• Hi, I am the owner and main administrator of Styleforum. If you find the forum useful and fun, please help support it by buying through the posted links on the forum. Our main, very popular sales thread, where the latest and best sales are listed, are posted HERE

    Purchases made through some of our links earns a commission for the forum and allows us to do the work of maintaining and improving it. Finally, thanks for being a part of this community. We realize that there are many choices today on the internet, and we have all of you to thank for making Styleforum the foremost destination for discussions of menswear.
  • This site contains affiliate links for which Styleforum may be compensated.
  • We would like to welcome House of Huntington as an official Affiliate Vendor. Shop past season Drake's, Nigel Cabourn, Private White V.C. and other menswear luxury brands at exceptional prices below retail. Please visit the Houise of Huntington thread and welcome them to the forum.

  • STYLE. COMMUNITY. GREAT CLOTHING.

    Bored of counting likes on social networks? At Styleforum, you’ll find rousing discussions that go beyond strings of emojis.

    Click Here to join Styleforum's thousands of style enthusiasts today!

    Styleforum is supported in part by commission earning affiliate links sitewide. Please support us by using them. You may learn more here.

is a 'resale' shop a viable business opportunity?

jgold47

Distinguished Member
Joined
Mar 23, 2008
Messages
1,617
Reaction score
13
I have been fascinated with the idea of opening a higher end thrift/consignment/resale shop. I have access to a large amount of traditional thrift stores with a good selection of higher end goods at charity thrift prices. I have a fairly good sense of what will sell and what wont, and I would open this in a fairly affluent area. Is it viable to buy and resell those items at a mark up in the guise of an upscale resale shop or is there just not enough money to be made to make it worth it (clear say 100K/yr in profit?)


Thanks
 

curzon

Distinguished Member
Joined
Jul 7, 2011
Messages
1,135
Reaction score
112
You plan to do this online or a physical location or both?
 

Blackhood

Distinguished Member
Joined
Feb 5, 2010
Messages
2,895
Reaction score
376
Carefully consider the demand for "high end second hand". In this forum there are 100,000 active members, about half of whom might shop on BS. Thats 50,000 in the world who want to buy good quality second hand stuff. How many people are there in your town who actually want this stuff?

This forum can warp your views on how popular clothing is.
 

Birks and Grey Socks

Senior Member
Joined
Feb 2, 2011
Messages
146
Reaction score
5
I think you're better off making it a home based on-line business. Tax write offs for your residence and utilities may make this a better option.
 
Last edited:

jgold47

Distinguished Member
Joined
Mar 23, 2008
Messages
1,617
Reaction score
13

You plan to do this online or a physical location or both?


My concept was a brick and mortar with an online presence. It would be located in a town with a 'cute' downtown, lots of other restraunts and shops, etc... I am fairly confident of the viability of the market to support a store, the question is how much.

Carefully consider the demand for "high end second hand". In this forum there are 100,000 active members, about half of whom might shop on BS. Thats 50,000 in the world who want to buy good quality second hand stuff. How many people are there in your town who actually want this stuff?
This forum can warp your views on how popular clothing is.


I think I should clairify high end second hand. I ment stuff normal people would buy (polo, levi's, etc...) not crazy SF approved goods. I just mean not going to your local thrift store with the suits from the 80's. A more cultivated selection, and therefor a higher pricepoint.

I think you're better off making it a home based on-line business. Tax write offs for your residence and utilities may make this a better option.


That may be, and portion of the business may utilize the home, but a physical presence is a big part of it. Plus, I would want to try consignment, so would need to have a store.

I was on vacation last week, granted in an international type market, but visited a resale shop selling primarily american mall brands at reasonable prices. I thought that with my access to the product, I could do something similar.
 

MrG

Stylish Dinosaur
Joined
May 25, 2008
Messages
12,401
Reaction score
5,654
My uncle is doing this exact type of thing right now, although it's mostly goods other than clothing. From everything I've heard, he's doing well at it, but he's also the type who seems to be able to make just about anything work, at least in the short term.

The biggest challenge, I would think, is finding merchandise to resell. He's not doing his on consignment; he has a stream of inventory that he buys outright.

I don't know how much profit he's turning, but I think $100,000 a year is pretty optimistic, especially for the first few years. From my understanding of small businesses, you're lucky to turn a profit at all when you're just starting out.
 

jgold47

Distinguished Member
Joined
Mar 23, 2008
Messages
1,617
Reaction score
13
yeah - inventory would be a big concern. As I said, I would be able to have access to a number of stores in a variety of markets, but being highly selective it may be hit or miss. Plus I would be paying basically retail prices, then marking it up and my profit would come on the backs of that.
 

MrG

Stylish Dinosaur
Joined
May 25, 2008
Messages
12,401
Reaction score
5,654

yeah - inventory would be a big concern. As I said, I would be able to have access to a number of stores in a variety of markets, but being highly selective it may be hit or miss. Plus I would be paying basically retail prices, then marking it up and my profit would come on the backs of that.


Wait. What? You're going to pay retail and then re-sell at a markup?
 

