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How much $$$ to open boutique? - Page 3

post #31 of 53
Quote:
Keep in mind, companies have minimums to order. You might only want 5 pieces but you'll probably need to place a minimum order unless it is a very small company with lower ordering standards. Figure at least $10k at minimum. Companies don't want you to buy just one thing in their line. They want you to buy several if not the whole line. You can haggle a bit but it may be difficult.

Considering this, it would also be possible to have a small scale online store to accompany your additional stoce, if you are buying more stock for a lower price.

I think also, if you do not have a large following currently or group of people you know will be there, supporting you, advertising initially is not an expense. I wouldnt look at it as an expense, it is more of a profit..based on people in your store and amount of sales.

Owning a clothing store can be pretty cutthroat, as owning any business you will more than likely struggle at first, so have yourself a backup. Offering something other stores do not at first (whether that be better service prices, catering to desired items of clothing...etc).


Regaring your sale system...If you can find someone locally, or a friend that is good with computer systems and networking, there would be no need to spend a rediculous amount. Just make sure everything is on a secure line and you should be fine.
Shit, you could even do it all by hand and just log it on the computer if it will be that small of a business.
post #32 of 53
Quote:
Originally Posted by Tck13
How are you going to fill a 1500 sq. ft. store with $30k worth of clothing including expenses? Maybe if it's all t shirts and one run of one kind of jeans (levis/wranglers/lee) or very inexpensive clothing? It wouldn't be with the clothing mentioned in the earlier thread.


Who said anything about 1500 sq feet? For $2k a month in any somewhat trendy area of a big city he will be lucky to get up to a thousand (im using DC area as example), which isn't so bad for a start up. He can use the smaller space to learn the ropes and make a name for himself and then if he survives upgrade in a few years.

But to repeat, he never mentions 1500 sq feet in his original post.
post #33 of 53
1500 is a pretty good size store. For the OPs venture, he could get by with 500-800 sqft. Just fill it with quality, like Famous Friends NYC, a very small store but it's all good.
post #34 of 53
Quote:
Originally Posted by JayMcDenim
Exactly my problem, I want my store to seem very exculsive in the sense that if you purchase a piece your not gonna see 10 other people wearing it, giving the buyer a sense of individualism. Say if I wanted 5 pieces of 20 different items, that's 100 items, would that be considerably more expensive than orering 100 pieces of one item because I'm not buying one product in bulk?
i don't mean to be pretentious, nor do i know what's going on in sudbury ontario.. but is american apparel and ben sherman unique and exclusive there?
Quote:
I mainly want to advertise as the place "rappers" shop when it's time to grow up haha. They are used to wanting name brands and have an interest in lothing already, but when they go to college or university they are going to need to refine thier style and that's where I'd come in.
not sure who you're target market is- but i don't really think that's a good way to market your store. it's a bit offensive as you are basically looking down on "urban style" and saying you have to dress appropriately when you go to college or university. this does not happen- go to any college campus and you'll see plenty of kids dressed in street clothes. i don't really see the reasoning behind thinking kids that are buying urban name brands suddenly "wake up" and want something preppy. sure with kanye rocking polo's there's a bit of a market- but not a sustainable one.
post #35 of 53
Quote:
Originally Posted by xcoldricex
...not sure who you're target market is- but i don't really think that's a good way to market your store. ..

I have to agree with you on that. I'm a marketing major (and by no means an expert), but the people you are advertising to and the people who would typically buy those brands don't coincide in my mind. You obviously know more about Sudbury than me, so that might work for you, but with that type of advertising I would think you would be selling something more along the lines of Ice Cream, Evisu, Bape, maybe LRG. In my mind the jump from urban brands like Rocawear or Sean John to preppy, slim cut clothing like Ben Sherman and AA seems extreme. This type of advertising might also dissuade people who are thinking about checking the store out, but don't really see themselves as "rappers" who are looking to change thier style.

Like I said before you know the market in Sudbury better than I do. If you do a bit of market research and find out more about who exactly your customer is, what type of clothes they would like to purchase, and if there is indeed a market for this business I'm sure that you'll be better able to focus the store/advertising towards the customers you want (Loyal, repeat, paying customers). Good luck with your effort and feel free to completely disagree with me. Let us know how it works out..
post #36 of 53
I've spent a considerable amount of time in Subbury working for the Ontario Lottery Corp (stuck there 5 days out of 7 for 3 years)...and I just have to say IMO your not gonna be selling very many people any BBC, Ice Cream, Supreme, etc...theres just not a market to sustain it.

I think there would be a market for a Boathouse/West 49 esque outfit where you had slightly higher quality/more exclusive lines of streetwear.

