Official Sales Alert thread

post #22561 of 26952

11/18/12 at 2:05pm

ImaPro

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Some of the biggest margins I've seen on small businesses were from restaurants, but I guess it depends to what you compare it to.

Agree with the other part though, almost any kind of store needs a really big margin to survive(and grow).

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post #22562 of 26952

11/18/12 at 2:17pm

Lionheart Biker

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Quote:

Originally Posted by StockwellDay

This is false. What it seems to have happened (this is based on inference from the posts here) is that Porter has recognized its best customers, those who have spent a over certain of threshold during the year the and given them a shot before the founding members. In fact, i've seen no evidence this year that founding members will be recognized with sale access before the general public.

This. I didn´t receive anything about fouding member´s sale. And I didn´t get any VIP one because I´ve only shopped 3 times (6 items overall I think). Sucks if there really isn´t going to be a previous sale before going public :/

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post #22563 of 26952

11/18/12 at 2:27pm

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LA Guy
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Quote:

Originally Posted by ImaPro

Some of the biggest margins I've seen on small businesses were from restaurants, but I guess it depends to what you compare it to.
Agree with the other part though, almost any kind of store needs a really big margin to survive(and grow).

Some restaurants do awesome. But I was just reading something about 50% of restaurants failing within the first year. And a lot of it, ime, has not been due to shitty food or service, but due to inefficiency and miscalculations - you have to dump a bunch of produce, it's money down the drain. You sell out of your special too quickly? Also money down the drain. Too many servers on a slow night? Money down the drain. Not enough servers on a busy night, and the queue is too long, so patrons leave? Money down the drain.

Same with stores. I know small retailers who built out their own space, and didn't take a single day off, for 24 months, or hire any additional help, to just start to make a profit. And these were were guys who had been around the business for a long time, had extensive customer lists, and so on.

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post #22564 of 26952

11/18/12 at 2:30pm

nepats81

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Quote:

Originally Posted by Lionheart Biker

This. I didn´t receive anything about fouding member´s sale. And I didn´t get any VIP one because I´ve only shopped 3 times (6 items overall I think). Sucks if there really isn´t going to be a previous sale before going public :/

Actually at this point they have been around for 4 seasons. No point in offering founding member sale especially when many don't buy much anyways...

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post #22565 of 26952

11/18/12 at 2:37pm

notwithit

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Quote:

Originally Posted by ImaPro

Some of the biggest margins I've seen on small businesses were from restaurants, but I guess it depends to what you compare it to.
Agree with the other part though, almost any kind of store needs a really big margin to survive(and grow).

I assume these guys sold a hell of a lot of alcohol.

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post #22566 of 26952

11/18/12 at 2:41pm

palma

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Quote:

Originally Posted by LA Guy

That volume is not accumulated at 50% off. A common business model is to give VIP status to those who spend a crapload at retail. The 50% off just allows those shoppers to feel special and feel justified about a small splurge.
Also, there is absolutely no reason to put a ceiling on their purchases because they are afraid of flipping. First of all, the majority of those who are spending thousands at retail are unlikely to flip anything on Ebay. Second, for professional jobbers, the margins just aren't there. A big chain like TJ Maxx buys out at something like $0.08 on the dollar, which is actually on the high side. A big store will sell excess inventory to them or Yoox because it's convenient to just get rid of a crapload of stuff and recuperate some of your costs. A small jobber will pay a bit more - I've heard in the $0.10 to $0.15 on the retail dollar. And even then, if you sell at $0.30-$.40 on the retail dollar, you have to do pretty well to make up your margins. Buying at $.50 on the retail dollar from Mr.Porter, what sort of margins do you think you can get? And factor in that you only really have a couple of months to move all your inventory, because after that, the same stuff will go for $0.30 on the retail dollar, from Mr. Porter itself, without all the uncertainty that buying from a random guy on the internet entails.

I know it is common practice, but perhaps they are basing it just on volume alone. I am more inclined to agree with you, but they were offering 50% off to customers a few seasons ago as founding members just for being the first one to sign up. I know it is an incentive to get the business started, but they could have done it as a one time thing. Beyond, that they are just losing out on profitability. I think appropriate inventory levels are what drive a retail operations profitability. Not, the easiest thing since so many factors come into play from the economic situation, evolving consumer taste (though I don't know if porter gives a shit about this) and competition from B&M and online retailers. If I didn't already state I am thinking 0.50 cents on the retail dollar is industry standard. Selling most of your inventory 70% ( or whatever arbitrary number, of course depends on target profit levels etc.) above this breakeven point would be needed to stay profitable.

Quote:

Originally Posted by Hype1234

I agree. I doubt that the majority of individuals purchasing high volumes of expensive clothing spend their time flipping on the B&S forums and ebay. They are probably out in the real world, making large salaries...so they can spend them.

Did you check ebay after THE Corner fuck up? There was a surge of RO sneakers at 30% off retail when most folks bought them at 50% off albeit it was corner's mistake. That probably wouldn't work now since it is late in the season and sale are approaching. But, earlier on people could definitely buy it at 50% off and flip at 30 off retail. Honestly, I don't give a shit I would probably buy them at 30% off too that early on or flip them if I got lucky enough to get to them and didn't want them. Just talking about Porter's perspective and them not losing out volume because their customer's end up pocketing by going to alternate means of retail like ebay, forums etc.

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post #22567 of 26952

11/18/12 at 2:45pm

palma

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Quote:

Originally Posted by ImaPro

Some of the biggest margins I've seen on small businesses were from restaurants, but I guess it depends to what you compare it to.
Agree with the other part though, almost any kind of store needs a really big margin to survive(and grow).

Like WAL-MART? Its a fine balance between margin and inventory sold my man.

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post #22568 of 26952

11/18/12 at 3:26pm

ImaPro

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Quote:

Originally Posted by LA Guy

Some restaurants do awesome. But I was just reading something about 50% of restaurants failing within the first year. And a lot of it, ime, has not been due to shitty food or service, but due to inefficiency and miscalculations - you have to dump a bunch of produce, it's money down the drain. You sell out of your special too quickly? Also money down the drain. Too many servers on a slow night? Money down the drain. Not enough servers on a busy night, and the queue is too long, so patrons leave? Money down the drain.
Same with stores. I know small retailers who built out their own space, and didn't take a single day off, for 24 months, or hire any additional help, to just start to make a profit. And these were were guys who had been around the business for a long time, had extensive customer lists, and so on.

Miscalculations will bankrupt any starting business, specially when you have no penny to spare. As far as restaurants go I would say that shitty food is one of if not the biggest factor, we all have a list of restaurants that we find food/service to be good enough to keep going. Most change over time as they receive feedback but if you scare away enough customers you wont be in business long enough to make those changes.

off topic it puzzles me when i see a restaurant that has been around forever, always full and the food and service is mediocre at best.

Quote:

Originally Posted by notwithit

I assume these guys sold a hell of a lot of alcohol.

I would say beverages in general, as they are always terribly overpriced.

Anyway serie negra has a private sale use code 20serie and 30serie.

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post #22569 of 26952

11/18/12 at 3:38pm