The Detroit News has this story today about consignment second-hand shops: Consigned to tough times.

“In a normal down economy, I would say the resale industry would thrive,” says Linda Bittner, who has owned the Clothes Exchange in Fraser for 15 years. “Our business has increased every year, up until last year when I truly feel Michigan went into such a downward spiral that it finally affected us.”

Lately, Bittner says she’s seen several resale stores — in Shelby and Chesterfield townships, Richmond and Rochester — close their doors. At her shop, regular customers have cut back their spending, while more people want to consign clothing or get immediate cash payments for items they bring in.

Now, before you get too confused, there is a difference between consignment shops and charity-run thrift shops.

When consignment shops sell items, the original owner gets part of the expected or actual sale proceeds. An example in Monroe is Once Upon a Child. But the charity-run thrift shops such as Goodwill Industries in Monroe take donations for their items. The original owner doesn’t get cash, but can request a tax deduction receipt.

The difference is in how the proceeds are split up.

To be fair, if something is a quality enough item that the original owner would like some cash back through consignment, it’s likely to cost more on the second-hand market.

So I can see where it would be more difficult to run a second-hand shop on a business model these days, as compared to a charity model.