Reasons NOT to Buy at a Consigment Shop - Especially During a Recession

Desperate times call for desperate measures. As we trudge through the 2008 recession, thousands of us have been hit hard, and harder still, by the seemingly comatose economy. Jobs are scarce, prices high, and money is, bluntly stated, hard to come by. What to do when you need cash, but not those "luxury" items that you accumulated during the high-flying '90's? Pawn them? Not really a good idea: you never get what the item is worth, and certainly not what you paid for it. Selling it, then, becomes a more viable, appealing option. Many women, in particular, are both loath and uncertain as to how to 'dispose' of their pristine but no longer needed or wanted clothing, jewelry and handbags. Enter the consignment shop, a concept that has grown exponentially over the past two years.

It's a simple premise. Take your "unwanted" designer wares to a consignment store, usually by appointment. The store's owner/manager will inspect them, selecting which to keep and which to return to you. The commission split ranges from 60/40 to 50/50 percent of the proceeds when the item sells. Most coveted are designer clothing (no Old Navy, H&M, Zara, Kohls, Target, KMart, WalMart, Charlotte Russe, Rue 21, etc.). Prada, Chanel, Louis Vuitton, Chloe, Celine, Mulberry, Hugo Boss, Lanvin, Dior, Cavalli, Moschino, Chico's, Burberry, and any high-end vintage pieces will be gladly accepted. The same holds true of jewelry: silver and gold, please; we'll pass on the plated.

Sounds like this should be a really great time to find some bargains at your local consignment store, especially with a constantly swelling inventory as more and more women discreetly part with their designer duds.

But before you buy, there are two things that you must keep in mind NOW before making a consignment store purchase, things that previously haven't been a factor:

1. Within that swelling inventory of sales items will be, sadly, a higher number of fake, knock-off, or 'replica' items. This results from the fact that many sellers had purchased inauthentic items on Ebay or other auction sites, thinking that they were indeed genuine, but were not. It takes a pretty high level of sophistication to know the 'real deal' from a fake, both on an auction site and in person. Walk the streets of New York's Chinatown or Fashion District, and you'll literally be pulled in off the street - as my daughter and I were recently - by individuals selling faux Louis Vuitton, Prada and Chanel bags, jewelry and scarves. They're often sold openly right on street corners, by vendors, until the police shut them down. Faux designer goods are flooding the marketing, particularly from China, and some of them are quite good replications of the real thing. I know of one consignment store which accepts items from a woman who does her shopping at area THRIFT stores, then turns them in to the consignment store to re-sell them.

Haddonfield, New Jersey is one of southern New Jersey's toniest, most affluent areas, with at least a dozen consignment stores. Despite my 'due diligence', I purchased a) a fake pair of Louis Vuitton hoop earrings; b) a fake Juicy Couture wristlet, and c) a fake Hermes silk scarf. After researching my purchases, I returned all three to three different consignment stores. Do YOU know how the lining on a Louis Vuitton wallet is supposed to match up? Do you know the authentic Hermes watermark? Fake designer sunglasses are among the worst offenders. Unless the item - especially a high-priced item - comes with its original packaging and hopefully its original sales receipt, with the pertinent information blackened out by the previous owner, consider it to be a replica first before you buy. If I sound cynical, I am. If a deal sounds too good to be true - an authentic Chanel bag for $200, for instance - it generally IS fake.

2. Which brings us to my second point. With all of the inventory coming into consignment stores, the owners/managers often don't have either or both the time and expertise to weed out the knock-offs from the real thing. There are no certifications or credentials required to open up a consignment store. Many of these people are well-intentioned, but clueless. They have no more idea of how to authenticate a Gucci or Prada bag than you do. That having been said, never, ever purchase from a consignment store with an 'Absolutely No Returns' policy. They're coasting by on the hopes that you, like themselves, have no way of knowing whether your item is genuine or not, and can't be bothered by accepting returns for knock-offs. (Remember, this involves the owner trying to recoup the sales proceeds they may have already turned over to the seller!)

Stick with mid-price range purchases at consignment stores: Chico's clothing, jewelry (yes, they nearly always have that little brass Chico's tag attached to every piece of jewelry), and handbags are a great buy now. Talbots, Ann Taylor, Banana Republic, Gap, and Juicy Couture clothing are good buys as well.

One last thing to keep in mind before shopping: Owners of consignment stores are feeling the economy's pinch as well. Part of this has to do with the sluggish retail economy, part of this comes from competition from auction sites such as Ebay, where sellers get to keep 100% of the profits from their sales. The result is that prices at consignment stores have subsequently risen as a response. Before paying $30 for a cute Chico's tunic in your size, you might want to check out your local Chico's store: they may have the exact same item drastically reduced - and brand new - for only $20. Ladies, I've seen it happen.

Do patronize your local consignment stores, as you may find some great bargains there that fit your needs perfectly. Just 'know before you go'!