Another gold rush has begun in America, but the gold is disguised as second-hand goods. These goods are valuable, plentiful, and can be had for next to nothing. Unneeded household decor, clothing, electronics, musical instruments, antiques, artwork and more are being assigned to consignment shops at a fraction of their original retail value.
Sales at resale shops increased over fifty percent between 2008-2016, while discount store sales fell by half, and department stores lost one quarter of their revenues during the same period. In 2018, used goods sales in the U.S. totaled $19 billion, with vintage clothing sales growing twenty-one times faster than new clothing sales. Full-price retailers are suffering while re-commerce is thriving.
The revenues generated by consignment shops are astounding…
In June 2019, the consignment shop The Real Real debuted on the Nasdaq with a $300 million initial public offering (IPO). Their stock rose forty-five percent on the first day from $20 to $29. Vintage is going legit, in a big way.
The bottom line? Newer generations—Gen X (born 1965-1984) and Millennials (born 1985 and on)—aren’t interested in filling their homes with matching sets of furniture purchased at a fancy retail store. Instead, they are interested in finding unique second-hand, recycled and re-purposed items that express their individual tastes. The modern consumer’s outlook is no longer “out with the old and in with the new”; it’s “out with the new and in with the old”.
In cities all over America, besides the usual assortment of pawn and thrift shops, one can find privately owned resale specialty shops offering:
- Apparel (women’s, teen, children’s, plus-sized)
- Sporting goods
- Musical Instruments
- Books and Media (records, movies, etc.)
- Vintage high-end audio
- Estate art and decor
- Used furniture and appliances
Entrepreneurs flock to capitalize on the consignment bonanza…
In the coming decade, hundreds of startup consignment shops will open across America, offering a variety of vintage goods. Some shops will succeed, others will fail.Dealers who plan well will prosper. Running a consignment shop is more than just “what do I sell and where do I get it”, but the realities of taxes, insurance, sales, marketing, websites, leases, employees, cash flow, financial statements, and much more. Would-be shop owners can either learn as they go, or prepare in advance.
In The Consignment Gold Rush, 45-year veteran reseller Wayne Jordan explains your operating choices so you won’t be ambushed by unexpected consequences.Starting a new business of any sort is divided into two distinct processes: imagineering and engineering. The Imagineering section will lead you to such discoveries as:
- What sells best in your market
- What the ideal location looks like
- How much money you need to get started
- What equipment and fixtures you must have
- How to open a shop that’s fully stocked from “day one”
- How to calculate what your profits will be under various scenarios
The engineering process covered in this book discusses the how-to of getting set up, and the basics of running a retail operation. Here’s a sample of the topics:
- Dealing with “The Man”: licenses, permits, leases, taxes, lawyers, accountants, banking, and the IRS
- How to keep a steady flow of customers coming into your store
- Pricing tactics that will keep your inventory moving and assure a profit
- Layout & merchandising techniques that will turn your shop into a selling powerhouse.
- Strategies for boosting revenue without raising your commission
- Minding your money
Consignment Gold Rush guides you through both imagineering and engineering…
When you have finished reading it, you will have a detailed plan for establishing and operating your unique shop in your town. Every town is different, and every marketplace different; there is no “one size fits all” business plan for consignment shops. This book will guide you to your plan.
The promise to you is this: if you grasp these materials and apply the processes in The Consignment Gold Rush, you will have all the tools you need to open and run a successful consignment shop. Will this book prevent failure? No, but it will increase your chance of success.
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