Consignment is when a shop sells goods for an owner, generally for a specified amount of time. The owner keeps ownership of his/her item until it sells, at which time they receive a 50% payment. As the owner, you’d pay a fee to the shop as compensation for them selling your item.
For example, you consign a Sofa for $200. Generally, when they sell your sofa, they take their 50% or $100. You receive $100. If the Sofa doesn’t sell, then you take your items home for no charge. (Some places do charge a small “activation” or consignment fee.)
There are two consignment options – physical shops and weekend sales.
Consignment shops are locally owned businesses with a mom-and-pop feel. They set their own terms for how their consignments work, so it’s important to research the store policies before committing. When you visit the store, the items will have an identification code on the tag to identify which account gets credit for the sale.
How it works for the seller
It’s standard for you to drop off your items for a 30-, 60- or up to 120 day cycle. If your item doesn’t sell within that period, some shops will discount the item (by say, 30%), or you will need to pick it up. You can expect to be charged a 25% to 60% commission, which the shop collects as its profit. Some shops offer you higher percentages if you take in-store credit instead of cash. Items have to be from smoke free and pet free homes.
Is it worth it?
Yes. The bigger consignment stores have a large variety of inventory with a great following, this means you have greater success for selling at a higher price; people tend to pay a higher price in a retail setting. Compare this to a garage sale shopper who knows your time is limited and you need the space.
Consignment shops are especially worthwhile if you have quality goods to sell. If you have high-end brands, everyone wants to own those which makes them a sure sale if priced right. Recommendations for consignment are if you have antique furniture, like-new or high-end pieces.
If you're ready to sell your consignment-ready items, be sure to visit or contact Design Furniture Outlet & Consignment, located on Gulf to Bay Blvd in Clearwater, FL.