long-time friend, but we can help make it less complicated.  The key to closing down with the least amount of stress is allowing enough time to do everything you have to do and to do it all with professionalism. Most of us know when the time to go has come.  Don’t wait until you are faced with a deadline.  Give yourself some time to do it right.

Time, time, time, is on your side. Yes it is!

One of these days when you sign that lease you will most likely feel as though this might be the last time you sign on the dotted line. If you are thinking about selling your shop, a year to do so is the perfect situation. Nothing happens over night and the more time you have, the better.  Selling the shop on your own or employing help is your decision. If you decide to liquidate and move on, you should give yourself at least 6 months.

start-up companies welcome

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To sell or not to sell?  That is the question.

Your first hurdle is to decide if you should sell or liquidate. As already said, if you decide to sell, give yourself a lot of time. Unfortunately, selling a consignment shops is very hard to do. Of course, there are exceptions and we hope yours is one of those. However, if you are not a high grossing store or lucky enough to have a buyer right away, liquidating is not a terrible way to go. Matter-of-fact, if you liquidate, you can keep your shop’s name should you want to reopen one day. You never know!  When you sell, most buyers will require inclusion of your shop’s name in the purchase to keep the business from slowing down or from starting over.

Going once, twice, SOLD to the highest bidder!

If you sell, you pretty much just have to trade cash for keys and go home. If you are willing to hang around for a while to help the new owner, do everyone a favor and take an hourly wage. As a paid employee, you will be reminded that you need to do things as the new owner wants them, keeping you from being the know-it-all ex-owner.  Being paid will also keep you from feeling as though you are being taken advantage of.  Your expertise will be in exchange for a wage, leaving no one feeling obligated. When you feel it is time to go, you go.  No hard feelings.

Take the money and run!

Liquidating your shop does not have to be a nightmare. Follow a little advice and it can be quite pleasant.

1- Give yourself at least 6 months.  You need the first three to get your customers and consignors ready for the idea that the end is coming.  Have a date and stick to it.  This is important because you will have warned all your customers two consignment seasons in advance.  Try to do this before the Fall Spring season.

2- Now that your customers have been warned for three months, an entire selling season for instance, no one is surprised and they are ready for the new rules that accompany your closing. With your next consignment period, add to your contract (if not already on there), “all consignments requiring to be returned to consignor should be picked up by such-and-such a date. All accounts will be settled and paid as of such-and-such a date.  Any merchandise remaining will become the property of My STORE and will be sold off and/or donated. There will not be any extensions or exceptions.”  Please make sure you verbally make your consignors aware of this statement. Explain to them that you want to close the doors with only your pocketbook in hand, no leftover inventory and no consignors to pay.

3- Do not post your closing date in your store.  You don’t want to scare your customers away.  Treat every day like business as usual. Continue to accept consignments.  You always need fresh inventory.  Explain to your consignor the deadline date and let them decide if they want to leave their items or not.  Post your closing (or sale schedule) one or two weeks before your deadline pick-up date.

4- Start boxing all miscellaneous items for sale.  Box hangers in 50’s and 100’s, sealing box with contents description and price on the outside.  Box display items and decorations for sale.  Anything that you don’t want to take with you, box and price it for sale.

5- Any merchandise you have in storage, get it ready to fill in the empty spaces as things start selling. It doesn’t matter any more if they are out of season.  Again, this is why January and August are the best months for the last sale. Most likely, what would be in storage would be the items ready for the next season. 

6- Two weeks before consignor deadline date, send out a postcard or flier announcing your closing. Include on your mailer your sale schedule. For instance; week 1, buy 1 get 1 free; week 2, 50% off everything; week 3, 75% off everything; week 4, everything $1. You don’t want to be stuck with any inventory. All the good stuff will sell and only the unwanteds will be left.  Large ticket items may be excluded from these sales, but best to remove them from the shop. Keep it simple.

7- Work all night if you must to calculate all remaining accounts and send out every last dime you owe consignors on the night of your deadline.  Start your first day of the sale, your closing month, with only inventory that belongs to you. All sales should be your profit. This will help cover any miscellaneous fees, rent or whatever debt you might have outstanding.  Should you be a bit short, this month of sales will be a big help.

8- Tag all fixtures with a sale price. Add to the tag, “this item may not be removed from store until date X.”  Don’t forget to tag the cash register.  You can take payment for fixtures, but make sure you have a record of the sale and mark them sold.

9- Go ahead and put “Going out of Business” signs in your window.

10- As you sell your merchandise down, keep moving everything up front and close together.  It is best not to look sparse and to continue to look clean and orderly. Continue to make your window look inviting.

11- As you get close to the last day, invite another shop owner or someone interested in taking your leftovers, to help you clear out.  There will be plenty of miscellaneous items they will appreciate taking off your hands.

12. Don’t forget the camera! You will need lots of pictures to remember the wonderful times, the great customers and that beautiful store you built from the bottom up.

I hope this helps you close down with not so much worry. It really doesn’t have to be stressful if you put some organization in to the closing. Sit down and plan it out.  If you have any ideas that we should add, let us know. The idea is to help our fellow shop owner do the right thing, at the right time, with the right amount of information.

Good luck to you! 

Consignment Shops, Resale Shops, Thrift Shops & Antique Shops