How to open a successful second-hand: business secrets in Russia
It's not easy to open your own business that will deal with buying and selling. It takes a lot of time, effort and money to go through the registration procedures, recruitment, create advertising, purchase equipment and goods. This article will help you understand the issue of opening a second-hand in more detail.
Is it profitable to open?
What is second hand for? Most people, due to their financial difficulties, cannot afford beautiful things, because they are expensive in boutiques. A woman, girl, or even a young man would not want to be different from other people or get into the "gray mass". For such cases, there is an alternative option - second-hand. It contains low prices and branded clothing that does not differ in quality from those sold in expensive boutiques.
Some people are embarrassed to buy used clothes, but many prefer second-hand because of the quality and price of things, so there should be no problems with visiting.
Second-hand is a real business that provides income in the shortest possible time. Opening such a store does not require large investments, but guarantees a stable income for several years. An entrepreneur can only have a few hundred dollars in his pocket and open his own second hand. The effect of such an idea will not be long in coming. The entrepreneur will receive his first and good profit in a couple of months from the goods sold. The costs spent on setting up such a business will fully pay off in about 6 months.
Where do you start when starting your own business? Of course, with drawing up a business plan. It is an estimate that details the costs of the necessary needs. The business plan contains expenses for:
- registration ;
- rent of premises;
- staff salaries;
- purchase of materials, clothes, dishes, technology, etc.
The business plan contains not only a list of items that need to be spent on, but also specific amounts are indicated here.
The financial component for opening a second-hand differs depending on the place of its creation - in the city, as a rule, it is more expensive, in the settlement - cheaper.
Despite the widespread belief that second-hand clothing is the lot of the poor, in developed countries, buying clothes in such stores, on the contrary, is perceived as an increased social responsibility, concern for the environment and saving natural resources.
It is a mistake to believe that clothes and shoes sold as second-hand can only be represented by second-hand items. Depending on the category in which the store specializes, you can buy both completely new items and items with varying degrees of wear and tear.
The specificity of our socio-economic reality is such that the overwhelming majority of families are forced to save not only on the purchase of household appliances and household items, but also on clothes. Nevertheless, there is a great deal of mistrust in products offered at relatively affordable prices in clothing markets and in small shops.
As a rule, the affordability of the price is directly related to the low quality of tailoring or material, which affects both the wear and the appearance. An excellent alternative in this case can be the purchase of well-known brands in second-hand stores.
The essence of the business idea is to purchase second-hand items by weight from the warehouses of large suppliers who bring goods directly from abroad, and then retail them through their store to the end customer.
Which category should I choose?
As a rule, in stores there are items of the Extra, Lux, Cream, Original categories:
- 80% of the Cream category consists of items that have not been worn.
Most of Cream is in its original packaging and with product tags attached. The category can be sorted by both age and gender.
Shoes should only be purchased in the Cream category.
- Also quite often there are offers to purchase pressed second-hand at very attractive prices.
Low prices are due to the reduction in the cost of transportation due to the reduced dimensions of the cargo.
Second-hand - used and re-sold items. Goods pretreated with disinfecting chemicals come to the shelves of Russian stores from the countries of Europe and the Baltic states. Second-hand trade is profitable - customers who do not want to overpay for clothes of famous brands and those who are not able to buy new things go to the store. To open a business, a detailed business plan is required, including financial calculations and information about possible risks. All this, as well as step-by-step instructions for starting a business, can be found in our article.
Features of the second-hand sale business: is it profitable?
Selling second hand is a profitable business. In Russia, 70% of residents are people with an average income level, for whom buying something in a boutique or brand store means a gap in the budget. They go to second-hand stores to save money.
The remaining 30% of the upper-middle-income population are also happy to visit second-hand stores in search of exclusive products from renowned manufacturers.
Second hand is a great option for those who do not want to overpay and love quality
The specifics of business in Russia are determined by the psychology of consumers who are embarrassed to buy used things. They are accustomed to draping their clothes “to the last” and consider second-hand clothes to be worthless and embarrassing to wear. Therefore, a secondary goods store should be located in a residential area, out of sight of passers-by. In this case, the place must be passable. The ideal option is a quiet side street adjacent to a busy avenue.
The store should not be large - up to 10 kg of clothes per 1 sq. m, so that things are convenient to sort through. Experienced second-hand owners advise not to hang the goods on hangers, but to put them on tables and shelves. They argue that having found a decent thing in a heap of others, the buyer will surely take it, having regretted the time spent looking for it.
