How correctly to trade clothes?
Before we turn to the disclosure of the topic, the successful trade in things, I want to say the main nuances in working with this direction. The main thing is personally your attitude to business, trade and communication with people. If you like it, and you find yourself in it, then all the rules and recommendations that will be discussed will work. You should enjoy the process of organizing your business, negotiating with the buyer, making successful trades that will bring you profit, and failures that are also inevitable, and with the right attitude can become a strong lesson and teach you to work even better. If you love your business, then all the ways and rules, which will be further discussed in conjunction with your desire to work and develop in your own business will make number one in the clothing market.
The first step, from which a successful trade in clothing begins, is to decide on the format of the store and its concept.
Beginning of clothing trade. Proven, step by step recommendations for starting a business
The first step, from which a successful trade in clothing begins, is to decide on the format of the store and its concept. What exactly are you going to sell — men’s clothes or women’s, maybe both. Maybe you are interested in selling children’s things, or you have a large store where you can combine all the departments.
The second step is to consider the state of the market, that is, competition.
How many there are outlets with the same or similar group of goods as you have? Weak and strong points of your competitor. Be sure to monitor and analyze such outlets. Especially consider what kind of goods are not enough in their outlets. This will be one of your best advantages, so to speak of trumps. It will also be a very strong step to pre-hold a brief social survey of the population group where you are going to run your business. What exactly does the population lack of clothes? What would you like to see more often? What is not very comfortable with working with current stores? Probably, the price, assortment, terms of delivery of the necessary clothes at purchase under the order, and so on. Only constant analysis gives a complete picture of your competitors and the real needs of your potential customers. Be flexible in this matter and never be lazy.
The third step is the location of your trading place.
That is the area where you are going to trade. Naturally, it is better to locate a trade point where the highest passability of people. In the first place here are shopping centers, hypermarkets, supermarkets. Also covered and clothing markets. Of course, placement in a shopping center or hypermarket requires additional investments. And sometimes quite large, because of the rent of the premises. But the probability and possibility of earning there is naturally higher. However, you should not be upset in advance if, for example, you are not ready to spend additional funds on an expensive lease and can afford to trade only in the clothing market. With the correct organization of earnings from a store in the market often exceeds the amount of earnings in a prestigious shopping center. The main thing is carefully planning. And the ability to make the most of the features of the area where you will trade.
The fourth step is to register your business activity in terms of the legislation of your country.
The main thing here is honesty and transparency in work and business relations with checking legislative bodies and tax. If you plan to work long term in your business, then just do not think about how you can «not pay», «do not show something», «hide». In any case, they will disclose you. And concealing any little detail from the legislation, you risk losing a license to continue the activities of the entrepreneur. And all your work, diligence, maybe long-term ideas can at once become vain, and even worse, lose the trust of your loyal customers. Therefore, work honestly, and then you will sleep soundly and with a clear conscience.
The fifth step is to find the supplier of the goods.
One or perhaps several. By different assortment and group of your goods. Be sure to find out in detail the duration of the supplier’s work in the market, its reputation and feedback from other entrepreneurs, the conditions of work and delivery of goods, work with penalties. Compare the prices of suppliers. Be interested in discounts with constant cooperation. With everyone, communicate in person and learn all the details and nuances until the end. Orders, as an option, can be made from wholesale suppliers, or foreign, much depends also on your volume of purchases. As a rule, many entrepreneurs work with wholesale clothing suppliers.
The sixth step is a lease agreement, which you will need to conclude with a warehousing or covered market, or a hypermarket, depending on where you decide to start your business.
The seventh step is the first purchase of the goods and its delivery in the assortment to you, to the point of sale.
Carefully check the complete availability of all accompanying documentation, namely: consignment notes for goods, certificates of conformity and declarations for the goods. If any documents are missing, you can lose the goods, in the form of confiscation from the checking regulatory bodies. Therefore, show maximum attention and exactingness when receiving the goods, especially when you first encounter this and start business relations with your suppliers.
The eighth step will be finding and hiring sellers to work in your store.
