Most of us spend a lot of money on our clothes. It becomes especially painful when we have to give those clothes up because they either don’t fit any more, or we don’t wear them anymore. Do you give them to Cousin Sally who is a single mom, or do you donate them to a charity? Either way you don’t get much of a return. One way is consigning them at a consignment or second-hand store near you.
What is the difference between buying it outright and consigning it?
Consignment
Usually with consignment you will be an owner for a specific period of time. At the end of the contract, you would need to pick up what sells or it usually becomes the property of the store. This is more “fair,” because the store usually splits the sales 50/50, but you also forfeit the clothes after the contract ends. The stores will do this so they are not left with a bunch of their own inventory.
Buying outright
If a store buys an item, they will give you a smaller percentage of what they sell it for. The typical store gives you about 20 – 25% of what they are selling it for. The store can make more money, but they are also stuck with a bunch of inventory if it doesn’t sell.
Why does the store keep so much of my money?
Remember that a store needs to keep in business too. They are bringing customers to see your items. They are doing all of the work, all of the marketing, and housing all of the items. They often have rent, utilities, insurance and employees to pay.
Think of how much you would get for a shirt if you had it at a garage sale — $1? $2? Most often, people at a garage sale do not even look at the clothes. You could sell it online, but the site gets 25% of the profit. Selling online would also mean that you would have to do the listing, pricing and pictures yourself.
How do I get the most out of my consignment?
Most consignment stores are fairly picky on what they will take because they know what will and what will not sell. Most will only take “gently used” items that are 2 – 3 years old in style. To make more money, present them in the best way possible. Make sure that it is clean. Freshly launder the items if they have been in a bag all winter. Check zippers, buttons, frayed marks. Make sure there is no pet hair on them!
How does a consignment store price my items?
All clothing depreciates, meaning that it goes down in value. Most clothing stores will price an item at 1/3 to ½ of the value of the original purchase price. This is the general price that consignment buyers are willing to pay. Many stores will even drop the price and additional percentage if it has been in the store a specific period of time.
How does a consignment store keep track of my items?
There is some pretty advanced software especially made for consignment stores. They enter your information and clothes in and then it is printed out on the tag.
Be patient
Your clothes will start selling soon. Be patient and wait 3 to 4 weeks before checking on it. Little by little it adds up to a good chunk of change. Some stores will give cash. Others will give you more money if you spend what you made in the store. That way you can get an inexpensive new wardrobe. In the future, remember not to buy clothes that you’re not going to wear! Save that money instead, put it in a money market account or savings account where it can earn interest and use that savings to buy something you really want and will use.