Thomas

Stylish Dinosaur
Spamminator Moderator
Joined
Jul 25, 2006
Messages
28,098
Reaction score
1,279

Wait. What? You're going to pay retail and then re-sell at a markup?


Yeah, I read that and thought - no way. Unless you're talking retail at Goodwill or some such, and even then it's dicey.

Considering the fixed costs you'd be incurring (rent, utilities, wages, insurance), I'd think it essential that you spend as little as possible on your inventory. Half Price Books might be a good model to consider.
 
Last edited:

sns23

Senior Member
Joined
Jun 28, 2011
Messages
458
Reaction score
15

Yeah, I read that and thought - no way. Unless you're talking retail at Goodwill or some such, and even then it's dicey.


"I have access to a large amount of traditional thrift stores with a good selection of higher end goods at charity thrift prices."

People don't read much anymore.
 

MrG

Stylish Dinosaur
Joined
May 25, 2008
Messages
12,401
Reaction score
5,654

Yeah, I read that and thought - no way. Unless you're talking retail at Goodwill or some such, and even then it's dicey.
Considering the fixed costs you'd be incurring (rent, utilities, wages, insurance), I'd think it essential that you spend as little as possible on your inventory. Half Price Books might be a good model to consider.


Agreed. Inventory has to be incredibly cheap for the model to work.

You are so right., sns23


:laugh:
 

jgold47

Distinguished Member
Joined
Mar 23, 2008
Messages
1,617
Reaction score
13
yeah - as said, I would buying items at your basic thrift prices. In some cases they are fixed to the type of item, in other cases they vary with the brand. some do discount days as well. That said, I think you can take an item out of thrift store, and mark it up at a higher price point. My supposition is that people would be more willing to spend money on a cultivated collection of higher end merch at a 'resale' shop vs going to a thrift store. Not outrageous, but if I could buy say a polo button down for 3-4 bucks and mark it up and sell it for 15 - 20 bucks, I think there may be something there. same with jeans, tops, etc... and thats without touching women's stuff, I haven't fully thought that through yet.
 

curzon

Distinguished Member
Joined
Jul 7, 2011
Messages
1,135
Reaction score
112
Wow. Golly. Gee. Wow.

You have a few issues here. Firstly, the fixed cost of your physical structure, whether owned or rented. Then you have the variable costs, such as utilities and labor - if you're looking for merchandise then someone has to mind the shop. What size is your local market? By keeping it solely a physical shop you've limited yourself to far fewer potential customers. I don't see how this is good.

I think you may better off developing an online business, such as selling here, other forums, or even on ebay. It will help you learn what the market is looking for and how much it's willing to pay. Certainly this will reduce your start up costs and allow you to spend time looking for merchandise. Having a physical structure with little inventory, or filled with items no one wants, is the death knell. You can hide these mistakes by selling online. Perhaps once you gain expertise and develop a viable business model you can branch out and get that shop you want.
 
Last edited:

MrG

Stylish Dinosaur
Joined
May 25, 2008
Messages
12,401
Reaction score
5,654

yeah - as said, I would buying items at your basic thrift prices. In some cases they are fixed to the type of item, in other cases they vary with the brand. some do discount days as well. That said, I think you can take an item out of thrift store, and mark it up at a higher price point. My supposition is that people would be more willing to spend money on a cultivated collection of higher end merch at a 'resale' shop vs going to a thrift store. Not outrageous, but if I could buy say a polo button down for 3-4 bucks and mark it up and sell it for 15 - 20 bucks, I think there may be something there. same with jeans, tops, etc... and thats without touching women's stuff, I haven't fully thought that through yet.


I'm sorry, but this sounds completely outrageous from a business perspective.

First, you don't have a reliable inventory stream. What happens when you've bought up all the merchandise in the area? The supply to the stores you want to use as a supplier is finite, and, for you to make money, you're going to consume merchandise at a pretty good clip. You need high volume to make a profit, and you need a steady stream of product. The places you're buying from, on the other hand, don't necessarily have to turn a profit, and, even if they do, they're much more diverse in terms of selection.

Second, you're vastly overestimating the willingness of people to pay five or six times as much for an item simply for a bit of convenience or air of quality. They may be willing to pay a bit more, but you're talking about an enormous increase in terms of price. In order to maintain a large enough margin for you to be profitable, you'd have to charge more than people are willing to pay for the added convenience.

Third, a very similar model already exists, at least where I live. It's call Plato's Closet, and I believe there are similar businesses, as well. The difference is in the way they acquire inventory, and their way appears to be vastly superior.

I agree with others who have said - this might be something worth doing in an online format, but I just don't see how it's remotely viable in a brick-and-mortar, high-overhead setup.
 
Last edited:

Featured Sponsor

How important is full vs half canvas to you for heavier sport jackets?

  • Definitely full canvas only

    Votes: 55 35.5%
  • Half canvas is fine

    Votes: 60 38.7%
  • Really don't care

    Votes: 17 11.0%
  • Depends on fabric

    Votes: 27 17.4%
  • Depends on price

    Votes: 28 18.1%

Forum statistics

Threads
505,192
Messages
10,579,239
Members
223,905
Latest member
glucotilsugar5
Top