Women Share Their Secrets for Successfully Running a Clothing Resale Store

Ask anyone who runs a business how they make it a success, and you’ll hear the same answer: it takes more than hard work and gumption to get it running and keep it thriving.  That’s especially true for women who own a clothing resale store like Clothes Mentor or Children’s Orchard. Women who take on this kind of challenge share several common traits—they’re ambitious, flexible and always willing to learn and grow. The competitive resale business demands a savvy owner who stays on top of market trends, knows how to hire and nurture the right staff, and isn’t afraid of emerging technology. If you’re thinking about investing in an NTY Franchise Company store, here are some shortcuts from current owners happy to share their secrets for success!

Don’t Apologize for Being Particular

 For Cindy Kehagiaras, being picky is perfect for her Children’s Orchard franchise in Manhattan Beach, California. This working mom purchased her franchise with her mother in 2010. She had never owned a business, and discovered Children’s Orchard when her son was born. She quickly realized she wanted her store to have a certain look and feel that aligned with her vision and values for her franchise.

To that end, she makes no apologies for being particular:

In purchasing (she only buys great condition, current styles)

In arranging displays (all clothing is color-coded by size and gender)

In making gentle corrections when she sees young customers being messy or destructive (she will charge customers who damage merchandise)

“You want an environment where people feel comfortable,” Cindy explains, “but you want to portray an air of organization.”

Make Interesting Hiring Decisions

In Charlotte, North Carolina, Clothes Mentor owner Alyssa Cox decided to take a chance and hire an employee who has Down Syndrome. It turns out to be one of the best decisions she has made for her franchise. 20-year-old Julia started as a greeter, but in less than a year has expanded her position to include handing out flyers and helping customers find particular items.

“She knows the merchandise,” Alyssa laughs, “because Julia likes to shop!” This sweet greeter has become a valuable part of the customer service team, and store patrons love her infectious smile and happy disposition. “Julia is a hardworking individual,” Alyssa says, “and our sales are higher when she’s there. It’s really great having her on our team.” Alyssa has plans to hire more workers with Down Syndrome, and she recommends other franchise owners strongly consider an employee with a disability when making hiring decisions.

Know Your Market

 For savvy Sadie Cherney, a thorough knowledge of her market has proved invaluable to the success of her Clothes Mentor franchises in Greenville, Columbia, and Spartanburg, South Carolina. This 33-year-old bundle of energy hit the ground running when she opened her first store in 2013 and has never stopped doing market research.

“It was a steep learning curve,” Sadie admits, “but we are perpetually learning how to adapt to the customer and reach them.” She says she experiments with different media for advertising, and always looks for ways to buy what the customer is looking for.

Sadie is a Data Diva, thriving on crunching numbers and thrilled with the information her NTY Franchise Company corporate managers supply from their point of sales system. She learns about trends and pricing and says she’s always ready to adapt to the type of change dictated by her specific market.

“When it comes to fashion, we look for spike trends,” Sadie offers. “We buy with caution and we get rid of merchandise quickly when it doesn’t sell.” Her shoppers prefer Louis Vuitton, Coach, Michael Kors and Kate Spade handbags — and on-trend footwear including slides, athletic shoes and ankle boots. Sadie only accepts what she knows will appeal to her customer base. The average seller brings in a laundry basket, Sadie explains, “and we will normally accept about 15 pieces. From a large tote, we normally accept around 9 pieces.” After studying the data, Sadie says her store normally accepts about 25–30 percent of the items people bring in to sell, and employees look for current designer pieces and iconic styles that always appeal to her customer base.

Connect with Customers Inside and Outside of the Store

 Exceptional customer service is a great basis for growing a business. But for women who own a clothing resale store, there are also some deeper reasons for making close connections with customers.

Buying and selling pre-owned clothing and accessories leaves less of an impact on the environment, and allows women to help other women in two ways. Sellers make on-the-spot cash for their pre-owned items, and buyers get fantastic deals on current fashions.

Some women who own an NTY Franchise Company store align themselves with like-minded groups, to further their goal of helping their community. Many owners, like Chris Barnett in Westchester and Springfield, Pennsylvania, have dedicated bins in their store to collect donations for women’s shelters and faith-based charities that help women. Chris says her overarching goal when she opened her business was to allow her young daughter to see women cheering each other on.

“We hold fundraisers and retail therapy parties,” Chris says, “to show women how beautiful they are by finding clothes that fit them the best.” And Chris’s husband Stephen gave up his law practice to mentor young employees, to help them build their portfolios and become successful, productive workers once they move on from Clothes Mentor.

Seek Out Social Media

 Most owners agree, free advertising is a great option when it comes to reaching younger shoppers, especially millennials and Gen-Xers who constantly have their phones in hand.

At nearly 50 years old, Chris Barnett in Pennsylvania educated herself about Facebook and how to use it to successfully advertise her two Clothes Mentor stores. “We can communicate directly with customers and answer their questions immediately,” she says.

Cindy Kehagiaras in California takes it a step further — interacting with her Children’s Orchard customers on a daily basis on various social media platforms, and offering bilingual flyers for her Spanish-speaking patrons.

“We use elbow grease instead of the checkbook,” Cindy chuckles. “We don’t do traditional advertising. We put all our information on social media sites.” Cindy and her team also forward funny pictures and repost trending videos that are relevant to their customers. Their “likes’ and “shares” generate positive buzz for their business, and create a feeling of goodwill among their customers. After some trial and error, Cindy found that having an “Instagram rack” of photo-worthy items from all price points helps drive sales in her store.

Sadie Cherney hosts a monthly style segment on local TV in the Greenville/Spartanburg, S.C. area. “I get to style six mannequins for the news,” she says, “and I love it!” Sadie is a whiz at social media marketing and handles that part of the business for her three stores.

