Are you interested in starting a consignment shop from home? If YES, here is a complete guide to starting a consignment shop online with NO money and no experience.
Okay, so we have provided you an in-depth sample consignment shop business plan template. We also took it further by analyzing and drafting a sample consignment shop marketing plan backed up by actionable guerrilla marketing ideas for consignment shops. In this article, we will be considering all the requirements for starting a consignment shop online. So put on your entrepreneurial hat and let’s proceed.
Fairly used products; they are all over the streets and local markets. Whilst some folks can’t be caught purchasing second hand goods, yet others have so much faith in fairly used products as they feel it lasts a lot. Much more than buying these goods for personal use; one thing you probably didn’t know was that you too could start your own consignment shop with little or no capital.
Table of Content
- To start with, what is a consignment shop?
- Why Start a Consignment Shop?
- 1. Understand the Industry
- 2. Conduct Market Research and Feasibility Studies
- 3. Decide Which Niche to Concentrate On
- 4. Know Your Major Competitors in the Industry
- 5. Decide Whether to Buy a Franchise or Start from Scratch
- 6. Know the Possible Threats and Challenges You Will Face
- 7. Choose the Most Suitable Legal Entity (LLC, C Corp, S Corp)
- 8. Choose a Catchy Business Name
- 9. Discuss with an Agent to Know the Best Insurance Policies for You
- 10. Protect your Intellectual Property With Trademark, Copyrights, Patents
- 11. Get the Necessary Professional Certification
- 12. Get the Necessary Legal Documents You Need to Operate
- Writing a Business Plan for your Consignment Business
- Executive summary and Company’s descriptions
- Detailed Cost Analysis of Starting a Consignment / Resale Shop Business
- 13. Raise the Needed Startup Capital
- 14. Choose a Suitable Location for your Business
- 15. Hire Employees for your Technical and Manpower Needs
- 16. Write a Marketing Plan Packed with ideas & Strategies
- 17. Work Out a Reasonable Pricing for your Services & Products
- 18. Develop Iron-clad Competitive Strategies to Help You Win
- 19. Brainstorm Possible Ways to Retain Clients & Customers
- 20. Develop Strategies to Boost Brand Awareness and Create a Corporate Identity
- Creating a Suppliers/Distribution Network
- Tips for Running a Consignment Shop Successfully
To start with, what is a consignment shop?
A Consignment Shop is simply a shop where fairly used goods are sold at a giveaway prices. It could be clothes, shoes and other fashion accessories, sport wares, automobiles, electronics, furniture, toys, books, tools, musical instrument, office equipment, machines and a host of other stuffs.
You can start this business without money because you would only be required to collect goods from people who are cleaning and clearing their wardrobes, houses, offices or garages at no cost at all. In other words you would be automatically helping them get rid of the items they do not want and in turn make your profit.
Why Start a Consignment Shop?
No doubt starting a consignment shop business can be interesting at the same time rewarding especially if you situate your shop in strategic locations where you can easily attract people with low income who can’t afford brand new items. The fact that fairly used products are highly affordable and far cheaper that brand new items make consignment business a thriving and profitable business.
Good enough, consignment business is one of the businesses that an entrepreneur can successfully start in the corner of a busy street or on a mobile shop (in a van or the booth of car) without breaking the bank for cash. At the same time, big – time investors can also leverage on the high demand for second hand goods to setup a consignment business that can buy second hand goods from all over the united states and export them to third world countries where the goods are in high demand.
One good thing about starting a consignment shop business is that if you are diligent enough and if you have good business / marketing strategies, you can build the business from just one outlet to numerous outlets across different cities in the United States of America.
Lastly, opening a consignment shop just like starting any other business might not be entirely easy to start, but one thing is certain, it is a straight – forward business that can generate huge and steady profits if well positioned and properly managed.
People often think that starting a this type of business does not require any professional skills; in as much as it is true, you would still need good business skills, bargaining skills and of course customer services skills if indeed you want to build a profitable business.
