Consign Your Clothes and Make Money

I occasionally shop at consignment stores and always like to browse for reasonably-priced, quasi-new, clothing, bags and jewelry. I like my designer clothes, but I can't always afford it in-season at full price. Actually, I can never afford it that way. I hadn't thought about consigning my unused and gently-worn clothes (read: regretted buys that never got returned), until I was shopping at Second Time Around, a consignment shop that has branches around Boston. As I was purchasing a Mischoni dress, the sales-woman asked if I had any clothes I'd be interested in consigning. She said I could think about it, gave me her card and offered me a ten dollar credit on my consignor account if I signed up. That was about six months ago.

It wasn't until two months ago that I actually revisited the idea and found the Second Time Around business card with the $10 in my wallet. It seemed like a sign - that very same day my company informed us that we would have to take monthly furloughs. I would lose a quarter of my pay check each month for the foreseeable future. I decided to try consigning myself.

As a first step, I decided to look up the consignor rules and regulations on Second Time Around's website. After searching a few other sites, I learned that most consignment stores have similar rules but different pay periods, and different tastes. Although most of the consignment stores in the Boston area emphasized that they collected only designer clothes that are seasonal and up-to-date, when I went into the stores in person, I noticed that most stores use the words "designer clothes" loosely as long as the clothing you provide fits the general style of the store and is in new condition. Designer clothes will naturally fetch higher prices but I found it was worth a try to bring in some clothes from places like H&M and Gap and with some trendier items, it worked. I was naturally successful with all my items from brands like J.Crew, Banana Republic, Vineyard Vines (this is Boston, after all) and a couple of no name accessories: a nice, never-worn summer shawl, a beaded clutch, a shell necklace. Other items such as a Marc Jacobs skirt, Tahari shoes and a Tiffany's necklace were swept up quickly. I also brought in items that are currently trendy but didn't have a brand name on them. I found that these items were priced nicely (usually more than I expected) and sold quickly.

What you need to know before you consign your clothes:

1. To consign your clothing successfully, you need to make sure it's in nearly new or brand new condition, dry cleaned, with no stains, and no damage. If your clothes look like they belong in a thrift store, you probably won't be successful with most consignment stores. It helps to have all your items ironed and looking nice. The reason for this is that the store will hang your items up for sale right away after accepting them so they need to be neat and appealing to shoppers. Having said that, if you have a nice, real designer handbag that has minor imperfections but could still fetch a couple hundred dollars for the store, it will likely be accepted.

Tip: It's always a good idea to carefully scope the store where you decide to consign in order to better understand what they sell, what condition items are generally in, how they market it, what styles they favor, and what pricing they have.

2. You will get paid at fixed intervals a few times a year. This means you won't receive payment directly after every sale or at the end of every month. Some stores have a 90 day fixed pay period. For example, they only pay consignors at the end of each month in February, May, August, and December. If you need money quickly and you have high end, trendy clothing that you know will sell quickly, take it in a few weeks before the next pay period if you can. You can always ask the store salesperson about the specific dates and what to expect. Make sure to read the consignor agreement carefully. At Second Time Around I found out that if your sales in one payment period exceed $100, you can't go to the store to pick your check at the end of the pay period. You have to wait approximately 6 weeks for a check to be mailed to you.

Tip: Mark your calendar with the pay periods to make sure you don't forget your check! Usually stores won't mail this to you unless you specifically request it.

3. Consignment stores only keep your clothes and accessories in the store for a limited amount of time. Second Time Around keeps them for three months. If you don't pick up your unsold clothes at that time, the store will donate them to Goodwill or other charities. You can expressly request that they be donated and even receive a tax deduction for the worth of your clothes. If you don't want your items donated, make sure to mark your calendar and pick them up promptly!

Tip: Scope out a variety of consignment stores in your area and when you feel like your items won't sell in one locale, pick them up and try your luck elsewhere!

4. You might not always be happy with the way consignment stores price your items so make sure you pay attention while the salesperson is pricing your stuff. For example, I was surprised to find that my Tiffany's necklace that retails at around $250 would be priced at $80. I would receive around $40. The reason items are priced so aggressively is because a consignment store needs to make money quickly and it needs to compete with surrounding stores. In today's economy, retail is struggling so for example, a Second Time Around store on the most expensive and popular shopping street in Boston needs to compete with the blow-out sales of all the boutiques that surround it. Over the last couple of months I have noticed many more sales at consignment shops in the Boston area: one day it's 20% off skirts and the other it's 10% off everything. Bargain shoppers will also bargain with salespeople at consignment stores which may further drive the price of your item down.

These price reductions affect your items in addition to the regular sales strategy the stores use. Usually, consignment stores mark clothes with different colored tags - each color means a different discount based on how long the item has been in the store unsold. The longer your clothes go unsold, the cheaper they will sell for and the less money you will make. Therefore, it's both in your interest and the shop owner's interest to price clothing such that it will sell as quickly as possible.

