It's almost Spring, right? Please!? Yes, before we know it we'll be Spring cleaning our homes and our closets! Luckily for me (and now you), I often help clients let go of clothes that no longer suit them for whatever reason and we discuss how they want to deal with the items they’re getting rid of. If the clothes were monetarily valuable or sentimental, therefore harder to part with (for some clients), consigning or reselling and therefore recouping some of their “investment” lessens the discomfort of letting go. I thought I’d breakdown the difference between the two so you can make a more informed decision if you’re thinking about these options, let’s get into it.
Consignment
Consignment shops work as brokers on your behalf and usually deal with more high-end items or luxury brands. The pay scale varies but let's say it's 55%/45% (them/you). Upon your approval of the terms, they will then price your items and keep them on their sales floor for a season; your dress or bag may be marked down every few weeks to get it sold.
For our purposes: you consign a newish pair of Golden Goose sneakers that cost $500 retail, they price them at $300 with $135 going to you once sold. They could be marked down to $200 and your payout would be $90 with a further markdown possible. Another note on consigning: it can take weeks or months to receive any payment on your items. Accessories such as shoes, handbags, and jewelry tend to give you the greatest return on your consigned items; clothes are drastically underpriced unless it's a hot or coveted item.
Resale Shops
Buffalo Exchange and a newcomer (that I love) Crossroads Trading are the most recognizable resale shops but they differ in what they accept and their payout is different (and smaller) than consignment sales. Buffalo Exchange accepts and sells items based on trends and the items don't necessarily have to be a big name brand. Trendy but also somewhat vintage or "older" clothes dominate here; Crossroads accepts items in season and currently on-trend (so less funky) with a little more upscale selection. Crossroads also consigns if you have a more valuable item, terms are similar to what I wrote above. From season to season and as trends change, you can look on their website to see what they’re currently looking to buy.
Payout for resale shops: they offer a higher cut if you accept store credit rather than accepting a cash buyout, ie. $50 in store credit or $30 in cash but the payout is done immediately. That being said, don’t be surprised if you bring in 25 items and they accept 6-10 of those pieces and they offer you $30 on what was maybe $500 in your retail purchase price.
Summing Up
When you factor in the time spent purging, packing, and bringing in your pieces along with the wait time for their assessment and pricing, it might not feel worth it to go the resale route. Consigning more valuable or expensive items gives you a little more but again, if the items you’re selling are sentimental (like Grandma’s china), it can feel a little insulting when you receive a lowball offer. Add to this your time and the time it takes to sell (with a possible big markdown), you may want to reconsider.
With your time being a huge factor, sometimes donating your items for a tax receipt, knowing they can be passed on to someone in need, is the way to go and what I often recommend unIess the monetary payout justifies the time and effort you're making. I just wanted to give you a little breakdown of how consigning and reselling works so you can be informed going in and decide what’s best for you. As always, here for you and wising you the best!
Comments