Thursday, December 4, 2014

Open A Resale Store

Many shoppers look for bargains; your resale shop can help.


Call them gently used, vintage, secondhand. Garments that have lived a little but are none the worse for wear are making a literal and figurative comeback. Volunteers for charitable organizations run some resale stores, but the big news in retail is the increase in for-profit boutiques catering to consumers whose budgets are tight. You'll need seed money for this start-up. Look for investors or a loan before you start loading hangers.


Instructions


1. Pick a quirky name for your resale store that's clever and memorable. Do a little digging in your community to ascertain your competition. Resale shops aren't like other businesses; entering a crowded market is usually a plus when you're attracting folks in search of bargains. Locate your retail shop in close proximity to competitors so you'll have a ready-made market. Sign a lease to launch your flagship store.


2. See to the business end of your resale enterprise. Apply for business permits and licenses; negotiate a store build-out if the space is devoid of racks, shelves and displays; purchase fixtures; and buy insurance to protect the assets that will grace your store. Consider filing articles of incorporation to safeguard your personal assets. Open a business checking account.


3. Hit garage, estate, rummage and other clothing sales to snap up starter inventory so shelves and racks aren't bare before you put your first consignee under contract. Spruce up the shop while you build inventory. Hang inexpensive posters on walls to liven up the place. Divide space into specialty areas to showcase clothing for women, men and children. Carve out a space for one or more dressing rooms. Install a computer and software.


4. Deal with security and shoplifting. Dismiss the notion that gently used clothing isn't as desirable as new clothing to those looking for five-finger discounts. Invite local law enforcement authorities to your place. They're trained to look for trouble spots like poor sight lines and snug nooks and crannies. Invest in a surveillance camera or take other security precautions if the police recommend that you do so.


5. Price merchandise and set up a consignment system. This is where time spent at competitors is going to come in handy. Use competitor pricing guides to set your own. Write a resale contract agreement or emulate an existing one. Establish rules, regulations and policies for buying clothing from men and women who have no interest in consignment arrangements. Establish files in your computer system for contract generation, client lists, revenues and disbursements.


6. Create a marketing plan. A website is nice, but resale doesn't lend itself to online advertising because you'll spend too much time photographing and uploading images of garments that are likely to disappear by the time the browser arrives on-site. That stated, keep consignees and repeat shoppers happy by running contests, trying a frequent-buy card, holding "members only" nights and doing whatever it takes to keep your base loyal and coming back for more.

Tags: your resale, gently used