How To Start A Consignment Shop
Many people are unsure of how to start a consignment shop, because they may not understand why someone would want used items. Consignment shops are very valuable businesses. They are a great way to be environmentally friendly through recycling as well as a great way to save money. Many of the expenses of running a business can be reduced because you are selling items that have been used previously. Don't let this fact fool you into thinking that your business won't be seen as reputable. If you follow certain guidelines, you will be on your way to starting a successful consignment shop.
Obtain a business license and tax id. This should be the first thing you do when starting your consignment shop. Although your products are used, you are still running a business, so make sure you have the proper paperwork to prevent legal troubles. Keep this paperwork in an easily accessible place.
- Buy your inventory before opening. Don't open your consignment shop in an empty room hoping people will break truckloads of items for you to sell. Look for items on popular auction websites, yard sales and store closeouts. Make sure that the price you buy the items for is significantly lower than what you plan to sell it for.
- Develop a consignment contract. The consignment contract is an integral aspect of the successfulness of your business. Make sure that it is detailed as well as straightforward enough for customers to understand it. Let them know how much money they will be receiving for each type of item. This will help avoid confusion and dissatisfaction.
- Advertise the opening of your consignment shop. Make sure that as many people as possible know about your shop. Advertise in the newspaper as well as online.