Before giving store profits to anyone for any reason (especially to list your website in their 'directory'), check here first for free alternatives. Why?

To over-simplify, website owners have learned to attract visitors by providing free services/information/benefits. There's free long-distance phone service, free advertising, websites, web hosting, free forms, contracts, invoices, certificates, very (cheap) new computers... - a lot of the things for running your shop - for free (or cheap).

This page is a developing resource of all things free that consignment/resale/thrift shop owners use to grow their businesses and bottom-line profits.

We Have Savings in Store for You!

Advertising and Promotion

Free Internet Advertising

Free Gift Certificates

Free Web Site

Mailing Lists

Sample Coupons

Consignment Agreement

Credit Card Processing

Merchant Accounts

PayPal

Discounting Aged Inventory

Sample Discount Schedule

Labeling Discounted Items

Automating Aged Discounts

Employee Management

Legal Requirements

Advertising and Promotion

Free Internet Advertising

Free Gift Certificate Sample

Gift certificates are written documents which entitle the holder to redeem them for purchasing merchandise. Stores often give them for sales incentives, employee rewards, contest awards and for birthdays, weddings, thank you's and holidays.

The certificates may be for specific store items, items within an inventory category or they may be redeemable store-wide. The application of certificates is as great as the imagination.

Please visit Gift Certificates on our website to download, edit and print gift certificates.

Free Web Sites and Free Web Hosting

Until shop profits warrant the added expense of a web site and web hosting (annual renting of a computer where your site resides for public access), a sufficient start is a free website and free web hosting. Really all that needs to be accomplished on the site is letting people know who you are, where you are and what you do. It's basically a form of 'business card'.

Many businesses offer free sites and hosting. The honest providers do so because they are paid by their advertisers for displaying ad's along with your web page, and they hope that you will find the free services limited and will upgrade to paying status.

Paying $10-$30 per month for web hosting is never necessary. Email us before taking that leap, (or call us toll-free 800-775-6522). We offer a one-page website and one year of hosting for $99 per year which includes a free listing in the Consignment Shops n Stores Directory. (Search Google for 'consignment shops', add your state's name, and you'll see bestconsignmentshopsoftware.com's Directory at the top of the list.)

Using Yahoo! GeoCities Free or Microsoft Office Live won't escape the free ads on your site and the hosting limits, but they will more than suffice.

Each provide web-site-design tools or wizards, a free domain name (web address, URL), e-mail accounts, limited storage and data transfer, visitor traffic analysis and reports. MSN provides e-mail support. Yahoo doesn't. MSN is a bit more generous with disk space, bandwidth (amount of data transferred per month from your site to your visitors) and email accounts. MSN would be our first choice.

About Domain Names

The web-site URL from Yahoo! will look like this: geocities.com/your-Yahoo!-ID.

MSN says you will be able to chose and register your own domain name (like www.yourbusinessname.com) if the name is not already taken. This looks more business-like that the Geocities URL.

Signing Up

I was a bit taken back when, in signing up with MSN, I was asked for credit-card information. Why if it's a free service? For good reasons: Requiring a valid credit card prevents scammers from abusing the system (one site per card #) and gives some assurance that reputable people are enlisting. No charge to the credit card is made.

Here's how our Free Consignment Resources site turned out. Admittedly, even after having designed over 250 web sites myself, it took some time to learn MSN's procedures.

Mailing Lists - Don't Do It!

It is easy to start a mailing list. The questions are, "Do you really want this expense?" and if so, "To whom should your mailings be sent?"

In an article for Friends & Foundations of California Libraries Kate Holmes said, "It is not expensive, and is often the most economical advertising you can do. Consider, the next time you review your advertising budget, giving more money to your direct-mail efforts while deducting it from less-responsive avenues."

Nothing could be further from the truth. In that article Holmes suggests buying a bulk mailing list, for one. Such lists are costly and invariably include several bad addresses (wasting money on undeliverable mail). True, the provider of the list might throw in an extra number of contacts above the number of contacts you purchased (to compensate for this) but you'll still experience some waste of envelopes, postage, etc.

