There are numerous reasons for the increased popularity of resale. One is the increased awareness by the public of recycling. People would rather consign, sell or donate their unwanted or unneeded items than just add to the waste stream. Consignors, donors and sellers make money by selling under loved items at our shops, without the expense, work, and bother of a tag or garage sale. By having a resale expert price and market their goods, sellers realize more income than if they attempted to do this themselves.
Eco-aware consumers would also rather purchase recycled articles in order to minimize their impact on our limited resources. Of course, one of the foremost reasons for increased popularity of resale is very simple . . . People LOVE a BARGAIN! Today's consumer is more economical and would rather buy clothing, accessories and furniture for a third to fourth of the original price, leaving money for other things in life such as vacations, education, investments and hobbies. The public is also keenly aware that resale shopping means more quality for less money.
Since resale has evolved from the image of dark, musty junk stores, thanks in large part to education by NARTS, consumers today find clean, attractive and well displayed stores that offer value and selection without the new-price markup.
While all shops that sell gently-used consumer goods are "resale" shops, NARTS makes the distinctions as follows.
A resale shop is the phrase most often used for stores that buy their merchandise outright from individual owners. A consignment or Not for Profit shop can also be called a resale shop, but ONLY a store that actually consigns their inventory can be called a consignment store.
A Not For Profit shop is run by an IRS designated 501(c)3 organization to raise money to fund their charitable causes. These range from the large Salvation Army / Goodwill chains to individual shops run by schools, churchs or hospital. Not For Profits can obtain goods through donations or they could operate on a consignment basis—some do both. Not For Profit shops are also referred to as thrift shops.
A consignment shop accepts merchandise on a consignment basis, paying the owners of the merchandise a percentage when and if the items are sold. The majority of such shops pay the owners from 40 to 60% of the selling price, and have a policy of displaying goods anywhere from 30 to 90 days, although there are a wide range of policies across the country. Some consignment shops also purchase a variety of items outright from individual owners and/or wholesalers.
Explore the store beforehand. Do they sell the type of merchandise you want to bring in? Talk with the staff about becoming a supplier. Are you comfortable with their procedures? Most resale shops have information on supplying available as a handout or a phone recording. Finally, understand the shop’s terms before you consign or sell. Will you receive an accounting of items accepted for sale? What happens if your items do not sell? When and how much will you get paid? Most importantly, look for the NARTS decal, it is "Your Assurance of Professionalism."
Most people donate items to on of their favorite charities. We usually like to see the money or items we donate go to a cause which is dear to our hearts.
The "fair market value" of goods donated to a thrift store is deductible as long as the store is operated by a charity. One cannot take a deduction if the goods are sold on a consignment basis whereby the original owner gets a percentage of the final sales price. Most Not For Profit thrift shops give donors a blank receipt at the time a donation is dropped off. They do not itemize the receipt because they generally can not process the items until a later date. It is up to you to itemize your donation and determine a value for the goods. Get a copy of IRS Publication 561, "Determining the Value of Donated Property," this information will help you determine the value of your donations and also outlines how to support the deduction on your tax return. The publication states, "If you give used clothing to the Salvation Army, the FMV (Fair Market Value) would be the price that typical buyers actually pay for the clothing of this age, condition, style and use. Usually, such items are worth far less than what you paid for them." You can check the thrift and consignment shops in your area for prices on items similar to those you are donating. Another option to calculate the value of donations is offered by TurboTax ItsDeductible the Blue Book for Donated Items. This software program can be used to accurately value your donations, in compliance with IRS guidelines, and maximize your tax savings. The company visits resale and thrift shops all over the country to keep up on current valuations. The Salvation Army has a Donation Guide you may find helpful. The Better Business Bureau Wise Giving Alliance (www.give.org) offers this advice for taxpayers looking to deduct charitable donations of non-cash items:
Take your mother-in-law resale shopping with you one day. She will see the savings you are accumulating by outfitting the kids in quality clothing. Take the kids along on the same trip, and Grandma will recognize that her darlings can have fun choosing items for themselves while learning the value of a dollar. Finally, let her know that the money you’re saving can pay for music lessons, buy sports equipment, and be stashed away in her heirs’ college funds.
Does your mother-in-law realize that a resale shop has a larger selection of styles and a wider range of sizes than any new shop could afford to stock? Not only are you saving money by shopping resale, you are saving time and energy too!
And finally, tell her that buying resale is no different than the long accepted practice of buying antiques and collectibles, used cars and boats, and coveted first edition books. Even though the new clothes you purchase have not been previously owned, they usually have been previously tried on . . . not much difference when you think about it. It's also no different than staying in a fine hotel where, after all, you sleep on used bedding. In fact, buying resale might mean you can afford to have that lovely weekend away!
Search for NARTS member shops in the Shopping Guide on the NARTS Web site. Search by state, zip or area code and/or type of merchandise.
Asking a friend, of course, is a wonderful way to find out about shops in your area. In a vacation locale, look in the Yellow Pages under several categories: Consignment, Resale and Thrift.
In addition, many resalers have joined together to produce brochures of resale shops in their areas. Finally, ask the staff of the shop you are in for recommendations of other shops. NARTS members are happy to steer you in the direction of more savings within the community.