A consignment business plan is one of the most important steps involved with starting a resale shop. Continue reading for a quick summary of the consignment business and steps to consider before beginning the process of opening your own consignment shop.
Consignment Business Plan - what is a Consignment Shop? Consignment is a resale business including three parties:
Typically, a consignee is the owner of a resale shop that sells products for multiple consignors. Whenever a buyer purchases a product within the shop, both consignee and the consignor receive part of the profit.
Possession. Because you are the consignee, you typically don't have legal possession the products inside your shop. Rather, the consignor maintains possession of the item before you are able to sell it for them. When a product sells, you get a commission and the consignor keeps the remainder of the payment. If you don't sell the product before the agreed sales deadline, you have to give it back or negotiate a brand new contract with them.
Consignment Products. The most typical consignment products include clothing, art, and antiques. However, many consignment shops sell cars, computer systems, electronics, crafts, instruments, and toys, too. Consignment products could be old or new.
Start-up costs for consignment companies are frequently less then those of thrift and pawn shops. Because you are the consignee, you don't own the products you sell so there's no overhead for buying inventory. Additionally, you aren't obligated to market the products inside your shop. If you fail to find purchasers, your agreement with the consignor enables you to return the product.
If you are thinking about opening your own consignment shop it is important to consider what software program you are going to use. The right software can be the difference between success and failure.
Liberty4 Consignment Software is used by thousands of business owners across the country. It is easy to use and extremely flexible, making it the perfect choice for consignment shop start ups. Not quite sure if Liberty4 is the right software program for you? We offer a completely free 90-day trial. Try it before you buy it and you will see for yourself what sets Liberty4 apart from all the rest.
If you have any questions or would like to speak to our sales department please give us a call at 800-785-4800.