Consignment is a way of finding buyers for things that you don’t need, want, or can’t fit into anymore. Not only do you get a chance to make a little extra money and a chance to de-clutter the house, you put usable goods back out in the marketplace which helps reduce the waste of resources to create new goods. When serviceable goods are passed along rather than hidden in the attic or garage or tossed in the trash, everyone benefits including those selling, those buying, and those involved in the management process.

Some individuals are suited to sell items. Some are not. In the case of consignment, everyone suits up and plays a comfortable role rather than trying to make personality adjustments that may be uncomfortable or even impossible.

While you may hope to see your mother’s silver find a good home or may imagine how pretty some young girl may look in your old wedding dress from the marriage that didn’t work out, a direct transaction may be quite uncomfortable or emotionally wrenching. Taking a step back and allowing a more objective exchange works better for many. If you’ve considered the secondhand circuit but didn’t think you could deal with the pressures, then consignment may be the ticket. It accomplishes the same purposes and serves the same benefits but with a different business model in place.

The main difference between consignment and yard sales and direct sales (off or online) of used goods is that a sales professional is added to the equation between the seller and buyer.

Those Benefiting from Consignment Arrangements

• Those who hate to evaluate, price, and bargain but support the concept of remarketing goods, this is a great set up.
• Those who are great at matching secondhand items to buyers, this is a way to stay involved and employed even when personal supplies of goods are not available.
• Those out there looking for items, the consignment resale process can make the difference between finding or not finding something coveted. And, most consumers also save money when shopping on the new-to-you circuit.

So, all in all consignment is a win-win situation for all.

Getting Started

Before making consignment contacts and jumping in, sort and prepare items for resale. It’s far easier to organize and then consign in bulk than to do it one item at a time. A one item deal can give a taste of the market, but a slightly more industrious initial investment gives a more realistic picture of the experience.

Some items to consider for consignment:

• Clothing: Just because something in your closest doesn’t fit or doesn’t appeal to your personal tastes doesn’t mean that it won’t fill the bill for another person. Value and demand varies greatly in the used clothing market, but many items that you’d never consider wearing might be something much wanted by someone else. The motorcycle rally t-shirt your uncle brought back from a ride a couple of years ago may be worth more today than what he paid initially. It may not be your cup of tea, but someone may very thrilled to get the shirt.

• Accessories: Taste in body adornments vary greatly. While you may not appreciate the clunky bracelets you inherited from your over-the-top aunt, someone out there may be excited to buy her retro classics. Maybe you wouldn’t wear a strawberry or cat pin, but that may be just what another person has been looking for. That purse that you consider ugly as sin may look like great art to the right buyer. Don’t assume that your tastes mirror those of the general population or that special niche purchaser.

• Knick-knacks: Your dust catchers may be someone’s treasures. The big old ship clock on the mantel may look silly to you especially when the navigational lights are turned on, but someone else may use and consider the item a showpiece. A little statue of a angel with raggedy curls may not hold any special meaning at your home but may stand for something quite meaningful for the family across town. It’s simply hard to estimate and put a value on decorative items.

• Household Goods: You may think that your spare dishes may be rather worthless, but individuals who mix and match may find that something in your collection compliments an eclectic table setting. That little dish you never used may be the butter dish for special occasions in another time and place. The old barbeque tools that your family never used may get weekly work outs with another household. That rug that was rolled up and stuck under your bed may grace the porch of another person with different tastes.

• Tools: If you aren’t a do-it-yourself person, then you may see little value in the hodge-podge of items in the junk drawer. Just because you’re not using specialized items doesn’t mean than someone else wouldn’t. The little wrench that has gathered dust in your drawer may be just what some guy needs to repair the sink in an older home he inherited from his grandfather. Even if you don’t know what something might be or what it could be used for doesn’t mean that others won’t.

• Furniture: You may be thrilled to get new furniture and say good-bye to the china cabinet that has dings and a few minor scratches. Someone else may be flying on cloud nine to get a piece with a little character rather than a brand new blemishless cabinet. It’s all in the perception. Your old piece may mean more to the next person than the new piece you bought as a replacement.

The point here is that just because you don’t need or even like something doesn’t mean that your item has no value. Everyone has heard the saying that one man’s trash is another’s treasure, and that’s very true. Don’t rule out possible consignment items without taking some time to look with a neutral eye. In fact, you may want a friend to take a look at your potential resale items. It’s often hard to be rational about your own things.

On the other hand, do remember that some items just aren’t suitable for resale. If pieces are beyond repair and have little to no appeal, then don’t try to foist them off on others even as donations. The local Salvation Army really does not want your stained mattress and bags of shirts covered with mildew. There comes a time when some things really do need to be simply retired.

Once You’ve Gathered Your Consignable Goods

Clean up your goods before putting them on the consignment market. Dust, dirt, and stains are not appealing. A cute dress or a lovely ceramic vase may be unappealing to the consigner and the potential buyer if the overall look says neglected. Even when poorly presented items do sell, they typically go for much less than if they had been given even minor attention beforehand. A few minutes of preparation time can make a big difference in the appeal and income potential. Really bang-up preparation can mean hundreds more dollars over the long haul. Consigners surveyed note that clean up is the biggest problem within the industry and that many items could and would sell if prettied up a bit.

