of business owners we speak with will decide to open a consignment shop purely because they like thrift shopping. They know a good bargain when they see one. In fact, their basement is filled with them. They mistakenly believe this translates into becoming a business owner. The #1 way to be a successful consignment shop owner is to acknowledge you’ve opened a business, not enlarged a hobby.

2.) You need more than a dream, you need a plan

Many shop owners say opening a consignment shop had been a dream they had had for years. Entrepreneurs in the resale industry often think it’s easier to open this type of shop because there’s no inventory to purchase. They quickly learn the truth. Even more than a dream, you need a solid business plan. Research the industry. Know your product. Study the competition. Read Starting a Consignment Business – Step 1. Remember, it’s never too late to revisit or create a solid business plan.

3.) Make a dollar investment

A phone conversation goes like this, “Hi, I want to ask about your software.” “Sure, tell me about your business.” “We’re signing the lease for the basement area under my sister’s hair salon. I’ve borrowed a computer from my cousin and I’ve handwritten all of our tags. Once we start making money, I’ll add an actual cash drawer.”  I can’t tell you the number of times I’ve wanted to scream in the phone, “Please, please don’t open a business!” A successful consignment shop owner makes an investment. Not just an investment in time, but in money too. Purchase reputable software. Invest in quality hardware. Have reserve funds to tap into during the slow times. Create an attractive shop with in-demand merchandise in the best location possible. If you can’t do these things, perhaps now isn’t the time to open your shop.

4.) Share the load

A successful consignment shop owner understands that you can’t go it alone. You need a solid support system. Take time to hire top-notch full and part-time employees. Invest time in training them so you can trust them to work independently. Build a network with other shop owners either in your community or across the country. Find a mentor to counsel with for business and personal needs.

5.) Understand the need for marketing

What is the saying? “If you build it, they will come.” Well, not when it comes to owning a store. In order to be a successful consignment shop owner, you have to recognize that advertising has to be a top priority. If you don’t have the skills or the time to market your shop correctly, find someone who can. There’s no excuse. You must have a vibrant, active social media presence. By golly, it’s free! Many younger aged students fully grasp the power of successful Facebook and Pinterest pages or Twitter and Instagram accounts. They would be happy to assist you for a small wage or even store credit. The other saying? “Get ‘er done.”

6.) Don’t skimp on the details

I can’t tell you the number of times I’ve read a Yelp review of a consignment shop and the reviewer states, “No one even spoke to me the entire time I was in the store.” Or, “This store is dingy and smells bad.” Or, my personal favorite, “When are you open? You never seem to be open when I come!” Details, details, details. These are simple ideas, but you would be surprised at the number of consignment shop owners who do not pay attention to the details.

7.) Know who your customers are

It’s the old “which comes first, the chicken or the egg?” discussion. Did you chose your location and then determine your merchandise based on the location’s demographics? Or, did you decide your merchandise and then find a location with the people who want to buy what you offer? However you chose to begin, knowing who your customers are is the difference between being an unsuccessful vs. a successful consignment shop owner. Study the neighborhoods around your shop. Survey your existing customers to get better acquainted and find unique ways to get involved with your community.

8.) Know what your customers want

A member of our staff once visited a consignment shop in another state. The shop owner was disparaging the fact that business was so poor. She said no one wanted to buy her clothes, but they constantly asked about her display pieces that were clearly marked with “Not For Sale” signs. Our staff member looked her square in the face and told her she obviously wasn’t selling the right merchandise. “Get out of the clothing business and get into the used furniture business!” A successful consignment shop owner knows exactly what their customers are looking for.

9.) Be flexible and open to change

We often hear a shop owner say they’ve always done things a certain way and they simply can’t consider doing it any other. Really? Even though the way you’re searching for inventory, tracking consignor payouts or entering data is costing you time and money? No longer just “Ma and Pa’s Used Stuff” shops, the consignment industry today has evolved into big business. One only has to look at the success of The RealReal to realize there’s money to be made, but not if you’re unwilling to grow with the industry. Any business owner, especially if you want to be a successful consignment shop owner, must be flexible and willing to adapt.