There aren't many forms of advertising that have a lower response rate than mailing to people on bulk-mail lists. The average positive response to junk mail (Sorry, most recipients will more likely be annoyed by the intrusion.) is 1-3%. Proof? Ninety-eight percent don't visit your store and of that percentage, several will not buy anything. (Your mileage may vary.)

Specifically, the cost of the list, postage, newsletter preparation, envelopes, someone's time, etc. will put the cost of mailing 1000 newsletters close to $500.

Sending post cards will lower the cost a bit but also possibly lower your store's public image if the post card is not 'impressive'. How impressive can a post card be if printed on a home-style laser printer with a little "clip art" (as Holmes suggests).

She also estimates 8-9 mailings per year - lots of printing, lots of waste. (Ever try printing thick stock with a laser printer? Printer jams. Smears. Ink cartridge runs out of ink and several post cards are wasted - worse yet if the cards have postage printed on them. On second thought, post cards might be more expensive than the envelopes and extra postage for 'full-page ads' on 8.5" x 11" paper. It could be that having things printed professionally won't cost much more and considering your time and aggravation, less costly in the long run.

Effective advertising requires repetition. Getting a person's attention only once per month with a newsletter is far from frequent and most stores wouldn't want to spend that much every month ineffectively sending a newsletter to complete strangers.

Most stores have limited advertising budgets. Contrary to Holmes' opinion, rather than spend $6,000/year mailing the same people over and over again, that money might better be spent reaching a much larger audience much more frequently on billboards, Yellow-Page ads, small Want Ads for more expensive items or groups of items, store signage, brochures and business cards scattered throughout town, etc.

If you're intent upon sending mailings, you're going to want a 'targeted audience of qualified buyers'. Who are they? Visitors to your store Why are 'qualified'? They've shown an interest in your business, presumably have a need for what you sell and have the ability to purchase.

To get them to sign up, in plain view, display an attractive guest book or nicely-prepared sign-up sheets or professionally-prepared 'invitation' inviting sign ups. Make the appearance of these equal to or greater than the store's image. It's not advisable to have a messy spiral-bound school notebook.

Be selective when choosing mailing recipients. Holmes suggests getting recipients quickly by offering some incentive (a certificate, an inventory item). Not only is this an added expense (albeit a small one), you want a list of people who truly want your newsletter. At an annual cost of something like $5/year per recipient, you don't want just anyone and everyone who signed up just to get something for free.

How to Create and Send Mailers

If you have a computer and a program similar to Microsoft Office, each recipient's contact information can be stored in the Microsoft Access database or an Excel spreadsheet. The newsletter can be prepared in Microsoft Word as a 'form letter' which includes 'variable fields'. For example, if you have 100 recipients, you can prepare a letter with Dear [first name],.

One letter can then be printed for each person in the database. Each person's letter will be personalized with a greeting of Dear + First Name, or Dear Ann, Dear David, etc. Word can also be used to print envelopes for each recipient. (Print envelopes before attaching postage. Like post cards, envelopes are thicker than sheets of paper and don't always feed successfully through laser printers. It's actually better to print sheets of address labels using Word to avoid attempting to print many envelopes.)

The data for recipients is permanently saved in the Access database so it is only necessary to add new recipients to the database since the last mailing. It is vital to have several backups of the data in several different locations. Once lost, they must all be reentered again.

The newsletters are also stored. Microsoft Office Publisher can be used to design several types of brochures. The stored forms that you prepare can be reopened, saved as a new form (brochure), edited to update its content and printed out. Brochures might make more sense because they can be printed without integrating the print procedure with the database. In other words, brochures can be designed without personalizing them.

Mailing newsletters is old school. They came about long ago when there were few other alternatives and postage was 3c. Today there are alternatives like email, forums, websites, search engines, blogs... most of which are free! Buy a mailing list of 1000 people? That's spam, so if you don't mind spam (and no doubt you do mind) email lists contain thousands of recipients and cost far less. (We are recommending spam email and are totally opposed to it and junk snail mail.)