Here are a few tips for getting items ready for consignment:

Clothing

Clothing should be washed, pressed, hung, or folded neatly. Using dryer sheets to give the items a clean and fresh smell will increase appeal. Mentally picture pulling a favorite hoodie jacket out of the dryer fresh with the scent of a fabric sheet. Capturing even a hint of that will have the same appeal for potential buyers.

It’s also important to make minor repairs on clothing. Tightening up a loose button or repairing a minor opening in a seam makes all the difference between an item selling or not selling. Even in a department store, managers will greatly mark down for minor, reparable flaws noted. In the secondhand realm, a tiny defect may cancel out any chance of moving a piece for any price.

In some cases, dry cleaning can pay off. Since the price per item for professional cleaning is high, this is a riskier investment. For designer and some big brand name pieces, taking the time and spending the money to visit a dry cleaning shop makes sense. When in doubt, ask your consigner for guidance before hiring out the clothes cleaning.

Clothing often goes really low in terms of price, because the items are not cleaned up and presented well. Since clothing tends to be one of the most often offered and most purchased groups in the secondhand merchandise pool, the real secret is to make sure the item is looks like it’s ready for immediate wear.

Dustable/Washable Goods

Most non-cloth items can be thoroughly washed before being consigned, and they should be. It doesn’t take long to clean out salt and pepper shakers. A buyer is much more likely to pick up a little set of shakers knowing that he or she won’t have to go home and clean crystallized salt out of the shaker holes.

Hand wash or put all cleanable items through the dishwasher. More delicate items may be best served by washing by hand, but most goods can be run through the dishwasher with better results. Plastic children’s toys usually look brand new if put through a cycle in the dishwasher. One exception though would be that items with stickers can be devalued. If a toy truck has racing stripes and license plate stickers, the heat in the dishwasher can damage or make the stickers fall off. Look items over carefully before going the dishwasher route, but do know using the dishwasher (even for items not usually cleaned that way) can be a really quick and effective way to return that just-bought look.

Bigger Ticket Items

Many baby items are consigned, since little ones do not stay little for very long. This means that shops see a lot of bigger ticket pieces like cribs, car seats, strollers, and larger toys. Most of these have had rather minimal use, but many look rather grubby.

To clean the bigger items (that won’t fit in the dishwasher), the bathtub or even an outdoor session may be called for. Grab a cleaning solution and a scrub brush and add some elbow grease. Again, scent can come into play. Solutions with pine or lemon linger even after the cleaning and suggest a good buy when compared to items that might be close but not as sensually appealing.

In most cases, big items can be broken down. A screwdriver is usually all it takes to disassemble many things for detailed attention. A stroller may bring in $5 with a light cleaning and $50 or up if scrubbed inch by inch. Remove and launder cloth pieces, and individually wash various parts to eliminate any dirt in cracks and crevices. Most dirt is not really hard to get off. It’s just hard to get to. Taking an item apart, cleaning, and then reassembling is the key to having the most salable big ticket pieces.

Ready, Set, Sell Your Consignables

Once you’ve taken the time to collect and to prepare your items for consignment, case out the markets. Though it may be possible to work with one seller, it’s usually better to match items to consigners.

Most stores and dealers specialize. For example, many shops cater to parents shopping for children. Your kitchen goods are not going to appeal to the clientele. The clothing that will move fast in shop near a college may not go over so well in a shop drawing an older buying group. Your grandmother’s shelf ornaments may be featured in a little downtown shop but may be jumbled in the dollar box at a store where furniture is the main draw.

If you’re not familiar with your local consignment shops, take some time to visit and look around. Even glancing in the phone book at ads can give some indication of the type of shop involved and a suggestion of which items you’re marketing might match and which probably wouldn’t.

Begin to sort your goods and to plan for pitching. When in doubt, try to market up. If you think your old kitchen set might sell in an upscale consignment shop, plan to start there. It the shop owner does not accept the pieces, then move down the list.

Make contact with consigners before popping in with goods. Most have specific days and times to look at items and make offers. Most also have seasonal guidelines. Some have drop in policies. Others set specific appointments. Most can give you a pretty good idea as far as what they want and do not want and also the general value of items. It’s impossible to prepare if you don’t know the rules and how the shop or dealer works. Call ahead or ask during the casing visits.

Negotiating in the World of Consignment

In order to discuss the working consignment relationship, it’s important to know the particulars of the shop and the workings between the consigner and the goods providers. Most consigners should be able to provide a contract and a guideline sheet. Look these documents over carefully. Understand how the system is set up and the expectations from both the selling and buying end. It’s better to know ahead and up front than to be surprised or disappointed down the line.

Most smaller, hometown consignment shops work on a 50/50 (or close) split. Though that may sound like a big cut, remember that the shop owner is the one doing the marketing and keeping up with the business records. The shop owner also carries the overhead like space rent and utilities. He or she has financial commitments and can’t work for you unless these are met.