Obviously, customers are getting the message from these smart store owners, and are coming back to buy and sell their on-trend clothing and accessories. It’s all part of the recipe for success for these women who make it their business to keep other women looking and feeling beautiful.

These Clothes Mentor Owners Make a Difference in Their Communities

Many resale clothing franchise operations are small businesses, deeply dependent on a loyal customer base. Most of those shoppers come from the local community, and smart franchise owners know their customers by name. They collect and keep data about their sizes, style preferences and favorite brand names. They send email reminders about special events. They remember birthdays. They understand the value of having a connection that goes beyond the cash register.

The most successful franchisees also have mastered the magical math of giving back. They add value to their cities and towns by making their part of the world a better place. Here are some examples of Clothes Mentor owners who truly make a difference in their communities.

Alyssa Cox and Her Smiling Greeter

Alyssa Cox owns three Clothes Mentor franchises in and around Charlotte, North Carolina. She’s always been involved in the community, and her family has volunteered for years with the Down Syndrome Association of Greater Charlotte. Last December, Alyssa decided to hire a 20-year-old woman with Down Syndrome to be a store greeter at her Clothes Mentor in South Charlotte. In her wildest dreams, she couldn’t have imagined what a fantastic idea that would turn out to be!

“Julia greets everyone when they come in,” Alyssa raves. “She already has gotten more (work) hours, she’s gotten a raise, and our sales are higher when she’s there.” Alyssa says Julia has become an important part of the customer service team, handing out flyers and helping customers find items within the store. “She likes to shop, too, and enjoys the employee discounts!”

Julia has become more independent and self-sufficient as a result of her employment at Clothes Mentor. Her parents are thrilled — and have noticed a growing maturity in their daughter. “She even takes public transportation on her way to work,” Alyssa adds.

Alyssa says if the opportunity presents itself, she will hire another person with Down Syndrome. “The sky’s the limit for this kind of thing,” she says.

Chris Barnett and the Resale Cycle

At the Clothes Mentors in Westchester and Springfield, Pennsylvania, franchisee Chris Barnett knows what it’s like to be a bargain shopper. “I grew up going to garage sales,” she admits. She gave up a high-powered career at a major pharmaceutical company in order to facilitate women helping each other via the resale clothing cycle. She is personally vested in making her customers feel and look as good as they can. “Our mission is to show women how beautiful they are by finding clothes that fit them the best.”

But Chris does so much more in her community than simply boosting her customers’ self-esteem. “We host fundraisers. We have retail therapy parties,” she explains. In her stores, there are several places for customers to donate clothing that is not purchased for resale. Those donated items are taken to local churches, where they are in turn distributed to women living in homeless shelters. Customers can purge their closets of gently-used clothing, and women who can’t afford new fashions get the opportunity to look and feel great about themselves. Everyone wins.

Sadie Cherney Broadcasts for Bargain Hunters

In South Carolina, Sadie Cherney owns three Clothes Mentor upscale resale stores — in Greenville, Columbia and Spartanburg. Like many Clothes Mentor franchisees, Sadie offers a complimentary personal shopping service at all of her stores. Busy customers sign up on the store’s website, and submit sizes and style preferences. The personal shopper pulls dozens of items in the appropriate sizes and colors and has them ready for the customer when she arrives. The entire process is free of charge, and there is never an obligation for a customer to make a purchase.

But Sadie goes beyond the bricks and mortar of her store to help local women become more fashion-savvy. She hosts a monthly fashion segment on WSPA-TV’s “Your Carolina” morning program. “I get to style six mannequins,” she beams. “I love it!” Because of the wealth of consumer data she receives from the NTY Franchise parent company, Sadie gives free fashion tips to women who want to stay on top of the latest trends while keeping within their budget.

Tim Kapphahn Maximizes the Mentoring

The Clothes Mentor franchise in St. Cloud, Minnesota, truly lives up to its name. Owner Tim Kapphahn and his partner LaVonne Rykhus have committed to their mission of promoting and addressing women’s issues. They also help facilitate the mentorship of women by women. Employees at the store started the World of Women (WOW) program to help empower customers and other women in the local area. They host monthly meetings in the store with various topics such as, “How to Write a Good Resume.” Customers regularly attend — and often bring neighbors, friends or family members. The employees take ownership of the programs, and women in the local community receive mentorship, advice, and career and skills development. But that’s not all. Managers are constantly thinking of ways to connect with women in the St. Cloud community.

“We put on a fashion show for women dealing with issues in a domestic shelter,” Tim offers. It’s held at a site chosen by the shelter, away from the store. The attendees get a chance to learn about appropriate fashion for interviewing and landing a job. “It’s geared toward women who might be entering, or re-entering, the workplace after spending time in the shelter.” Tim says these presentations have a “dress to impress” focus, and the women leave with a feeling of empowerment and hope. The Clothes Mentor team in St. Cloud is busy thinking up more ways to stay involved with, and connected to, the people who help support their business.

Whether they reach out within the four walls of their store or branch out into the city or town they call home, these franchisees are creating strong connections with customers, and potential customers. They are providing volunteers for local events. They are raising money for worthy causes. They are offering employment and career advancement to persons who otherwise may not have the opportunity to land a job. Most of all, they are working to ensure that their upscale resale clothing store becomes part of the fabric of their community for years to come.

Children’s Orchard Franchise Wins Prestigious Environmental Award

Kid’s Clothing Franchise in Manhattan Beach Wins 2018 SEED Award for

Extraordinary Efforts in Pollution Prevention

(MANHATTAN BEACH, Calif) – Children’s Orchard of Manhattan Beach is celebrating their acceptance of the 2018 SoCal Environmental Excellence Development (SEED) Award for preventing pollution in their area. It is the first SEED Award for the local kids’ resale franchise that buys, sells and donates gently-used children’s clothing and other items.