There is a chance to "burn out" in business, but it can be minimized if, at the planning stage, the specifics of demand and the level of competition in the region are foreseen, financial costs are calculated and the market potential is estimated.
Which store to open in Russia
The first second-hand shops disgusted Russians - basements, shabby clothes thrown into baskets in a shapeless heap, and the nasty smell of disinfectants repelled customers. Today, selling secondhand clothing is perceived differently. Buyers understand that it is better to purchase a used original branded item than a new, low quality Chinese copy.
A quality second-hand item is better than a cheap fake
Types of second-hand stores that can be opened in Russia:
- a discount store with low prices;
- a boutique for selling vintage wardrobe items;
- seasonal - for work during periods of peak demand;
- men's, women's or children's;
- a wholesale warehouse for the sale of clothing by weight;
- a thrift store.
The prospect of opening a second hand in the Russian Federation
In a crisis, starting a new business seems like a rather risky decision. The purchasing power of the population is reduced, and one cannot expect significant profits. However, this does not apply to all areas of entrepreneurial activity.
For example, against the background of the closure of large restaurants, small second-hand stores not only do not experience difficulties, but every month they bring more and more profit to their owners. And this state of affairs is not a phenomenon, but a real regularity, because in times of crisis, such stores offer their customers essential items at reduced prices. People cannot do without clothes and choose the most acceptable option for reasons of price and quality.
If you want to open a business selling second hand goods, then you should consider a number of nuances, because despite the profitability of this industry, there is considerable competition in it. Having developed a competent second-hand business plan, you can not only recoup the investment, but also create in the future a whole network of second-hand stores.
As prices rise and incomes decline, consumers are looking towards cheaper products. But at the same time, many people were able to make sure from their own experience that a low price most often corresponds to the same quality. Wanting to save money, while getting clothes of acceptable quality, residents of our country go to second hand.
Considerable attention should be paid to the formation of the assortment. Your main clients will be:
- Women who buy clothes not only for themselves, but also for relatives and friends.
- Men looking for quality casual wear.
- Students and youth visiting second hand in pursuit of fashion items.
- Poor families who will choose the most practical and durable things.
Consider the wishes of your target audience, and then your business will be truly profitable. Your main task is to supply the population with quality clothing at low prices.
To open a profitable business, you should also consider the location of your future store. It is best to open a second hand next to hostels, grocery stores and educational institutions. An excellent solution would also be the location of the establishment in a residential area. According to the assurances of experts, the competent organization of such a business allows you to achieve more revenue than when selling new things.
The economic situation in our country is such that many consumers have to tighten their belts and switch to the cheaper segment of the product. Due to the volatile exchange rate, for most people, shopping in expensive boutiques, foreign online stores has become less accessible or completely inaccessible. Some people frown at the word "second-hand", because they imagine not very clean clothes of dubious production. In fact, before getting into the hands of buyers, such a product goes to the factory for treatment with antibacterial agents at high temperatures and formalin steam. Thanks to this, things become clean and disinfected. Then they are sorted: some of the things are sent for processing, the rest is sold in specialized stores.
Such stores continue to gain popularity in Russia and around the world, so we can say that they are increasingly entering our lives. Stocks attract buyers with a wide assortment of both used clothing and new, out of fashion, but owned by world famous high-end brands. Often, among a huge number of things, you can find exclusive and extraordinary models at very low prices.
There are categories of relevance and wear and tear. In some stores, you can find the item "% of wear" on the price tags, which is put down by the owner of the second-hand:
- perfect condition, practically new thing - 1st grade;
- there are minor defects - 2nd grade;
- there are holes , traces of deterioration - 3rd grade.
In addition, the quality of clothing is divided into several types:
- Lux - new clothes, often even with tags / labels and clothes in excellent condition with no more than 4-6% wear.
- Extra - new or in good condition clothing, the permissible wear of which is 9-11%.
- Cream - slightly worn clothes without any defects, sometimes new and of relatively high quality.
Of course, the price of a product directly depends on its quality and grade. To the delight of drain lovers, there are still a lot of stores in which the price maximum does not exceed 400 rubles for trousers, skirts, dresses, jeans, T-shirts and 1,000 rubles for outerwear.
Search / select supplier
In order to purchase goods, you can use numerous wholesalers, which are easy to find in almost every city. This option can turn out to be very profitable, since it provides an opportunity to receive additional discounts for large volumes of purchases.