There is so much a fashion boutique owner does to keep generating sales. You follow the trends, explore wholesale boutique clothing vendors, juggle the books, and much more. With so many tasks vying for your attention, it’s easy to let some slide. But when you do, are you letting your sales and income slide, too? Let’s take a look at five easy-to-overlook items your boutique needs to thrive.
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Track and Organize Product Sales in Detail
Of course, you’re keeping track of sales. But each sale contains a wealth of information. Every sale is concrete proof that something you’re doing is working. By breaking down your sales in detail, you’ll learn much more about how you are connecting with your customer base. Don’t bottom-line it to dollars and cents, or “tops and bottoms” sold. What is selling? Graphic tees? Boho tops? Skirts, skorts, mini dresses, maxis, jumpsuits, jeans, trousers, cardigans, kimonos?
Once you’ve organized your products by type, also keep track of notable styles. For example, did you sell seasonal items like Christmas sweaters or summer dresses? Are your basics selling, or is it the specialty items that are moving best?
As you track and organize your product sales in detail, your next wholesale clothing purchases will be better informed by your current successes.
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Refine Your Pricing Strategy
Pricing is a challenge. Set the price too high, and no one buys. Set it too low, and you lose money while possibly giving the impression that your products aren’t worth much.
Cost-plus pricing is a common pricing strategy, particularly for new businesses. You determine the price by taking the wholesale clothing cost and adding on enough money to cover operating expenses and leave some profit. Typically, this number is arrived at by marking up the cost by 2.5x to 3x. Cost-plus pricing is a solid way to start your business, based on the numbers. It ensures your pricing covers your expenses.
But we don’t approach fashion by the numbers. Sure, maybe we buy clothes that way, like the kids’ socks and other clothing for camp or back to school. But fashion is more about perceived value. The more your customer values an item, the more they’re willing to pay. So, don’t just rely on the numbers for your pricing. If you can demonstrate better quality or more ways to style a particular product, you’ll be building value into the item.
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Lessons in Slow Sales
When an item isn’t moving, it ties up the money you invested in the wholesale boutique clothing and takes up space you could devote to something that sells better. The natural impulse is to discount it to recover that time and money when it sells. By following this strategy, you miss the lessons available. Why did this item sell so slowly? Has your customer base moved on from that trend, or did they not appreciate its value? There is a lot to learn from a slow mover.
Try displaying a slow-moving item on a different model or accessorize it differently. Show how it transitions from day to night or highlight its unique details. Move it to the other side of your store, and feature it in your social media channels. Do all you can, not just to preserve the profit margin but to refine your understanding of your customers.
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Get the Email
While online boutiques are set up to capture customers’ email addresses, many brick-and-mortar boutique owners overlook email marketing to their detriment. A one-time purchase is just that. But, when you get the customer’s email address, that one-time purchase becomes the beginning of a valuable relationship. Email still reigns as the king of advertising. In 2019, email campaigns delivered a 4200% ROI or $42 in sales for every $1 spent!
Connect with your customers, build a loyal and engaged following using email. Use emails to offer targeted discounts, exclusive offers, and insights into your fashion niche. Build excitement for the coming season or a new shipment of wholesale boutique clothing due soon. Send surveys. They allow your customer base to teach you what they want to buy. Run contests with prizes for user-generated content you can use on social media campaigns in turn.
When you ask a customer for their email, make it enticing. No one wants to join another email list. But plenty want to subscribe to exclusive discounts, sneak peeks, and insider news! Once you have the emails, cultivate your customers with regular contact. Not just messages that say “buy this,” but also useful information like the new accessory trends for the coming season or how to stylishly transition their favorite garments into the coming season. When customers see you as a source of quality information, your boutique will be top of mind when they’re ready to make a purchase.
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Instagram Strategies
We all know the power of social media for businesses, but many brick-and-mortar boutique owners overlook Instagram as a source of local traffic. For all that it reaches a global audience, Instagram is also a great way to connect with people in your community.
Start by using geotags on each of your brand photos. The photos of your store should include the exact geotag for the boutique. Also, take lifestyle photos showing off the best pieces of wholesale clothing you’ve purchased. Take these shots around town as well as showing local landmarks and include those geotags. Potential customers checking out local restaurants or other necessities will come across your boutique’s location and recognize you as an active neighbor. You can further boost your visibility by connecting with other local businesses, cross-promoting, and cross-tagging.
Also, be sure to use multiple location hashtags for your posts. For instance, if you’re in Oceanside, California, you might include #oceanside, #osideliving, #beachtown, #socallife, #socalstyle, and #californiastyle.
Follow and connect with local influencers, invite them to your boutique, and post photos about their visit.
Ryan Ninow is the CEO and owner of Bloom Wholesale; with ten years of experience in the wholesale fashion industry. Working with retailers from Nordstroms, TJ Maxx, Forever21 to tens of thousands of Mom-and-Pop stores. Collaborated and built multiple distribution websites and fashion lines, all with an emphasis on aiding and growing the boutique marketplace.