“I’m thrilled that Children’s Orchard was recognized with such a prestigious local award,” store owner Cindy Kehagiaras said. “We are extremely committed to preserving the environment and honored to be leading the way by preventing pollution.”

Children’s Orchard, a national children’s resale clothing brand franchised by NTY Franchise Company, encourages locals to recycle their children’s clothing. They offer cash on the spot for gently-used clothing, toys and other children’s items, then sell those items at up to 70 percent less than the retail price. Items they are unable to sell are donated to the Exceptional Children’s Foundation to aid ECF’s mission serving children challenged with developmental, learning and emotional disabilities.

“In 2017, we sold an estimated 49,000 pounds of gently-used children’s clothing that would likely have otherwise ended up in the landfill,” Kehagiaras explained. “Add in the estimated 10,000 pounds of clothing we donated, and you see how committed Children’s Orchard is to preventing needless waste.”

Six SEED Awards are handed out each year by the South Bay Business Environmental Coalition, an all-volunteer member-driven organization focused on providing collaborative opportunities to all members of the South Bay community. Board Member Lisa Ryder-Moore said Children’s Orchard of Manhattan Beach was a terrific choice for the pollution prevention award because of the leadership role they play in keeping textiles out of the landfills and running a clean and green operation.

“Children’s Orchard’s resale business model is a wonderful example of how a business can thrive while protecting the environment. We’re very happy to recognize Cindy and her store for helping her community recycle and reuse children’s clothing,” she said.

Resale apparel is enjoying a $20 billion boom that began during the Great Recession and continues today, as consumers flock to stores like Children’s Orchard to buy and sell their gently-used children’s clothing and accessories. Now growing a whopping 24 times faster than retail, recent reports project that the resale apparel market will grow to more than $41 billion by 2022.

To learn more about Children’s Orchard, visit www.childrensorchard.com.

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About Children’s Orchard

Children’s Orchard was purchased by NTY Franchise Company in 2014. There are over 35 stores nationwide. As a children’s resale store, it addresses an important need as kids outgrow their clothes faster than they can make a dent in wearing them out. This makes this store a growing necessity that will draw customers in. Something kids loved a month ago might not fit them at all now — and this is true of toys and equipment as well. With gently-used, high-quality apparel, toys, and equipment, Children’s Orchard is a great concept, a great need, and is a great opportunity for business owners in their community.

About NTY Franchise Company

Founded in 2006 by Ron Olson, NTY Franchise Company is the gold standard in resale franchising companies. NTY franchises five brands, all with a different focus: Clothes Mentor, Children’s Orchard, Device Pitstop, New Uses, and NTY Clothing Exchange. The brands are all resale-based and cover women’s designer fashions, children’s apparel and accessories, furniture and household goods, electronic sales and repair, and clothing for teens and young adults. All are great business opportunities with cutting-edge technology, unmatched support, and lucrative resale franchises. NTY Franchise Company has helped individuals to establish resale stores throughout the United States in many communities, and it has territories available to develop nationwide. Learn more at www.ntyfranchise.com.

Consignment Stores or Resale Stores? Five big differences

Who doesn’t love a bargain when shopping for on-trend clothing, shoes and accessories?  More shoppers are turning to upscale resale stores to snag great deals on the latest fashion finds.  They’re also discovering a way to recycle their own gently-used items—and earn some cash– by selling their clothing to, or through, a used clothing shop.

The two major types– consignment stores and resale stores—have different ways of acquiring items. Both accept high-quality, gently used clothing, and both look for designer and name-brand labels from customers who want to sell their clothes.  However, resale shops like Clothes Mentor tend to be more fashion-forward, purchasing current, up-to-date fashion as opposed to the classic or vintage items often found in consignment stores.   Shoppers can get great deals at either type of place.

For store owners, though, the business models have some significant differences.  Owners need to know their comfort levels in dealing with daily operations and cash flow issues to determine which type of upscale resale clothing store is a good fit for their temperament.

For shoppers and for store owners, there are five big differences between consignment shops and resale stores.

1. Who Maintains Possession?

In a consignment situation, the owner of the item (the consignor) maintains ownership of it, but gives the right to sell it to the store, which is the consignee.

Most times, if an item doesn’t sell, the consignor can pick it up and keep it, give it to a friend, or donate it to charity.  It’s also common for the shop to arrange for a charitable donation on behalf of the consignor.

At a resale clothing franchise such as Clothes Mentor or Children’s Orchard, the store buys the items outright from a seller or a wholesaler, then displays and sells the goods at a profit.  Once an item is purchased from the seller, it becomes the property of the resale store, which then decides how to display, market and sell it.  If the items don’t sell in a reasonable amount of time, most resale stores donate them to charitable organizations in the local community.

2. Who Sells the Items?

With consignment, the shop helps the consignor sell her clothing and accessories, and pays the consignor only after the items have sold to a third party.  Each local store sets its own policy, but in general, the items are dropped off and marked for sale for a predetermined cycle, usually 30, 60, or 90 days.  If the pieces don’t sell by the end of the term, some shops will discount the items (often by 30% or more), or require the owner to pick them up.  Consignment shops often charge a seller a commission between 25% and 60%, which becomes profit for the shop.

At resale stores, the seller parts with the clothing in exchange for on-the-spot payment.  In other words, she sells her pieces of clothing to the store the same day she drops off the items.  The waiting period is minimal—basically, just the time required for the store personnel to determine the value of the items, and prepare an offer to purchase.  It’s common for the store to offer 50% or less of the price it intends to charge for the item.  Employees will then process the merchandise and tag it for resale, and the seller has nothing more to do with the items.