Sample Store Coupons

'Coupons' are often distributed by business owners to encourage new or repeat visits. They may be given as awards or rewards, exchanged for something of value (bartered) or sold as a gift certificates.

Regardless of the reasons for distribution, your store coupons should make a good impression. They are representative of your shop and will sometimes be the introduction of your business.

Click here for sample store coupons. They are in HTML form and may be edited (in MSWord) and printed (in color). Please email us if you have ideas you would like to share.

Consignment Agreement

Although a consignment agreement is not a legal requirement, it's a good idea to execute one for each consignor to spell out terms, define the relationship, avoid misunderstandings and have a reference to policies 'in writing' recognized and accepted by the consignor's signature. Here is a sample Consignment Agreement.

Credit Card Processing

Merchant Accounts

Until recently, the process to accept credit-card payments was complicated and confusing and required involving several people/companies -

         Establish a Merchant Account. What's wrong with merchant accounts?

         Enlist a credit-card processing company (a 'gateway') for $20/month or more to process credit-cards.

         Buy a point of sale terminal (card swiper) and maybe a 'pin pad' for manual entry.

         Have a checking account to which funds are transferred from the merchant account.

PayPal

While a terminal and checking account are still needed, with eBay's purchase of a company called PayPal, there's now a much easier and perhaps less costly way of accepting credit-card payment, with a few added bonuses -

         No software integration with your PC required

         No merchant account or credit-card processor

         No annual commitment or fees

         No startup or cancellation fees

         No lengthy credit application

         No gimmicks like bait/switch fees, broken agreements

         One source for records, easy reports and administration

         Owned by reputable eBay (financial stability, no games)

         Create unique log-ins for your employees

         Email receipt to customers

         Excellent fraud protection

         Optionally accept phone, fax, mail payments (monthly fee)

         Process transactions for customers without PayPal accounts

         Reasonable processing fees (2.9% + $0.30 per transaction)

         Shipping and tax provisions

         Shipping to non-billing addresses

         Generate custom packing slips

         Visa, American Express, MasterCard and Discover

PayPal's fees are reasonable - about the same in total as paying a merchant banker and processor - 2.9% + $0.30 per transaction, or less. (Merchant bankers promote processing fees in the range of 2-3%, but very few merchants qualify for the lowest fees, and bankers have plenty of hidden fees buried in sub-documents, like up to $50 per chargeback.) Our bank says we are paying 2+% but adding in all fees not included in that rate, our actual credit-card cost is 4.5%, so, yes, there's a fair amount of deception in dealing with traditional merchant accounts, but perhaps not with PayPal/eBay.

eBay has a reputation to protect, so they are much less likely to exploit, and because of their tremendous financial strength and early foothold in online processing, it's unlikely that PayPal will be sold. Merchant banks are routinely sold and resold and each new owner does not feel obligated to uphold the agreements of the previous owner.

Combining a merchant account and credit-card processing with PayPal simplifies matters - fewer companies to deal with, concise, consolidated records from one source, and online access to transactions and statements (not available with many merchant banks).

Discounting Aged Inventory

The whole concept of 'consignment' (thrift, resale) is purchasing at reduced prices. As an extension of that, consignment buyers have come to expect that as inventory in a consignment store remains unsold, it will be marked down to attract more buying interest.

Consignment store owners discount unsold items to keep inventory moving. It is important to have a flow of new items so as to encourage return visits of both buyers and sellers. Buyers like to see variety and sellers like to know that the shop is managed in a way that converts their unwanted items (quickly) into cash.

Use Discounting to Your Advantage

At first blush it might seem that the concept of discounting is disadvantageous to the store owner because buyers would naturally sit back and wait for the deepest discount before purchasing an item. This is one reason why it is important to only accept items that will sell quickly, even at the full original cost, so waiting for discounts might more often go against procrastinators and opportunists - "Wait too long and the item won't be here when you return." Good salesmanship will make this suggestion in the spirit of 'telling it like it is' rather than appear to be using a situation (the practice of discounting) as a manipulative sales tactic.

