Second hand shop -good idea?

[Agnes.sales]

Hi,

I am about to open second hand shop shortly. Waiting for a loan, and negotiating price at local shopping centre.

I export second hand clothes and toys to European market, and now is time to open my own local shop.

I buy my clothes/toys from friends, car boots, eBay, gumtree...

I know I cannot compete with charities , but have other idea. I want to focus only on kids clothes (cream) and educational toys. And I want to sell items per kilo, not per item! Most charities sells items at 2-5 pounds, and my idea is to sell clothes/toys at 10 pound per kilo. It means, people can choose, whatever they want and then weight items and pay.

What do you think about that?

I also want to buy clothes from people, who will bring bags into my shop. I will pay let's say 4 pounds per kilo.

Can anyone tell me if my ideas are good? I am not British, and don't want to do anything wrong, so waiting for some tips

Also looking for good quality kids clothes supplier (only cream) in the North East.

Thanks a lot for help,

Agnes

 

[superdooper500]

My goodness, you are going to have to sell literally tons and tons of clothes to cover your costs, let alone make a profit! If it were me I would expand the export model you have going on, high street retail is dying a death and will only be a burden on your operation.

 

[businessfunding]

What is your cashflow spreadsheet telling you?

 

[Pap_sak]

Interesting concept - buying and selling in kilo's. But just do not see you getting enough stock quickly enough to cover overheads. Having a shop is like needing to feed a perpetual fire. Each and ever day that shop cost in rent, insurance, staff ect ect. Unless you had a reliable method of getting stock I would think long and hard about opening.

Plus - toys/clothing are not all equal - i am not sure you can purchase/sell in this manner. Works for scrap and books/magazines though!

 

[Agnes.sales]

Thanks guys!

I am only exporting at the moment, and because of increasing demand I need storage anyway. I have lots of contacts in Poland, and I sell quite a lot there.

I focus ONLY on good quality clothes (cream) that's why my clients are coming back for more. Polish market is full of second hand clothes, but I offer only nearly new clothing, not CFC or D2D. People want to be sure, that in my bags they find 100% clothes/toys which they can sell with profit. Polish market is full os sc clothes, so they are looking for something different, and I offer it.

At this point will need storage for my clothes/toys anyway, so thought, that if I rent not only storage, but the place, where people can pop in and buy/sell clothes, would be an good idea.

I can see potential in this business, but don't really know how British will respond to this kind of shop. In Poland we have second hand shops and mostly people buy clothes per kilo. It gives the huge profit, that's why Poland is very popular as market.

In addition, I bought yesterday 30 kilos of clothes for 100 pounds. Will sell them to my client for 270 pounds. It's 170 pounds profit! I sell only per kilo to Poland.

Do you think, that British people will keen to come and sell theirs clothes straight into shop? I thing if they give away clothes for free to charities, they might consider to come to my shop, cos I will pay for theirs stuff.

I don't worry about stock, cos have few good suppliers, but still looking for new ones, so my shop will be always full of clothes.

My idea is very good quality, everything on hangers, ironed, good looking displays changed every 2-3 days, and tea/coffee table for customers plus big screen with kids films on.

Thanks for your tips

Agnes

 

[deniser]

I would bring my children's clothes to you if you were near me, definitely. They are all designer and good as new. At the moment they are in storage and I give them to people as and when I find someone with a child the right age to give them to.

However, the overheads of a shop are huge and I just don't think you could ever buy and sell enough second hand childrenswear stock to cover the costs.

You are much better off continuing as you are.

 

[Agnes.sales]

Thanks a lot deniser! Can you tell me why do you think, that is not very good idea?

What else I should get into consideration? I know the rent, internet, insurance, electricity..

I hope to get a shop for 300-350 pounds/month. I know that will have to add electricity (50-80 pounds a month)!plus internet and insurance (don't know how much for this )

I pass charity shops every day, and there are always lots of people. Unfortunately they don't sell a lot kids clothes. Maybe 1 rail with about 50 items. Is it because British people don't buy second hands baby/kids clothing? In Poland baby clothes are the most popular.

