Thrifty Shoppers - What's the Difference Between a Resale Store and a Consignment Shop?

Vintage clothing and values have become fashionable, even among celebrities. Suddenly, everyone is flocking to resale shops to find funky outfits from bygone eras.

How are resale stores and consignment shops alike?

Resale (or thrift) stores and consignment shops share some similarities. Both sell primarily pre-worn fashions, accessories, and possibly household items. Occasionally, unworn items may be found with initial sales tags still attached. Both offer items at prices that are significantly lower than brand-new retail offerings.

How are these stores different?

The main differences may be grouped in three categories: sourcing of goods, product quality, and pricing.

Sourcing of goods

Merchandise in consignment shops has been placed there by individuals who would like to recover some money from the sale of their unwanted items. The consignment store covers the overhead, marketing, and staffing. Once merchandise is sold, the initial owner of the items will share a percentage of the selling price with the store. Often, the split is 50-50, but this is not always the case.

Merchandise in thrift shops has been donated (free of charge) by individuals who simply wish to discard unwanted items. Unlike consignment shops, thrift shops are usually non-profit organizations. Their proceeds benefit designated charities. For this reason, donors may receive receipts for tax deductions.

Product quality

Consignment stores tend to carry higher-value items than thrift stores, although this may not always be so.

For fashion, consignment stores are the place to look for designer suits, wedding dresses, antique shoes, and other premium apparel.

Genuine gemstone jewelry may be found in a consignment store, but it is not likely to appear in a thrift store (unless the donor did not recognize its worth).

Authentic antiques may be sold on consignment, while knock-offs and cast-offs might end up in a thrift store.

Basically, if the initial owner was aware of the inherent or residual value of an item, he might be more likely to attempt to regain some of his investment by selling it on consignment or even online.

Pricing

Consignment stores may command reasonable market prices for the items they carry. For example, a tailored men's suit by a well-known designer, if it is in excellent condition, might command half its original value in a consignment store.

Thrift stores exist to serve low-income families, both by offering exceptionally low prices and by supporting philanthropies with their profits. Because they do not have to share any portion of the purchase price on their donated stock, they can offer rock-bottom prices. Also, several of the employees in a thrift store may be volunteers, who believe in the charity being supported.

A thrift store might carry men's suits for $10, gym shoes for 50 cents, and winter coats for $2.

Basically, thrift store prices are usually just a little higher than garage or yard sale prices. After all, the thrift store does have to pay its electric bill.