3. Who Controls the Pricing?

With consignment, a seller has limited control over how much her item will be priced for resale.  She can work with the shop to determine the best price so that it can potentially sell for top dollar.  Oftentimes the price drops on a set schedule, depending on how long the clothing remains in the shop prior to purchase. Still, the consignor risks the chance that the item won’t sell at all.

At a resale clothing franchise stores like Clothes Mentor, the store determines the price paid to the seller based on the condition and age of the clothing, and whether it is in high demand.  It also prices the item for resale using data provided by the franchise parent company, and current local market trends.  The store assumes the risk for the resale, so the profit to the franchise owner is often higher than in a consignment store.

4. Benefits of Opening a Resale Franchise vs. Consignment

Most franchises offer owners a proven business structure, which can be attractive for first-time owners with limited or no business experience.  The franchise parent company normally provides training in how to start up and run the operation before the doors ever open.  In many locations, owners find it easier to secure financing for a franchise than a start-up consignment or resale store.  Analyzing and implementing the pre-opening plans can help owners make informed decisions about purchasing, staffing and ongoing development.  In contrast, consignment shop owners devise their own business and operating plans, and often have higher initial startup costs than a franchise. Any pre-opening training must come from in-house, or be outsourced.  The consignment shop owner makes all decisions regarding the business.

5. Support for Ongoing Operations

A typical franchise agreement at a store like Clothes Mentor or Children’s Orchard includes ongoing support for the business operation. The franchise already has its own image, branding and marketing plans.  Owners receive ongoing sales and marketing support and access to national advertising. The franchise also has built-in buying power for bulk office and retail supplies

As for consignment shops, any support must be initiated internally, or be outsourced.  Owners must negotiate their own deals for supplies, and come up with their own marketing, training and development plans.

No matter the preference, there are options to suit every need when it comes to buying and selling used clothes—either as a customer or a business owner.

Consumers are really buying into the resale trend, whether to make money, save money, or help the environment by reducing the amount of discarded clothing.  And the resale industry is responding, with a growth rate in resale shops of approximately 7% a year.  More upscale resale clothing shops are making room for specialty items such as plus sizes, maternity and athletic wear.  It’s an economical way for a shopper to purchase clothing, and a socially-conscious way for a seller to part with unneeded garments.  It’s also a way for a business owner to become part of the fabric of the local community.

Buying and selling gently used clothing is more than a trend—it’s a movement.  And by choosing consignment or resale, savvy shoppers and sellers are guiding the flow in a fashion forward direction.

 

SMART BUSINESS: Why Women and their Spouses Love NTY Franchise Company’s Business Model

More women than ever are taking their careers into their own hands, by owning and operating a franchise business. According to FranNet, a company that connects people with franchise opportunities, female franchise ownership jumped by 83 percent between 2011 and 2017. For married women, that can mean navigating a new relationship with a spouse who may or may not be active in the daily business operation. Fortunately for women who own an NTY Franchise Company brand, there is a solid business model to help them balance work, family and personal time.

ANGIE AND JEFF GELDERT WORK THE NUMBERS

Fifty-two-year-old Angie Geldert left her long-time teaching career to purchase a Children’s Orchard kids clothing franchise in Murfreesboro, Tennessee, two years ago. She knew she needed a change, and had the luxury of being married to an accountant who could help her keep track of the store’s finances. Angie says the business model of her NTY Franchise Company brand allows her to spend more time with her family, and work with them to grow her new business.

“My daughter is an accounting major and she is the store manager while she continues to study for her degree,” Angie explains. “She’s a great partner.”

Angie also enjoys her new business relationship with her husband, Jeff. “There are different stressors now,” she allows, “but it’s something we have done together.” Jeff does the books for the store, and Angie says he’s always willing to lend a hand whenever she needs it. “He helps with purchases, with storage… and it’s nice to have someone around who can lift more than I can,” she laughs. “We like bouncing ideas off each other.”

Jeff agrees, saying he appreciates how his wife took on the challenge of operating her upscale resale franchise. “It’s great — she’s put a lot of effort into it. At first we were nervous, but we’re much happier now that things are catching on. I’m proud of her; she’s worked very hard.”

And the numbers bear that out: Jeff says the sales growth is ahead of schedule. “We were expecting it to be slow to begin with, but in the middle of last year, sales started to show double-digit increases. We are seeing monthly growth in sales of 17 to 30 percent (over the same period last year).”

THE BARNETTS’ LEAP OF FAITH

When Chris Barnett purchased her Clothes Mentor women’s fashion franchise in Pennsylvania five years ago, she knew it was a leap of faith.  She and her husband Stephen jettisoned their corporate careers and plunged into operating their franchise.  They wanted to have more control over their lives, and teach their values to their 10-year-old daughter, Eliza. They still work long hours, but they’re in charge of their time.

“We are in the store most days, but we are working on the business every day,” Chris said. Still, they are able to spend quality time with their daughter while they work. “Eliza comes into the store every weekend, and two to four times during the week.”

The business model has proved to be a winner for the Barnetts. Just 18 months after opening their store, they bought a second Clothes Mentor franchise. “Having multiple locations allows us to have economy of scale,” Chris says. Even so, she says, they couldn’t have done it without the support they received from the NTY Franchise Company corporate team.

“They give us the tools and as much hand-holding as we need. They have great regional advisors who help us with marketing. What gets scary, though, is… it’s your business, your baby. They give you a strong foundation, but you have to take care of the rest of your house.” With a five-year track record, the Barnetts’ house appears to be in great shape.

