How Upscale Resale Has Created a Booming Niche in American Retail

This article, originally published on huffingtonpost.com, mentions NTY Franchise as a growing company in the booming resale industry. Read on to learn why franchising a resale store is such an appealing option for entrepreneurs:

Huffington Post graphic for NTY mention resale article
Graphic courtesy huffingtonpost.com

By Yatin Khulbe

It goes without saying that finding the right balance between a successful retail strategy and an approach that sets yourself apart can be a big challenge.

After all, an increasing number of new businesses fail each year while attempting to break into the seemingly impenetrable arena of modern retail.

The wall of the booming big box and major brand monoliths isn’t entirely impenetrable, however. Surprisingly, a number of upcoming retail contenders and franchises have taken an unorthodox approach to the resale market in recent years.

They prefer to focus on cultivating an upscale atmosphere and level of service usually reserved for their conventional and big brand counterparts.

So how did “resale retail” go from a budget niche to a booming new brand of resellers with increasing interest and profit margins?

Here are some of the points which encouraged resellers in coming up with smart and unconventional strategies in recent years:

Flexible Points of Entry

The unique nature of upscale resellers as an up-and-coming industry often mean that aspiring entrepreneurs looking to break into store management or ownership can enjoy more substantive options to finance a small business.

The availability of franchise opportunities among national resale parent companies has skyrocketed recently.

Resale is a multi-billion dollar a year industry because it attracts the consumers from all economic levels.

Why are buyers are excited about resale deals?

The answer is simple.

Everyone wants to save money on consumer goods and utilize it for vacations, child education, retirement funds, and various family activities.

Breaking into franchise management can traditionally serve as a safer starting point for those getting their start in ownership across a variety of industries.

Companies looking to expand the influence of their existing resale branding have substantially increased the availability of options for management newcomers in recent years.

What does it mean?

A minor nest egg can be invested with a greater range of strategies for those looking to make the most out of their existing experience in retail and business.

Unfortunately, the majority of small businesses generally won’t expect to yield profit margins in the first months (or even years) of operation.

If a budding retail entrepreneur doesn’t find this initial period of low profits viable or attractive, a partnership with an existing upscale resale franchise can often provide valuable options for getting the ball rolling.

Consistent Consumer Experience

Traditional resellers have often relied on lower than standard profit margins and nonprofit dichotomies focus on providing a service to the local community.

On the other hand, upscale resale stores concentrate on consumer experience by understanding the needs and desires of their buyers.

Modernized resellers provide no restraint shopping experience to the customers. It allows for more competitive price points while still retaining the attractive benefits of a resale outlet experience. Resale businesses with a focus on this above-par shopping experience include growing resellers such as NTY (New To You).

Why modern resellers overpower traditional counterparts?

It’s win-win for both the parties.

Consumers lock down lower prices while still enjoying the experience and atmosphere that come with new goods retailer.

The benefit doesn’t extend solely to customers.

The smooth shift towards an upscale customer experience means that owners and franchisees can expect to enjoy an operative experience and keep up with the steadily rising revenue of retail frontrunners as well.

Strong Support Systems

Breaking into uncharted territory doesn’t mean that resale franchises are going alone. In fact, a vast majority of resale stores rely on the framework of support networks that allow them to fall back on training opportunities, marketing materials, and more.

The main question arises:

Why are they helping each other?

A range of prospective overhead costs is saved which require a lion’s share of time and money.

As a result, this support mechanism allows room for innovation.

Lower Overall Risk When Taking the Leap

The idea of kicking off small businesses looks very attractive, but it often leads to lower than anticipated profits. The standard new retail venture without well-timed market research means failing within the first year or even less timeframe.

On the more optimistic flip side, from the very beginning, resale retailers break into the market with the convenient advantages.

For example, reliance on inventory that stems from donated clothing, furniture, or even the computer hardware take away the pain of investing in new stocks.

Without investing deeply in product purchases on the front end, the same investment can be allocated for primary concerns such as property and operation overheads.

Click here to see more from The Huffington Post.

NEW USES: Franchisee Hoon Featured in Entrepreneur

New Uses franchisee Mark Hoon with family standing in New Uses store with purple walls

Learn about franchisee Mark Hoon and how he manages multiple resale stores in Minnesota. Read the Franchise Players article below or click here to see it on entrepreneur.com.

