Here’s a business that thrives in bad economies. It’s re-sale with a twist.
Rags Consignments is not your mother’s thrift shop. This high-end resale shop in Boulder Colorado was started by Margaret Miner in 1995.
Back then, she had only $6500, no business background, and a book on How to Open a Consignment Store. But it was her uncompromising and unique vision that drove the business to what it is today.
What makes her consignment different is her selectivity. She specializes in the re-sale of in-style designer handbags, accessories and high end clothes. In look and feel, Rags Consignments is a modern, hip and trendy consignment store. Only the best items make the cut. Miner gets 60 percent of the sale. The client gets 40%. And the shopper gets a great deal on items they might not otherwise buy.
Charities also get a boost. On the first Friday of every month a percentage of all sales go to local charitable causes.
Miner calls the business a recession-proof industry and one that only grows during slow economic times. On her website iloverags.com, visitors will find a list of unacceptable and acceptable labels that she will take in for re-sale.
The acceptable labels include names like Armani, Gucci and Jimmy Choo.
In addition to carefully monitoring the overall quality of her store’s second-hand inventory, Miner has also taken steps to improve the process of consignment. If you’ve ever spent time trying to sell old clothes to thrift stores, you know it can sometimes be an all-day affair, and it’s often not worth the hassle. As Miner recently explained to 8z, the store has instituted a 30 Items Per Person Per Day policy to ensure that “one consignor with three large bags” doesn’t hold up the line for hours.
Rags Consignments puts out 250 newly consigned items everyday, and completely turns over the store’s inventory every four weeks! Miner says her shoppers range from teens to seniors and come from all income brackets. Altogether, the store pulls in annual sales of around $1.3 million. Not bad for only one location!
Margaret Miner exemplifies one of our Axioms For Entrepreneurs: Think Niche Within Niche.
A trendy, high end re-sale shop.
Now Why Didn’t I Think of That?!?