How To Start A Used Clothing Business

How To Start A Used Clothing Business - Background Info:

The best part about operating a used clothing business is that startup costs are relatively low.

You can easily purchase large, bulk stocks of clothing at online sites, yard sales, thrift stores, established used clothing business locations, and flea markets, and then just sift through those collections to find the items that suit your intended customer base.

Thrift stores and other low cost used clothing business stores are able to keep their prices so low because, well, it's all profit. People donate clothing to thrift stores.

Depending on what you're after, you may be able to encourage this kind of thing with your own used clothing business. It depends on your goal.

If you just want to operate a vintage, fashionably-used clothing business, it may be a little harder to get people to think they're putting their old stuff to a good cause.

A traditional thrift store used clothing business, though, serves a purpose for the local community, offering decent merchandise to those with limited budgets.

The choice is yours of course, as to what kind of used clothing business you'll be running, who your target customer is, etc. Remember, it's your used clothing business and these are your customers.

If you're going for a trendy, fashionable used clothing business,> it goes without saying that you'll want to set up shop in the hip part of town.

Do some research and see if there are any spots available in the parts of town with popular bars or coffee shops, places where a lot of young people hang out (not to stereotype, but most of the people buying cool clothes are from used clothing business shops in their teens or twenties).

To keep a hip used clothing business, an eye on fashion trends and pay attention to what people are wearing, especially what the people who come in to browse are wearing. Some shoppers love to search for bargains and vintage items of clothing, which may be found in a second-hand shop. For individuals who are budget conscious, buying clothing second-hand may be a necessity. During any type of economy, a second-hand clothing business may do well, but it may really thrive during bad economic times.

If you're after a thrift store style used clothing business, you should look into tax breaks and the like.

If you wish, you can also set your used clothing business up online. This is a great way to start your used clothing business if you have limited funds and would rather not look into securing any loans or investors.

To begin your used clothing business, you need only the fashion sense requisite to build up an impressive collection of popular items, and plenty of boxes.

Prices vary, but domain names can be surprisingly cheap. If you'd rather not set up a website though, a used clothing business can do just fine by catering to the fashion-loving eBayers of the world.
A big plus of online business is that your market isn't just the local community, but the entire world. By offering unique and rare clothing through your used clothing business, you can easily build up a strong base of loyal customers.
Again, a used clothing business offering low, low prices on donated clothing serve a purpose to the community, and there might be programs in your city that can help you attain your startup funds.

How To Start A Used Clothing Business - Tasks And Skills Needed:

Business Specific Tasks:

If you are planning to do all the business tasks or hiring or subcontracting tasks, here's a list of tasks that need to be attended to when it comes to the business side of running a used clothing business:

Bookkeeping

General office

Inventory

Computer skills

Industry Specific Tasks:

Same as above if you plan to do everything yourself or get help, here are some of the tasks necessary to operate a used clothing business:

Find used clothing suppliers.

Advertising/Marketing

Online and offline sales.

Clean and repair clothing.

Clothing display.

Size clothing accurately.

How To Start A Used Clothing Business - Approximate Daily Hours Needed:

General Hours of Operation: - When your business is open - If your used clothing business in online, it can be a 24/7 operation. Brick and mortar used clothing outlets generally have retail store hours. Flea markets and other used clothing sale outlets are typically on Fridays, Saturdays and Sundays.

Hours Needed to Prepare - Before Opening and After Hours Activities - Log sales and inventory, clean and repair clothing, photograph clothing for online display, hand/fold clothing for in-store display, marketing and advertising, frequent places to buy used clothing.

Number of Employees Needed To Run This Business:

Minimum Number of Employees -During the Start Up Phase: You can start this business yourself on a full-time basis.

Number of Employees - Once Your Business is Up and Running Successfully:

Website maintenance

Record/Bookkeeping

General office

Customer Service

Clothing bargain-hunters

Live model(s)

Skill Requirements for This Business:

Used and new retail sales

How to find bargain clothing at garage sales, flea markets, etc.

Know fashion trends.

Know popularity of different types of clothing for all ages.

Clothing repair and cleaning.

Licenses:

The used clothing business requires a business license and tax i. d. as with any other commercial business. If you are operating out of your home, check your local zoning ordinances.

Approximate Minimum Start up Cost:

Bare essential: - The average startup cost around $250 for a website and other advertising if you have some used clothing to start with.

If you shop at yard sales and flea markets, the start up costs for merchandise can be as little as a few hundred dollars. Hangers can be purchased at discount stores. A label maker can be used for racks, but a fine tip marker and paper tags work well for pricing.

Minimal exposure - There are several ways to advertise for free including flyer distribution, ad(s) in the newspaper, eBay, Craigslist, etc.

