Furniture consignment is a simple way to sell your used furniture through a third party. You deliver your items to a consignment store, and they sell them on your behalf, taking a percentage of the sale price. This service can save you time and effort, and it’s an eco-friendly choice. In this guide, we’ll explain “how does furniture consignment work”, what you need to know to get started, and the benefits you can enjoy.
Key Takeaways
Furniture consignment involves selling secondhand furniture through a store that displays and markets the items, taking a commission (usually around 40%) from the sale price.
A consignment agreement outlines the terms, including pricing, commission rates, and the consignment period, which typically lasts about 90 days, with options for extending, adjusting prices, or retrieving unsold items.
Successfully selling furniture on consignment requires preparing items in good condition, understanding market value, choosing reputable consignment stores, and being aware of potential pitfalls such as overpricing and misinterpreting consignment terms.
Introduction
Furniture consignment refers to the art of selling your secondhand home furnishings through a consignment store—a retail haven for pre-loved treasures. This arrangement is quite straightforward: you provide the store with your furniture, they sell it on your behalf, and once it’s sold, they take a percentage of the sale price as a fee, commonly around 40%. But here’s the clincher: the consignment store does all the heavy lifting, from marketing to finalizing the sale.
Opting for furniture consignment can be a game-changer for those looking for a hassle-free way to sell furniture. It saves you time, energy, and the nitty-gritty details involved in direct sales. Moreover, it’s an eco-friendly choice, giving your furniture a chance to be reused and repurposed instead of ending up in a landfill.
Understanding Furniture Consignment
At its core, furniture consignment is a symbiotic relationship between you (the consignor) and the consignment furniture store (the consignee). As the consignor, you retain ownership of your furniture until it’s sold. The consignment store, acting as an intermediary, displays your items and sells them on your behalf. Once your furniture items sell, you and the store share the proceeds according to a previously agreed-upon percentage.
Consignment’s allure lies in its simplicity and convenience. You bring your unwanted furniture to the properly managed consignment shop, where it’s evaluated and priced. If it doesn’t sell immediately, it may be discounted or returned to you, but more often than not, the goal is to find it a new home. This system is a win-win: your home furniture finds a new life, you earn money from your used furniture, and the consignment store generates revenue.
This eco-friendly and financially savvy solution keeps furniture in constant circulation in the realm of home décor.
The Role of Consignment Shops
Consignment shops, also known as furniture consignment stores, orchestrate the sale of your furniture like maestros. Upon arrival, your items are appraised and inspected to ensure they meet the store’s standards, typically free of major damage and in gently used condition. These stores take on the responsibility of marketing, displaying, and ultimately selling your furniture, handling every aspect of the sales process with finesse.
In exchange for this service, consignment stores take a cut from the furniture’s selling price. The percentage varies, but 40% is a common figure you’ll encounter. This commission is the store’s revenue, their reward for successfully finding a buyer for your consignment furniture. It’s a strategic partnership where the consignment furniture stores provide the platform and expertise to turn your furniture into cash while offering buyers the convenience of shopping for quality pre-owned pieces.
How Consignment Agreements Work
Initiating your consignment journey necessitates the signing of a legal document, the consignment agreement. This contract is the foundation of your relationship with the consignment shop, detailing crucial terms such as the price, payment schedules, and the period during which the items will be on sale. Commission rates are pivotal and typically range from 20% to 60%, so understanding this aspect of your contract is essential for a harmonious consignment experience.
The consignment period is another critical component of the agreement. If your furniture hasn’t sold within the agreed timeframe, which is often around 90 days, you may have the option to extend the period, adjust the pricing, or retrieve your items. Be mindful of potential recovery fees for unsold goods, or in some cases, the possibility that your furniture could be donated or disposed of if not claimed timely. It’s crucial to have a clear and detailed consignment contract to ensure you’re fully aware of the terms, including the procedure for the return of unsold goods and any associated costs.
Preparing Your Furniture for Consignment
Prior to your furniture being displayed on a consignment store’s showroom floor, it needs to be spruced up. This stage is crucial; a well-presented piece is more likely to attract buyers and fetch a higher selling price. Start by ensuring your furniture is in good condition—this means no significant damage such as stains, tears, or gouges. Consignment shops are on the lookout for items that will appeal to their customers and won’t accept anything less.
It’s not just about appearance, though—knowing the market value of your furniture is equally important. Do some homework to set realistic price expectations. If you have them, bring along original receipts, warranties, or certificates of authenticity, as these can significantly increase the perceived value of your pieces.
Finding the Right Consignment Store
The store you select often determines the success of your consignment venture. Research is key—look for a store with a solid reputation that’s known for interest in the type of furniture you have to offer. A store’s reputation can impact your experience and the likelihood of a successful sale, so don’t overlook this aspect. It’s also wise to shop around, visiting multiple consignment shops to see which one values your piece the highest—after all, you want the best return on your investment.
Remember, the goal is to find a local small business consignment shop where your furniture will not just be another item in storage but a featured piece that attracts buyers. Unlike most consignment shops, matching your items with the right store increases the likelihood of a sale and might even lead to a longer relationship, especially if you have more items to consign in the future.