What’s Old Is New Again for These Two Resale Franchisees

Mark Hoon has never been an employee. He was only 16 years old when he started selling vacuum cleaners door-to-door, 18 when he opened his first vacuum cleaner distributorship. His wife, Barb, has been by his side professionally for more than three decades. And, together, the Hoons owned businesses ranging from cleaning appliances to real estate before finding their calling as resale franchisees in 2008. Today, they are pioneers in the resale home furnishings market as owners of one of the nation’s first New Uses franchises.

Name(s): Mark and Barb Hoon

Franchise owned: New Uses, in Maple Grove, MN; and Clothes Mentor locations in Maple Grove, St.Cloud, and Woodbury, MN. Both brands are under the umbrella of NTY Franchise Co., an upscale consignment/resale company.

How long have you owned a franchise?

[Mark responding] I’ve been a franchise owner since 2008. [New Uses dates back to June 2013.]

Why franchising?

Both Barb and I are great copiers, but not great inventors. We bought into the fact that a person can take years to invent and perfect a model. Franchising takes years off the time, expense and risk that comes with opening a new business. Franchising also allows us the lifestyle of being in business for ourselves with a system in place to give us direction and accountability.

Finally, having our daughter and son involved and preparing them to take over one day is very rewarding. Our children are earning the right to take over the business, and that makes us very proud.

What were you doing before you became a franchise owner?

Both Barb and I began our professional lives as independent contractors working as a distributor for Kirby Vacuum.

Why did you choose this particular franchise?

We were already familiar with the parent franchisor, NTY Franchise Company. We had initially purchased three Clothes Mentor stores, another of their resale franchise brands, and were pleased with the model. We decided on a New Uses store because it offered the same proven system, with a different product base. We also wanted a new business for our son to grow into, since he was graduating from college.

How much would you estimate you spent before you were officially open for business?

The total cost was $224,000. The breakdown was: franchise fee, $20,000; buildout, $100,500; inventory, $40,000; deposit and rent: $13,500; labor, $10,500; advertising, $15,000; and miscellaneous, $24,500.

Where did you get most of your advice/do most of your research?

Mentors! My father, Carl — for raising me with ethics and care. Gene Windfeldt, business owner and entrepreneur — for work ethic, discipline, focus and big thinking. My wife — for teaching me structure, honesty and follow-through.

What were the most unexpected challenges of opening your franchise?

Barb and I really didn’t have any unexpected challenges. We went into the business having done the research and understanding what we were getting into; and we had a comprehensive three-year business plan. There were some tweaks we had to work on, but not anything I would call a challenge.

What advice do you have for individuals who want to own their own franchise?

Buying a franchise is not “buying a business”; it is buying an opportunity to own a business. Your actions, attitude and work ethic are what will make it a business. You are not a business until you are able to be paid and make a profit. Until that happens, it is only an expensive hobby.

What’s next for you and your business?

Winters in Florida!. Over the next five years, we will be working with our kids to help them to understand what entrepreneurship is, the lifestyle it creates and how to manage the two. Both Barb and I expect to be active in the business for years to come. Our business is like a child to us. You can’t just kick it out of the house and never see it again. Years of both physical and emotional work will keep us connected in some capacity, even as we transition out of full-time operation.

See more from Entrepreneur.

NTY Franchise’s Veterans Opportunities Featured in April Issue of Franchising USA

NTY Franchise Company COO Chad Olson on cover of Franchising USA standing in Device Pitstop store

NTY Franchise supports veterans with several opportunities and incentives for franchising its resale stores. Read the Franchising USA article about this topic below, or click here to see the article on franchisingusamagazine.com.

NTY Promises New Challenges, Opportunities for Veterans

One franchise that is in the business of turning the old into the new again wants to help entrepreneurial veterans start a new chapter of their lives.

NTY, standing for ‘New To You’ is a company that owns the franchising rights to five brands in the resale retail industry: Clothes Mentor, Children’s Orchard, Device Pit Stop, New Uses and NTY Clothing Exchange.

“Our main goal is to sell franchises and then support the franchisees that we sell them to,” NTY’s chief operating officer Chad Olson said during a recent interview from the company’s headquarters in Minneapolis.

Clothes Mentor, which buys and sells used women’s fashion and accessories, started franchising in 2007. Currently, it has 140 stores open and 43 stores sold and awaiting opening.

