Business Plan For Consignment Shop

Business Plan For Consignment Shop-14
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Skoller quickly realized that consignment has an advantage over traditional retail because there is no cost of goods.

Consignors bring an item to a store like Designer Resale.

She spent the summer of 1990 purchasing good-quality clothing from tag sales and auctions out-of-pocket and stockpiling inventory in her Upper East Side apartment.

By the fall, she had leased and renovated a 350-square-foot retail space on East 81st Street, and was ready to open the first Designer Resale location.

"Obtaining inventory can be done through tag sales, yard sales, auctions, estate liquidations, thrift shops and, of course, friends who are willing to help out by offering their clothing items for consignment," Skoller said.

Moreover, "If you have visions of expanding, it is best to get the largest affordable space with plenty of storage," she added.

If it sells, the consignor receives 50 percent of the selling price; if not, they can take it back.

With no risk of profit lost on unsold products, Skoller began accepting consignments and added them to her growing collection of merchandise.

As she expanded her retail space and had to spend more time away from the store for business and family matters, Skoller hired managers to handle some of the day-to-day duties.

Her book details her experiences with troublesome employees, and she admits, in retrospect, that some of her hiring decisions weren't the best.


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