Million Dollar Grind

It’s no secret that our economy is currently in the slumps.  Although the gas prices have started to come down a bit, foreclosures are still at an all time high and the unemployment rate is steadily increasing.  With the election of a new President the expectation for change is high, but patience is low.  Many Americans are facing financial challenges and are starting to curb their spending habits.  For example, shopping for new clothes has become a luxury for many people.  Instead of shopping at the mall or boutique shops, many people are turning to consignment stores that carry the latest fashion tends at a bargain price.

In 1974 Kerstin and Spencer Block opened the first known store to buy, sell, and trade used clothing and named it Buffalo Exchange.  The shop opened for business with clothing hung on racks made from old bicycle rims. The store was an old union office near the University of Arizona with only 450 square feet of space.  The couple supported their two daughters with their new business, and expansion was the last thing either of them thought about.  Then one day, about a year after they opened, they looked around and realized that they had no room to put anything. When the shoemaker next door left, the wall was immediately taken down and the space was doubled

Although the idea of buying used clothing carried a stigma, the Blocks were able to overcome the challenge by selecting only quality and fashionable items to resell at low prices in a clean, fun, boutique like store.  Customers receive cash or trade for clothes from their closet and can also buy brand new clothing using trade; no cash needed. The formula has proven successful and is coveted by many consignment stores across the world.  While the Blocks still own the original store in Tucson, Arizona,  Buffalo Exchange has grown to 33 stores and three franchises across the U.S.  Sales have grown 16.1% during the first half of the year compared with the same period last year. The company forecasts revenue of about $55 million in 2008, up from $49.4 million in 2007.

If the Blocks had let stigma deter them from starting their business, Buffalo Exchange would not exist today. Instead of being part of the problem, find the formula to the solution.