Acquired by NTY in early 2014, Children’s Orchard buys and sells gently used kids items. It currently has 27 stores open with two sold and awaiting opening.

Device Pit Stop, meanwhile, has 11 stores open with another 10 sold and awaiting opening. NTY acquired the brand’s franchise rights in the fall of 2013. It buys and sells used electronics.

Buying and selling used home goods like furniture, artwork and small appliances is the business model for New Uses. The brand has 11 stores open with one sold and awaiting opening and it’s been around since 2011.

And with two stores open and four sold and awaiting opening, NTY Clothing Exchange, which buys and sells clothes in the teen and young adult market, started franchising in Mid-2014.

The Need for Used to New

In a world that is increasingly looking for environmentally friendly ways to deal with everything, all of NTY’s brands offer that coveted green alternative for people’s old clothing and other items, Olson said, giving people the option of getting cash for the stuff they’re no longer using rather than just throwing it away.

And with consumers often being highly cost conscious, NTY also gives them a way to save money, with products selling for, on average, 70 percent less than they would be sold as new.

All of the NTY brands make sure the items people bring them have resale value. It has to be in good condition and, in the case of apparel, it also has to be in style. Each brand will evaluate a product and they all have a pricing matrix they use to make sure they’re selling items at a price that gives value to the customer and also the business.

In the Beginning

Clothes Mentor was founded in Columbus, OH. with a store in that city and another one in Canton, OH. Olson and his father, Ron Olson, decided to go into business together, both having Resale/Retail franchising experience with another company.

When they began looking at what opportunities were out there for their own business, they found out about Clothes Mentor and noted the two stores were doing quite well. From there, the father and son negotiated the franchising rights to that brand and have been adding to the NTY family since.

Entrepreneurial Spirit

While their franchisees come from all walks of life — from teachers to former professional bull riders — they all have one thing in common and that’s the one thing NTY wants in a franchisee.

“We want people who have that entrepreneurial spirit,” Olson said.

They must have motivation and they must also have accumulated some wealth in the past that they’re able to invest.

While the company has just a handful of veteran franchisees at the moment, Olson is looking to change that, as he knows veterans have a stellar reputation as franchisees.

Veterans’ dedication and commitment to carrying out the processes they’ve been taught is what makes them good franchisees, he noted.

“That’s what franchising is all about, taking the business model and the processes that we have proven to be profitable and teaching it to others,” Olson said. “People who have had that military experience following processes fit really well into a franchise system because they will take those processes that we have developed to run and execute a successful business model and follow those processes to a tee.”

NTY has just submitted its application to join veteran franchising organization VetFran. Currently, veterans receive a $2,500 discount off any NTY franchising fee.

As an added incentive — and this goes for any franchisee — three of NTY’s brands also offer a $40,000 jump start program.

Any franchisee that opens an NTY Clothing Exchange, a Children’s Orchard or a New Uses will receive a $20,000 marketing contribution from NTY when their store opens. In addition to that, every six months after their grand opening, they will receive an additional $5,000 marketing contribution from the parent company over a two-year period, totaling a $40,000 contribution toward marketing from NTY.

Training and Support

NTY helps franchisees find the right real estate, helps them procure financing, and brings them to Minneapolis for three weeks of comprehensive training in every aspect of running their business.

The company also offers support on site when franchisees are building out their store and getting it ready to open to ensure it’s being built out properly, they’re acquiring inventory properly and their employees are being trained properly. Then they’ll let the franchisee start running their store and come back out to help franchisees with their grand opening. NTY representatives will visit again 90 days after grand opening, a minimum of three times in that first year to check on inventory, customer service and if franchisees need any additional training.

Each brand has its own regional operations managers, which are assigned to franchisees. Each regional manager has about 20 or 30 franchisees in their region and their main goal is to be a small business consultant. They have monthly consultation calls with franchisees and answer any questions they have and visit franchisees at least once per year.

Expansion and Experience

All of NTY’s brands are open to expanding anywhere in the United States. The collective experience of everyone who is involved with NTY is a huge incentive for any frachisee to choose one of the company’s brands for opening a business, Olson said. Each brand has a vice president in charge of it, he explained, and all of those vice presidents have over 20 years of experience in the retail resale sector. His father, who is president of the

company, has 30-plus years of experience in the sector and when you add in Olson’s 22 years of experience, that’s a lot of knowledge for new franchisees to draw from.