Starting a Consignment Shop Online With No Money – A Complete Guide
1. Understand the Industry
The United States of America consignment / resale industry is estimated to be a multi – billion dollars industry. The industry rakes in an estimated revenue of 16 billion dollars annually and this amount includes the revenues that are generated from antique stores which is put at about 13 percent of the annual income of the industry.
Interesting Statistics About the Industry
Statistics has it that in the United States of America, the numbers of consignment stores opening across the nation is on a steady growth of 7 percent and there are presently well over 25,000 registered consignment and resale stores in the whole of the United States of America.
In the United States and in most parts of the world, many businesses are forced to close shops because of the bad state of the economy, but consignment retailing business remains ever growing and perhaps more profitable are the years go by.
From the recent research published by a consumer research firm, the America’s Research Group, about 16 – 18 percent of Americans will shop at a thrift store during a given year and for consignment shops (resale shops); it’s about 12 – 15 percent. To keep these figures in perspective, consider that during the same time frame; 11.4 percent of Americans shop in factory outlet malls, 19.6 percent in apparel stores and 21.3 percent in major department stores.
It is proven fact that the turnover for an average consignment shop business can be as high as 50% and above that is why entrepreneurs who intend making good money from a business with less struggle and little start – up capital opens their own consignment shop; they either start the business by making use of the garage (garage sales), their cars / vans or rent a shop.
The consignment sale industry is indeed flourishing simply because more and more consumers are becoming aware of the need to cut unnecessary spending and some up as much money as they can. Besides the awareness of recycling used items is also a big boost for the consignment and resale industry.
Some of the factors and incentives that encourage aspiring entrepreneurs to venture into opening a consignment shop is the fact that the required amount needed to start a consignment / resale business especially when you choose to start a small or mobile shop is not on the high side compared to other small scale businesses.
That makes it easier for loads of entrepreneur who are interested in the business to come into the industry at any time they so desire; the entry barriers are quite affordable and any serious minded entrepreneur can comfortably raise the start – up capital without collecting loans from the bank.
2. Conduct Market Research and Feasibility Studies
- Demographics and Psychographics
When it comes to selling coffee, there is a wide range of people that consumes coffee; there are no defined demography and psychographics that needs it. The location you choose to locate your coffee shop will go a long way to determine the demography of people that will patronize your coffee shop.
For example, if you locate your coffee shop in business district, most often than not, the caliber of people that are likely going to patronize your coffee shop are working class and top executives so also if you locate your coffee shop in a campus, the demography of those that are likely going to patronize your coffee shop will be more of students.
3. Decide Which Niche to Concentrate On
These are some of the niche ideas within the consignment / resale industry that an entrepreneur who is looking towards starting the business can specialize in;
- Not – For Profits Resale Shops (Goodwill Industry)
- Online Consignment / Resale Business
- Bricks and Mortar Consignment Shop
- Mobile Consignment / Resale Shop
- Garage Sales
It is also important to state that entrepreneurs who are looking towards starting their on consignment business can choose to specialize in either the sale of used electronics, the sale of used furniture and home appliances, the sale of used books and educational materials, the sale of used clothes, shoes, bags, belts and other fashion accessories and clothing, the sale of used computers, phones and accessories (ICT related items) and the sale of used automobiles and machines et al.
The Level of Competition in the Industry
The fact that starting a consignment / resale shop business is easy to start, requires low start – up capital, requires no technical skills and it is a profitable venture makes it one of the businesses that loads of people would want to start hence the high level of competition in the industry.
It is easier to find stiffer competitions amongst those who are into the sale of used items that are highly affordable especially items such as clothes and shoes.
The truth is that, despite the level of competition in the consignment / resale shop business, entrepreneurs who are running the business are still making their profits and some of them generate as high as 50 percent turnover rate especially those that are well positioned and over time have been able to secure loads of loyal customers.
