10/13/2009
Used Children's Clothing Sales
Used Children's Clothing Sales business. Help parents keep costs down when buying clothes for their growing children by selling lightly used items.
Business Overview
Children's clothes are expensive. All parents want the best clothes for their children, but unfortunately, financial budgets do not always allow for the purchase of children's designer clothing. Not to mention the fact that children grow out of their new clothes within a month. The solution to these very real facts are to open a secondhand clothing store featuring apparel for children or rent a booth at a local flea market and sell secondhand children's clothing. In both cases, you can purchase good quality secondhand children's clothing at bargain basement prices and resell the clothing for a profit. Accepting consignment clothing is one way to reduce business startup costs.
requirements: Selling secondhand clothing will require a retail store location or booth at a busy weekend flea market. Additionally, all the clothing will need to be washed prior to offering the garments for sale. Be sure you have catalogs and other resources available to properly estimate the value of the clothing you will be purchasing for resale purposes.
start-up costs: If you decide to operate from a fixed retail store location you will need in the range of $15,000 to $25,000 to start, stock, and operate the business. If you choose the route of the weekend flea market booth, the business start-up costs will be greatly reduced and you could get started for less than a $3,000 initial investment.
profit potential: To be profitable in this type of retail business venture always attempt to maintain a 100 percent markup on clothing items you purchase for resale, and charge a 40 to 50 percent commission for any consignments you accept and sell. If you can maintain yearly gross sales of $100,000 you should have no problem netting $30,000 per year after expenses. If the business is operating from a fixed location, you can add additional revenues from renting children's costumes. There will be a one-time expense to purchase the costumes, however, the costumes will last a long time and generate sizable rental revenues for a great number of years.
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