So you think that you might like to make some extra money and clean out some clutter at the same time?  Don't want the hassle of a garage sale?  Down sizing your home?  Have an estate that needs to be liquidated?  Visit your local consignment store!  A consignment store is a commission based business.  The store is dependent on individuals providing the inventory.  When the item sells the consignor receives a percentage of the selling price.  The goal of this guide is to help you understand how to be a smart consignor. 

1.  All consignment stores require that you sign a contract that states the terms of the consignment.  If the store you visit does not have a contract I would be hesitant about doing business with them.  READ the contract!  If you do not understand any part of the contract have it explained to you prior to signing it.  Most consignment stores offer a 50/50 split when your item sells.  They might also have additional charges including a yearly consignment fee, a fee for removing your item prior to the end of the consignment period, or a store sales fee (when the store offers a discount sale the percentage is subtracted from the consignor's check).  As the consignor you are responsible for knowing the terms of the contract.

2.  The first time you consign take in just a few items.  This allows you to focus on the contract and see how the store functions.  This is the time to ask a lot of questions.  How are items priced, how items are displayed, how your items are protected from damage or theft.  Most consignment stores have computer programs that tracks your items - do not leave without an itemized list of the items that you are consigning.  Some of the questions you might want to ask:

-How do you track my items?  (FRATZ' has a computerized system.  All consignors receive an itemized list at the time of consignment and a sold merchandise report with their pay-out check).

-How do I get paid for my SOLD items? (FRATZ' checks are picked up at the store the 10th day of the month for the previous month's sales.  Consignor's can provide a SAS envelope with checks mail on the 17th of the month).

-What do you do if my item is damaged in the store (fire, theft, breakage, etc.).  Most stores do not reimburse you for damage.

-What is your consignment rate? (FRATZ' offers a 45/55% rate with the consignor receiving 55% of the selling price)

-Can I come and pick-up my item at any time?  Do I have to pay a  fee if I take my item out before the end of the consignment period? (I personally would not tolerate this policy - no one should be charged to retrieve an item that they own!)

-Do you call me to come and pick-up unsold items? (FRATZ' currently has 2,200+ consignors - we do not call consignors to remind them - this is a partnership and we expect consignors to assume some of the responsibility for tracking their unsold items).

-Are there any yearly charges? (FRATZ' does not charge a yearly "membership" fee)

-How do you price my items?  Pricing items should include condition, age, original price (if new), collectibility and current appeal.  If you overprice do not expect it to sell.  If you don't want to pick it up in a few months then price it to sell.  A good rule-of-thumb:  What would you pay for it in a consignment store?

3.  Visit the store a few times prior to consigning with them.  You will want to look for the following:

-Do you like the way items are displayed? (Stacked furniture/accessories should have pads under it to protect the surface of the piece below.  Stacking is acceptable because it allows for optimum use of available floor space.)

-Is the store clean and well organized?

-Does the store smell clean?

-Is the staff friendly, respectful and attentive?

-Is there a good variety of items for sale?

4.  Know the consignment stores hours of operation.  The more hours that the store is open the better chance you have of selling your item.

5.  Consignment stores will have a policy for consigning items.  This might include consignment by appointment or specific hours for consignment.  A good consignor respects that the consignment store has these rules so that they can run smoothly.  It is frustrating for the consignor and the consignment store when a consignor tries to "bend" the rules.  A good business is based on trust and trust is difficult when you start bending the rules.  Calling a head will reduce your frustration! 

6.  If you have a problem always ask to speak with the owner or manager.  It is not productive to speak with a staff member who has no authority to resolve your problem.

7.  Ask what happens to your item if it does not sell.  Consignment stores do not have the space to store your unsold items until you can come and pick them up.  (At FRATZ', our computer automatically converts items to the property of the store one day after the end of the consignment period (four months).  FRATZ' either sends the item to the clearance section or donates it to a local charity.  If you forgot to pick up your expired item do not demand payment for the item - the owner will be more willing to resolve the problem if you recognize that they are working within the terms of the contract - which you read prior to signing.  

8.  Ask how checks are paid out.  Is the check mailed, do you pick the check up at the store, what day are checks paid out and how long are checks kept on account.  FRATZ' keeps checks on account for 6 months.  The money becomes the property of FRATZ' after 6 months.

9.  If the store offers layaway, ask how the layaway is managed.  At FRATZ' the customer pays 50% of the price and the consignor is paid  55%  on their next check.  FRATZ' assumes the 5% risk - not the consignor. 

10. If the consignment store offers a return policy, ask how this is managed.  At FRATZ' we allow a 3 day return - the return is displayed on the consignor's sales inventory list provided with the consignor's monthly check.  

11. What is the discount policy?  Most consignment stores offer monthly discounts on unsold items.  Consignment cycles usually last 3 moths.  (FRATZ' offers full price for 2 months, 20% discount for the third month and 50% for the fourth month).

Check out your local consignment store.  Our personal experience has shown that you make more money selling your items through a consignment store than at a garage sale or an estate sale.  One example:  FRATZ' had a woman who brought item in after a garage sale.  She had a planter that she could not sell for .50, we sold it for $5.00 before she left the store.  After the FRATZ' 45% fee;  her profit was $2.75.  ($2.25 more than she had it marked at her garage sale!)  Or the consignor who had a recliner marked $25.00 at a garage sale - it did not sell.  FRATZ' sold it for $185.00; her profit was $101.75.  ($76.75 more than she had it priced at her garage sale!)

12. Know if your item is in working condition, know the size of your linens, if you have had the iten cleaned leave the cleaner's tag on it, give the history if you know it, CLEAN the item (especially small kitchen appliances and glassware - if it sparkles, it will sell!). 

You are a partner in the consignment store.  Know your item, know the terms of the contract and price your item fairly.  Consignment can be fun and profitable!