Benefits of Selling Furniture on Consignment
Furniture consignment possesses a multifaceted appeal. For starters, it can save you a significant amount of time and effort compared to selling directly—no need to haggle with buyers or handle the logistics of delivery. Additionally, consignment can be a boon for your wallet, offering a way to earn extra cash from pieces that would otherwise gather dust.
But the benefits don’t stop there. Furniture consignment is a green choice, extending the life of your furniture, reducing waste, and conserving resources. It’s also an opportunity to save money, support local small businesses, contribute to the local economy, and receive professional presentation and pricing assistance from consignment stores, which can help your items sell more quickly and for a better price.
Responsibilities of the Consignor
As a consignor, understanding your responsibilities within the consignment partnership is paramount. You’ll need to ensure your items meet all legal requirements and product safety standards before consigning them. Providing accurate and honest descriptions of your furniture helps maintain trust with the consignment store and potential buyers.
It’s also your job to maintain insurance coverage for your items while they’re in transit to the store or on display. This is because the risk of loss or damage remains with you until the items are sold. Regularly checking in on your consigned pieces at the store can give you peace of mind and help you ensure they’re being treated well.
What Happens if Your Items Don’t Sell?
Not every piece consigned is guaranteed to sell rapidly; understanding the course of action if your furniture remains unsold on the shop floor is vital. To encourage sales, unsold items may be subject to markdowns. Alternatively, you and the consignment shop may agree to extend the consignment period, giving your furniture more time to find a buyer.
If the extended period expires without a sale, you’ll need to decide whether to reclaim your furniture or allow the store to take further action, which could include donating or disposing of the piece. Remember, selling furniture through consignment requires patience; instant cash is not guaranteed, and the process can take time.
Common Pitfalls to Avoid
Treading the path of furniture consignment can be complex; certain aspects of the process can throw you off if not approached with caution. Overpricing furniture is a classic mistake—while your pieces may hold sentimental value, setting the price too high can deter potential buyers and result in a no-sale situation.
Equally important is understanding the consignment terms. Not reading the fine print can lead to unexpected fees or terms that could sour your experience. Also, consider the demand for your furniture; consigning items that are not in vogue or of questionable quality can lead to disappointment. And don’t forget to market your items. While the consignment shop will do its part, an extra push from your side can increase visibility and, ultimately, the chances of a sale.
Tips for Successful Consignment Sales
To excel in consignment, concentrate on items that enjoy high demand or possess high quality; such items are likely to sell swiftly and yield higher returns. Steer clear of outdated or very niche items, as they are less likely to attract buyers. Ensuring your pieces are displayed in high-traffic areas within the shop can also improve sales chances.
Selecting the right consignment furniture store is critical. Opt for a shop with a steady stream of customers to boost the likelihood of a quick and profitable sale. And remember, when it comes to online listings, high-quality images and accurate descriptions are essential to catch the eye of potential buyers.
Alternatives to Furniture Consignment
If furniture consignment doesn’t resonate with you, consider exploring other avenues. Online platforms such as Bonanza, Craigslist, or Facebook Marketplace offer the freedom to sell directly to buyers, allowing you to set your own prices and terms. You’ll be in charge, but you’ll also handle the marketing and sales process yourself in this online marketplace.
Another option is to donate your furniture to a thrift store. Not only will this support a charitable cause, but it can also provide you with a tax-deductible receipt, making it a win-win for you and the community.
Irrespective of the route you opt for, assessing the pros and cons to ascertain the best solution for your needs is essential.
Summary
Furniture consignment offers a unique opportunity to sell your pre-loved pieces with minimal hassle. By partnering with the right consignment store, you can save time, earn money, and contribute to a more sustainable world. It’s a rewarding process that benefits everyone involved—the seller, the buyer, and the environment.
Remember to prepare your furniture well, understand your responsibilities, and be patient with the sales process. Armed with the information from this guide, you’re now ready to step into the world of furniture consignment with confidence. May your furniture find new homes and your pockets be a little fuller!
Frequently Asked Questions
How much will a consignment store typically charge for selling my furniture?
Consignment stores typically charge around 40% of the selling price as a commission fee for selling your furniture. This helps cover the store’s expenses and ensures a fair profit for both parties.
What should I do if my furniture doesn’t sell within the consignment period?
If your furniture doesn’t sell within the consignment period, you can discuss an extension with the store or retrieve your unsold items. Some stores may also offer markdowns to help sell the furniture.
Is it necessary to clean and repair my furniture before consigning it?
Yes, it is important to clean and repair your furniture before consigning it to increase its attractiveness to potential buyers. This can make a significant difference in the consignment process.
Can I consign any type of furniture, or are there restrictions?
It’s best to check with the specific consignment store’s criteria, as they typically look for gently used furniture that’s free of major damage and may have restrictions on what they accept.
What are my responsibilities as a consignor?
Your responsibilities as a consignor include ensuring legal compliance, providing accurate descriptions, and maintaining insurance coverage for your items. It’s important to adhere to these guidelines to uphold your obligations as a consignor.