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Better Than Cash
The Closet Trading Co. works primarily on consignment, which means franchisees pay for their inventory after they sell it! Most other resale outlets work mainly on a cash basis, which means they pay upfront for their inventory and then they try to sell it. Consignment creates a cash flow benefit that is a game-changer for our franchisees. And they are not stuck carrying the cost of unsold inventory.
Our stores do not compete with one another in the way that standard retail stores do, because each store carries a unique inventory. Upon opening a new store only 10 miles away from our existing store, we found that the proximity actually helped both stores thrive. Customers now continue to regularly check out the new inventory in both stores and consequently, the distance between stores can be shorter than with other retail concepts.
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