Why Shouldn’t Consignment and Resale enterprises employ Consignment POS software with Square?
on the sales side, Square is far superior to ANY Consignment POS software out there. In other words, most of the Consignment software for which you’re paying, will go unused.
on the Buying side, the Square Buying Portal is a far less expensive alternative, and one that–unlike the Consignment software– includes NextGen’s widely-used and acclaimed pricing tools (women’s, children’s, men’s and furniture-furnishings) built-in.
IN OTHER WORDS
it amounts to paying for more than is needed and getting less.
Item information (brands, descriptions, prices, and sizes) along with consignor contact information is exported from NextGen’s Square Buying Portal and imported into Square. Item sales and related consignor and seller costs/payments (cash or trade) are then managed within Square.
The Item information may also imported into Dymo for tag printing purposes.
One thing they know is that buying outright can be more profitable than consignment as evidenced by the fact that all support the buy-outright model. Another thing they know is that smart buying is the key to success as evidenced by the fact that all feature automated buying and pricing apps.
NextGen Resale.com was founded as an alternative to the franchises. The cost of its pricing app is a small fraction of what the Franchises charge, owners aren’t locked into a long-term contract, and it supports consignment as well as buy-outright operations, , Having escaped the franchise world after decades of bondage, NextGen is committed to helping owners remain free and independent.
Both Liberty by Resaleword and SimpleConsign by Traxia, the two leading point of sale (POS) systems in the resale and consignment industry, now count store-centric pricing guides, among their many features. These store-centered Pricing Guides, custom built by individual stores, greatly reduce the time spent pricing items for resale. Pricing is a voracious time and money eater. They also insure more consistent and thus trusted prices, a boon to sales.
At the same, Resaleworld has been and Traxia will soon be offering NextGen’s pricing guides built on the pricing records of multiple stores throughout North America. Why both?
Store centered systems can work for stores that have the time build and maintain their pricing guides, and that have a sufficient base of reasonably current and profitable sales upon which to build. However, many, if not most, stores do not. Their pricing data is too thin or is colored by poor pricing practices, e.g. automatic markdowns and employee pricing, shown to result in under-pricing and inconsistent pricing respectfully.
While the vast majority of stores using the NextGen Pricing system do so for life, a small number opt to use the built-in Pricing Guide to build their own once they’ve entered a sufficient base of NextGen Prices upon which to build.
At last. An elegant & inexpensive tool that allows Square to work for Consignment and resale stores: the Square Buying Portal.
Square is the most comprehensive free Point of Sale System in the U.S. and Canada with over 2 million businesses using it to manage and sell retail inventory online and off. NextGen’s Pricing Tools are the most widely used by independent resale and consignment businesses, online and off, in the U.S. and Canada.
Marrying the two through the Square Buying Portal has given birth to the most cost effective resale point of sale system in North America. Square users are now able to acquire women’s, children’s and men’s resale and consignment items swiftly, at the right price and at an ultra-low administrative cost.
A recent article in Forbes magazine on women’s fashion resale contains some interesting statistics about whose shopping for women’s secondhand fashion, where and when.
- The most frequent secondhand shopper demographics:
o women over 65 and between the ages of 18 & 24.
o Women with incomes over $125,000.
- Peak shopping time (ThredUP): 9-10pm
- Average time per visit spent shopping online for retail apparel: nine minutes; resale apparel, 45 minutes.
The significant projected annual growth of the secondhand apparel industry, about 11%, holds promise. However, about 80% of this growth is in online as opposed to offline sales.
Do these statistics suggest that brick & mortar resale boutiques need an online presence to survive?
The most Frequently asked questions we hear from resale business owners considering the use of one of the NextGen pricing tools are “How does NextGen arrive at the Prices suggested? Are they based on known retail prices and/or resale prices for like items (item type and brand)? Is demand considered? Is condition factored in? All good & logical questions and “All of the Above” is NextGen’s short and ready answer.
Most of NextGen’s “Right Price” suggestions are statistically based on the sales experience of resale stores from coast to coast participating in the pricing system’s development and continued operation.
Retail prices are principally used as a check on the “right” resale prices so derived. Retail prices serve as the basis for suggested resale prices only in the absence of reliable data on the category and brand in NextGen’s database. In so doing, NextGen applies resale/retail multipliers specific to the subject category and brand level. Some categories and brands hold their value better than others. The same holds true in the case of “vintage” apparel. While widely known, high-level brands tend to hold value, most do not.
Resale prices from online sources are used to derive “right” resale prices only in the absence of both online retail and resale prices.
As a rule, the range in prices found for categories with high-price designer labels are too wide to arrive at suggested prices. The only choice is to price the individual item in question based on the retail or resale price of that item or close match found online. NextGen’s efficacious [Checkit] tool is designed to do this.
In children’s resale, stores can and should expand profits by offering a complement of 1) new items obtained from vendors and 2) better quality “play” items (slightly worn) from customers along with 3) regular gently-used and never-used items from customers. But in doing so, it’s important that the customer is able to readily distinguish these three offerings. To this end, NextGen recommends using different price endings to distinguish “play” items from “regular” and “new.”
Specifically, we recommend ending the selling price of play items in 7, e.g. .47 or .97, and regular and like-new items in 9, e.g. .49 or .99. Otherwise two pairs of Levi’s jeans, one in “play” condition (slightly worn at the knee) and the other in “regular” condition will appear to be inconsistently priced to uninformed shoppers. Similarly, NextGen recommends ending the sales price of new merchandise in 8, e.g., .48, or .98. Otherwise, customers will have a difficult time distinguishing new items purchased from vendors–typically more expensive—from items bearing original tags purchased from customers–typically less expensive.
The different price endings clarify what otherwise could appear to be inconsistent pricing to the shopper. Better customers understand a price than question it. A confused and questioning shopper is not a content and confident shopper, and is less inclined to buy. Of course, it is important to communicate what these endings signify to our customers through signage (NextGen provides the copy on request).
The online resale of children’s apparel continues to grow and draw business away from brick-and-mortar children’s resale shops. But here’s the good news: the online resale of children’s baby gear ( strollers, bassinets, pack n Plays…) and toy’s does not. Herein lies a key to the survival and growth of Children’s resale shops today: the reselling of toys and baby gear.
Unlike apparel and footwear, the packaging and shipping time and expense associated with the online sale of toys and gear is generally too high to manage profitably. While there are some local online options, (e.g. Craigslist and social media trading groups), the unknown-stranger dimension of Craigslist buying and selling is a fear for many mom’s, and the reach of the trading groups is limited.
And while gently worn apparel and footwear is certainly a draw to value-conscious mom’s and grandmom’s, add toys and equipment to the mix and expect to see more Dad’s, Granddads and children. Indeed, given that the demand for resale baby gear generally exceeds supply, a number of children’s stores supported by NextGen do well renting baby gear as well.
Starting or growing your offering of toys and baby gear is well worth considering to cement your place in the dynamic world of children’s resale.