How to Adapt Your Business from Consignment to Buyout
As we enter the Fall season, many people are looking to ditch their summer wardrobes and step into the chilly, crisp weather with a new bag and accessories for Fall. So, what does that mean for your business? Time to stock up!
We know business as usual is no longer usual. We’ve had to adapt to our new normal and make strategic changes to not only survive, but thrive during this time. While we’re all trying to make ends meet and survive in this ever-changing world, many businesses are updating how they run their businesses.
The resale industry is adapting quickly as the world around us changes. As resale businesses look to source the best inventory, from Louis Vuitton Speedy to Gucci Supreme and Chanel classic flap bags, an only consignment model may not work anymore. Many businesses are now offering buyout as customers look to make quick cash during uncertain times. There’s no reason to be 100% committed to just one business model when you (and your customers) can benefit from both.
The Consignment Model
The consignment model is still a great way to run your business, knowing you can move the items on your business’ markdown schedule with less inventory risk. However, as you know, inventory is primarily dependent on what foot traffic your store receives. Furthermore, in today’s environment, many resale businesses are offering outright buyout models so customers now can choose to receive instant cash or wait for months for their consignment check.
The Buyout Model
The buyout model, which allows a customer to walk in with an item and walk out with an immediate payout or store credit, is becoming increasingly popular. The benefit of the buyout model is that you get to determine the price that’s paid to the seller based on the item’s condition, age, designer, and current demand. Price the item using data and current market trends. And while the buyout option means you assume more inventory risk, your profit could be higher and increase sales immediately.
The hybrid model - offering both consignment and buyout - is another great option as well. Many of our store partners are testing this model with their consignors. By offering consignment on all items but buyout only available for certain brands or popular styles (Hello, Louis Vuitton Neverfull!), it gives you, the business owner, the power to source inventory on your terms.
NEED MORE INVENTORY FOR YOUR STORE?
Both the buyout and consignment models are great for resale businesses but you still are relying on what your customers walk into your store with. If you’re running low on key styles, check out our pre-owned wholesale Louis Vuitton crossbody bags, Gucci totes, and Chanel classic flaps, check out our latest new arrivals on LePrix Wholesale.
Looking for more tips on how to grow your sales? Check out our previous blog on what brands and styles are still top sellers this year.