When times are hard, it is a person's survival instincts to find a way to lessen his expenses and avoid debts as much as he can. However, since certain needs have to be provided for, there's also a need to spend more money. People who want to save on certain items go to resale shop to get them at cheaper prices. If you are always first in line when there's a good bargain, opening a consignment shop is an ideal way of turning your skill into a potentially profitable business. But before venturing out into this kind of business, make sure that you have done your research well to ensure its viability.
To be able to start, you need to look for consignors who will provide you with items to retail. A portion of each item's price goes to them when it is sold. In a way, they are also part owners of the business. Before accepting items and selling them, you need to discuss with your consignors the percentage of the consignment sale that will go to them. Perhaps, you can agree on a 50/50 or 60/40 split. You also need to clarify firsthand the method of payment to be used. You can offer cash, check or any other method that all parties find convenient and accessible.
Keep in mind that proper documentation is needed when opening a consignment shop. Everything that you and your consignors have agreed upon must be made legal. Put into writing your store's policy including the items that are eligible for sale and those that are not. For your business and your protection, your policies must be enumerated in details, printed and signed by you and your consignors. Having a legal contract reflects your work ethics.
One of the most important aspects that you need to consider when opening a consignment shop is the location. Your shop should be visible and accessible, with enough space for parking cars. Choosing the right spot where you will put up your shop is one of the trickiest parts of the business. The location that you are going to choose should be surrounded by all kinds of incomes. Different kinds of people, from all walks of life, are potential customers. Most of them frequent a consignment shop to buy things for less than their actual costs while others go there to find some rare items. Potential consignors also share the same reasons for bringing in their used items. Some of them are looking for ways to earn extra cash while the rest just need to empty their closets. Make sure that you do a demographic study so you can zero in on your potential customers and consignors flawlessly.
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Everlin Wong is the creator of "Success Secrets of Opening A Boutique." and there are plenty of useful tips and pitfalls to avoid which you can learn at openingboutique.com.
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