How to Start a Used Clothing Store
If you love clothes and enjoy working for yourself, you may be perfectly suited to opening a used clothing store. People love a bargain, but they can be put off by poorly organized or unclean clothing stores. To reel in thrifty customers, be sure that your store offers quality goods and great prices in a clean and organized environment.
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Instructions
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Visit thrift stores and used clothing stores in your area to get an idea of your competition. Take note of the stores that have great organization. Take note of the clientele, then determine who your audience will be. If you want to appeal to a younger, trendier crowd, you may want to provide vintage items or used designer gear and accessories. In addition, it may be a good idea to allow consignors. Your storefront, displays and merchandise should be geared toward the type of customers you will pull in. A used clothing store that is too flashy may not appeal to thrifty moms or the older crowd.
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Determine how much money you can put into your business. Start by writing a business plan. Include how much you intend to spend on advertising, how much you can afford to spend on rent, your hours of operation, the number of employees you will hire, and the cost of liability insurance and worker's compensation insurance. In addition, you will need to purchase supplies, equipment and signage for your store.
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Find your retail space. An ideal locale for a trendy used clothing store would be in an upscale shopping center, near condominiums and upscale apartment buildings or downtown. However, the rent at these locations will be significantly higher. Look for areas with a good deal of foot traffic, such as near a college campus. If your used clothing store will be geared toward everyday bargain hunters, consider a locale near a modest residential neighborhood.
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Use a catchy name and design a catchy logo for your clothing store, then register your business. If you will hire employees, you will need a federal tax identification number.
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Decide what merchandise you will sell. Purchase used clothing in bulk on eBay and visit flea markets, garage sales and thrift stores. Craigslist is another excellent resource for finding low-cost or free used clothing and goods. You may choose to sell new merchandise or accessories, such as wallets, perfume, shoes and handbags. Look for closeouts at stores that are either going out of business or getting rid of seasonal merchandise. Find out when stores such as Target or Wal-Mart hold their markdown sales. Children's clothing, maternity clothing and baby gear are good items to stock. A trendy store might have vintage T-shirts, jeans, cardigans, cowboy boots, flats, jewelry and skirts.
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Be reasonable when setting prices. Determine the price based on the condition, style and brand. Jeans, shoes and clothing in good condition will nab more than baby clothes, outdated styles or T-shirts. Become familiar with brand names and price those higher than generic labels--you can always mark them down in a month if they don't sell. Consider offering seasonal merchandise such as used costumes for Halloween. Don't fill your racks with tattered or dirty clothing. Clean dirty items first.
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Consider visiting a local dry cleaner or laundry and asking for a discount on cleaning. In exchange, advertise their services in your store.
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Purchase display tables, a cash register, a cash counter, cleaning supplies, shelves, racks, price tags, markers, markdown stickers, signage for your awning, shopping baskets or bags, hangers and a security camera.
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Tips & Warnings
Consider purchasing a website for your business. Advertise on bulletin boards at college campuses and grocery stores. Consider decorating your store walls with vintage pictures and old photos.
References
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