Finding ways to save hard-earned cash is always challenging, especially when the economy turns sluggish. When things are going well financially, we only think about what is coming in. We tend to neglect, or are too time-constrained to consider ways to save or recoup our money.
Many people have seen a consignment store from the outside, but have you ever walked in? You should, because clothing and accessories consignment is a great way to clean out your closets of unwanted items, and recoup some cash as a result.
A simple way to explain consignment is that you loan your property to another party. If they sell it, you get a percentage of the proceeds.
The first step is to assess the contents you wish to get rid of. Do you have closets full of stuff? Many people hold on to things but never do anything with them. A better solution - clean out your closets on a regular basis to determine if you have anything that might be of better use to someone else.
The second step is to evaluate the items in detail. The best way to do this is to make piles. As an example, I do this by making three piles which I label rags, donation, and consignment. The rag pile may contain items that are washed out or damaged and would not be worn by anyone. The donation pile might contain items that are not of the best quality but someone would still find use in it. The consignment pile will consist of the best quality clothing. It will contain clothing that does not show much wear at all, and certainly no damage.
The third step is to investigate the consignment stores in your area. Have you seen one while running errands? If not, check the phone book. If there are listings, call them and ask the following:
· What are their hours?
· Do they have a website you can review?
· Do they have a written policy? If not, ask what is their policy if they don't sell the item?
· Do they give you time to pick it up (You'll have to decide if you want to, since it may not be worth the effort.) or do they donate it?
· How do they pay you? Is it by store credit, cash or check?
· What is the percentage of the sale they give you?
The next step is to shop the store. You don't have to purchase anything, but this will give you an idea of what condition, types, and styles of clothing or goods they are interested in. Look around and evaluate their customers. All of this will give you the information you need to reduce the likelihood they will reject your item. Also, you can determine if they take other items like shoes, jewelry, and purses.
If there are several stores in your area, try to consign your items at a few of them to increase the likelihood of acceptance of your items, which will lead to more cash in your wallet. Once you have chosen the store or stores to do business in, bring in your items. Make sure you know when and how they will pay you. Note: If the first store rejects your item try to sell it at another store. If rejected by more than one store determine why. Is it the wrong season, does something need to be repaired? If it isn't the best quality or if it is extremely outdated it may be best to just donate it.
Consider contracting at more than one store catering to different customer demographics. For example, dividing your goods by designer versus affordable wear will increase your rate of return. In addition, one store might pay cash, while others might pay by check.
Once you start, you’ll be surprised at how much you will earn back. You can expect to earn back at least ten percent of your clothing budget by selling unwanted items to consignment stores. So, open up that money-making closet and start cleaning.
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