For veterans who are looking to make a new start in life, NTY gives them an opportunity to make that new start a success.

See more from Franchising USA.

DEVICE PITSTOP: New Store Opens in Alaska

Device Pitstop Archorage franchisee Scott Stansbury inside his new store.
Device Pitstop Archorage franchisee Scott Stansbury inside his new store.

One of our newest franchisees, Scott Stansbury, was recently featured in Alaska Business Monthly. Read the article about the opening of his Device Pitstop store in Anchorage, Alaska, below.

Device Pitstop, a national chain that buys, sells, trades, services and upgrades computers and mobile devices at low cost, is opening in Anchorage.  It’s a brand-new concept here — a one-stop solution to personal technology needs.

Device Pitstop carries a wealth of computers, tablets, smartphones and accessories including Windows, Apple, Mac and Android devices and parts.  They sell certified products well below original prices, backed by a 90-day warranty.  They buy customer equipment for cash or trade in.  The store also provides expert on-site repairs and upgrades.  Strategically, they offer a knowledgeable, transparent and value-oriented environment.

Device Pitstop opened March 17th at 701 W. 36th Avenue between Seward Highway and Minnesota Drive.   Call 907-644-0405 or check www.devicepitstop.com/anchorage-midtown/.

According to store owner Scott Stansbury, Device Pitstop sells quality used computers from $99 and factory-refurbished units from $250.  There are all major PC and Apple brands with a range of modern operating systems.  Device Pitstop also sells popular tablets and smartphones.  All are backed by 90-day hardware warranties and available extended-service plans.  All previously-owned devices are wiped-clean of personal information, given a fresh new operating system, and rigorously tested to deliver top-line working equipment at great prices.

Device Pitstop buys used products and helps customers convert their working and non-working devices into cash.  Technicians quickly inspect devices, offer a price quote and pay on the spot.   They also offer trade-in for another product at great prices – and can transfer all music, pictures, and documents at a nominal cost.

All device repairs and upgrades are performed in-house by expert technicians and usually same day.  Unlike big-box stores, computers are not sent to the Lower 48 or need weeks for repair.  And owner Scott Stansbury stresses transparency, explaining diagnoses, showing parts and inviting customers to watch repairs.

Device Pitstop technicians are certified, have all modern tools and parts available, and can even repair older computers.  Upgrades include additional RAM, hard-drive installation, anti-virus/anti-spyware software installation, operating system upgrades and more.  Tablet and smartphone repairs can include replacement of broken LCD, glass screens and batteries.

Accessories include laptop batteries, AC adapters, iPhone adapter cables, iPad accessories, smartphone cases, headphones and speakers.

Importantly, Device Pitstop has a green philosophy tied to recycling used equipment, not sending them to the landfill.  They bring non-working computers back to life or utilize good components in other repairs.  They safely dispose of other items by recycling in an environmentally-responsible manner that follows stringent state requirements.

According to store owner Scott Stansbury, Device Pitstop – Anchorage is a friendly neighborhood center for affordable computers, tablets, smartphones, accessories, repairs and upgrades.  He’s seen strong public enthusiasm, great word of mouth and more than 400 Facebook page likes, even before the store opened.  With his W. 36th Avenue location now open and a second store planned next year, Stansbury expects to be a major personal technology resource here.

Click here to see the article on the Alaska Business Monthly website.

CLOTHES MENTOR Spartanburg Opens This Month

On the verge of opening her third Clothes Mentor store in Spartanburg, South Carolina, on March 17, franchisee Sadie Cherney talks about spring fashions from Clothes Mentor that are available for hundreds of dollars less than original retail prices.

In addition, Cherney talks about the upcoming Girls Night Out event at her Greenville store, featuring hundreds of Lilly Pulitzer items for spring. Watch the video to learn more about these big events.

 

Latest Children’s Orchard in Murfreesboro is Opening Soon

Check out an article from Nashville Parent about the upcoming opening of Children’s Orchard Murfreesboro, Tennessee:

Children's Orchard Murfreesboro store, clean and neat and organized with clothing and toys and stroller, open floor plan

While it sounds like an outdoors activity for children, it’s quite the opposite. The Children’s Orchard is a children’s clothing resale shop from [Minnesota] with a Murfreesboro location underway.