When I asked the Second Time Around salesperson how pricing was determined for each item, I was assured that it isn't an objective process based on the salesperson's opinion. In fact, there is a method to price-determination at consignment stores. The Second Time Around store I went to has a computer database where the salesperson will enter the designer name and other attributes of the clothing or accessory to produce a price that is considered fair and sellable. The price is determined on a number of factors that takes into consideration the brand, the type of clothing or accessory, the retail price, and historical data on what similar items have sold for in the past. Usually, items in consignment stores will sell for more than 50% off retail prices depending on the designer, season and type of item.

Tip: If you notice that your items aren't selling as quickly as you'd like (usually you can monitor your inventory online) and you don't want to give them away for very few dollars, you can always go to the store to pick up your clothes at any time.

5. In many consignment stores you will receive a bonus or a credit to your account if you refer a friend. At Second Time Around you will earn $20 for every new consignor that joins based on your referral if the store is able to accept at least 3 items from that person.

My Experience

Overall, I had a pleasant experience consigning my clothes. I found the process easy to understand and implement. I hadn't cleaned out my closet in a long time and found that I had many items I wouldn't mind expunging from my wardrobe. The obvious advantage there was that I cleaned up, organized and re-evaluated my possessions. One nice externality was that my digging led to some great finds - things I hadn't worn in many months that still look great (I did not consign those finds!). In addition to making more space in my closet, so far I have earned close to $150 for 6-7 items sold. Although my items did not fetch very much money individually, they certainly weren't earning anything in the bottom of my closet nor were they adding any value to my style and wardrobe. When I checked my online account today, I noticed I still have $170 in inventory waiting to be sold. And this was just my trial round... I foresee another closet-clean-up party soon!

Checklist - Things to consider when choosing a consignment shop:

• Does the inside of the store even remotely resemble your closet?
• What's the pay period? Are there any other local stores that have a more advantageous payment system?
• How long will the store keep your clothes?
• Is the store busy? Is it in a good location? Who shops there?
• How long will the consignment store keep your clothes?
• Can you monitor your sales and inventory online?

More info on Second Time Around:

Second Time Around has consignment stores in various states and locations. Check them out in these cities:

176 Newbury St., Boston, MA, (617) 247-3504

219 Newbury St., Boston, MA, (617) 266-1113

82 Charles St., Boston, MA, (617) 227-0049

Burlington Mall 75 Middlesex Tpke, Burlington MA 01803, 2nd floor (781) 221-8440

Atrium Mall 300 Boylston St., (Rt.9) Chestnut Hill, MA 02467, 3rd floor (617) 928-0100

8 Eliot St., Cambridge, MA, (617) 491-7185

937 Great Plain Ave., Needham, MA, (781) 444-5116

1169 Walnut St., Newton, MA, (617) 964-4481
574 Washington St., Wellesley, MA, (781) 283-5880
10 Joy St., Mashpee, MA, (508) 539-3900

29 Congress St., Portsmouth N.H. 03801, (603) 433-0200
294 Thayer St., Providence, RI 02906 (401) 455-2050

One Providence Place, Providence, RI 02903 (401) 865-6645
28 Exchange St., Portland, ME 04101 (207) 761-7037
367 Fore St., Portland, ME, 04101 (207) 772-0010
6 Greenwich Ave. Greenwich, CT 06831 (203) 422-2808
3289 M Street Georgetown, DC 20007 (202) 333-2355
89 Church St. Burlington, VT 05401 (802) 660-8100

A partial list of suggested designers that Second Time Around accepts and prefers as listed on their website:

Anna Sui, Anne Klein, Anthropologie, BCBG, Betsey Johnson, Bisou-Bisou, Brooks Brothers, Bulldog, Burberry, Calvin Klein, Cashmere Studio, Central Park West, Chaiken & Capone, Cousin Johnny, Diesel, Dolce & Gabbana, Dollhouse, Donna Karan / DKNY, Dries Van Noten, Escada, Fendi, French Connection, Gianfranco Ferre, Gianni Versace, Giorgio Armani, Givenchy, Gruppo Americano, Gucci, Halston, Helmut Lang, Hickey Freeman, Iceberg, Isaac Mizrahi, Isabel Ardee, Jil Sander, Jimmy Choo, Joseph, Joseph Abboud, Judith Leiber, Juicy Couture, Karl Lagerfeld, Kenar, Kenneth Cole, Marc Jacobs, Miss Sixty, Miu Miu, Moschino, Nicole Farhi, Nicole Miller, Oscar de la Renta, Parallel, Petit Bateau, Prada, Ralph Lauren/Polo, Robert Clergerie, Steve Madden, St. John, Sweet Pea, Sweet Romeo, TSE, Teenflo, Tempesta, Theory, Tocca, Vera Wang, XOXO, Yves Saint Laurent, Zanella,

Source: http://secondtimearound.net/