THE CHERNEYS’ JOURNEY

Thirty-three-year-old Sadie Cherney earned her master’s degree, married her husband Bill three months later, and moved across the country to open a Clothes Mentor franchise in South Carolina soon afterward. This dynamic duo are also parents of two sons under the age of 3. They now own three Clothes Mentor women’s resale stores, and they credit the NTY Franchise Company business model with helping them achieve career success at a young age.

“The best part is the wealth of data from the point of sales system,” Sadie acknowledges. “They are always crunching numbers and that helps franchise owners. Back-of-the-house data is always available to franchisees. The company is wonderful, supportive and communicative.”

Bill was an English teacher when Sadie opened her first location. A year later, they were starting their family so Bill quit his job to make sure there wasn’t a loss in leadership during Sadie’s maternity leave. Sadie returned to work after the birth of their son, but shortly thereafter, their child suffered a health scare. The NTY Franchise business model made it possible for Sadie to be with their toddler when he needed her most.

“Our two-year-old son was hospitalized last year with a critical illness, and I basically lived at the hospital,” Sadie confides. “The flexibility we have with this company is incredible. It really makes such a difference when you have a crisis. We have built up a team that’s like a family. They’re there when we need them.”

With their son healthy again, Sadie and Bill are focused on raising their boys and growing their business. “To be successful, we have to work closely together. Sometimes it’s challenging, especially if we need our own space after work, but we go home together. What works best for us is that we don’t try to be in charge at the same time,” Sadie chuckles.

“MOORE” SUCCESS IN LITTLE ROCK

The Moore family owns two Clothes Mentor women’s resale clothing franchises and a Children’s Orchard kids clothing franchise in Little Rock, Arkansas. Twenty-nine-year-old Jade Moore runs the stores and feels supported by the NTY Franchise Company business model. It has allowed her 31-year-old husband Turner to pursue his calling as Junior High Pastor at their church.

“He is a humble man who is encouraging and motivating to me,” Jade beams. “He is the greatest at lifting my arms up when I am tired or calming me down when I make a rash decision. I’m blessed to have him as my support.”

Jade appreciates the NTY philosophy of offering high-quality clothing at affordable prices to families in her community. She’s also thrilled that unsold clothing is donated to needy families. “It’s part of a new way of living… allowing less-fortunate parents to say they can give to their children.”

FAMILY-FRIENDLY CONCEPT

The NTY Franchise Company business model works well for all of these female franchisees. The corporate support, with flexibility for local owners, is a winning combination. Franchise owners are able to build a business while staying connected to the people they love. It’s a family-friendly concept that helps working women achieve the balance they crave in their personal and professional lives.

How to Run a Successful Franchise While Working Just 20 Hours a Week

Claudia Zertuche is living her dream.

After emigrating from Mexico almost two decades ago, she and a friend decided to explore franchise ownership. In 2005, they decided to open a Children’s Orchard (a national children’s resale clothing franchise that buys and sells gently used children’s apparel, toys and other items) in McAllen, Texas.

…read the whole Entrepreneur.com story here.

https://www.entrepreneur.com/article/310445

 

 

Why Women Franchise Owners Left Their Careers to Buy a Resale Clothing Franchise

WHY WOMEN FRANCHISE OWNERS LEFT THEIR CAREERS TO BUY A RESALE CLOTHING FRANCHISE

It takes more than a leap of faith for a woman to jettison her former career and buy a clothing franchise. It takes guts, hard work, and the right timing. But it happens, and the rewards can be far greater than the risk. Several NTY Franchise company franchise owners have followed their passion to a career in women’s fashion, and they’ve never looked back.

Pharmaceuticals to Fashion

Chris Barnett is nearly 50 and had worked for years as a partner in a law firm before becoming an executive director at a large pharmaceutical company. Five years ago, however, she and her attorney husband Stephen decided they wanted to do something to show their daughter what they truly believe in, and it wasn’t the corporate grind.

“We believe in women helping women,” Chris explains, so they purchased their first Clothes Mentor women’s clothing franchise in Pennsylvania. “Our franchise enables our 10-year-old daughter (Eliza) to see women cheering each other on.” The business model intrigued them: The store purchases designer clothing and upscale fashion from local women, then re-sells the items at a fraction of retail prices to customers who appreciate the value. Everyone wins.

The couple knew they wanted to teach Eliza the value of a dollar. To do that, they show her how women save money at their store by purchasing gently-used, name brand clothing at a much lower cost than they’d pay at the mall. The Barnett’s also enjoy practicing the “mentoring” aspect of their Clothes Mentor franchise. “Stephen is good with development,” Chris says, “and he works with the young team members to help build their portfolios.”

In addition, the couple relies on the mentoring and support they get from NTY corporate directors. In fact, they liked the concept so much, they now own two Clothes Mentor women’s clothing franchises, in Westchester and Springfield, Pennsylvania.

From the Classroom to the Dressing Room

While Chris and Stephen left high-powered careers, 52-year-old Angie Geldert gave up a 20-plus year career as an elementary school teacher to purchase a Children’s Orchard kids’ clothing franchise in Murfreesboro, Tennessee. She and her accountant husband Jeff had moved from Minnesota, where the education system was much different. After teaching for a year in her new town, she felt ineffective in the classroom and needed a change.

“I wanted to still be part of the community, help people, and still have contact with families and kids,” she recalls. The Children’s Orchard franchise was the perfect fit, offering her the connections she craved, as well as opportunities for a first-time franchise company owner to learn quickly.

“A competitor moved in down the road and opened two weeks ahead of us,” Angie says, “so there were unforeseen challenges at startup.” She had to figure out a way to stand out in her town’s growing children’s upscale resale market. She credits the NTY corporate structure with helping her feel supported at every turn. “Through my discovery process, other ladies were so willing to give me information to help start and grow the business,” she remembers. “I felt we had a safety net, from corporate and from other franchise owners.” She also doubled down on customer service and educating her staff, which has paid off in impressive sales growth each month.

