When it comes time to do a little spring cleaning in your closets, what are you going to do with all of those shoes, clothes, and accessories you don’t use anymore? If you would like to make some money on these items, with minimal effort involved, you may want to consider taking them to your local consignment shop.
What Is a Consignment Shop?
A consignment shop is a business that sells second hand items. Unlike a thrift store, that receives donations and keeps all of the profits, a consignment shop will sell your items for you when you know longer have a use for them, keeping a percentage of the sale for the shop. There are many general consignment shops that sell a variety of items, but there are also shops that have one specialty such as clothes, baby items, or jewelry.
Basic Consigning Information
You have cleaned out your closets and have a pile of clothes to take to the consignment shop, but how exactly does this process work? You may need to set up an appointment to have your clothes evaluated. Consignment shops have the option of being very particular about the items they sell. Once they have gone through your items and decided what they want to sell in their shop, they will go over a consignment agreement with you. Make sure that the terms of the agreement are satisfactory for you; if they are not, go somewhere else. Although shops may be run differently, the majority of consignment shops will not give you money up front for your items. You will be given a receipt for your items, and you will receive a check once your items have been sold.
A consignment agreement is a very important. It is a legal document and should clearly state all the conditions of the consignment shop. This should include the consignment term. Most shops have either a sixty day or ninety day consignment term. This agreement should state what will happen to your items if they do not sell in the allotted time. Can you pick them up? Will they be donated? Or will they go on a clearance rack? It should also clearly state what the consignment split is–this is amount of the sale that the shop will keep and the amount of the sale that you will receive.
Pros of Consignment Shops
There are many good reasons to consign your unused items. A consignment shop usually has high standards when it comes to what they will accept to sell in their store. They will generally only accept clean, stain free, name brand clothing and shoes. Since they only sell high quality items, you are likely to make more of a profit from the items you consign. You are also keeping these items out of the trash by reselling and recycling them, which has a positive effect on our environment. Consignment shops can be rewarding to everyone involved. The shop owner makes money from the sale of your item, you make money, and the person that purchased your item gets it for a discounted price.
Cons of Consignment Shops
Of course there are a couple of cons to consignment shops as well. Since consignment shops can be picky, they might not be interested in trying to sell your items. Consignment is also not a fast way to make money–it may take a couple of weeks to get your cash. Finally, you are leaving your possessions with someone else. If they are stolen or damaged no one may be responsible.
Guest post from Bailey Harris. Bailey writes for AreaRugs.com.