The #1 rule in sales is ABC, Always Be Closing. Encourage the buyer to buy at the point of peak interest. Help the buyer find reasons to buy, NOW. Your store might adopt the use of a Waiting List to help in this regard. Offer to notify interested procrastinators on the day the item of interest is to be discounted. Notify them a 2-3 day ahead of time - not too soon - they'll forget; not too late - they might not be able to come 'right away' - 2-3 days. THEN when someone says they'll wait for a discount, pull out your Waiting List and say (if it's true) "Someone is on the waiting list for this item. We can only sell it to someone else at the current price." If no one is on the waiting list: "You can reserve the right to purchase this item for the discount on the day it is discounted only if you pay the discounted amount now and allow us to leave the item for sale at its current amount until the discount date."

Sample Discount Schedule

A 'Discount Schedule' sets the number of days an item will remain for sale at a stipulated amount before being discounted and it sets the corresponding percent or dollar amounts of the discounts. The Discount Schedule is 'store policy' which is often included in the Consignment Agreement.

This is an example of a correct discount schedule for an item entered into inventory on January 1st for $100. (The number of days and discount amounts can vary.)

After 10 days, on January 11th, discount original $100 by  5% to $95 After 20 days, on January 21st, discount original $100 by 10% to $90 After 30 days, on January 31st, discount original $100 by 15% to $85 After 40 days, on February 9th, discount original $100 by 20% to $80 After 90 days, the item will auto-transfer to the House Account

Note that the discount percentage is applied to the original price and the number of days are counted from the 'In Date' or date the item was added to inventory.

Labeling Discounted Items

The disadvantage of discounting to the store owner is the extra accounting and price labeling that must be done. The 'age' of each item (the length of time it has been in inventory) must be tracked and when 'aged' by a certain number of days, the item's price tag must be adjusted to reflect the discount. This means one of two things: printing or writing new price tags for discounted items or printing or writing one price tag with the discount dates and discount amounts on one tag.

Some stores use colored price tags to identify items that have been discounted. Different colors denote the amount of each discount so everyone can readily see at a glance how much each item has been discounted. A red tag might indicate that an item has been marked down 10%, a green tag - 20%, and so on. This method is advantageous to the buyer making it easy to determine which items are discounted most, but that convenience must be weighed against the cost of multiple tags per item.

The extra effort and extra cost of discounting are goods reason to consider longer intervals of time between discounts. Discounting every 10 days creates more expense, so is that worth the intent of frequent discounting which is to encourage shoppers to return more frequently?

Automating Aged Discounts

Upper-tier consignment software programs include the ability to manually or automatically discount aged inventory. Good programs will include both and give the user the option to select one mode or the other.

Either way, the Discount Schedule is entered into the program during Program Setup and will apply to all items discounted (unless values are changed for individual items during manual discounting). The Discount Schedule may be adjusted in Program Setup at any time but will only apply to discounts made after the adjustment. Items discounted prior to the adjustment may be adjusted individually.

If discounting is done manually, it is necessary to frequently (as in daily) ask the software program to present a list of items which qualify (have sat on the shelf long enough) for a discount. Some store operators like manual discounting because it gives them control over each item. There may be extenuating circumstances which preclude discounting an item or changing the amount or date of the discount - special considerations, exceptions to rules, etc.

If discounting is done automatically, the software begins each day by identifying and discounting eligible items. It presents a list of items that have been discounted. Any item's discount may be changed or canceled. New price tags may be printed quickly and easily for any or all discounted items.

Employee Management

You've hired the best people you can find to do the job, but if they quickly become frustrated and leave, you're back at square one. Stable employees can be one of your business' strongest assets, and to do that, you'll need to keep your employees loyal, involved and committed to the success of your business.

Here are some tips for making your workplace one that workers won't want to leave.

