Switching POS mid season because I could not tell which racks were actually paying rent

Greg Foster· Vintage and resale clothing store, pop-ups first, storefront open three months· Open, Retail & Resale·

For two years of pop ups I ran on a phone card reader and a notebook, and that was fine when everything fit in a van. In a store with about nine hundred items it stopped being fine in roughly week three.

The vintage problem is that every single item is its own product. One jacket, one price, one tag, and when it sells it is gone forever. So the usual retail reporting, which wants to tell me how many units of a thing I sold, has nothing to say to me. I need to know which rack earned, not which SKU.

What I did was move onto a proper POS in August and tag everything by rack and decade rather than by garment. Two weeks of evenings with a tagging gun and a podcast. Now I can see that the seventies rack turns over in about eleven days and the formalwear rack has items that have been hanging since June, which I already suspected and had been emotionally overruling.

The buying lesson came from an estate lot I paid $900 for in May, of which I have sold maybe half. I am moving more toward consignment at a sixty forty split so the risk sits with the closet it came from.

What do you look at weekly? I do not want a dashboard, I want the two numbers that stop me buying badly.

4 replies

Dev Patel·

The rack instead of the SKU thing is genuinely clever and I am going to steal the idea for tea, where the equivalent problem is that I will have forty loose leaf tins and no way to tell which ones are just decorating the wall.

Question about the consignment split, because that is the part I do not understand from the outside. Does sixty forty in your favour hold up when someone brings you something genuinely good, or do the good closets negotiate? I would guess the people with the best stuff know exactly what it is worth, which means you end up buying the risky lots outright and consigning the safe ones.

Greg Foster·

You have basically described what happens. The good closets negotiate and the great pieces I still buy outright because I want the margin and I know they will move.

Where consignment earns its keep for me is volume, the eight boxes from someone clearing a parent's house, where I have no idea what is in there and no appetite to pay for the privilege of finding out. Sixty forty on that, and I split out anything exceptional and offer to buy it. Being straight about which pieces are the good ones has gotten me repeat sellers, which in this business is the whole supply chain.

Rob Mackenzie·

Two numbers, since you asked for two. Cash in the account on the same day each week, and the age of your oldest unsold inventory. That is it. Everything else is a nicer looking version of one of those.

The second one is the one people avoid, because looking at the formalwear rack means admitting you paid money for it. I make myself mark down anything past its age limit rather than waiting for the right buyer, because the right buyer is a story I tell myself and the markdown is cash I can use to buy something that moves in eleven days. Dead stock is just a loan you made to your own bad judgement.

Dev Patel·

Dead stock is a loan you made to your own bad judgement is harsh and I suspect I will be quoting it to myself in a year when I have forty tins and two favourites.

Greg, does the age limit work for vintage though? Some of your stuff is presumably worth more to the right person precisely because it is unusual, so an eleven day expectation seems like it would push you toward buying only safe boring inventory. Or is that the trade and you accept it, with a small weird rack that you allow to sit?

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