It’s truly a family business, with Jeff doing the books and Angie and her college-age daughter running the store. Angie sets the schedule, giving her the flexibility, she needs as a busy working mom. She is available to drive her daughter to doctor’s appointments and has time to shop for groceries and hobnob with customers she runs into in town. She believes opening the Children’s Orchard franchise has helped her family acclimate to their new neighborhood — and become a valuable part of the Murfreesboro community.

Mom and Mentor   

For 29-year-old Jade Moore, graduating from a bible college eight years ago brought about an epiphany that led her to purchase a Clothes Mentor franchise. She thought she would become a church staff member, but a visit to a resale clothing store prompted her to take a totally different career path.

“I saw the opportunity to own this franchise as a blessing,” Jade confesses. “We wanted to fulfill a need for a resale store in our area.” She and her mother loved the concept of bringing upscale and designer fashions to Little Rock, Arkansas. Her parents helped her with her initial investment, but Jade’s hard work and perseverance made the business a success. So, what’s her secret? “We buy for every type of customer: business women, stay-at-home moms, plus-size and even pregnant women.” That’s a policy Jade herself appreciates; because this mother of three is expecting her fourth child in a few months — and yes, she’s a Clothes Mentor customer!

The NTY corporate philosophy has an even deeper meaning for Jade. “Clothes Mentor helps support the woman who is comfortable in her current body,” she explains, “and those going through transitions such as a weight loss journey.” It’s that positive reinforcement for all women, plus a dedication to staying on the cutting edge of fashion, that keeps her excited about coming to work.

Jade is confident her staff doesn’t miss out on any type of style, even though Little Rock has not yet attracted large, big-name boutiques. “We don’t have big designer stores like Chanel or Louis Vuitton,” she says. “But when we do get those kinds of high-end items in the store, it’s a serious treat for our customers!” She says her recurring social media bursts and great word-of-mouth advertising keep her customers apprised of every exciting new arrival. They get designer fashions at resale prices, and those higher-end items often sell quickly.

Despite her early success as a Clothes Mentor owner, this multi-tasking mom hesitated when her father suggested she purchase a Children’s Orchard franchise for Little Rock. She worried she might not have the time and energy to devote to two business while she and her husband were raising their young family. “But we got a great location right next to Clothes Mentor and it’s great for me and my children” she admits. She opened her kids’ resale franchise in April of 2017 and is excited to see the items customers bring in for purchase. The Moore’s had sold all of their baby items after their youngest turned two. Now, Jade can purchase everything she needs, gently-used, for her new baby. And best of all, she says, she can sell back all of the clothes, toys and gear to Children’s Orchard when she no longer needs them!

Jade, Angie and Chris come from diverse backgrounds, but they all share a love for their new career in upscale resale. Each woman followed a dream to fashion a balanced life for her family and help her community in the process. Each works hard to keep her store running smoothly. And each one says she’s happy she made the choice to leave her past job behind and create an exciting future with her NTY Franchise business.

Owning an Upscale Resale Store is Smart Business. Here’s Why.

OWNING AN UPSCALE RESALE STORE IS SMART BUSINESS. HERE’S WHY.

While many traditional brick and mortar retailers continue to struggle, the upscale resale industry is booming. Consumers seek out resale to both shop and sell their gently-used stuff and entrepreneurs are cashing in on this growing trend.

A lot has changed over the years leading to this evolution; including the high-return, lucrative profit opportunities upscale resale can provide entrepreneurs now and well into the future.

WHY IS UPSCALE RESALE SMART BUSINESS?

TIGHTER CONSUMER BUDGETS

According to latest data from the Bureau of Labor Statistics, the typical U.S. household now spends about 20 percent of their annual budget outlays on health care, personal insurance, life insurance, pension-like products and social security. This is at a time when they are spending a disproportionate amount of their disposable income on communications, related technology and entertainment/experiences. Just consider what we spend on wireless, cable, internet and smartphone payments each month. Family budgets are stretched  leaving less ability to spend on full-price fashion and even full-price electronics — including our smartphones we love so much. And, the growing desire and focus on spending on experiences; such as vacations, amusement parks, salons, etc. only amplifies this crowding-out dynamic.

CULTURE CHANGE

While having less money to spend on full-price items, consumers have grown accustomed to opportunistically monetizing value for the items they no longer need. Both of these trends play right into the upscale resale industry. Whether out of necessity or not, it has become widely acceptable – and in fact often socially admirable and popular — to purchase and sell secondhand items such as clothing, electronics and household items/wares. While thrift shops have always provided this service on the low-end, the trend seemed to evolve more mainstream with the dawn of eBay. Now, it has accelerated and is moving into the high-end with upscale resale. Everybody wants in to buy stuff, sell stuff, and enjoy the thrill of the experience. This is best exhibited by Clothes Mentor, the highly successful upscale resale clothing franchise, a national franchise in the NTY Franchise Company Family of Brands. Clothes Mentor has grown from two stores (in one state) in 2006; to 145 stores (in 42 states) in 2018 — with many more in development. This upscale resale cultural evolution is booming with no signs of slowing down.

LOVE OF HUNT

Whether on eBay or at Costco, Marshalls, Ross Stores, etc. consumers have grown to love a good hunt for deals. More recently though, as a result of rapid store count growth, the selection, quality and value of merchandise at many discount retailers has waned; leaving fewer opportunities to feel satisfied finding that treasure. With a wide variety and rapidly evolving inventory of all types of unique, locally-curated brands at attractive prices, upscale resale stores provide the ultimate treasure hunt satisfaction.

