The Smart Shopper
Selling on Consignment
By: Pat Swartley
It's a new year and you have the
cleaning bug. Putting away all the Christmas stuff has made you
realize how "stuffed" your closets are! The clothes and costume
jewelry you wore once or twice and then decided they just weren't
for you, the Christmas gifts that can no longer be returned, the
shoes that hurt your feet but you won't throw away because they
still "look brand new"…
It's time to think about selling on
consignment.
In a previous article, we talked a
little about resale shops and the ways they can save you money when
purchasing items for your family and home. Some people shop
secondhand to find fabulous one of a kind bargains and some shop
resale because they are on a budget. The benefit for either
consumer is the opportunity to shop for status‑conscious name brand
items at greatly discounted prices.
Where do resale shops get their
merchandise? From people like you! Many resale shops add hundreds
of items to their inventory every week from suppliers who want to
make some cash by recycling unwanted merchandise. Some resale shops
will purchase your items out‑right at garage sale prices or better,
and others accept items on consignment. Why spend days pricing
items and sit in the hot sun or cold wind during the sale? Pick a
resale shop near you that carries merchandise similar to yours and
talk to them about your options.
The word "consignment" means that
merchandise that is accepted will be displayed and sold during a
certain time period. When you call about consigning your items, you
should ask about the resale shop's consignment agreement. These are
the important questions to ask:
-How long will you keep
my items and how will I be paid?
-Can I reclaim
items that are unsold or receive a tax receipt for them?
-What months do you
receive winter/summer/spring/fall clothing? (Note: Clothing must be
"in season" for your area, but may be accepted by some shops a month
or two before the season starts and may not be accepted at
the end of the season.)
-When is the best
time for me to bring my merchandise to you?
The resale shop
will answer these questions and will also give you some important
information to help you prepare the items for resale. They will
insist that all items must be in new or like‑new condition and only
a few years old or less. This is the general rule in resale
today. If items cannot be sold and the consigner does not wish to
reclaim them, most resale shops donate the unsold merchandise to a
charity such as the Salvation Army, Interfaith Caring or Goodwill.
A word of advice:
the consignor most likely to be satisfied with their consignment
experience is the person who never wants to see their items again
and trusts the resale shop to get the best price possible for both
your benefit and theirs. In consignment, both you and the shop
receive a percentage of the sales price. Many resale shops give the
consignor 40% of the sales price on items sold which is very fair
considering that all expenses to sell your items falls on the shop.
Very little profit is left after paying rent, utilities, employees,
advertising, etc.
Some people are
shocked when they realize that in the best of situations they may
only receive a quarter or less of the price they originally paid for
an item. But please remember, the item sitting around the house or
hanging in the closet that you no longer want has no value
whatsoever other than what a resale shop gives it. I have had a
potential consignor tell me: "I'd rather give my clothes to the
maid than sell them so cheap." And that is fine. Consignment is
only for those who want to clean out the house and get some monetary
return in exchange.
