Starting a consignment store is a great way to earn extra money. Whether you are looking to supplement or replace your current income, starting a consignment store allows you to make extra money without adding many hours to your workweek. You may be able to set up a consignment store for as little as $1,000. The following post will cover vital tips for setting up a consignment store.
1. Don’t Start a Store Unless You Are Dedicated
Starting a consignment store is not an easy task. It will take many hours of work to get off the ground and even more to keep it running smoothly. It will be too much work for someone who does not incorporate their hard work into seeing their store succeed. Don’t start a consignment store unless you are fully committed to getting your store off the ground.
Consignment store owners must be willing to take the hard way and spend many hours behind their counter. You will be working with very unpredictable people, who may or may not return your calls, come back to your store when they say they will, or pay you what they owe on time. So, if you want to start a consignment store, for example, clothing Beverly Hills consignment store, you need to be able to deal with that kind of thing.
2. Buy Good Used Merchandise for Your Store
One of the biggest mistakes consignment store owners make is buying old merchandise. It causes many problems with storage, doesn’t sell well, and takes up space. So, before you invest in any inventory, purchase some sample merchandise from your area to see how your store does when you are out of stock. If you find that your store needs a little more space for inventory, buy some more sample items and see how the sales go when out of stock. Then order what you feel like your storage needs.
Consignment stores are not a place to make money selling the items you bought at retail. You will never be able to match a department store’s prices. It will be much more profitable if you buy used items and mark them up by 300%.
Consignment stores are a great way to earn extra money. So be sure to build one that is successful by only buying good merchandise and marking it up instead of buying retail and marking it down.
3. If You are Not Able to Run the Store on Your Own, you Need help
If you don’t have a partner or family member who is willing and able to help you run your store on your own, you need help. Start by finding a partner or family member (preferably someone who does not want to run a consignment store). Then hire them for the first few weeks of your opening to work in exchange for some cash.
Learning how to open a successful consignment store will take time, and you may need some help in the store while you are getting started.
4. Don’t Be Afraid to Negotiate
Consignment store owners will have very little leverage in negotiations with their customers and vendors. You need to negotiate with them just like they would with a department store. That means if you call a vendor asking for an item, be prepared for them to say no.
Be ready to counteroffer with a lower price than your first offer, but only slightly lower. If the item is too expensive or not motivated enough, always negotiate a little higher because they might go up. Someone motivated will come down a little but won’t go any further.
Always be prepared to ask for cash or store credit towards purchasing an item. Most vendors will want to keep the money to pay their bills, and you don’t want them to have cash that they aren’t using.
5. Consignment Store Must be Attractive
If you have decided to open a consignment store in a particular area, for instance, a unique consignment store Westwood-based then it must be attractive for you to succeed and sell merchandise regularly. The most important part of this is signage. To get customers to come into your store, you must have attention-grabbing signs. A bright storefront and good lighting will also help. In addition, buy good used furniture and paint it. Spend a little extra in this area because it isn’t that expensive, but it can make a big difference in your sales.
The advantages of starting a consignment store are many. You can make extra money, supplement your current income, and learn a lot about running a retail business. So, if you are serious about starting a consignment store, the tips mentioned above will play a role in your success.