LOVE OF CASH

One thing consumers appreciate more than the love of hunt is the love of cash. Upscale resale stores provide cash on the spot for items they accept from customers — another key driver of their growing popularity. This is not only good for the consumer, but also for the store owner. Initial investment is lower since there are no big, risky long-lead inventory buys (or large working capital requirements) that come along with them. Fully in control of the type, timing and level of merchandise buys from customers, the upscale resale store owners can dynamically and daily control inventory cost and cash management as they see fit.

Importantly, as James Wollman (VP of Franchising at NTY Franchise Company) notes, “Our franchises buy and sell the YES votes of what people like in fashion, electronics and other household items; we don’t deal in the NO’s that are the primary inventory of most other major discount stores.” This all results in much smarter inventory, higher inventory turnover, enhanced budgeting and working capital flexibility, and most importantly, gross profit cash margins of roughly 60 percent — well above the industry average.

PRESTIGE IN REACH

While fashion and trends change all the time, most consumers still love to have a few prestigious or conspicuously flashy items of clothing; while typically priding themselves on nameplate laptops, smartphones, headphones, etc. But in today’s economy, some top name brands are simply out of reach for many. This is the case even at discount retailers where discounts are not as great as in the past from rising product-sourcing costs — particularly freight and shipping. Upscale resale stores are not exposed to these unruly costs and provide all consumers with the opportunity to get that prestige product and feel proud and satisfied as a result.

MILLENNIALS

Often well educated, but with less money at their disposal, millennials don’t enjoy paying full price for retail but still enjoy the hunt of shopping. They typically pride themselves on bargains; especially if it will yield an environmentally friendly outcome.

Generally cash-strapped, many millennials are still saving for their own place to call home and are being encouraged to save more aggressively now for retirement. By 2020, they will represent roughly one-third of the adult population. This is a great long-term demographic trend for the upscale resale industry to leverage. This trend is expected to continue long-term as millennials’ children are brought up in — and at an early age becoming well accustomed to — the resale lifestyle.

ENVIRONMENTALLY FRIENDLY 

You may not think much about this, but a tremendous amount of global resources — such as energy, minerals, chemicals and water — are used to make a single item of clothing, electronic gadget, or household item. According to several estimates, it can take up to 1,000 gallons of water to grow the cotton for — and then produce, a single pair of jeans. A t-shirt can require up to several hundred gallons. This is why global clothing brands are now focusing so much on sustainable apparel.

The resources used to create products not only include the raw materials, design and production expense; but also packaging, shipping and marketing. A lot of energy is also used in collection and disposal. Resale provides a second or third lease on life to millions of products annually; which is not just good for the environment — it’s great. As just one example of how profound this can be, since 2007 Clothes Mentor alone has recycled more than 42 million items of mall brand and designer clothing, and paid women more than $180 million in cash for gently-used items. Importantly, while millennials are most known for appreciating environmentally friendly consumerism such as this, going green is an ongoing trend still gaining traction among all generations.

COMMUNITY FRIENDLY

Upscale resale is good for local communities. They encourage locals to keep their closets and residences uncluttered and fresh. With great values, they provide much-needed flexibility for local families’ budgets. With regular customer buzz, the shopping flow to the area benefits other businesses and the local tax base. Moreover, store owners and key employees get to know their regular clientele — establishing relationships that last for years. “Fashion is Fun,” proclaimed NTY’s James Wollman when describing how owning an upscale resale franchise can be more enjoyable on a daily basis than many other franchise concepts like eateries. While that may be the case, what’s most enjoyable is the multi-faceted annuity flow of business (and high return on investment) that can result from this unique communal retail activity.

EFFECTIVELY CHARITABLE

When upscale resellers are not successful selling items in a certain amount of time, they typically donate them to charity and are able to monetize the donation as a business deduction. While this is typically a very small percentage of the overall inventory turn, it is a win-win for those less fortunate and for the franchise owner seeking to maximize returns.

PROVEN BUSINESS MODELS

In the past, starting your own resale business without any infrastructure or support network was a fairly risky and daunting task. However, today with the proven business models and techniques of a leading franchise partner, the heavy lifting has already been done and the road to high-return success well-paved. With over one hundred years of collective upscale resale experience; and five successful major brands under its belt, NTY (New to You) Franchise Company is an ideal partner to get you fully up, running, and remaining on the path to high-returns success.

You may ask yourself, what makes the NTY business model so successful? Beyond a century of collective franchising experience and among a host of key factors is a serious focus on: 1) Bright, clean and fresh-aired stores; 2) Smart store layouts; 3) State-of-the-art inventory managing, pricing and point of sale cloud-based software systems; and 4) a firm grasp on all the “big data” needed to make wise purchase and sell decisions throughout the day — every day.

NTY FRANCHISE COMPANY AT A GLANCE

Founded in 2006 and Located in Minnetonka, Minnesota, NTY Franchise Company is a pioneering and highly-experienced force in the rapidly growing category of upscale resale retailing. It is the umbrella organization for four proven national franchise brands: Children’s Orchard (kids clothing franchise); Clothes Mentor (women’s designer clothing franchise); Device Pitstop (electronics repair and resale franchise); and NTY Clothing Exchange (teens and young adults clothing franchise).

NTY Franchise Company specializes in working with entrepreneurs at every stage of establishing one of these five successful upscale resale branded concepts including: Research and Discovery; Business Planning; Store Location and Leasing; Financing; Design and Build-out; Point of Service Software and Systems; Coaching and Managing; and Marketing.

To learn more about NTY Franchise Company — and the lucrative opportunities in upscale resale franchising — explore our main page or feel free to just give us a call! (952)-923-1223

Like Mother, Like Daughter at Children’s Orchard Manhattan Beach

It’s all about family at Children’s Orchard in Manhattan Beach, CA. Click here to read more about the family-owned franchise in The Beach Report.