With Dov opening AA's in ON like wildfire I would not be surprised if you saw a store open up in Sudbury in the near future.
post #37 of 53
The urbanwear market is one of the most volatile there is. Unless you are *not only into that scene, but know movers and shakers in the scene, I advise that you stay out of it. Unlike the diffusion market (which is really what we talk about on this board, mainly,) where a store can establish a stable of core brands and build on that, urban brands can be superhot one season, and dead the next. There are some exceptions, like Ecko and Rocawear, but Von Dutch and Franklin & Marshall (the throwback jersey company) are more the norm. Research the demographic you are going for before anything else.
post #38 of 53
i wasn't telling him to change what he was carrying- i just don't see how it appeals to his target consumer (which i don't really fully understand either). and i was just trying to point out the fact that AA and ben sherman aren't usually associated with any type of "uniqueness" which is something he's going after... even in michigan.
post #39 of 53
Thread Starter 
I understand what you guys are saying about my targert market, and it makes total sense. I have a diploma in advertising and fully intend on doing focus groups and possibly a survey. The urban thing was just one example of the kind of people i'd like to "convert" but by no means would that be part of my advertising campaign. It would be more of a word of mouth thing, letting people know there's an alternative, people generally do outgrow the urban thing.

I know Ben Sherman and American Apparel aren't exclusive but things like the artist line of t-shirts from Tank Theory are. I do think dressing well gives a person more confidence, and generally gets positive reactions. By only carrying a certain number of a paticular piece than only so many people in the area can be seen wearing it, hence the sense of individualism and exlusivity.

I realize I face major competition from places like the boathouse and the fine mens stores as I will be somewhere in the middle. By handpicking the pieces I carry I hope to attract a fashion concious demographic. Someone who doesn't want what everyone else has, stand out from the crowd in a good way. I will spend a lot of time and do a lot of research before formulating any kind of marketing strategy.

You guys al know that premium brands can create premium looks, it's about creating a want really.
post #40 of 53
Quote:
Originally Posted by MichaelVH
There are many initial costs: banking, finding a lawyer, renovations, display racks, initial inventory, hiring staff, retail POS systems, and marketing.

As a lawyer who used to advise business startups, my advice was always to spend money on an account before you spend on a lawyer. You'll need to spend on both, but it's so easy to get into trouble with the taxman that an accountant always seemed like the best place to start. In the case of establishing a retail establishment and the leases and supply contracts associated therewith, you'll need both from the get go.
post #41 of 53
Quote:
Originally Posted by Jodum5
Who said anything about 1500 sq feet? For $2k a month in any somewhat trendy area of a big city he will be lucky to get up to a thousand (im using DC area as example), which isn't so bad for a start up. He can use the smaller space to learn the ropes and make a name for himself and then if he survives upgrade in a few years.

But to repeat, he never mentions 1500 sq feet in his original post.

I guess that's an average store size I had in my head. I still disagree with only needing $30k to fill even an 800 sq ft store. If someone thinks it's possible, I'd like to see how. If it were possible, I'd be in business by now.
post #42 of 53
Quote:
Originally Posted by Tck13
I guess that's an average store size I had in my head. I still disagree with only needing $30k to fill even an 800 sq ft store. If someone thinks it's possible, I'd like to see how. If it were possible, I'd be in business by now.

Virtually impossible if you are going for the niche diffusion market (what we are really talking about here, really.) Possible if your store is selling a lot of merchandise at lower pricepoints (see Urban Outfitters for typical brands - Triple 5 Soul, Modern Amusement, Original Penguin) with jeans at the $80-$150 pricepoint (like the new Paper Denim & Cloth,) tees at $40, and outerwear at $200. If you want to carry Rag & Bone, Engineered Garments, Wings & Horns, etc... no way. The store will look really empty.
post #43 of 53
Quote:
Originally Posted by LA Guy
Virtually impossible if you are going for the niche diffusion market (what we are really talking about here, really.) Possible if your store is selling a lot of merchandise at lower pricepoints (see Urban Outfitters for typical brands - Triple 5 Soul, Modern Amusement, Original Penguin) with jeans at the $80-$150 pricepoint (like the new Paper Denim & Cloth,) tees at $40, and outerwear at $200. If you want to carry Rag & Bone, Engineered Garments, Wings & Horns, etc... no way. The store will look really empty.
Can you mix and match? Can’t you have ¾ of a stores merchandise be that of a lower price point and ¼ of the merchandise of a higher price point? Jon.
post #44 of 53
I have been to Sudbury only once a few years back and I really have to question the viability of such a venture in a small, out-of-the-way town like Sudbury. I used to teach the small biz class at U of Toronto and saw countless biz plans for these kinds of ventures and the vast majority of students tend to grossly overestimate the market for these things and the profitability of these stores. You have to sell a lot of stuff to make a business like this worth the high risk you are taking. I would urge you to write a detailed biz plan including sensitivity analysis for different sales forecast scenarios. Without wanting to discourage you and not knowing any exact numbers or the specific market, my guess is that you need to work with very optimistic assumptions for this to be profitable. Best of luck!
post #45 of 53
slightly off topic, but a small piece of advice. When talking retail for a young market, particularly in high demad premium goods, be prepared to account for a sustantial amount of "leakage" (either employee or external theft). I have a friend with a couple of boutiques in Amsterdam, and it IS a reality, no matter how much security you have, or how much you plan for it.

Look at your price per piece, and see how much the loss of one pair of premium Denim is going to set you back.

K
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