How We Help Franchisees Solve Resale Inventory Management Headaches


In the resale market, your customers are suppliers. They are often your main – and sometimes your only – source of getting gently-used inventory, and therefore drive your sales. Not only do suppliers often convert to buyers themselves due to the cash payment for their items, but their supply can make or break your sales.

“One of the biggest mistakes we see first-time franchisees make is that they don’t continuously prioritize purchasing fresh inventory,” said Renae Gaudette, Vice President of Franchise Operations.

Winmark gives franchisees the proper tools to succeed in the resale market, paying particular attention to inventory management. These tips can help you manage your inventory and boost sales in your resale business.

Balancing the Right Inventory


Without retail experience, it can be difficult to know what the right inventory for your store is. Plenty of Winmark franchisees have no previous retail experience, but training and franchisee support will teach them the Winmark way of retail.

Winmark brands are positioned for success within a booming industry. The lower prices for gently-used items entice customers, and being able to get cash in return for their resold items helps to motivate subsequent visits. This leads to a constant supply of inventory. People grow out of clothes, want to keep up with the latest trends, and children can grow tired of or change sports or instruments. This continuous evolution leads to a healthy inventory and a high demand for the resale products.

Your customer relationship is important in the resale industry. It’s vital to anticipate future sales when building up your inventory and reject items that may not be the right fit for your customers, regardless of the item’s condition.

“Unfortunately, the staff cannot purchase everything our customer’s bring in, so how you say “no” on items is critical to the success of each location,” said Pete First, Director of Franchise Development.

Sweet Spot Pricing


Owners are purchasing to make a profit, so pricing is a pivotal part of the inventory process. Finding the sweet spot of purchase price to sale price is key. It’s difficult to price items uniformly with varying factors like age and condition that traditional resale shops may not encounter.

Winmark brands use a highly specialized point-of-sale system called the data recycling system (DRS). This system helps franchisees plan and refresh their inventory. The DRS tracks products giving information about the item’s brand, date of purchase, category and subcategory to help determine the proper price. Additionally, Winmark brands provide their franchisees with market research on price points to ensure price points match their industry. Purchase price and sale price need to be fair and reasonable, and there needs to be balance in order to generate gross profit.

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