Children's Orchard Manhattan Beach

Text and photo from The Beach Reporter

“I grew up in retail; my dad was in retail in Philadelphia,” Mintz explained. “So I was familiar with the business, although I come from a marketing background, and my daughters also came from public relations and marketing.”

That marketing background has paid off in terms of building their business, and so does Mintz’s daughter Cindy’s FIDM fashion degree.

“She decorates the store, and she’s great at putting outfits together for customers. That’s her favorite thing to do,” Mintz said.

Children’s Orchard has a selection that pleases both shoppers and sellers.

“I think because of where we are located in Manhattan Beach, we get wonderful brands, and we are able to price them very reasonably for shoppers. It’s a good experience for both our shoppers and the people who sell to us, Mintz said. “Sellers can benefit even further with the 30 percent or more in store credit we offer them, so that they can shop here very reasonably. The whole idea is to take advantage of trading in an item that isn’t needed and buy something that is. It seems to work for everybody.”

 

The shop frequently offers unique, one of a kind items such as a recent sale: a child’s BBQ replete with a grille and skewers for little ones to use.

Click here to check out more from The Beach Reporter.

What Makes a Good Franchisee?

So “what makes a good franchisee” you ask?

Watch this quick video featuring our VP of Franchising, Jim Wollman, and find out some of the key characteristics that NTY Franchise Company looks for when partnering with franchisees to grow one or more of our successful resale businesses.

Video: What does it take to own an NTY Franchise?

Do you have the skills and traits mentioned in this video? If so, you would make a fabulous franchisee with any of our five resale brands: Children’s Orchard, Clothes Mentor, Device Pitstop, New Uses and NTY Clothing Exchange!

Still don’t know if you have what it takes, or curious which of our resale brands is the best fit for you? Take our successful franchise owner quiz!

What Makes a Good Franchisee Video Transcription

Do you prefer a text version of the video or want to follow along while you watch? Then check out the full transcription below! 

There is no “best age” to start a business

Jim: We attract people of all ages- from people in their twenties to their sixties and everything in between. People come from all kinds of backgrounds and work experiences too.

Most importantly, we are looking for people with energy and personality. That’s what makes a good franchisee. We can’t teach you how to be a cool person to work for so you need to come to the table with those things that will really help you be successful in these businesses.

Some characteristics of successful franchise owners

Also important are transferable skills. If you had previous successes in your career, then you have transferable skills and that’s good.

What I’m talking about here are previous management experience, staff oversight, budgeting, and communication skills. Those are important because we are going to teach you how to maximize your business and you are going to use those skills to execute and make yourself a successful franchise owner.

NTY Franchise Company’s Proprietary Point of Sale System (POS)

We also need people that appreciate what computers and technology can do because we use it heavily to measure and manage and improve our businesses to the maximum potential. We have proprietary point of sale systems that will help you with inventory turn rates, cash flow management and with employee efficiency.

Our Franchise Loyalty Programs

We have trigger based customer loyalty programs, just like the big business out there. We are using technology to attract, retain, and bring in more customers, and more customers more often. So an embrace of the use of technology is very important. You don’t have to be an IT professional, but you do have to be comfortable with computers.

We are also looking for people who are smart enough to realize that you don’t know what you don’t know and you can really benefit from a shortening of the learning curve. This not only helps you to avoid costly financial mistakes, that one is easy to understand, but what a lot of people don’t think about is that mistakes cost time.

We teach you how to run a successful franchise

We know People want to get going and get moving, become more successful more quickly, and we can help you with that. We are not looking for people who are so entrepreneurial that they want to just change everything coming right out of the gate.

We have a very proven pathway. We have all of the knowledge, training and support that makes up our proven and well-worn operating system. So we know that if you use our tools, use our systems, and execute that you will greatly improve your chances of being successful.

Successful franchise owners “wear all the hats“

A lot of people come from corporate America to begin their business for the first time. Of course we can help you there, but your background says that you wear a big hat and are a specialist and good at what you do.

This may be more narrowly defined in Corporate America. The thing about small business America is that you have to wear all the hats. The good news is that they are really small hats. And we are going to help you in areas that you aren’t as strong in and in other disciplines that you don’t feel as comfortable with. So having this ability to realize that it’s about you and wearing all the hats is an important thing for you to be able to realize and appreciate when you get into a franchise business.

Couples make great franchisees

Now this brings up the question-what are the most common profiles that make up our franchise business? One of the most tried and true profiles for us are couples. Where one covers the household expenses, the overhead, and so on. While the other gets the business up and running and started. Often times with love, opposites attract and they usually have different skill sets, but when you mesh those together they make a very good one hundred percent.

Hands off franchise investors

Another type of profile that has worked well for us are partnerships where you have one financial backer who is a little more hands-off, and another operational partner who is going to be the face of the business and run the business on a day to day basis. An example of this could be an adult with an adult child. Now in our soft line brands, apparel, we do have men who do these businesses and usually what they will do is hire a female manager who has prior retail experience. Conversely in our tech businesses, we have very successful women running our device pit stop. We really do get people of all walks of life and who are given a proven business operating system to follow.

Going solo: solo franchise ownership

Now, the one exception to what I just said is for those who are coming into the business solo. The one other thing that you have to think about is that if this is going to be your new business you may decide to run the business yourself and maybe take that managers salary for yourself in the early stages until you build the business out. But just to be safe, we would encourage you to at least have one year of household expenses tucked away in reserve as working capital above and beyond the initial investment of opening up the business which is covered on our website as well.

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So there you have it, now you know what makes a good franchisee. Think you have what it takes? Then contact us now to schedule your free consultation!