4. Know Your Major Competitors in the Industry
These are the list of some of the largest coffee chains in the world;
- Buffalo Exchange
- Crossroads Trading Co
- Trunk Show Consignment
- Michael’s Consignment
- Beacon’s Closet
- The Dressing Room
- Second Time Around
- Cadillac’s Castle
- ThredUp – thredup.com (online consignment store)
- The RealReal – therealreal.com (online consignment store)
- Poshmark – poshmark.com (online consignment store)
- Twice – liketwice.com (online consignment store)
- ThreadFlip – threadflip.com (online consignment store)
Generally consignment shops / resale shopping attracts consumers from all economic levels. There is no distinctive resale shopper, just as there is no distinctive resale shop. The truth is that everybody irrespective of their financial status would usually look towards saving money and it could come from selling of used items or purchasing used items.
Usually, people with low income take advantage of the opportunity resale offers to save money on apparel, furniture and other consumer items. The money you saved from either purchasing used items or selling your used items can be diverted to other areas like paying bills, for vacations or for hosting your guest et al.
Starting a consignment / resale business just like starting any other business requires that you conduct your feasibility studies and market survey so as to get your economic analysis right. As a matter of fact, you just have to get your economic analysis right if your intention of building the business is to generate profits, grow the business and perhaps expand the business beyond one location to other locations within the United States and other cities in the world.
When conducting economic analysis for your consignment shop business, you have to critically examine these key factors; place, product, pricing, and promotion. As a matter of fact, you would have to continue to review these key factors at regular interval while running your consignment shop.
5. Decide Whether to Buy a Franchise or Start from Scratch
There is no hard and fast rule when it comes to choosing how you intend starting a business. Basically, you should be guided by your overall business vision and mission statement. In other words, if your aim of starting a consignment shop business is just to earn money and make a living without much stress, then you can afford to look for a successfully consignment / resale company and buy their franchise but if your aim of starting a consignment / resale shop business is to build a business brand that will grow from just one outlet in one city to different cities all around the United States of America, then starting from the scratch is your best bet.
Besides starting a consignment business from the scratch is less stressful when compared to other small scale businesses which is why it is advisable to choose to start the business from the scratch as against buying a franchise.
Although starting a business from the very scratch might not be easy initially, but one thing is certain, if you are diligent and you apply the right business strategies per time, it won’t be too long before your business brand becomes recognized not only in your city or state, but throughout the United States of America.
6. Know the Possible Threats and Challenges You Will Face
The threats and challenges that is likely going to confront a start – up consignment / resale shop business is the fact that they competing with already established consignment / resale shops and also other consignment shops that are likely going to be opened within the same location as yours. You would have to go all out to compete for the available market in the location you choose to set – up your own consignment / resale shop.
Other threats and challenges that you are likely going to face when you start your consignment / resale shop business are economic downturns which usually affect purchasing powers and also unfavorable government policies. For instance, if you are into exporting second hand goods to other countries and the government of one of the countries you usually export second hand goods to place a ban on such trade; it will definitely affect your business negatively.
7. Choose the Most Suitable Legal Entity (LLC, C Corp, S Corp)
- Best legal entity to use for type of business
When it comes to choosing a legal entity for your business, what you want and the type of business model that you intend building should be some of the factors that should guide your decision. Generally, you have the options of either choosing a limited liability company which is commonly called an LLC, or a sole proprietorship for a consignment shop business.
Ordinarily, sole proprietorship should have been the ideal business structure for a consignment / resale shop business especially if you are just starting out with a moderate start – up capital. But people prefer limited liability Company for obvious reasons. As a matter of fact, if your intention is to open several outlets of your consignment shop in the different cities and to sell franchise, then choosing sole proprietor is not an option for you.
For example, Setting up an LLC protects you from personal liability. If anything goes wrong in the business, it is only the money that you invested into the limited liability company that will be at risk. It is not so for sole proprietorships and partnerships. Limited liability companies are simpler and more flexible to operate and you don’t need a board of directors, shareholder meetings and other managerial formalities.
