Consignment shoppers typically know their stuff. They are smart shoppers because they know their brands. In the resale business brands are a big deal. It’s these brands that make a difference to the consignor’s profit.
If you’re a first time consignor you hope that the effort you put into consigning your stuff is worth it. At Trendy Repeats, we require your items be brought to the store in a clean and orderly fashion. That means freshly laundered and presentable. Not thrown in trash bags straight from your hamper. We call dirty, unwanted clothing “no thank you’s”. Not even the thrift stores want those items.
The key to consigning your items a worthy endeavor is going to be determined before you even get to the store. The trick to earning good money at consignment is the brands. Most consignment stores will tell you that they price used items at about 25% to 50% of the retail price. So if you consign brands that have low retail prices then your profit will be very low if they even sell.
Most consignment store shoppers know the brands. They know that clothing with a WalMart or K-Mart brand should have a lower price than clothing from a brand name like Abercrombie or Guess. When they see those $149 Guess jeans priced at $69 they know they’re getting a great deal. They may be used but they still have lots of life left in them.
Let’s look at the numbers.
|Brand||Retail Price||Consignment Price||Consignor Profit|
|Brand Name Jeans||$149.00||$69.00||$27.60|
As you can see here the inexpensive brand clothing doesn’t bring much profit. The brand name jeans bring a much, much better profit. Even if those jeans sold 30-60 days later with a 50% discount the consignor would still get nearly 6 times what the other brand profited.
In summary, while brands make a huge difference to the consignor’s profit we continue to sell the cheaper brand clothing. There are still buyers for that clothing. If you’re one of the consigning types that wants to make a lot of money your expectations need to be realistic. It takes a LOT of the cheaper brand clothing to match the profit from the brand name clothing.