After moving from Minnesota, following their children to Tennessee as they pursued their college education, Angie and Jeff Geldert decided to open a store of their own. “We love living in Murfreesboro and want to give back to our new community and helping them by providing economical but stylish clothing options for their children,” says Angie. “Our store is an upscale resale store of children’s name brand clothing (sizes 0 – 14), shoes, toys, books and accessories such as bouncy seats, high chairs and strollers. We do not sell car seats or beds for safety reasons. We sell items at roughly 30% of the retail price. We offer a serviceman discount for military, police and fireman,” she adds.

If you want to sell your items to them, start prepping your stuff! They are still in the process of remodeling their store front to fit their needs, but they will open soon — hoping for the store build-out to be completed by March 4, open to buy clothing and other items by March 7 and a hopeful opening to the public in April. The location is set for 2705 Old Fort Pkwy., Murfreesboro. They will be open seven days a week Mon – Sat 9 a.m. – 7 p.m. and Sun 12 – 6 p.m. Call 615-410-7610 or visit childrensorchard.com/stores/murfreesboro.

This article was written by Kiera Ashford, associate editor of Nashville Parent and mother of two. See the article on the Nashville Parent website here.

CLOTHES MENTOR: Spartanburg is the Third Store for Cherneys

Check out an article about Clothes Mentor Spartanburg, which is the third store for Bill and Sadie Cherney in South Carolina:

Bill and Sadie Cherney are owners of Clothes Mentor, a women's resale shop located at 1450 W.O. Ezell Blvd. in Spartanburg. Photo courtesy Tim Kimzey/tim.kimzey@shj.com
Bill and Sadie Cherney are owners of Clothes Mentor, a women’s resale shop located at 1450 W.O. Ezell Blvd. in Spartanburg. Photo courtesy Tim Kimzey/[email protected]

Sadie and Bill Cherney own three Clothes Mentor franchises, with locations in Greenville, Columbia and — as of Jan. 7 — Spartanburg. The Spartanburg location of the high-end women’s resale shop, 1450 W.O. Ezell Blvd., is currently adding inventory from local sellers. Sometime in March, the store will open to customers looking to buy gently-used designer clothes, shoes and jewelry. The business has also established a partnership with Miracle Hill thrift store, which will take clothing the store doesn’t buy so women who need it can find it easily at a cheap price.

Following in family footsteps

Sadie: My parents were in resale before. (Bill and I) were living in Las Vegas. We knew that we wanted to be on the East Coast. We love the Upstate, and we knew we wanted to be in the Upstate. We heard about this concept and felt like it was a really great fit and that it would fill a need. So, we opened our store in Greenville, and that was in May of 2013.

Fashion forward

Sadie: We sell women’s high-end resale. We try to fit every woman. We do sizes 0 through 26. We do maternity, petite, athletic wear. Women can sell items for cash on the spot, which is convenient and easy. Then, other women are able to reuse those items, give them a purpose and restyle them. There’s something really awesome about providing someone with clothing they wouldn’t otherwise have access to. We believe a lot in quality, and that wearing quality garments that can last for a long time doesn’t have to be expensive.

The entrepreneurial bug

Sadie: I’ve always had an entrepreneurial bug. Bill is so good with people. We knew we wanted a franchise. We wanted the structure of a franchise and the support of a franchise. This lets us both kind of showcase what we’re good at.

Bill: Women’s fashion isn’t a forte of mine. But, I’ve taught for over 10 years. I taught at Greer High School for four years. Working in a field that’s primarily populated with women is not new to me. While I’m not an expert on the fashion side of the business, I enjoy learning about it.

The buying process

Sadie: Right now, we’re in a buying process. That usually takes about 8 to 10 weeks, where we amass the inventory from our local sellers, the individuals who sell to us. Then, we’ll have a huge grand opening. We have a soft target date, but we’re not 100 percent sure. Definitely hoping for March.

Small business success

Sadie: Sometimes, with a small business, people get hung up on the ways you can’t compete with a big box (retailer), but at the end of the day, as a small business, you’re mobile and connected to the people that help you and work with you. I know it makes our jobs much more fulfilling, and I hope it does the same for our staff.

