"When kids leave the store they touch the frog and, say 'Goodbye' to him. It's really cute.

The Actons own and operate The Smiling Frog, a resale children's clothing shop on Hollenbeck Avenue in Sunnyvale. As resale shops go, this one is different.

For starters, it carries only children's items. The products are all good quality, in excellent condition not crammed into every nook and cranny of the store's 2,300 square feet. It's organized and laid out well.

It is a bargain hunter's heaven.

Name-brand products are sold at The Smiling Frog for a fraction of the original price.

"I got a Jumperoo, which sells at Babies-R-Us for like $50. I got it [at The Smiling Frog] for $25," says San Jose's Amy Olson.

New items come in every day and don't stay on racks for long. Shoppers, typically mothers, can find something different on each visit, making it a treasure hunt.

"It's a sport," Greg Acton says.

The Smiling Frog is in Loehmann's Plaza.

The store carries preemie to size eight clothing, and sells only merchandise in exceptional condition.

"We're picky," Sarah Acton says. They have no problem turning away suppliers who bring in stained or used-looking clothing.

They typically buy merchandise from parents getting rid of clothes their children outgrew or never wore and give back cash or store credit.

The Actons say they don't take clothes that can be found in discount stores such as Wal-Mart because they want to cater to a different clientele. Often clothing will still have the original price tag. The store is known for top-name brands, ranging from BabyGap to Oilily.

Sarah Acton, also known as "Boss Frog," came up with the idea for the store while she was out of work. She had been caring for an ill family member and was looking for a place to buy quality gifts at low cost for the couple's nieces and nephews. She couldn't find such a store. That got her thinking.

The Actons did not have a child at the time, and they say it may have seemed a little unusual for a childless couple to open a children's store, but their planning was strategic. Both had attended business school; they knew how to develop a business model, do the research and find a store location. They opened in July 2004 in a smaller space in the same plaza. They moved into their larger location in the same plaza in May five months before their son Zachary was born.

Sarah brings in Zachary in three days a week, while Greg manages the business day-to-day with a small staff. They do comparative pricing research, making sure they are competitive. They also track safety recalls of non-clothing items and check consumer report warnings. Customers, friends and relatives have learned that The Smiling Frog is a go-to resource for the latest reports.

Because they are safety-minded, they will not buy or sell items such as car seats because criteria changes frequently and the latest unused models are best to buy.

The Smiling Frog is located at 1673 Hollenbeck Ave., Sunnyvale. The telephone number is 408.730.4100. The website is www.thesmilingfrog.com.