Within a historic mill building in West Warwick, a treasure trove awaits. Founded in 1998, Mike’s Estate Services for more than 20 years has carved out its reputation in the consignment and antiques industry.
Every week, box trucks are sent out and arrive back to unload the latest inventory, normally making up to eight deliveries back to the shop.
Grandfather clocks, rocking chairs, artwork, tools, jewelry, oriental rugs and mid-century sofas are just some of the items featured. Some of the larger items require two or more employees to move them up to the two-floor showroom that spans 28,000 square feet.
Like many business owners, founder Michael Gagnon witnessed a post-pandemic shift in the local economy. But he was fortunate to be among those that saw a positive impact.
After being shuttered for five months, Mike’s Estate Services reopened to a consumer sector that was finding it harder to secure things like sofas, armoires, dining room tables and embroidered carpets.
“We were as busy as we had ever been,” Gagnon said. “Because of the supply chain issues that were continuing, we had people coming in to buy furniture and other items. The lead times for even stateside deliveries was still weeks or months out.”
With more capital from increased revenues to play with, Gagnon was able to focus more attention on marketing his business, setting out to expand his customer base and do what he calls “converting” consumers who otherwise wouldn’t think of buying anything second-hand.
A well-known estate liquidator, Gagnon said much of his business these days comes from people simply looking to downsize their holdings, or children of retired parents who inherited more valuables than they know what do with.
Finding the right balance to achieve a swift sale for an acceptable price is the name of the game. Though he wouldn’t call himself an expert, Gagnon has sharpened his ability to determine an item’s value, which can be priceless knowledge for anyone in the dark about what they have, or worse – anyone who has “done their own research.”
“I’ll have people sending me [website] links showing what a similar item is selling for,” he said. “But it’s never about what they are selling it for. It’s what people are willing to pay for it.”
And while many consigners may need to be talked back to reality regarding the value, sometimes the opposite is true. Gagnon recently sold a vintage coffee table for a man who coincidentally was a few years ahead of him in high school 60 years earlier.
“He thought he could maybe get a couple hundred bucks for it,” he said. “But it went for $2,400.”
Before signing a one-year contract, the consigner must arrive with a minimum of $500 worth of merchandise. Using a markdown pricing system, each item’s cost decreases by 10% each month for the first three months and stays at that level for the following two months. After that, items are marked at 50% of the original price.
But you can leave the marketing, storage and advertising to Mike’s Estate Services and its digital blasts to its 29,000 social media followers.
But this is no get-rich-quick scheme, said Gagnon, 67, who for the first time is at least imagining retirement in a few years.
“Every week we process about 1,000 items,” he said. “This is the most labor-involved retail sector imaginable.”
OWNER: Michael Gagnon
TYPE OF BUSINESS: Estate sales and consignment
LOCATION: 65 Manchester St., West Warwick
EMPLOYEES: 12
YEAR FOUNDED: 1998
ANNUAL REVENUE: $2 million