Getting ready to open

Sadie: Oh my gosh, our grand openings are bananas. Both of the openings have had easily over 100 people in line. They get there at, like, 4 a.m. We’ll bring them coffee and doughnuts. It’s crazy. It’s nonstop for 12 hours. It’s awesome because it’s like this big party to celebrate everything we worked to build, and a frantic after-party to get everything back out on the floor. In March, if we have that crazy grand opening, we will have merchandise to serve our customers. So that way, in the following day and week and month, they’ll still have fresh product.

Bill: We always try to put out hundreds of new items every day in all of our locations. We want people to come back and be excited about what they’re going to see and what they’re going to find.

Written by Zach Fox for GoUpstate.com

CLOTHES MENTOR: Ardmore Store has Treasures for Everyone

Photo courtesy Mainline Media News: Clothes Mentor Ardmore Owner Sharon Nagy poses with a poster of an article featuring herself at 7-years-old selling Kool-Aid from a cart her father made. She hopes to raise money for medical research into the disease that took her father's life.
Photo courtesy Mainline Media News: Clothes Mentor Ardmore Owner Sharon Nagy poses with a poster of an article featuring herself at 7-years-old selling Kool-Aid from a cart her father made. She hopes to raise money for medical research into the disease that took her father’s life.

Check out the Mainline Media News article about the soon-to-be-open Clothes Mentor store in Ardmore, Pennsylvania:

Clothing has the power of transformation. A new little black dress, shiny red heels or a tailored coat can make a woman feel like a million bucks. Yet, why spend most of a paycheck on expensive clothing? Clothes Mentor, a franchise of stores based in the U.S., buys and sells previously owned designer clothing at 70 percent off the original retail value.

“Clothes mentor is unlike consignment, we do pay cash, on the spot. It’s a resale shop like you’ve never seen before. It’s not a thrift store, it’s not a step up from that, it’s really a concept where the modern, fashion-conscious woman can come in and be outfitted in something that’s new, fresh and exciting,” Sharon Nagy, owner of Clothes Mentor Ardmore, said.

The store, at 50 Greenfield Ave., Suite 56C, is set for grand opening on Thursday, Feb. 4 from 10 a.m. to 8 p.m. During the grand opening event, the first 25 customers in line will receive mystery gift cards, ranging in value from $10-$25 dollars.

Photo courtesy Mainline Media News: A glimpse into the Clothes Mentor store at 50 Greenfield Ave., opening Feb. 4.
Photo courtesy Mainline Media News: A glimpse into the Clothes Mentor store at 50 Greenfield Ave., opening Feb. 4.

Stepping into the store is equivalent to opening up a fashionista’s dream closet, full of rows of color-coordinated clothing, designer handbags, heeled boots, vibrant scarfs, and sparkling jewelry. The pieces range from items from well-known department stores to high-end designers.

“When you come in and you find a Calvin Klein dress that sold for a hundred dollars and it’s thirty in our store, they feel really pretty in it and they are equipped for whatever is out there, whether it is an interview, meeting friends or going out for dinner with their husband,” Nagy said.

The store has treasures for everyone at every budget.

Nagy explains, “We have costume jewelry, we even have some Tiffany pieces and David Yurman. We have in the store everything from Old Navy, Target, Kohl’s, Penny’s all the way up to Dior, Gucci and Christian Louboutin.”

The inventory is created by the community. Anyone can stop by and bring in new or gently used woman’s clothing, shoes, accessories and handbags. Clothing must be laundered and brought in without hangers. People can take advantage of curbside service where they drop off their items and call the curbside number so that they do not have to carry items from their cars.

“We do an inspection, and then we put it into our very sophisticated matrix system that we have that is supported by our franchisor and it tells us the price,” Nagy said.

Clothing that meets requirements will be placed in the store and the previous owners will be paid a portion for the clothing, about 30 percent of the resale price.

However, Nagy explained that for handbags that are mechanized for $50 or more as well as garments mechanized at $200 or more, previous owners will receive half of the resale price. They may also choose to receive store credit which adds an additional 35 percent of the sale to their credit.

Clothes Mentor has items for sizes 0-26 and is looking for more items, especially plus and active wear. “We are setting the store for spring so I’m looking for more summer items that have been in the stores the last few years,” Nagy said.

