If you are unsure what furniture consignment entails, we will go over the basic definition of these transactions. Before we delve further, it is important to note that these types of transactions can be used on any sort of item, not just home decor pieces. These stores function through the transfer of possession, not ownership – which is an important feature to note. If or when that item sells, you still maintain ownership and are entitled to a portion of the sales. The terms of these agreements are hashed out on an individual basis.
Benefits for the Buyer
Stores using consignment are some of the best spots to buy home pieces. This is because the prices are set low and designed for quick sales. The object is to move objects as quickly as possible so more inventory can be taken in. This obviously increases the profits of the shop, since they do not pay for the pieces they sell. With this in mind, you can go into a furniture consignment shop and find some stellar deals! All of the pieces are somebody else’s, and each owner has his or her own agreements with the shop. If employees are having trouble selling a piece, they might cut a deal on the amount of profit they take in so they can get it out quickly. If the piece doesn’t sell after a specified amount of time, it is returned to the owner. Alternately, ownership may be transferred to the store, depending on the terms of the original agreement.
Benefits for the Seller
These shops offer sellers a quick and easy way to get rid of home pieces. You could drag your couches out to the curb, give them away, or hope you get twenty bucks for them, or you could take them to a furniture consignment shop and get paid for a piece someone else sells for you. You may not make as much money this way, but if you need to get rid of something fast, this is your best bet. As outlined above, you’ll enter an agreement with the shop, and every week or so that the item doesn’t sell, the price will drop. Eventually it will be returned to you, or the store will keep it, depending on your initial agreement.