How to Start a Consignment Sales Business
A consignment store is a less expensive way to open a retail outlet. Items do not have to be purchased by the store owner. If the goods go unsold after an allotted period of time, they are returned to the consignor. This allows people the opportunity to sell their property without doing all of the work themselves. Many allow the shop to donate their unsold goods, relieving them of the task of picking the items back up.
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Instructions
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Gather inventory. Expect to spend the first month or two receiving inventory from consignors, according to The Webworks Consignment "How to" Manual. Strike a balance between gathering enough inventory to open, but not so much that the store aisles become cluttered. Successful consignment shops invite shoppers to browse in an upscale and clean environment.
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Inspect each incoming item for flaws. Ask your customer what he paid for the item. This provides information on how much you can sell the item for, depending on the item's condition. Make sure to tag each item with a tag that shows the price, size and your store contact information.
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Create an account list to manage all of your inventory. Put together an intake sheet to show what you accepted, what your policies are and indicate the consignment expiration date. Add a spot for the customer to sign the form. This proves the contract is between you and that customer.
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Find a location. Search for a location with ample parking both to bring in customers and to allow consignors to drop off merchandise. Make sure the store has a loading dock or space available for individuals to unload larger items such as furniture or appliances if those are items you plan on carrying. The location needs to have a lot of customer traffic and offer your customers and your consignors conveniences rather than hassles. Make a checklist of necessary elements such as parking, loading dock, near intersection--items to assure traffic flows in and out of your consignment shop.
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Design your store's style. Convey a feeling of upscale recycling. Make the aisles wide enough so that two customers walking in opposite directions won't bump into each other and avoid cluttering the aisles with unnecessary items. Visit other consignment and antique shops in your area that carry similar items to get a feel for decorating your store. Make notes of design characteristics that you like and ones that don't work.
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Open for business. Display your items in an appealing manner. Organize items to help your customers find them quickly. Have ample receipts on-hand, a stock of cash to make change, a calculator, a tax table for sales tax and brochures to show off your business.
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