Advice for Starting a Consignment Business

Do you have a love of fashion?  You’re not alone. So many styles that come on the market are out of reach to the average consumer. Quality clothing that’s designed to fit well and wear well for years can be terribly expensive. Shopping at consignment store has become a very popular trend in recent years. Operated properly, a consignment shop can be a very profitable business. Follow these recommendations from retail experts and you’ll soon be on your way to developing a thriving business.

The first step is to identify a location with a good amount of traffic. Realize that your lease payments will likely be higher, but in return, your marketing budget can be lower. One of the beauties of the consignment business is the minimal amount of capital needed to start. No capital will be consumed establishing inventory. Operating costs for staff, insurance and limited marketing should be accounted for in determining the amount of capital needed for start-up. Take advantage of the awesome deals offered by Groupon coupons and invest in a retail software package from the great selection and deals offered at Best Buy. This software can also be used to track expenses and income.

Get the word out. Begin collecting inventory several months before the planned opening of the retail store.  Invest in racks and display cases for all of the garments. Decide on a name for your store and a logo. The initial collection of garments will be the most difficult. Be very discerning on what is acceptable condition and quality. The reputation and longevity of the store will be hinged on the quality and quantity of garments you offer.

Finally, secure at least two part time employees that will show the same dedication to customer service and maintaining the merchandise as you will. Have them assist with the store setup and merchandising. This will give them a familiarity with the store and a greater sense of ownership. Good luck on your grand opening day!