If you have a choice, would you rent only locked storage (which I need badly) with no access for public or at around the same price shop with storage and with access for public and possibly new clients?

Any help much appreciated!

Agnes

 

[Agnes.sales]

Thanks pap_sak but can you tell me more, why I cannot sell/buy in this manner, please. Much appreciate any help!

Will take everything into consideration!

Agnes

 

[Agnes.sales]

Thank you sooperdooper500! But do you think, that second hand shops are not as much popular as years ago? I want to focus only on baby/kids clothes and toys.

Agnes

 

[sebsuma]

You may potentially get a bit of bad press if you are seen as taking business away from charity shops!

 

[Agnes.sales]

You may potentially get a bit of bad press if you are seen as taking business away from charity shops!

Why is that? I have no intention to do that, because I want to offer, what charity shops don't have. They sell only 5-10% of baby/kids clothing and I want to sell ONLY that. No women's/men's/shoes/books etc.

Agnes

 

[superdooper500]

Thanks a lot deniser! Can you tell me why do you think, that is not very good idea?

What else I should get into consideration? I know the rent, internet, insurance, electricity..

I hope to get a shop for 300-350 pounds/month. I know that will have to add electricity (50-80 pounds a month)!plus internet and insurance (don't know how much for this )

I pass charity shops every day, and there are always lots of people. Unfortunately they don't sell a lot kids clothes. Maybe 1 rail with about 50 items. Is it because British people don't buy second hands baby/kids clothing? In Poland baby clothes are the most popular.

If you have a choice, would you rent only locked storage (which I need badly) with no access for public or at around the same price shop with storage and with access for public and possibly new clients?

Any help much appreciated!

Agnes

£300 a month sounds very cheap for shop rent, don't forget business rates on top of that, plus wages. I would be astounded if you could rent a shop worth having, pay rates and bills, and pay just yourself (let alone any staff) a living wage for much less than £3000 a month. Based on what you've told us of your profit margin, you would need to buy, stock and sell 20kg of clothing stock EVERY DAY 6 days a week just to break even.

You have mentioned you would mostly be using the shop for storage, plus some retail, why not get a much cheaper storage solution that is not on the hight street / shopping centre? I'd be pretty confident you could rent a lockup or similar for the sort of money you are talking.

I think you could definitely expand your wholesale / export business 100 fold without ever worrying about opening a high street shop. It just doesn't seem like a logical step to me.

 

[Agnes.sales]

Thanks superdooper

I just thought that if I need storage, it would be good idea to rent a shop with storage, as I would expand my business to local people. Only what worries me is that if I rent storage, no one will be able to come and buy/sell stuff.

In addition, I will still export goods as usually to Poland so the shop won't be my only workplace and I will be still earning money from export. If my shop don't go so we'll cos my clothes/toys won't be so attracted to local people, I can still use it only as a storage. And the price are similar.

I just wanted to know if second hand shop will be good idea and if I would attract people.

Thanks a lot for your opinion.

Agnes

 

[deniser]

I pass charity shops every day, and there are always lots of people. Unfortunately they don't sell a lot kids clothes. Maybe 1 rail with about 50 items. Is it because British people don't buy second hands baby/kids clothing? In Poland baby clothes are the most popular.

There is a big change in the way people are shopping.

10-15 years ago people used to spend money on good quality children's clothes. That clothing was made to last and could be handed down, resold and worn again. People used to follow brands and wait with excitement when the new season's clothing came out - but all that has evaporated.

Now people in the UK buy cheap clothing for little money from shops like Primark, ASDA and H&M and the child wears it and it is then thrown away. After a few washes it doesn't look good anymore so isn't suitable for the second hand market. And why buy it second hand when you can buy it new for so little?

If you could get your hands on fashionable labels such as Boden, UGG, Dior you would have a great business but not enough people buy it new for it to be obtainable in quantities for the second hand market.