Opening the store is a lifelong dream that has been in the works since Nagy was a little girl, living in North Carolina. Nagy worked as a nurse up until five years ago. She also has a passion for theater and has performed in 15 shows in both the local community and city since moving to the area over a decade ago.

Nagy, joking about how she was able to explore the glitzy world of theatre before embarking on her business, said, “So then I got that out of my system and now I was like, “OK, now what do I want to do when I grow up? I think I’ll have a store.’”

Nagy was inspired by the mission and concept of the Clothes Mentor franchise.

“When I discovered this concept, where they pay cash and it was for women, and it’s supported by a franchise, it’s not something that I had to do totally on my own. It’s nationally known but locally owned and operated…It’s a concept where we get the support of marketing, advertising and training from the franchise. They helped me get this going but it has been a dream of mine forever.”

Photo courtesy Mainline Media News: Christian LouBoutin heels with the trademark red-lacquered soles and Prada boots
Photo courtesy Mainline Media News: Christian LouBoutin heels with the trademark red-lacquered soles and Prada boots

Helping others score amazing deals and find beautiful items that can have a second life is also a thrill for Nagy. “I always had resale in my blood, growing up finding that treasure and loved the concept of consignment shops and resale shops,” she said.

Nagy was an entrepreneur from a young age. At 7 years old, her father built her a Kool-Aid stand and she sold the fruity refreshment for a penny. A local reporter took a picture of her, proudly sitting at the stand, which she found in the archives and created a poster of the article.

“I played store a lot as a little girl, I used to put price tags on everything in the house and make my parents shop,” Nagy said.

Her father’s Kool-Aid stand inspired her to open her own business. She hopes to give back to her father and plans to use some proceeds from the store to fund Penn Medical Center’s research.

“I’m going to implement a one cent [buy one, get one for a cent] sale to raise money for a particular disease that my father had. He built this Kool-Aid stand for me, he was terminally ill. I’m going to use this to raise money to study the very rare diseases that he had.”

In this new business venture, Nagy combines her compassion for her family and community.

“It’s all about helping each other, I guess that’s the nurse in me, too,” Nagy said. “I still have that desire to help people feel better about themselves, and that’s what this is all about.”

During the year, Nagy plans to have several exciting events including a “Girls Night Out” partnering with local vendors as well as events for teachers and private parties.

Clothes Mentor Ardmore will also be developing a Personal Shopper program down the line. Eventually, customers will be able to fill out a form online and “the personal shopper [selects] items for them based on their style, their color their preferences, sizes, their lifestyle, what they have interest in.” The program will be free of charge.

Nagy is also looking for talented people who are welcome to apply online to be part of her team in the store. Her vision for the store is a place where the customers and store team thrive together and make the Ardmore location a staple in the community.

“I want it to be a place where people can come and hang out. Every day it’s a new store because things are flying in and flying out. People are excited to bring new things and stop by and see what’s the latest and greatest. But just to be able to say, “Hey how’s it going?” and see your team members making friends with the community and just be a warm atmosphere.”

Nagy is thankful to everyone in the community who has contributed to making her dream a reality.

“The community feels a little ownership of this, I love that… They’re so supportive. We have such an eclectic demographic area around here, it’s great. We’ve got all kinds of folks. Just to see what they were going to help me create in the store, and seeing the team, the excitement, it’s a contagious excitement,” Nagy said.

For more information, visit the Ardmore store website.

Article by Jessica Paradysz, Correspondent for Mainline Media News

NTY Highlighted in Franchising World Magazine

NTY Franchise Company graphic with quote from an article

The following excerpt was taken from the article “Creative Narrative, Original Messaging Offer Powerful Marketing for Unique Franchises” in the January 2016 issue of Franchising World:

NTY Franchise Company is the parent company of five unique re-sale based brands that focus on women’s designer fashion, children’s apparel and accessories, furniture/household goods, electronic sales and repair, and clothing for teens and young adults. Its franchise model is designed to sell gently used goods at 70 percent off the new retail price. NTY Franchise brands are attractive, as they save customers money and pay sellers cash on the spot for items they are no longer using.

Read the full article here.

CLOTHES MENTOR: 6 Ways To Treat Your True Customers Well

NTY Franchise Company graphic with title of article

Clothes Mentor franchisee Kate Paynter wrote this helpful article for the Women On Business website. Read the article below or check it out on womenonbusiness.com.

