Watch this video message from Chad Olson, NTY Franchise Company’s Chief Operations Officer, and be inspired to open your own resale business! Find out what makes NTY’s five resale brands unique as well as get a feel for our company values. Check it out now:
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:
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.
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.
Check out this insightful interview from Business-Opportunities.biz featuring two longtime Children’s Orchard franchisees:
We recently spoke with Claudia Aguirre and Donahi Bunt, owners of a Children’s Orchard franchise in McAllen, Texas, and learned why they chose the franchise, what challenges they faced when they first started out and, lastly, what advice they have for potential franchisees.
How long have you been a franchise owner?
11 years.
What were you doing before becoming a franchise owner?
We both had worked part time in our families’ businesses for years. (Claudia in the Maquila field and Donahi in the telecommunications field.) It came a time that we wanted to have the experience to create and operate our own business.
Why did you choose Children’s Orchard franchise opportunity?
As moms, we know how expensive it is to dress the kids in style and how fast they outgrow their clothes. Children’s Orchard offers parents a way to make money by selling their children’s outgrown, gently used items. Plus, they can stick around and shop for fashionable clothing, toys and equipment for a fraction of the retail price. It’s a great concept!
What were some of the challenges you faced starting a franchise?
Finding a way to finance the business and creating an appropriate work and life balance was difficult, especially in the early years when we were just getting the business going.
Where did you research or get advice about starting a franchise?
We called some store owners and talked to a lawyer, but we already knew we wanted to be part of the Children’s Orchard team. During our first year of operation, we visited some of the top performing Children’s Orchard franchises to learn about their daily processes.
How much does starting a franchise cost?
All of our money! Truthfully, it was an amount very close to what the corporate office told us, but we exceeded that during the first couple of years.
What does a typical day look like for you?
In the early years we were both full-time at the store. Little by little, we built a great team capable of handling much of the day-to-day operations. One of us takes care of the administration and the other takes care of advertising and marketing.
What is your secret to success?
Remember, your customers are the reason you are in business. When something goes wrong, spend your time and energy making it right. Don’t waste time searching for someone to blame. Stay focused on your goals, and track your results. Build a great team to help you reach your goals.
What would you do differently if you had to do it all over?
We would definitely invest more time into learning about our market before opening our doors.
Where do you see your business in five years?
We just moved to a bigger location for the third time, so right now, we just want to focus on getting everything under control and use this change to impact our sales and community involvement in a positive way.
What is one trend that really excites you?
Businesses becoming more eco-friendly is really exciting. It’s rewarding to be part of that trend by allowing parents to recycle their children’s clothes and toys.
What are your favorite online tools or resources and what do you love about them?
Google Drive: All our images, documents, ideas and campaigns are available on any device!
Constant Contact: We love being able to email market!
Do you (or did you ever) have a mentor?
We like to look for learning opportunities everywhere. Other store owners have helped with that learning process.
What advice do you have for others looking to own a franchise?
Understand that you are buying a franchise in order to mitigate risk and follow a proven success model. If you’re not willing to follow a franchise system, you’ll want to look for another opportunity.
Learn everything you can about the franchise before you buy. Get to know the management team, the owners and the history of the franchise. Talk to as many franchisees as possible, and ask questions. If possible, visit a few franchise units to see the day-to-day operation and talk to customers regarding their opinion of the business.
Would you recommend others be franchisees? Why?
Yes. Buying into a franchise gives you a proven system and support from people with experience in the industry. At the same time, you are the business owner, so you must stay focused in order to succeed.
Where can people get more information on Children’s Orchard franchise opportunities?
Visit the website here.
Where can people find Children’s Orchard on social media?Facebook