8. Choose a Catchy Business Name
When it comes to Choosing a name for your business, it is important that you choose a name that clearly indicates the type of business you are into, it will make it easier for people to identify with your brand name. These are some catchy business name ideas that you can choose from if you are looking towards starting your own coffee shop business.
- Caravan Consignment Shop
- Downtown Resale Company
- Gracious Online Consignment Store
- Chris – Cross Trading Co.
- Shelly Chapman Consignment
- Colorado Exchange and Resale Store
- Casey Fairly Used Warehouse
- Ohio Garage Sale Company
9. Discuss with an Agent to Know the Best Insurance Policies for You
The type of insurance cover needed for a consignment / resale business depends largely on the niche of the business you choose to start. But on the average if you choose to start any business in the United States of America, you will be expected to purchase at least some of the basic insurance policy covers as it relates to the industry you are in.
These are some of the basic insurance cover that you should consider purchasing if you want to start your own consignment / resale shop business in the United States of America and also in most parts of the world;
- General insurance
- Health insurance
- Liability insurance
- Workers Compensation
- Overhead expense disability insurance
- Business owner’s policy group insurance
10. Protect your Intellectual Property With Trademark, Copyrights, Patents
If your idea of starting a consignment / resale shop business is to run a franchise / chains of consignment shops model, then you should consider filing for intellectual property protection. It will become handy and very useful as your consignment / resale shop brand begins to expand far beyond your reach. The truth is that even if you are starting your own consignment / resale shop business from the scratch, you can decide to secure your brand name from an intellectual property clearinghouse if you so desire.
No doubt, it is quite challenging to build your consignment shop business brand from the very scratch, and then watch the brand name slip off your hands. Even if you intend buying a consignment shop franchise, you would still need to contract the trademarks and service marks from the franchising company.
11. Get the Necessary Professional Certification
From a general perspective, you do not have any need for professional certification before you can be allowed to legally operate your own consignment / resale shop business in the United States of America, Canada, and Australia and even in Europe. It is a business that is open to both the schooled and the unschooled; both the skilled and the unskilled hence there is no need for a special professional certification.
12. Get the Necessary Legal Documents You Need to Operate
The legal documents required for running a consignment / resale business is perhaps the basic legal requirements need to run any business in the United States of America simply because of the nature of the business. These are some of the basic legal document requirements needed before you can successfully start and run your own consignment / resale shop business;
- Business and liability insurance
- Tax Payer’s ID
- Fire certificate
- Certificate of Incorporation
- Business License
- Business Plan
- Non – disclosure Agreement
- Employment Agreement (offer letters)
- Employee’s Handbook (optional)
- Operating Agreement for LLCs
- Building License
- Franchise or Trademark License
- Insurance Policy
- Contract documents (for vendors / shipping partners)
Writing a Business Plan for your Consignment Business
It is important to clearly state that no matter the type of business or size of business you intend starting, it is always a wise decision to first and foremost write a good business plan before taking any action. The truth is that, in order to successfully run a standard consignment shop business, you would need to have a good business plan in place.
Simply put, a business plan is the blue print that is needed to successfully run a business; with a workable business plan in place, you will reduce the trial and error approach of doing business. You will be able to manage your business with purpose and perhaps precisions; you will know what to do per time and how to handle challenges and growth.
So if you want to start your own coffee shop business, you are required to write a detailed business plan that can pass reality test when it is subjected to it; you should work with the facts, figures and other indices in the industry as it applies to the location you intend opening your consignment / resale shop business.
The whole idea of writing a business plan is not just for the sake of having a business document in place; but a detail guide on how to effectively run your business from the scratch. Your business plan should outline and cover strategies on how you intend to manage your consignment shop business. The rule of thumb in writing a business plan is to try as much as possible to be realistic and never to over project when putting figures on income and profits et al. As a matter of fact, it is safer to underestimate when writing a business plan so that you won’t be so disappointed when reality sets in.
