Creating an Unsold Items Policy

Sometimes you will find that despite your best efforts, you aren't able to sell everything in your store. Perhaps it is because customers just don't want the items, or maybe the season is wrong for them. When this happens, you need to return those items to the consignors who provided you with them in the first place. Consignment stores work on the principle that someone provides you with product, second-hand, which you then sell for them. You take between 50 and 60 percent, while they get between 40 and 50 percent. When things aren't sold, an agreement has to be made as to what to do with the items.

Be Selective

One of the biggest mistakes a consignment store owner can make is they will take everything because they want to sell as much as they can. However, as time goes on they will begin to see that it is better to be selective with what they take in. Instead of taking in out-dated clothing, they will take the clothing that is stylish. It does no good to take in an Atari when people are buying Xbox 360s at the time. You don't want to take in something you can't sell because it will only take up shelf space and take up your time.

People will also try and dump dozens of items on you to sell but again be selective. Make sure your customers know you only take 15 to 20 items at a time. If you don't, you will be swimming in inventory and not making enough sales to cover the costs of keeping all those items.

Unsold Items

If there are unsold items, then you should have an agreement in place with the consignor. For example, a good policy is to try and sell the items over the course of an entire year. If the items are not sold, then the consignor can either receive the items back, or they can allow you to donate them. Donating items is a better solution for you because it saves time. If you have to give goods back to the consignor, then you have to contact them, wait for them to pick it up and ensure all tags are off the items. It is time-consuming and time is money. You may want your consignor to pick up the items quickly, but that does not mean they will. Remember, they left it with you because they don't want the item anymore. If it didn't sell, why would they want to hurry to come pick it up?

In this case, let your consignor know that if they do not pick up the item within one week of you calling them, then it is donated.

Why Donate?

So, if no one will buy the item second-hand, why would you donate it? Well, there are people out there who will take the item if they need it, and you can also write off the donation. You will have to look at your state laws regarding this, but generally you can write off donations, even if you are a consignment store. Donations also ensure that you are not putting these items in the dump, which is where they will most likely end up if you make the consignor come and pick them up. They don't want them and it is easier to dump them then to donate them for many people.

Layaway Problems

Many people will put money down on an item and then they will not pick up that item. This is surprising because you would think that if someone put something on layaway and made a deposit, they would not want to waste the money. However, you will find that plenty of people do this.

This leaves you with unsold items, which cannot be sold in case the person comes to pay for the rest of the cost. So, what can you do?

With a consignment store layaway program, you should only offer it to regular customers who come to your consignment shop.

Require your customers to put 50 percent down on the layaway item and set a time limit of 30 days to pay for the rest of the item and pick it up. If they don't pick up the item in that time, then the deposit is forfeited and the item is resold or donated.

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Buying an Established Consignment Store

Best Days for Consignment Sales

Specializing Your Consignment Shop

Layaway Consignment Policies

Choosing Store Management Software

Resale, Consignment, Thrift and Second-Hand Stores

Locating a Retail Space and Negotiating the Lease

How Much Money Can You Make At Consignment?

A Sample Consignment Agreement

Setting up Your Consignment Shop

Consignment Agreement Policies

Preparing For Your Consignment Store Grand Opening

Creating an Unsold Items Policy

How To Start A Consignment Store

How to Properly Advertise Your Consignment Shop

How Much Money Do You Need To Start A Consignment Store?

Determining Hours of Operation For Your Consignment Store