What's the gross/net profit margin of higher-end boutiques?

[atila]

Originally Posted by thenanyu

When did largeness ever == quality?

It doesn't at all, but its very well documented and common knowledge that Business Management majors do much less work compared to most other majors. I can tell you from experience, I worked about as hard in college as I did in high school and did great.

Just cause the name of the major is "management" doesn't mean it teaches you a whole lot.

 

[gululv]

I would also like to open a store like tres bien. Perhaps here in oslo, norway. People with too much money and too bad taste, plus there are no really good store here now, nothing like oi polloi, tres bien etc, no Engineered Garments, Nigel Cabourn etc. But there are high taxes in this country, which might be a problem, plus I have no idea how I could get money to start such a business. Also, it would be hard to make it a success even if there is a lack of such stores around here.

 

[ImaPro]

If you have to ask, you cant 'afford' it.

 

[gululv]

That's the problem for most of us. I would have liked to know more about how the people behind Tres Bien started and developed their store. Same with the ones behind Inventory. For me it would be a dream working with a hobby full time, but so far an unrealistic one.

 

[Optimistic]

Originally Posted by gululv

That's the problem for most of us. I would have liked to know more about how the people behind Tres Bien started and developed their store. Same with the ones behind Inventory. For me it would be a dream working with a hobby full time, but so far an unrealistic one.
Supposedly Tres Bien Shop is owned by Jakob Tornberg, Hannes Hogeman, Bjorn Linden and Simon Hogeman, so at 25% each start up capital... things start to get comfortable. I'm guessing they opened stores in multiple tourist destinations as they expanded... as my European mother told me that besides people in Sweden being better off thanks to socialism, it's a popular area for neighboring countries to vacation to and shop... which is also what visvim seems to have done... locations all over tourist destinations in Japan... 'cause somebody from Hong Kong will walk in and blow $6,000! Hahaha I don't know... I'm thinking maybe I can start designing now... work as an Analayst/Consultant/Management Consultant out of Undergrad... MBA... higher paying job... open lifestyle line when I'm 30 with 10 years worth of designs? I'd be much more content with a single boutique carrying my own brand than five boutiques carrying another's brands...

... and life's short... visvim's old stuff is pretty bad... so I think there's hope for me yet... hahaha

 

[supercarl]

Ok - for some answers from my experience, assume 50% margin, cater for paying all on pro forma, build in euro fluctuations and transaction costs, assume 30% of stock left at end of season, of which most will be sold below cost. Also allow for approx 25% slow moving stock that would be expected by customer.

 

[henrikc]

Originally Posted by gululv

I would also like to open a store like tres bien. Perhaps here in oslo, norway. People with too much money and too bad taste, plus there are no really good store here now, nothing like oi polloi, tres bien etc, no Engineered Garments, Nigel Cabourn etc. But there are high taxes in this country, which might be a problem, plus I have no idea how I could get money to start such a business. Also, it would be hard to make it a success even if there is a lack of such stores around here.
Isn't that exactly what Kamikaze did? Obviously they have different labels, but I've heard rumors that they decided on calling it Kamikaze because it would be, well, a kamikaze mission to make any profit at all.

 

[gululv]

Never heard about Kamikaze before. D&G, Gucci, Prada, not my favourites.. But there was Secret Society here before, but they had to close down.

 

[Jangofett]

I don't think this is a big secret.
You just have to be in the industry to know.

The labels may not want to reveal what it sells to the boutiques.
Like Dolce may not want to reveal how much it sells to the London boutique compared to the Abu Dhabi one, for fear one would ***** and want the same price.

The situation is easier if the label like Prada runs the overseas boutiques themselves.

As the others mentioned, there's rental, labour, pricing by competitors and what the market can take, to determine RRP.

In some region like Asia, one can tell the same item is marked up in different prices in different countries. Same probably in Europe.

The funny thing is when they go on sale, the cheaper one can go for a bigger markdown.

 

[Nicola]

Originally Posted by Optimistic

Thanks, but what I meant to ask was whether or not there are methods within the clothing retail business which help to lower startup capital... basically, are there any ways to make the startup capital lower than the obvious which you listed.... ex. do such labels have a spot in their receivables for start ups or established companies, or is the industry standard an indefinite pay first talk later...



!

Google floor plan loan. Oh then google shrinkage.

 

[johnkav]

Originally Posted by Dashaansafin

Lol. So this is Cal's level of education. Just as I expected.

LOL.... Classic...


Don't worry... we're holding up the front on the east coast... Don't lose all hope!

 

[Optimistic]

Originally Posted by johnkav

LOL.... Classic... Don't worry... we're holding up the front on the east coast... Don't lose all hope!
Yeah... GL with that

 

[Gordon Gekko]

I don't know the answer to your question, but I just wanted to give a laugh to all the cynics in this thread trying to troll instead of either answering the man's question or admitting that you don't know anything.

 

[Optimistic]

http://www.yelp.com/biz_photos/Q7cAB...81u4t2WsUSCN8g McIntosh sound equipment in the boutique?

... how much are these people making? lol...

 

[wsanford-shanghai]

As an owner of a small tailoring shop, I thought I'd chime in with a few comments and questions: Wholesale prices vary from place to place and even from shop to shop. That is to say, the guy down the street that sells more suits than me gets a better price per meter on cloth, better credit terms, and probably gets new bunches before me. You will never know what the other guy gets unless you get chummy and he tells you. Even then, you still don't really know. Generally speaking, if you aren't at least doubling you won't be able to pay the rent. Unless you find a dirt cheap place to rent. Try to find a place that has the "vibe" rather than something conventional like foot traffic, etc. If your shop is truly unique and has "personality" people will come. Especially if you have excellent products and good, conscientious service. The place I rent used to be a cigarettes and sports lottery shop. They had a very basic business and my rent probably doubled their monthly income. Of course I had to spend more on remodeling, but that was a one time cost followed by months of cheap rent. Low rent lessens the burdens on your cash flow and gives you more freedom in other aspects of running the shop. Plus having the shop exactly how I wanted it increased the "vibe" and "personality" in the space. In the end, since things can be bought anywhere, people come to the shop because it feels comfortable and because of "You". Now the question is who are "You"? Do you want to wear MMM and live the lifestyle that it conveys? Or do you enjoy menswear, like to talk about it, and think it would be fun to own a shop? In the case of the former, most likely you will never be able to afford the clothes you sell, unless you are wearing merchandise from the shop, in which case you are losing the potential income from selling it. While you may wear some of the clothes, you will find as you get older, you most likely are not living the lifestyle of the people that come to your shop. If the latter is true and you enjoy the concepts, history, and philosophy behind menswear and discussing it at length, then perhaps you should open a shop. But you should think hard about who you are and why you want to open a shop before you do it. Profit should be least of your concerns, because there are many more profitable things for you to do. I will sum it up with this: Opening a shop is easy, sitting in one all day is not. That's why mine is by appointment only.