These are the key areas that should be covered in your business plan;
Executive summary and Company’s descriptions
You are expected to write about the concept of your business, descriptions of your company, your company’s vision statement, mission statement and where your company will be located and also if you intend selling out franchise or opening outlets in different cities in the United States of America and in other parts of the world.
Other key components that should not be missing in your consignment / resale business plan are product offering, SWOT analysis, competitive analysis, marketing and sales analysis / strategies, target market, market goals, pricing, costing and financial projection, publicity and advertising strategy, expansion and growth strategies, budget and start – up capital generation et al.
Detailed Cost Analysis of Starting a Consignment / Resale Shop Business
As a matter of fact, when it comes to starting a consignment / resale shop business, loads of factors influences the amount that will be required to successful launch the business. Factors like the location you intend starting the business, the type of second hand goods you want to retail, the size of the consignment shop you want to open, and of course the state of the economy as at when you intend starting the business.
Irrespective of where you intend starting your consignment shop business, you would be required to fulfill most of the items listed below;
- Office equipment and furniture – $3,600
- Cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The cost for Start-up inventory – $10,000
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $10,000
- Other start-up expenses including stationery ($500) and phone and utility deposits – ($2,500).
- Cost for Shop remodeling – $5,000.
- Cost for payment of rent for a shop for 12 month at $1.76 per square feet in the total amount of – $52,800.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- Cost for hiring Business / Franchise Consultant (if you intend selling franchise) – $2,500 (estimated figure)
- Marketing promotion expenses for the grand opening of your consignment shop in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- Legal expenses for obtaining licenses and permits as well as the accounting services totaling – $1,300.
- The Total Fee for Registering the Business in the United States of America – $750.
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
- The cost of Launching a Website – $600 (for online consignment stores)
- The cost for an opening party – $2,000 (optional)
- Additional Expenditure (Business cards, Signage, Adverts and Promotions et al): $5,000
Going by the report from the market research and feasibility studies, you would need an estimate of about $20,000 or less to successfully set up a small scale consignment business in the United States of America.
If you want to start a medium scale consignment shop business in the United States of America, you would need nothing less than a hundred thousand dollars ($100,000). And if your intention is to start a large scale consignment shop business in the United States of America, then you should look towards generating over five hundred thousand dollars ($500,000) as your start – up capital.
13. Raise the Needed Startup Capital
One good thing about consignment shop business is that you can start the business without any start – up capital (money). All you need to do is to get used goods from family members; friends and neighbors with the agreement of helping them sell it and pay them the agreed amount while you make your own cut.
But averagely, you would need startup capital to launch a standard consignment shop business and trust me it can be challenging raising capital to launch a business idea. Your idea must be workable and promising for you to be able to secure finance from financial institutions or from angel investors.
The first thing to put in place before sourcing for start – up capital for your business is to draft a detailed business plan. With a good business plan, you can easily convince investors to invest in your business. The truth is that no bank can give you a loan if you don’t have a good and workable business plan. Besides, investors will not take you seriously if you don’t have a business plan on ground before launching out to source for start – up capital.
There are several options when it comes to raising money to finance a start – up business. Some of the options are;
- Raising money from personal savings and sale of personal stocks
- Raising money from investors and business partners
- Applying for loan from bank
- Pitching your business idea and applying for business grants and seed funding from donor organizations and angel investors
- Sourcing for soft loans from family members and friends.
14. Choose a Suitable Location for your Business
In starting a consignment shop, it is very important to be strategic with the location and type of shop you get. It is important to note that consignment shops may likely not thrive in highbrow areas of the society, but rather in the lower class suburbs of the city.
So it is needful that you ensure you locate your consignment shop where the lower class of the society lives. This is because besides getting loads of people that might patronize you in this area, you would also get shops at a very cheaper rate compared to what you might get in high class area.
