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Out-of-the-box thinking leads to unique consignment business
Think you can’t run a business and make a living from a small town? Maybe you just haven’t been thinking far enough out of the box.
Sisters Paula Sandberg and Angela Barrere live 60 miles apart from one another, in Stratton and McCook, Nebraska respectively. A few years ago, they were trying to think of an enterprise to run from a rural location, when Barrere suggested they start a children’s clothing consignment business with a model that made sense: instead of trying to stock and run a retail location, they would concentrate on having a handful of “special” sales at regular times during the year in larger population centers. And instead of hiring and paying a staff, they would enlist the aid and services of consignees and volunteers.
A consignment sale is born
In 2002, they started Bumblebees & Ladybugs, a semi-annual consignment sale of “like-new and gently-used” name-brand children, teen, and maternity clothing as well as children’s furniture, toys, baby equipment, strollers, nursery furniture and more.
The sales take place just twice a year in Kearney and Grand Island, which helps achieve the critical mass of shoppers needed. Because of the semi-annual nature of the business, the sisters were able to continue as fulltime moms. Recently, Barrere shifted her status to “consultant” to take care of some family business, so for now at least Sandberg handles the day-to-day operations on her own.
“I manage most of the business via the Internet and most of my communications are by email,” says Sandberg. “I’m really only away from home on business about 16 days a year.”
An ingenious marketing plan
The marketing plan for the Bumblebees & Ladybugs is ingenious. They print one page flyers that advertise time, place and products on sale. They also rely on the Internet and word-of-mouth from an extensive database of consigners and shoppers.
“Kearney and Grand Island businesses sponsor the sale by helping us with handing out advertising flyers, and we help them by listing their business as a sponsor,” says Sandberg. “We print their logo on marketing materials and give shoppers a goody bag filled with coupons and promotional items for those merchants.”
Every item consigned in the sale is inspected and approved by Sandberg or her volunteer staff. “We keep our standards high so our shoppers find only quality merchandise,” she says. “We want Bumblebee & Ladybug customers to have fun, find the merchandise they want at affordable prices and to save time instead of driving from garage sale to garage sale.”
Bumblebees & Ladybugs now gets items from up to 200 consigners, and offers them special incentives to participate. For example, consigners set their own price and keep 70 percent – much higher than the 40 or 50 percent from most consignment shops. Consigners can earn an even larger percentage by referring consigners or volunteering to work at one of the sales.
Volunteers help organize and run the sale for their own incentives, including discounts on merchandise and the first opportunity to look over and purchase items available for sale.
According to Sandberg, the consignment business is profitable, and began making money after three years in operation. For people considering starting a business, though, she has this advice.
“Everything takes a lot longer to do than you expect,” Sandberg says. “Starting from ground up means digging a foundation before you even start construction.”
She also regrets they weren’t more aggressive about marketing in the beginning. “I wish now we would have spent more dollars on marketing early on. For the first two or three sales, the marketing budget was small, and we could have grown faster if we had marketed more.”
Sandberg also suggests entrepreneurs ascribe a special value their databases of customers and prospects. “We believe the database is so important that we would advise investing in the software and hiring consultants to expedite the most efficient and effective process,” she says.
With five years of Bumblebees & Ladybugs sales under her belt, Sandberg’s vision is for continued – and specific – growth. “Our goal,” she says, “is to add 200 consigners in Kearney and 400 in Grand Island.”
And from their record so far, it looks like that goal is well on the way to being handled.
Who To Contact...
Bumblebees & Ladybugs
Paula Sandberg & Angela Barrere
308-340-8534
Paula@bumblebeesandladybugs.com
www.bumblebeesandladybugs.com
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