This is why you see so little children's clothing in charity shops here. You have two problems - the first is the lack of supply - and the second is the demand - there is a demand - but you are competing with new very cheap clothes from Primark etc so there is no reason to buy second hand really.

I think in Poland you don't have the really cheap shops like Primark do you? And everything which is branded is very expensive - much more expensive than here - so there is a demand for something affordable.

I think you are better off doing what you are already doing and selling where the demand is ie. Poland.

 

[Chris Ashdown]

If I was in your shoes I would investigate selling to poland in wholesale and buying mainly wholesale in the uk. Shipping would be far cheaper in bulk and maybe broken down and re distributed once in Poland


A back street unit near the town centre say 100-200 metres away could still intice people in to sell there garments,

We used to have units in the UK that would buy your old woolens and cotton, but they declined with most fabric beiung polyester cotton mix which has no resale value to the mills and so they declined.

Why do you specify Cream goods, is there not a second level market for other colours

I doubt many people would not want to sit and drink Coffee etc in a second hand shop

 

[deniser]

Why do you specify Cream goods, is there not a second level market for other colours

I believe "cream" is the grade rather than the colour ie. nearly new or new, in fashion, from popular brands and without defects.

 

[Agnes.sales]

If I was in your shoes I would investigate selling to poland in wholesale and buying mainly wholesale in the uk. Shipping would be far cheaper in bulk and maybe broken down and re distributed once in Poland


A back street unit near the town centre say 100-200 metres away could still intice people in to sell there garments,

We used to have units in the UK that would buy your old woolens and cotton, but they declined with most fabric beiung polyester cotton mix which has no resale value to the mills and so they declined.

Why do you specify Cream goods, is there not a second level market for other colours

I doubt many people would not want to sit and drink Coffee etc in a second hand shop

Thanks for replay.

CREAM is the grade. Cream means that clothes have to be in excellent condition (no holes, no marks, no fading...) nearly new and new.

Yeah, you might be right about this tea/coffee thing in the UK. In Poland when I visited hundreds of shops 2-3 have a table and the tea/coffee machine. The idea was, that if someone gets drink, will probably spend more time in shop searching, and the possibility of buying something increases.

Agnes

 

[Agnes.sales]

There is a big change in the way people are shopping.

10-15 years ago people used to spend money on good quality children's clothes. That clothing was made to last and could be handed down, resold and worn again. People used to follow brands and wait with excitement when the new season's clothing came out - but all that has evaporated.

Now people in the UK buy cheap clothing for little money from shops like Primark, ASDA and H&M and the child wears it and it is then thrown away. After a few washes it doesn't look good anymore so isn't suitable for the second hand market. And why buy it second hand when you can buy it new for so little?

If you could get your hands on fashionable labels such as Boden, UGG, Dior you would have a great business but not enough people buy it new for it to be obtainable in quantities for the second hand market.

This is why you see so little children's clothing in charity shops here. You have two problems - the first is the lack of supply - and the second is the demand - there is a demand - but you are competing with new very cheap clothes from Primark etc so there is no reason to buy second hand really.

I think in Poland you don't have the really cheap shops like Primark do you? And everything which is branded is very expensive - much more expensive than here - so there is a demand for something affordable.

I think you are better off doing what you are already doing and selling where the demand is ie. Poland.

Thanks!

In Poland we don't have many cheap shops, such as Primark/Matalan or ASDA... Probably this is the reason, why second hands are THAT popular and is still big gap in this market. My clients are asking for Primark, Matalan or George a lot. And when I buy, I try to buy a lot of those plus M&S, NEXT, H&M, Disney, P&P, Mothercare, Adidas and Nike.

I thing, I will postponed opening shop and focus on finding good size storage then.

Thanks a lot for replying, I now know why there are so little baby/kids clothes in shops. And is true, I cannot compete with cheap shops, which sells tops or trousers of 1-2 pounds and there are new.