Besides, the fact that there different sizes of consignment shops scattered across the United States of America does not in any way mean that consignment / resale shop business can thrive in every location. Before choosing a location for your consignment / resale shop business, ensure that you conduct a thorough feasibility studies and market survey.
The possibility of you coming across a consignment / resale shop that just closed shop in the location you want to open yours can’t be ruled out. This is why it is very important to gather as much facts and figures before choosing a location to set – up your consignment / resale shop business.
These are some of the factors that you should consider before choosing a location for your consignment / resale shop;
- The demography of the location
- The purchasing power of the residence of the location
- Accessibility of the location
- The numbers of consignment shops in the location
- The local laws and regulations in the community / state
- Traffic, parking and security et al
15. Hire Employees for your Technical and Manpower Needs
Generally, there are no technical requirements for starting a consignment business aside from the fact that you might want to acquire POS machines for those who might want to pay via their debit / credit cards or a receipt issuing machine. You might also want to buy a CRM software application to help you manage your customer base; to inform them when you have new consignment and to keep in touch with them.
As regard renting or leasing a shop, your financial capacity should influence your choice. If you have the required finance, it is to your advantage to acquire a property or lease a facility to be used for your consignment shop; it usually gives you the freedom to design the facility the way you want to it to be. But if you are low on cash, then you don’t have any option other than to rent a facility or operate your consignment shop from your garage or from your car / van.
Usually, an ideal consignment shop would have the owner and one or more sales girls or sales boys. But if you intend operating a standard consignment / resale shop, then you should look towards hiring a store manager, purchasing manager, sales girls and sales boys and perhaps a driver. On the average, you would need about 5 to 15 employees to operate a standard consignment shop in the United States of America
The Service Delivery Process of the Business
Some consignment shops operate on a walk-in basis every day on a stipulated time. For example they may choose to offer 30% cash of the current value of the goods you want them to sell or 50% store credit. When consignment shops collect goods from clients, they are expected to remit the agreed amount when the goods are sold. Usually, checks are sent out every month to their clients as agreed in the contract document.
If you bring your used goods to consignment shop to help you sell, the owner of the consignment shop (the buyer) will let you know what they plan on selling your items for, and you’ll sign a contract for three months with the option of a fourth.
You’ll get 50% of the selling price, but items less than $400 will get marked down 20% after a month, and items more than $400 will get marked down after two months. If you choose that fourth month, another 50% will come off the selling price.
16. Write a Marketing Plan Packed with ideas & Strategies
- Marketing ideas and strategies
Running a business requires that you to be proactive when it comes to marketing your goods or services. If you choose to run a consignment / resale business, you must go all out to employ strategies that will help you attract customers or else you will likely struggle with the business.
These are some of the marketing ideas and strategies that you can adopt for your consignment shop business;
- Direct Marketing
- Sponsor TV and Radio Programs
- Erect your Billboards in Strategic locations around the city
- Making use of sales Agents and sales reps
- Online Marketing (via your official website, social media platforms and blog et al)
- Referral Marketing
- Engage in road show within the community where your consignment store is located.
- List your business in local directory / yellow pages
17. Work Out a Reasonable Pricing for your Services & Products
One of the major factors that will help you get the right product pricing for your consignment / resale business is your bargaining power. The truth is that if you are good with bargaining, you will be able to get second hand goods at rock – bottom prices and then resale at good prices that will guarantee you good profits.
Besides most people would ordinarily want to sell their used items at give – ever prices if they able to get ready buyers. This is the reason why the average consignment shop owner makes over 50 percent turnover rate.
Another factor that can aid you to get the right pricing for your goods is to employ only key employees and outsource some roles that are not essential. With that, you will be able to cut cost of running the business and that will in turn help you get the right pricing that will enable you attract loads of customers and sell – off your goods at a faster rate.