Some of the online-oriented consigners work for smaller pieces of the income pie. A number of Ebay companies take in items and then market online. With the reduced overhead, it may be possible to look at seller cuts closer to 75% of profit. Typically these arrangements involve the bigger ticket items and also some moving fees to get items to sellers or to the direct buyers.

Though working with a consigner means much less time spent on the sales end of the resale process, it still involves (or can involve) some negotiation. Things aren’t set in stone. For example, a shop may offer a 50/50 price split but may be willing to take a lower percentage if you’re offering good quality items and in bulk. If you’re presenting a high end corner hutch that the owner knows he or she can move, it may be possible to get a higher than standard percentage of the profit. Many owners will go with something more in the range of a 70/30 split in such cases—but only if negotiated ahead of time.

Double Check before Making a Final Decision

While most consignment shops and dealers are on the up-and-up, do check around before making a final decision about those that you’re willing to work for and with. As in any business community, there are some bad apples. You don’t want to find out the hard way.

One good way to determine if you want to work with a specific consigner or dealer is to speak to others working with that shop or person. Shops should be willing to provide contacts though will, of course, hand select those to vouch. Open days for bringing in items are also good times to touch base with others playing the consignment game and for getting some inside insight.

The National Association of Resale & Thrift Shops offers information about various consignment shops around the country and provides member shops with guidelines and a code of ethics for participation. Shops in good standing with the national organization should be solid though many private shops do not participate nationally and can also be fine. Call the organization and ask about shops or dealers you’re considering. The toll free phone number for NARTS is 1-800-544-0751.

The Better Business Bureau is always a good place to check on businesses. Look online or call your local office and double check if you have any concerns or doubts.

Once the Deal is Stuck

In some cases, consignment shops or dealers buy items outright, and the relationship ends with the exchange. This is rather rare but can be one scenario. In most cases, the seller makes less on a quick and guaranteed cash for merchandise exchange. After all, the seller is making the investment and also taking on the risk if he or she simply buys the items for resale. This type of arrangement really isn’t consignment, but some sellers may run across this type of set up with some shops/dealers.

Generally, consignment means that you leave your goods with the seller and then make money only if the item or items sell. In some cases, the seller is contacted immediately when a sale is made and the deal is completed. Usually this would be in the case of something in the high dollar range and usually if you’re dealing with only an item or two and not multiple items. Again, this is rare in the field. More often, you have an ongoing account listing all items and then those sold and those not. Most are happy to let you check such account listings. Just remember that the more time the seller spends on such details, the less time he or she has to sell items (the bottom line).

While some shops may pay on demand, most have specific days when all consigners are issued checks. In some cases, checks are mailed. In other cases, sellers drop by and pick these up. Again, it’s important to know how the shop or dealer works.

Some shops also offer price breaks on in-stock consignables charged against the account. If you have a favorite shop and spend a lot on secondhand, it may be more cost effective to go with a semi-barter exchange with some incentives for shopping versus cashing out.

A Good Consignment Working Relationship

Once you begin consigning and working directly with a shop or dealers, you become more valued if you are professional and keep up your end of all bargains. If you deliver solid goods that move and if you are easy to work with, you’re likely to be given more leeway than someone right off the street.

New consigners often walk out with many items turned down (not to be taken personally), but regular consigners will be given the benefit of the doubt. The shop owner may not feel that some of your pieces are top notch or quite right for his or her market, but he or she may take the pieces and give them a chance if you’re a consistent seller.

Shop owners will also contact regular consigners and let them know when they have good matching buyers. For instance, the shop may have a buyer of the same size in clothing and similar tastes who will frequently buy items brought in from your closet. Your pieces may be noted and held for the buyer rather than sitting on the shelf waiting for a potential match. This can mean much faster sales and often higher profits as well.

A Note of Caution

Do know that general consigners may or may not be experts in any or all product areas. If you’re moving items that may be of high value or if you are charged with moving a large number of goods of varying value from an estate or such, it may be wise to get some outside appraisal assistance before simply dropping off boxes of items at a consignment shop and hoping for the best.

You nor your usual consigner may recognize the vastly desirable painting that your aunt left in the back room as a valuable work of art. Turn on “Antiques Roadshow” (PBS) any evening to hear of individuals paying pennies for things worth thousands. You don’t want to be the one who missed or ruined the deal and neither does your consigner. You’re both working toward a common goal and both doing the best possible to maximize benefits for all involved.

For most people and in most circumstances, a general consignment deal with one or more matched shops/dealers works out great, but do move to the next level if necessary. In most cases, the consigner will recognize when the match is off and will help with finding additional help when needed.

The Brass Tacks

Most people do think that remarketing is a good idea and for a number of reasons. That doesn’t mean that everyone wants to throw a blanket on the ground and sell off their stuff. For some, selling is uncomfortable in general. For others, the entire concept in terms of the selling is just confusing. Consignment is a good option when you want to support the re-exchange of goods but just aren’t suited to the direct contact involved.

External Links:

• NARTS - National Association of Resale and Thrift Shops
• Consignment Shops - State by State - Find Shops in Your Area
• Ebay Drop Off Shops - Go Online with Consignment