Is adding new merchandise to your resale shop a good idea?

Sarah Deveau, founder of Cater Tot in Canada, on why resale shops might wish to carry some new products as well. Excerpted from New Product Profitability, a Luncheonette Product at TGtbT.com.

Why Add New Products?
Adding new inventory to your sales floor can take your business to the next level, both in terms of revenue, and more importantly, profit.

New products attract a demographic resale-only shops miss out on – shoppers who wouldn’t dream of shopping for used items. Of course, once they’re in your shop and they see the quality items you carry, realize how much they’d save over new, and how they’re saving the environment while they’re at it, a good portion of them will convert into resale shoppers! But even if they don’t, the money they spend on new products will be welcome too. 

New products can turn an $8 sale (she just came in for a simple pair of black pants) into a $42 sale (because that $16 scarf looked so nice with the pants, and those $18 earrings were too perfect to resist). New items tempt budget shoppers who avoid malls and other retail stores when money is tight, but they need an item from your shop, and with the money they saved over buying new, can afford to splurge a bit on something new.

There are many shoppers out there, in good economic times or bad, who would never have darkened your door before they discovered you carry the reusable sandwich wraps, specialty candle line, or ladies collectible bracelets they’ve been looking for everywhere. Children’s stores especially miss out on a key baby buying market by not carrying new products – baby shower attendees! While some progressive minded shoppers may buy used items for a new mom, or a gift certificate for your store, the vast majority of women attending baby showers want to bring a stand out gift – something that the other attendees will rave over, and exclaim, “Where did you buy that?”

Regardless of your market, there’s one time of year that every resale shop can participate in – Christmas! The crazy gift-giving Christmas season for resale stores that carry new products and those that don’t are vastly different.

Get the entire 5-page PDQ file, New Product Profitability, from our Luncheonette selection of mini-Products for the Professional Resaler.

For more on Christmas/Holiday selling, Holidays in Resale will help you make November and December months that you'll love!

Copyright 2010 Kate Holmes, TGtbT.com. All rights reserved and enforced.

Resources

On TGtbT.com:
Our Links Page has numerous wholesale source suggestions from our Sharers.

On Auntie Kate The Blog:
Wondering WHAT to buy to sell?
What will give them green lawns?

You probably have an A-1 audience for your new goods already:
 Auntie Kate talks about selling to your consignors

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