Consignment ShopsConsignment shops (or stores, also called resale shops) are great for both buying and selling. These stores are a wonderful recycling resource. In a consignment environment, one person provides the merchandise and the other sells it. Depending on your situation, you could find yourself on either side of this transaction. However, for this discussion lets assume you are the person with the merchandise.
Why ConsignThe main advantage to using consignment shops is that your level of involvement is low. You take your items in and collect a check when they sell.The downside is that your expenses are higher. This is usually offset by obtaining higher sales prices than with other venues, such as yard sales and flea markets. Stated another way: for some items, consignment shops are the easiest method available with the highest rate of return.
What to ConsignAnything that you can sell outright, you can consign. If having a yard sale or setting up at a flea market is not an option for you, consignment shops may be the solution you are looking for. I use several consignment stores to recycle used clothing, household items, sporting goods, books, toys, games, puzzles.Consignment shops come in two varieties, specialized, and generalized. The first type only sells one type of item or category of item i.e. boats, musical instruments, cars, antiques, sporting goods, women’s clothing. The second type will sell anything that they have floor space for. The shops available in your location will determine what to consign.
When to ConsignThis is going to be a matter of personal preference, but I like to use them for used clothing, household and specialty items. One of the shops that I use has customers looking for used clothing; the other is a specialty shop that sells used sporting goods.They both have reasonable prices, so most everything sells and I can take in small quantities as the seasons change, this way it does not lay around my house forever. I get better prices from them than I would at other venues. This may not be true of your location, so experiment with this one.
Determine Your OptionsCheck the yellow pages and other advertising venues to see if there are any consignment shops in your area, talk to friends and neighbors to see if they know of any and which ones they like to consign items to or shop at. Visit them all to see what kind of merchandise that they specialize in, the price and condition of their offerings, cleanliness of the premises, etc.Do you feel comfortable shopping there? Is the sales staff friendly and helpful? If you do not feel comfortable shopping there, chances are other people will not either. Do they rotate their stock to keep people interested? Do they discount end of season items? Are the prices high for the condition of the merchandise? If so, they probably are not selling very much. Once you have your list narrowed down to a couple of places that look good for the type of merchandise you wish to consign, read the fine print. What are their terms, do they have a million rules and regulations, this is ok if you do not mind, or you like lots of rules. Are their consignment rates the highest in town? This is also ok if a higher percentage of your merchandise sells for a higher price. You might make more even though the rate is higher. I like to take a few trial items in to check out a new store. If all goes well, take more the next time. If not, you are only out a couple of bucks. Shop around until you find the store with the right mix.
TermsConsignment shops are for the most part independently owned and operated. Therefore you will find endless variations in terms and rules. These are some that I have come across.Commission RateNormally they range from 35% to 50% but I have seen them as low as 25% and as high as 60%. If the rate is 25% but nothing is selling, it might as well be 100%. The rate will probably not matter much once you find a store that you like, as you will vary your consignments to fit the percentage charged.PricingI have been to stores that want you to price your products prior to bringing them in. Others want your input on some items, but will determine the sales price on most. Most consignment shops will do the pricing for you.MerchandiseSome stores require an appointment to bring your merchandise in. They will go through it piece by piece and let you know which they will consign and which ones they do not want. Others will take any thing you bring to them. Sometimes you will not need an appointment, but consignments are only accepted on certain days.Most stores have rules on how long they will keep your stuff. Some have rules on when it goes on sale and most have rules on items left over 90 days. Usually, an item that has not sold and is left over 90 days is considered a donation to the storeowner. They can dispose of as they wish. If you want unsold merchandise back, it is your responsibility to pick it up from the store. Some stores even have different rules for different types of merchandise. Many stores have contracts you need to sign, other do not. Call first to get the details, or talk to them when you make a visit. Avoid Fridays and weekends when they are busiest. No matter what the rules are always, make sure your items are clean and in good repair. Clothing should be freshly laundered with no rips, tears or stains. Most stores will not take out of season clothing items. Toys and household items should be clean and complete. If something is missing but not vital to the operation of the product make, a note so the store and prospective buyer are aware and the item can be priced appropriately. Try to consign specialized items to stores that specialize in that item. Specialized stores will usually get you higher prices than a generalized resale store. Sporting goods, formal wear, and baby items are a few categories that have specialized consignment stores.
How Do I Get PaidPayment options will vary from store to store. Here are a few methods that I have come across, there are probably more.The check is in the mail. Once a month your sales are calculated and commission subtracted. If you have meet the minimum sales requirements a check is issued and mailed to you. The minimums vary from store to store. Come on By. Your account is tallied when you show up and ask. Sometimes there is a minimum to have a check issued, sometimes there are a maximum number of times per year you can collect payment. Some shops offer a reduced commission rate if you take payment in store credit.
Some Final Thoughts on Consignment ShopsIf you are consigning items of high value, know whom you are dealing with. Sometimes things go wrong and you need to protect yourself if the loss could be high.I once lost all my consignments when the consignment shop I used was flooded with sewage. I do not know if they were able to collect on their insurance, but they were not forthcoming with any answers, and the consigners were out of luck. I will no longer do business with this establishment. On its own, this incident would not be enough to make me give up on them, but as it was one of many, they do not get my business anymore. I know other people who use them without any problems, in fact they were recommended to me by a friend. So check around until you find the right outlet for you and your situation. I have found a nice little resale shop that takes practically any item I bring them. I still take specialized items to specialty stores, but the rest goes to the resale. I use it as an alternative to yard sales, and flea markets in the winter months when the weather is prohibitive. You may hit on a great consignment shop the first time out, or you may get a bad one and swear you will never consign again. If you have tried the consignment route several times with limited success, you may want to try another venue or maybe just a different store.
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