How to Start a Used Clothing Business
Frugality will never go out of style, which is why used clothing stores will always be popular. Used clothing stores cater to a variety of clientele, from savvy fashionistas looking to score a gem to frugal moms looking to clothe their kids. To tap into both markets, you'll need to offer a variety of used clothing, a clean store and smart prices.
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Instructions
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Scout a location for your used clothing store. A consignment or trendy used clothing store would do well in a mid-scale to upscale shopping mall. Look for locations off of busy roads that have sufficient parking and large storefront windows, which you can use to show off your best, seasonal displays. Once you've narrowed your locations, stake out each one, taking note of foot and car traffic. Then contact utilities companies to get an idea of future expenses.
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Obtain a sales tax permit and federal tax ID. This will enable you to purchase wholesale goods.
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Purchase fixtures and supplies for your used clothing store, such as racks, display cases, shelves, a cash wrap, hangers, tables, fitting room curtains, mannequins, mirrors, benches and chairs. Look for stores in your area that are going out of business and haggle for their fixtures. Incorporate a theme into your used clothing store, and then purchase fun décor. Trendy pictures and wall art can be found at other thrift stores. Play popular music. Change displays weekly.
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Stock your shelves with clothing that would appeal to local residents. Visit flea markets, garage sales and other thrift stores. Ask friends and family for donations. Find wholesale closeouts or lots on eBay.com and other online auction sites. Check Craigslist.org for free clothing. Visit clothing stores and peruse their $1 bins. Many trendy retailers often have a $1 or $5 racks with new, but damaged clothing. Contact charities in your area to buy clothing by the pound. If you will have a consignment store, advertise in your local paper that you are accepting clothing. To get trendier used goods, place fliers on local college bulletin boards that you will pay for certain brands of used clothing. College students looking for quick cash will be more than happy to sell some of their clothes.
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Stock your cash wrap with new accessories. Purchase wholesale hair accessories, inexpensive jewelry and trendy trinkets that fit with the theme of your used clothing store.
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Hire an assistant to help you run your store. If you're not handy with sewing, hire someone that is. The ability to mend clothing is an invaluable asset and means that you can get better deals and accept and resell more clothing. Train your salesgirl to have an eye for deals and to identify clothing that is beyond repair.
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Set your hours based on your traffic. Plenty of used clothing stores aren't open on Sundays or Mondays. Close your doors on days when traffic is minimal.
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Tips & Warnings
Establish relationships with local dry cleaners and laundromats.
Purchase worker's compensation and liability insurance.
Don't stuff your racks. Your store should be clean and organized.
Create a system for tracking your inventory and marking down items that don't sell in good time.