18. Develop Iron-clad Competitive Strategies to Help You Win
When it comes to competing favorable in the consignment industry, you would have to explore ways of getting neatly used items at giveaway prices. One thing is certain, if your operate the biggest consignment shop in your location and you deal in various secondhand items ranging from apparels to home appliance, to office equipment to electronics et al, you likely going to attract more customers than your competitions.
The idea is to rent a bigger shop / warehouse and then run a one – stop consignment shop; a shop where it is difficult for any customer to visit without getting the goods they want to buy. That is perhaps one of the key competitive strategies to adopt in this type of business.
19. Brainstorm Possible Ways to Retain Clients & Customers
No doubt one of the strategies that you would need in order to generate repeated sales from your customers and also to retain them is to ensure that the you sale neatly used second hand items at an affordable prices and also ensure you adopt a win – win approach when it comes to purchasing used items from your customers. You should also ensure that your customer service delivery is always on point.
The truth is that if your customers find it difficult to get quality used goods from your shop, you are likely going to struggle to get them to come back; people usually go to places where they are sure of getting value for their money. You can also make uses of promotional ideas such as loyalty schemes, direct marketing, door drops, and merchandising.
Lastly, ensure that you offer your customers incentives if you want to retain them and of course continue to generate repeated sales from them and also to attract new customers.
20. Develop Strategies to Boost Brand Awareness and Create a Corporate Identity
Consignment / resale business just like any other business in the retailing industry requires steady promotion to get people to buy into the brand. Your brand has to do with the way people perceive you to be which is why you should be deliberate when it comes to communicating and promoting your brand in the market place.
In promoting your brand and corporate identity, you should leverage on both print and electronic media. As a matter of fact, it is cost effective to use social media platforms to promote your brands, besides it is pretty much effective. Here are the platforms you can leverage on to create brand awareness of your consignment / resale shop and to promote your corporate identity in the market place;
- Place adverts on national TV stations, Radio Stations and Newspapers / Magazines
- Run your own special TV program
- Sponsor relevant community programs
- Leverage on the internet and social media platforms like; Instagram, Facebook , Badoo, YouTube, Twitter et al
- Install your Bill Boards on strategic locations
- Engage in road show from time to time
- Distribute your fliers and handbills to targeted areas from time to time
- Send out introductory letters to households in and around your location
- Encourage the use of word of mouth especially from loyal customers
- Ensure that all your vehicles are branded with your company’s logo
- Ensure that all your employees wear your branded shirts during work hours
Creating a Suppliers/Distribution Network
The whole idea of successfully running a profitable consignment business is to get steady supply of second hand goods. In essence, one of the first business strategies that you should put in place is how to constantly get stocks of the items that you retail.
If you have a rich network, you can easily come across people who want to sell their used items, you can as well place adverts on available advertising platforms to inform people that you buy second hand items. In recent time, the internet has become the busiest place where people sell and buy second hand items, so you should make plans to leverage on the internet when it comes to stocking your consignment shop.
Even if you run a brick and mortar kind of consignment store, you can still go ahead to have an online consignment store. It won’t cost you much to set – up an online store except for the logistics of shipping et al. Besides if you have an online consignment store, your target market won’t just be restricted to the location of your store but the internet community.
Tips for Running a Consignment Shop Successfully
Running a consignment / resale shop business involves itemizing the goods you want to sell for the day, ensure that your shop is well cleaned and the goods are properly arranged so as to attract buyers.
In consignment business just like in any other retailing business, after the day’s sales, the books will be balanced, the shop facility should be cleaned and all the goods should be properly arranged or place in a store against the next day’s sales.
If you are getting the items to be sold from people who intend making money off them, it’s important that you properly examine and review the goods so that you can properly cost them and agree on the percentage to pay the owners of the goods after selling them. If you do this, you might avoid having loads of goods occupying space for a longer period of time in your shop.
It is important to state that the success of any business lies in the commitment and dedication of the employees. So if you intend running a successful consignment / resale shop business, then you must ensure that you carry every member of your team along. You should create time for meetings; a time where goals, processes and issues will be reviewed et al.
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