How to Make a Business Out of Reselling Mid-Century Furniture
In today’s age of consumerism, customers purchase products at a rate higher than ever before. This leads to customers discarding goods, even if they’re in relatively good condition, to make way for new purchases, as reported by This World Matters. For instance, it’s fairly common for households to replace their furniture every few years to keep up with the latest home decor styles. For entrepreneurs looking to start a retro furniture reselling business, this presents a unique business opportunity. Rather than letting households discard their furniture in the trash, you can step in, purchase items for cheap and resell them for a profit. In this article by Mid Century, we’ll explore the best steps entrepreneurs should take to establish a profitable furniture reselling business.
Source Your Products
The key to running a successful reselling business will be having a steady supply of resellable furniture. Here are a few options to consider:
Local Thrift Shops: Items of everyday use, such as chairs, tables, stools, etc., can commonly be found at local thrift shops. But, before purchasing, do a thorough evaluation of its condition. While it’ll certainly need some cosmetic changes, stay away from damaged goods that require a significant amount of time and investment to be resold.
Facebook Marketplace/Craigslist: Online marketplaces are still as popular as before when it comes to selling furniture. Surfing through Craigslist and Facebook Marketplace, you’ll find a host of listings related to mid-century furniture, which you can purchase for a fraction of its original value.
Online Auction Sites: While these sites won’t be as useful as the above two options, it’ll serve you well to periodically check its listings and make bids on furniture items you deem fit for reselling.
Set Your Margins
As a rule of thumb, resale furniture should be priced at 70-80% of the product’s original value. For instance, if an original mid-century couch set costs $1000, your resell price should be set between $700 – $800. However, pricing will heavily depend on your cost of sourcing, repair, shipping, and more.
Your goal as a business should be to maintain a healthy margin allowing you to be self-sustainable. At the start, margins can be lowered to undercut competitors and develop a customer base. A great way to keep margins low can be to adopt a pick-up model for the fulfillment of orders.
Dedicate Resources Towards Marketing
As a new business, marketing will play a key role in educating customers regarding your products and services. Additionally, you’ll need to hone your efforts towards the niche of customers in the market for resale furniture. This can be achieved by using relevant hashtags on platforms such as TikTok, Instagram, Twitter, etc. Additionally, consider joining existing Facebook groups and Reddit communities to connect directly with customers and engage in conversations regarding their needs, expectations, and pain points.
In addition, here are some must-have marketing mediums to consider for your business:
Website: A website will be more than a place to promote and sell products. It will be used to collect valuable customer data and analyze it to develop a deeper understanding of customers and use it to customize product offerings and services.
Instagram/Facebook: Given that both these platforms allow businesses to sell products directly to customers from their website or app, it’s imperative to create business accounts on both and list all your products, as reported by Shopify. Additionally, use your feed to drive traffic to the website where customers can be persuaded to sign up and provide details such as their name, email, and product preferences.
Business Cards: Whether it be during networking events or when customers come to collect their orders, sharing a business card is a great marketing medium for creating strong connections with customers and developing brand awareness plus recall. When it comes to business card design, use an online generator that provides an array of customizable templates.
Starting a retro furniture reselling business can be both fun and profitable if done correctly. The success of the business will depend on sourcing quality products and utilizing effective marketing techniques like social media, business cards, and a great website.
The 23rd annual Palm Springs Modernism Show will once again be a featured event during Modernism Week in February. The show, which will feature 125 dealers offering stunning items representing all design movements of the 20th century and select 21st century items and contemporary cutting-edge home design products and technology, will take place at the Palm Springs Convention Center, February 17-20, 2023.