Every year, I make a point to set a new goal for my business. Not just for me, but for all the men and women I’m proud to call team members. The goal becomes a theme that we will build on throughout the year, affecting everyone from the CEO to the front line employees. Or as I like to refer to them, my “true” customers.

Prioritizing customer service for the end customer or final consumer is nothing new. But when you are a multi-unit business owner with several layers of management, you probably don’t spend much time engaged in traditional customer service. You do have customers, however; you just may not have thought of them that way.

In 2016, I’m making it a priority to treat my true customers well. Those would be the district managers I interact with on a daily basis and count on to help the business succeed. In turn, I’ll encourage them to treat their “true” customers, the store managers, well. It’s a mission I want to trickle all the way down to our front line employees whose true customer is the final consumer.

Whether you are a business owner or manager, chances are you are providing a work experience for somebody. That somebody is a customer. Employees pay with something much more valuable than money. They pay with their time, their skills, and their effort. Supervisors that expect their teams to treat customers like royalty have an obligation to do the same for their staff.

Here are some ways to get it done:

1. Solicit Regular Feedback

Whether you use anonymous surveys, open discussions, or exit interviews, putting mechanisms in place to generate specific feedback from employees is a critical starting point.

What is the best part about working here? What is the worst part? What would you do differently if you were in charge? Where are we missing opportunities?

2. Schedule Time to Review Feedback Regularly

Weekly, monthly, quarterly — whatever time you select, have a plan for how it will be discussed. I like to review everything before the meeting, then offer my managers a summary of what we will be discussing.

Remember not to spend the entire time on what needs to improve. Dedicate some time to what the employees say is being done well. Not only is that an opportunity to offer praise for good achievement, it’s a chance for your team members to hear what’s working and see how they can implement it, as well.

3. Finish Each Meeting with an Implementation Plan and Make Good on It

Nothing will undercut your efforts to generate regular feedback than a collective sense from your employees that they aren’t being heard. This doesn’t mean you have to solve every problem, but letting people know that their concern was discussed goes a long way.

Compile your meeting notes into a summary email and distribute it to all team members. Begin with what’s going to be a top priority, followed by midterm fixes, long-term fixes, and tabled issues. Finish with anything that won’t be addressed again but offer a detailed explanation why.

4. Be Nice

I’ve been a business owner for more than 20 years and know the pressure women feel to prove that they have the toughness to succeed in business. However, a perpetual scowl and grumpy demeanor will do far more harm than good. It’s difficult to expect your front line employees to wear a smile when dealing with customers if they are regularly greeted with their supervisor’s frown.

Being nice isn’t a weakness, being afraid to be nice is. If you show confidence in your mission and consistency in your operation, there is no reason you can’t be respected while still being nice.

5. Use Your Business to Inspire Your Employees

Would your employees consider their positions to be their jobs, their careers, or their callings? Some would say that answer has more to do with the work than the organization providing it, but I believe a company’s management team has a lot to do with how meaningful they make the work.

As a resale store owner, I don’t describe our team members as selling used clothes. We’re putting cash in local women’s pockets for their gently used items. We’re helping people look like a million bucks for pennies on the dollar. We are selling confidence through clothing without busting the family budget. That’s important work that we can all rally behind.

6. Measure Results

At regular points throughout the year, we’ll take stock of how our efforts are coming. We will look deeply at our retention rates, compare employee satisfaction levels, and review where we are succeeding and where we need improvement.

Don’t make the mistake of waiting until the end of the year to check in on your progress. If your goal is to improve or maintain a high level of “true” customer satisfaction, there is no sense in waiting until December to find out that what you’re doing isn’t working. Analyze results. Develop what’s working. Scrap what isn’t.

For me, success looks like this piece of feedback from one of my most trusted managers. She is one of my true customers whom I am proud to serve.

“Continued support from such a great family/company to work for is making my experience here one to cherish. ‘Take care of the employees and they will take care of the customers’ greatly describes the way you run this “family,” and it truly makes me enjoy going to work everyday. I couldn’t be happier!”

About the Author
Kate Paynter is a pioneer in the $12 billion resale industry. She and her mother, Becky, own and operate several resale franchise units in Cincinnati, Ohio, including upscale women’s resale clothing store, Clothes Mentor.