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katharinemae
03-20-2014, 01:31 PM
I'm planning on starting up a consignment store. And I'm still on the initial stage. I know its not mainstream and customers are not yet that acquainted with this kind of business.
I'm having doubts whether it will work and become successful and if the buying public is ready for this.

tinyfang
03-20-2014, 09:16 PM
This is a tough one because it's dependent on what you sell, where you're placed, what your overhead for the place is, who your market is and what your commission rate is. I had a client that made a pretty good consignment income selling people's collectable toys. He sold it in three different locations: Vancouver, Burnaby and Hong Kong. He made enough money to justify his travels between Vancouver and Hong Kong three times a year. However, on the other hand, I knew a guy who sold comic consignments and he didn't make much. He eventually closed his stall.

eppie
03-21-2014, 05:44 AM
I'm planning on starting up a consignment store. And I'm still on the initial stage. I know its not mainstream and customers are not yet that acquainted with this kind of business.
I'm having doubts whether it will work and become successful and if the buying public is ready for this.

Hi Katharine :)... I agree it's not mainstream but it might work to your advantage too because it's a "niche" business. Another plus factor is that you have real interest in the business, you're not just in it for the money.

I mentioned that it's a plus factor because starting any business is very difficult but if you enjoy what you're doing, it will be less hard. All I can say is go for it! Don't worry too much about the outcome. Success or failure, you will still gain something from the experience.

You can start small with a few items. Set up your website where you can showcase your items. Ask your friends if they have some unused items to sell and that you'll help them sell it for a commission. Initially, you can use your home as a start-up drop-off and pick-up station for the items. After a few months in operation, you will know if it's feasible to rent an official business space or not.

The most important thing is to start taking action. It's only natural not to know all that you need to know when starting a new business. This should not worry you nor prevent you in implementing your plans.

So good luck and keep us posted! :)

fredkawig
03-21-2014, 09:25 AM
Usually those methods which are not conventional are opportunities to be explored specially by businessmen. It's definitely a risk but it's always worth the shot specially if it's not yet mainstream.

DomDom
03-22-2014, 05:40 AM
Usually those methods which are not conventional are opportunities to be explored specially by businessmen. It's definitely a risk but it's always worth the shot specially if it's not yet mainstream.

Exactly! Opportunities like this are good because the market is not contested :)

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03-22-2014, 01:47 PM
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It's definitely a risk but it's always worth the shot specially if it's not yet mainstream.
He should be careful as well

daleo717
03-22-2014, 02:17 PM
I bought a consignment store in 2001. I sold mostly ladies clothing and some men's clothing. I ended up closing the store after about 1 year because I could not make enough money selling consignment.

It was really really tough to make a profit. You are at the mercy of people bringing in consignment clothing. And some people will try and bring in junk. It was really hard to tell people that their clothes were not up to par for my store. Also because it's consignment a lot of people want to barter the price. That is ok, but you can end up not making much profit when they get you to lower the price. Also you have to give the consignor a % of the sale. I did 50-50, but looking back that was too high of an amount to give the person consigning the clothes. Maybe 30 -40 % for them would have been better, after all you are taking the risk of the store and paying for all the expenses to run the store.

The good thing about having a consignment store, is you don't need as much money for start up, because you don't have to buy stock. I would advise you to also sell new clothing if you are going to do this. An old of friend of mine came into my store and his girlfriend had gone to Hong Kong to buy new clothing to sell at trade shows etc. He ended up consigning them in my store at a 50-50 cut and I made fast money on the new things. My regular customers bought the new items up fast. I did put reasonable prices on them etc.

My advice is to sell other things as well that are new. Like maybe jewelry, hand bags, shoes etc.

Eagles910
03-22-2014, 02:47 PM
Exactly! Opportunities like this are good because the market is not contested :)

There is also a flip side to that. The business fail horribly. Leaving you with nothing. Unless you have a lot of money to gamble with. i would suggest you get some investors.

stockbrokers
10-04-2014, 10:27 AM
research, research, and research, that's the most important thing in a business plan

Red Dragon
07-19-2016, 03:20 AM
Are you doing business already?

aliadil961
10-24-2019, 04:12 AM
Most consignment shops have a set speed of about 30 to 60% you will garnish from an item's sale. In some cases, the lower which you just set your rate, the more likely you are to pull in more consignments.

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