Offer good quality and they will come back. Flea markets and bazaars give the seller a chance to show name brand and knock off items that are "like new" but at a fraction of the cost. Give out business cards that give a telephone number and website address.

Necessary Equipment to Run this Business:

Necessary Start-Up Equipment & Supplies:

Computer

Printer

Cell phone

Website

Payment processor

Detergent

Stain remover

Tags for pricing

Hangers

Vehicle

Supplementary Equipment: - Equipment or helpful products that you can acquire to once your business is off and running:

Digital camera

Laptop

Shipping/packaging materials

Digital postal scale (for shipping)

Sewing machine for repairs

Dry cleaning supplies (such as for the dryer)

Price gun

Warehouse or other storage unit

Van

Monthly Expenses To Consider:

Wages
Phone/cell phone
Internet access
Permits
Advertising/Marketing
Electricity
Water
Used clothing
Warehouse or other storage rental

Special Requirements and Considerations For This Business:

Find out all you can about the trends in the industry. Know your competition, in particular, their strengths and weaknesses. This will help you identify your competitive advantage. In other words, this will help you figure out what you can give your customers that they're not getting from the other businesses. And keep from emulating the competition's strategy. Instead, make the most of your own advantage points.
You will find and repair clothing items that are fit for resale. If you have sewing skills, mending torn hems or ripped sleeves won't take long at all. Your best finds will come from yard sales and thrift stores. Name brand pieces will sell for more than lesser known brands, but all will sell and bring a profit to you.
Keep an ongoing inventory of what you have so that you know what sizes to look for when you shop for new merchandise. Launder all clothing before hanging it up for final sale. If special washing instructions are needed, include them in the shipment with the garments.
Shipping clothing requires appropriate boxes. Buy boxes, tissue paper, and other packing essentials in bulk to get the best deal. Be sure to figure in the cost of shipping when deciding on the final cost of each item you want to sell. NOTE: most shipping boxes and other supplies are available from usps.com for free.
When orders are placed, include coupons for discounts on future orders. If someone orders a delicate fabric, include a trial size box of cleaning cloths for stain removal or a box of detergent. Orders over a certain amount can receive free items like garment bags, small storage items, or lint brushes. All customers should get detailed washing and care instructions.
Ask hospitals and social services departments if you can hang advertisements for your used clothing. This would be helpful for mothers that don't have the money to buy high end quality clothing for baby off the rack. People with limited income can also dress well with your apparel.
Carry a wide selection of clothing which sells well used. For example, children outgrow clothing fast. Some parents may be in the market for second-hand clothing. Maternity clothing is also a good item to carry. Since women only wear the clothes for a short time, they may want to look for alternatives to buying new clothes. Designer items may also be good sellers since their price tag is huge when new. Vintage clothing, which is hard to find elsewhere, may be a specialty item that sells well in a used clothing shop.
Look at the condition of the clothing to determine pricing. If the clothing looks like new, it may be able to be priced at a higher rate than well worn merchandise. Also consider the type and style of clothing for pricing ideas. For example, if the used clothing is a designer name, you may be able to price it higher than other items.
An owner of a used clothing retail business in a different city may be more than happy to give you a few tips, after they realize you reside far away from them and won't be stealing their local customers. In that case, the business owner may be more than happy to discuss the industry with you. In my experience, you may have to call ten business owners in order to find one who is willing to share his wisdom with you.

Pros And Cons of Opening A Used Clothing Business:

The Pros of Running a Used Clothing Business:

It can be very lucrative.

It is a good business for a slow economy.

It offers several niches such as vintage, used wedding and children's' clothing.

Sales are relatively simple to make.

Meet a lot of people.

The Cons of Running a Used Clothing Business:

You may have to do a lot of mending and other sewing repairs.

A lot of laundering/cleaning/stain removal

Pricing items can be a chore

Good used clothing can be hard to find in bulk at a good price.

Type of Customers You Need to Attract:

The types of customers who shop for used clothing are those who love clothes, families, and bargain-hunters. This is why you will find the bulk of your customers online (such as eBay) as well as at flea markets or other venues where bargain-hunters shop.

Used Clothing Business Resources:

Industry-Specific Websites:

Best Used Clothing

Plato's Closet

Trade Key

Courses:

eBay Used Clothing Guide

Equipment and Supplies:

Reuse Hangers

Used Clothing Wholesalers

Best Used Clothing

Used Clothing Wholesale

Used Bulk Clothing

Associations:

ASBCI. Association of Suppliers to the British Clothing Industry

The National Retail Federation

Books:

MONEY For Your Used Clothing [Paperback]

Amazon Listings

Other:

How to Buy Used Designer Clothes

Celebrity Closet Raiders

Businesses To Related to a Used Clothing Business:

Fabric Shop
Tailor Service
Work Uniforms
Carts and Kiosks
Honor System Vending Boxes
Seamstress