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EXECUTIVE SUMMARY
In America alone we throw away about 10.5 tons of clothing every single year. The average woman does not wear 60% of the clothes in her closet. For this problem, there is Pocket Change.
Pocket Change is a woman’s consignment clothing store for gently used garments. Pocket Change accepts new, used and/ or vintage clothing but spealizes in deviant and noteworthy pieces that are hard hard to find anywhere else.
Pocket Change was started by Ali Stephens as an online website but with your help can become a location for creative clothing exchange. This location will be more than just a store, it will be a place for women to swap unwanted goods for more desirable ones without breaking the bank. The name “Pocket Change” refers to not only saving money but also physically changinging clothing.
Unlike other thrift stores, Pocket Change wants thier guests to view each piece as exclusive and hand selected. Unlike other consignment stores, Pocket Change believes in fair prices and spliting profits with consignors equally. You supply the merchandise, we handle everything else.
Pocket Change is more than a thrift store, it is a celebration of fashion and clothing as an art and a way to recycle the apparel you no longer wear. The store’s location will be a collection of each consignor’s forgotten treasures and allow guests to view each piece as just that.
To start this company we would need $107,000 for start up costs and annual expenses. This would be paid back in 5 years with 5% interest each year.
CONSIGNMENT POLICY
At Pocket Change, we recycle quality. This is how you help us do it:
You bring in clothing and accessories that you no longer love. All consignments should be brought in at least 15 minutes before store closing time. No appointment is necessary and no consignments on Sundays. We accept items that are in excellent and salable condition. Items should be clean and wrinkle-free and can be brought in either on hangers (which we will return to you) or folded neatly in a basket or bag (No trash bags please). Remember, the better condition your items are in, the better the price.
Some reasons we may refuse articles: stains, rips, lost buttons, dated, too worn, mothball or cigarette odors, ripped and/or stained linings, below set quality standards. Pocket Change determines the price of an item, which we base on original price, condition of the item, present demand for similar items, etc. Sometimes, after acceptance of an item, we may discover problems with an item that require an immediate markdown or donation. Please examine your items carefully before bringing them in to assure that they are in salable condition.
You and Pocket Change split the final selling price 50/50. We consign items for 60 days. Prices are reduces by 20% every 2 weeks an item is in our care. Consignors may pick up money owed to them at any time. Checks can be mailed out only at the end of the consignment period at the request of a consignor. If you wish your unsold items back, it is your responsibility to call a day or two before your consignment period ends and ask that we gather them for you.
Items that are left 5 days past their consignment period become the property of Pocket Change and are subject to donation. Although all possible care will be taken of your merchandise, Pocket Change is not responsible for damage or loss. Each consignor must sign a conginment policy before leaving their items with Pocket Change.
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MARKET ANALYSIS
Between excessive buying of new clothing and clothing waste, there will always be a need for recycling clothing. Nashville is particularly a city with a high demand for unique, thrifted clothing. Now it’s easier than ever to either make a decent amount of money on your unique pieces or spend that money on new to you clothing. Pocket Change is a way for women of all ages to trade up or cash in on their closet. Pocket Change customers will always be excited to shop their as well because they never know what they are going to find. Pocket Change’s competitors include: Buffalo Exchange, Old Made Good and Flip.
The apparel resale market is an $18 billion industry with 1/3 of woman saying they prefer to shop second hand. Studies show younger women in their late teens and early 20’s and older women over 60 years of age (both coming from generations that grew up in economic recessions) are most likely to shop second hand. Today’s consignment shoppers are on the higher income spectrum, allowing this business to raise prices for higher quality items and feeling confident that they will still sell. This business will not only help to decrease waste and make a profit off of doing so but also allow customers to make a profit as well. In 2021 this market is expected to raise to a $33 billion market. (all statistics from www.thredup.com)
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COMPANY DESCRIPTION
Pocket Change will be located in German Town in Nashville, Tennessee. This location will feel exclusive and attract a higher end clientele. In order to draw people in, certain aspects of our store and advertising will be simple with an element of surprise or a pop of color to represent our interesting and unique inventory. Because Pocket Change is a collection of unique garments we want to show these pieces in a place that will allow them to shine. In order to make this happen we will need to rent a storefront that mimics a studio spaces with white walls, big mirrors and minimal things to distract from the clothing.
Our products meet the needs of woman online and in Nashville looking to buy interesting clothes for a discounted price, sell theirs for a fair price or save their credit to purchase items. Ali has seven years of experiences pricing and selling upscale, used clothing and accessories online and in person at previous locations.
ORGANIZATION AND MANAGEMENT
Owner and Manager
Ali Stephens will own and manage the store as well as being in charge of social media and book-keeping.
Assistant Manager
This person will be trained in all areas the manager is. This entails viewing and pricing consignments, filling online orders and be able to train the sales clerks on sales. The assistant manager will be paid $14/hr with the possibility of a raise as the business grows.
Sales Clerks
To start out there will be 2 sales clerks but possibly more as business grows. Sales clerks will be paid $8.50/hr with the possibility of a $0.50-$1 raise every 6 months.
Photographer
This person will shoot photos for social media, ads and art work for the store. The photographer will be paid $9/hr.
ONE WOMAN’S TRASH
MARKETING AND SALES
Pocket Change will enter the market with social media such as instagram, facebook, twitter and a website. We will use such platforms to keep our consignors up to date with the apparel we get in and to promote events. Our hired photographer will take the photos for our social media as well as these ads. To the left we have an example of a print ad and on the next page we have our website.
NASHVILLE, TN
SHOP EVENTS CONTACT
SERVICES AND STRATEGIES
Because Pocket Chanage is a consignment store, they do not have any products or good of their own. All of our goods come from the consignors. However, to start the store owner, Ali Stephens, does have selected, thrifted inventory. To really start the business, an event will be planned as a grand opening and consignment event to build eventory and gain exposure. The service we provide is the consignment process itself, looking after each garment and processing and keeping track of all of the sales.
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NASHVILLE,