How to Make Money with Resale

Part one of my consignment/resale story covered how to find the best deals and the best places to shop, Part 2 is how to make the most profit for your items should you choose to consign or resell your items.

So you've cleaned out your closets. Now you have some items you would like to make a little more money than you would at a garage sale, or just don't like the hassle of a garage sale. What to look at for your best chance of success:

Age: clothing shouldn't be more than 2-5 years of age.

Clean: Free of stains, tears, or wear. No fading, pulling or piling. Freshly washed and clean. Clothing from the home of a smoker or a home obviously with pets, can usually decline interest in your items. When you are considering an item to consign, ask yourself, "would I buy this in this condition?"  The newer the appearance the better chance of selling quickly. Also anything with personalization such as monogramming or a size that has been altered may not be acceptable and difficult to sell.  Each owner may have their own opinion on this.

Delivery: Check with the store you would like to take your items to and find out how they like the items presented when brought in. Do you have to make an appointment?  Do you leave the items and come back? Do they want all items hung and ironed?  Or are totes, boxes or bags okay? 

Note:  If you are consigning childrens' items, be aware that there have been a large amount of recalls in the past year that may apply to something you own.  It primarily is the responsibility of the shop to be familiar with what has been recalled, but if you are aware, please refrain from reselling or donating the item.  If it's not safe for your children, it wouldn't be safe for others, even if given to them. The exception would be if there had been addition of retrofit kits or repair kits.  Any baby gear also could be at risk of recall, and any car seat that has been involved in any type of accident is not resell-able, and should be disposed of properly.  If you have an item that you are unsure of you can go to www.cpsc.gov to check your item.

Once you've discovered your treasures, time to decide where to take them.  If you have shopped in a consignment/resale store and you like the merchandise they carry there is a good chance that your items would sell well there. Be familiar with their policy, is it consignment or do they pay out for your items?  Consignment means that you get a percentage of what the item sells for once it sells. Average range for most shops are 40-50% of the final sale price. Most stores will price and inventory the items for you, then give you a consignor account. There should be a legal contract that you will sign that will cover all of the consignor details, and your agreement with the shop.  Once you consign your items with the store, they then have the right to price or mark down, include in sales or offer discounts in order to get the items sold. Some places allow only a certain amount of selling time on the floor before the items are then donated or returned to the owner.  All stores have their own policy on this. Ask before you leave your items if you have items you think you may want back. 

Stores that payout for items will go through your items and then offer you a price for what they are interested in.  On average you can expect around $2 per item depending on the condition and brand.  Or about 20% of the resale price. Typically resale shops are less picky on what they sell and take in. I have found some still really want the age of the items to be 2 years or newer at some of the more trendier stores.

Next is payment.  Find out when the consignment store will pay you and what the policy is for checking account balances and getting checks.  Some have strict days of the month or week, while others will let you check your running balance at any time.  This is the fun part as you will start to see your efforts pile up and your clothing turn into an investment. Consignment selling and resale is a smart, profitable way to recycle your clothing and make a little extra money on your unused possessions.

Good luck and happy selling!
Read my story on how to get the best shopping experience from resale and consignment stores here.