10.) Make the hard decisions

Whether it’s unreasonable customers or consignors, someone has to be the one to hold the line. That someone is you. Make sure you have listed your policies clearly in writing and on your website. There’s no need to be disrespectful. Both your customers and your consignors are the life blood of your business, but you are the one who sets the rules. Your consignors should never be the ones to say what they will and won’t accept. Remember, stick to the rules. This applies to your employees too. Set a standard. Be a role model that your employees can follow.

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

https://www.simpleconsign.com/blog/digital-marketing-ideas-for-consignment-stores/
https://www.simpleconsign.com/blog/mistakes-consignment-shops-make/
https://www.simpleconsign.com/blog/consignment-shops-fail/

This post was modified from the original post in 2/17

Steal one of these ideas for a consignor challenge

The Kondo effect has taken over! Author and actress Marie Kondo set the resale world on it’s ears when she began her popular Netflix show. However, did you know the minimalist movement actually began in 2010? That’s when Courtney Carver began Project 333. It was extremely popular and before long, she had women from all over the country sending photos, sharing their struggles and rejoicing over their triumphs. It got me thinking, “What if women’s clothing consignment shops used a similar idea with their consignors/customers.”

Project 333

When: Every 3 months. Join anytime.

What: 33 items including clothing, accessories, jewelry, outerwear and shoes.

What not: Does not include your wedding ring or another sentimental piece of jewelry that you never take off, underwear, sleep wear, in-home lounge wear, and workout clothing that’s only worn to workout.

How: Choose your 33 items, box up the remainder of your wardrobe, seal it with tape and put it out of sight.

What else: Consider that you are creating a wardrobe that you can live, work and play in for 3 months. Remember this is not a project in suffering. If your clothes don’t fit, or are in poor condition, replace them.

Now, let’s modify it for a consignment shop’s consignors

1.) The 3-day, 3-item consignor challenge

When: A 3-day consignor challenge. Choose one 3-day period for all consignors to participate.

What: Consignors bring in at least 3 items during one visit over a specified 3-day period. You can schedule appointments if necessary. Consignors can only participate if at least 3 of their items are accepted for consignment.

What not: Be very specific about what you are looking for and what you aren’t accepting during the 3-day period.

How: If at least 3 of the consignor’s items are accepted, they receive 33% off the purchase of 1 item in your store or an additional 33 Reward Points during that 3-day period. To keep track, have coupons printed to hand one to the consignor when their items are accepted.

2.) The $33 consignor challenge

When: A 3-day or 3-week consignor challenge. They must participate in the event over the same time period.

What: Participating consignors bring in at least 1 (or 3 depending on what you want to do) item(s) valued at a consignment minimum of $33. That means if your pricing policy is 30% of retail for pre-owned items, the item(s) you accept would have a minimum of a $50 retail value. In order for the consignor to participate, at least 1 (or 3) item(s) of that value must be accepted for consignment during a specified time.

What not: Since this challenge requires higher priced items, be very specific about what brands you are looking for and what you won’t accept during the event.

How: If 1 (or 3 depending on what you choose) of the consignor’s items are accepted, they receive an additional 33 Reward Points per item or again, offer a special 33% discount on the purchase of one item in your store.

3.) The 3/03/3 new consignor/customer challenge

March is just around the corner. Why not liven it up with a special event?

When: The 3rd week in the 3rd month (March).

What: This event could be held for both consignors and/or customers. Rather than bringing in items for consignment, encourage your consignors to add 3 new consignors to your data base. Hold a special after hours party and ask your consignors to each bring 3 friends who have thought about consignment, but have never tried it. Hold a mini seminar showing the type of items you accept, what condition you want them to be in and how you go about determining price. Make potential consignors feel very comfortable. Serve 3 different beverages and snacks. Make sure you have a convenient way for new consignors to give you their contact information. In return, offer them a starting balance of 33 Reward Points.

The same event could be held for your customers too. Hold an Open House during the 3rd week and have your customers each bring 3 friends to shop. In exchange for their contact information, offer 33 Reward Points to new customers that evening.

As a side note, SimpleConsign web based consignment software, offers 2 features that are really helpful with the above idea. First, we have a special feature called “Consignor Central” under Consignor Access. It allows you to send a message to all of your consignors at once. You’ll be able to quickly and easily notify them of your 333 Challenge. Of course, SimpleConsign also has a great Rewards Point program too. You can easily track, assign and use those points at the point of sale. For more information on setting up a Reward program read, How to update your outdated consignment rewards program.

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.