Pay Competitive Wages

Interestingly, salary is not the most critical reason someone stays on a job. Still, it is important, and people want to know that their employer respects them enough to pay them a fair wage. To make sure your salary structure is competitive, check around with other businesses in your field; look in your local help-wanted section; or talk with people at your local Chamber of Commerce or trade association. Better yet, pay your people a little bit above average, because they'll feel like you're treating them well.

Offer Reasonable Benefits

Begin with the most basic and common -- paid holidays and paid vacation time. A company medical plan should also be part of your benefits package. Other common benefits include: retirement plans; paid funeral leave; paid jury duty; paid sick leave; life insurance; flex time; educational assistance; short- and long-term disability; dental care; counseling and support programs; family benefits; paid maternity leave; and paid personal leave.

Conduct Regular Evaluations

Your employees need to know how they're performing on the job. Base evaluations on results...not on how the job is done. Use these sessions for three things -- to praise, to help, and to listen. Praise your employees for doing their job well. Help employees in areas of their job where they may be having difficulty. Listen to employees by giving them a chance to express their ideas.

Recognize Achievement Promptly

If one of your workers does something special, be sure that you notice. And do it promptly. For example, send out an email alerting everyone in your company to a heads-up decision by your receptionist. This tells your employees that you appreciate their effort.

Delegate

Be careful not to micro manage your employees. Give your employees responsibility and let them do their job. If you're constantly looking over peoples' shoulders, then you're going to have frustrated employees. Be willing to give up some control in order to get people involved in your business. And be sure to match what you delegate to each employee's skills, talents and experience.

Communicate with Your Employees

Hold regular meetings where you tell your employees about your company's strategy and future direction. Use these meetings to applaud your company's triumphs and recognize outstanding achievements by employees. Make time to listen to employee concerns. Keep an open door policy so that your employees know you're willing to listen. Build a bond between you and your employees by keeping everyone informed.

Make Advancement Possible

No one wants to be stuck in a dead-end job. There should always be the possibility of advancement -- whether in the form of more responsibility, a better job title, greater independence, etc. -- even for the smallest firms. Otherwise, your best employees will begin to look for these opportunities elsewhere.

Respect Your Employees' Opinions

Be open to suggestions. Give employees opportunities to develop self-reliance and exercise their own judgment. Don't just put out a "suggestion box." Seek out employees' advice.

Share Rewards

If you want your employees to feel like they're a part of your company, they've got to feel like they have a stake in your success. People don't want to excel just to enrich the boss. Give employees a stake in the outcome of your business, and you'll find that they're more willing to go that extra step for you.

Celebrate Success

Did you just land your biggest account? Did you open a new office? Did you record some other success? Have a party! Let everyone -- from the shipping clerk to the VP -- know how vital they are to your winning team. Make your business a fun place to be.

Legal Requirements

The legal requirements for starting a business vary from city to city and from state to state. Here is a checklist of the most common small-business requirements from the U.S. Small Business Administration's Small Business Startup Kit: The Red Tape

Business License

If the business is located within an incorporated city limits, a license must be obtained from the city; if outside the city limits, then from the county.

Certificate of Occupancy

If you are planning to occupy a new or used building for a new business, you may have to apply for a Certificate of Occupancy from the city or county zoning department.

Fictitious Business Name (DBA, Doing Business As)

A business that uses a name other than the owner's must register the fictitious name with the County Clerk's Office as required by the Trade Name Registration Act. This does not apply to corporations doing business under their corporate name or to those practicing any profession under a partnership name.

Sales Tax License

Generally, a state sales tax permit is required if goods or taxable services are sold within a state or goods or taxable services are purchased for use in the state from vendors that do not have sales or use tax permits. A sales tax permit can be obtained from your state's Comptroller's Office.

A word of caution: If you are buying an existing business, the inventory of an existing business, or the name and goodwill of an existing business, you can avoid also buying an unexpected state tax bill by getting a 'Certificate of No Tax Due' for the business from the Comptroller.

Check with your city, county and state government offices to find out specifically what you will need to do or apply for.