Consignment Store Idea

This is an idea for a new kind of consignment store. Alternately, it could be a natural extension for existing consignment stores. The difference is that, unlike a normal consignment store, where the need for capital is limited, you will need some money to use this idea.

How This Consignment Store Idea Works

This new type of consignment store lets people make money using their knowledge. Some people know the value of antiques, others know the value of bicycles or exercise equipment. As the operator of this store, you know the value of capital and a good business location.

If a "member" of your store "club" sees a couch for $30 at a rummage sale and knows that it could sell for $180, he comes to you or calls you to get the $30, then you sell the couch in your store for whatever you can get, and split the profits with the member who found the couch.

Why wouldn't the member just buy the couch and put it in your store for sale, and keep more profit for himself? Two reasons. First, in this arrangement, he doesn't have to take the couch back if it doesn't sell. Second, if he has $600 worth of "finds" in your store, he didn't have to put up a penny of his own money. You provide the money for him to make money.

Of course, you have to find a way to trust the "members' in their judgment of value. This is accomplished in two ways. First, you use your own knowledge of value to the extent possible. You get details before forwarding the money for the purchase.

Second, all members start with either collateral, so you know they return with that antique you gave them the money for, or they start with small deals and as their judgment and honesty is proved by experience, they are authorized for bigger deals.

Why?

You make money when you have an army of "members" out there finding you great items to profit from. What do they get? Why wouldn't they just buy and sell these things by themselves? Three reasons.

1. They don't have a place to sell things. You provide that, and get more for the things than they could sell them for in a garage sale.

2. They don't have to risk any money to make money. You put up the money, and take the risk that something won't sell. You have the money, and they may not have it.

3. It's a fun way to make money. The member gets to wander rummage sales and classified ads, knowing that when they see a great deal, they have the money to buy it and the place to sell it. they might even make a living without ever risking a penny on this new business.

I used to have friends that knew car values but never had the money to buy a great car deal. I often put up the money for half the profits. The formula was: Their knowledge and time plus my money equals profits for both of us. I am just broadening the concept with this new idea for a consignment store.