Immediately I will say, if it is appropriate in your specific work. Perhaps you are planning to trade in person, or you want to look for and hire sales people for work, so to speak, after the initial promotion of your business. So, if you still plan to work with sellers in your store, then the information said in this step will be useful to you. Here everything begins with the search for responsible, literate and hardworking employees. You can advertise in the newspaper, or use the relevant sites on the Internet, where people are looking for work. In addition to the ability to trade, your salespeople must be disciplined and strictly observe subordination. After you find the number of sellers you need, and make the decision to cooperate with them, be sure to arrange them officially for yourself, according to the norms of labor legislation and the corresponding entry in their work books. Always conclude employment contracts with sellers. And each of them will need to have honey. The book. Doing everything right, and according to the law, you form a positive and sustainable image. This will inevitably increase your credibility among buyers, as well as professional sales managers, who in turn willingly come to you to work on mutually beneficial terms. And this will give you the opportunity to increase your conversion, customer attendance and profit growth.
Six golden rules of trade in things
The rules, which we now consider in detail, are rightly called golden, as they proved their efficiency in the trade of things by one hundred percent. And most importantly, they are tested by many years of experience of many successful businessmen in this field.
The first rule is — never take clothes for sale.
Before starting your work, you carefully calculate all possible costs associated with paying rent, taxes, salaries to your sellers. In this case, you can forget about the product, if you take it for sale, thinking that by doing so, reduce costs. This is a serious mistake, because basically the goods are surrendered for sale, when it is difficult to sell, or the price is not seasonal. Hence, you will have a very low demand for this product, and you can work in the negative.
The second rule is the installation of a mark-up on the goods you purchased.
It should reach 100 percent. In any case, with your first purchases, while you gain experience and sustainability in working with the market. You must accurately calculate your profitability, that is, income and expenses, and the resulting net profit. Then later, when you already have more experience in working with suppliers, with your customer base, you can certainly create your own discount system, perhaps, develop cards for discounts to regular customers, and this will increase the flow of customers and interest in your outlet . In general, always try to buy quality and new clothes as cheap as possible, but sell it already at the most favorable price and corresponding to the modern market. Be always at a profit.
The third rule is that we plan our budget for the purchase of goods.
The costs for creating a stock of clothing or, in other words, the formation of an assortment, will be the largest and perhaps the largest share of your investment in the market. Sometimes it’s 60, or even 85 percent of the main amount you contribute. The most successful clothing stores make purchases of prepaid clothes and therefore receive an extremely small price for the purchase of goods, but the mark-up should already increase, as already mentioned above to 100 percent minimum. This formula works very stable and promising.
The fourth rule — Correct work with the rest of the goods.
Always try to buy more goods than you plan to sell it. The playing itself and the representation of the goods on the shelves play an important role here. In other words, the assortment. One of the postulates of successful trading says the following: 20 percent of the assortment gives as much as 80 percent of all profits. However, this is only possible with a full display of the goods. Let’s choose your customer. Since all people have their own specific and specific motives for shopping, and they all are completely different, although sometimes they are a bit like. It is extremely rare to take and sell all the remains of the store completely to the last thing. On the thing that you have a long time at the store, or lost the seasonality of the goods, you can always make a discount, allocate it separately, that it was correctly and visually presented. But, your shelves should always be filled with goods. Perhaps to store large volumes of goods you will need a warehouse, or a separate place in your room, if the volumes of your store allow. Having correctly understood the client’s need, you can trade things directly from your warehouse. This is why you need to buy a large amount of things so that you are always in a trend and are profitable different from competitors in the market.
The fifth rule — Continually refill the storefront with a new product.
Perhaps there was some new fashion, or a new thing came out of the famous designer and so on. The fact is that this emphasizes your image as a professional businessman in the market. And your customers will definitely appreciate it. Buyers who constantly visit your point are automatically accustomed to your assortment, and commodity items on the shelf. If you constantly replenish the shelf with exclusive, new models, people will know that all new models need to go to you. Increase in the volume of sales to you will be provided. Customers will be constantly loyal to you and your product. Some entrepreneurs believe that it is necessary to sell the old goods, then buy a new one. This is a fallacy and a mistaken approach to sales. Constantly update your positions and thanks to this your customers will otherwise look at those more outdated positions that you have left. Since you will constantly change the layout, add more new positions and the old ones will be better sold.
The sixth rule is — Do not end the seasons with zero balance.
Very few businessmen are clearly aware of the fact that it is almost impossible to return all the money that you have invested in the goods. Since the fullness of the stock of goods will constantly grow, change. That is why, a certain amount of the balance sometimes has to be discounted or written off. Or sell your old balances at the cost price. Which is also not always profitable, of course. You can try to give the goods for sale. One of the most effective methods here is to lay a reserve fund, in advance counting on a possible markdown or write-off of the goods. The main idea of ??this recommendation is that usually all merchants closer to the end of the seasons lower the prices for the goods, suspend the purchase of goods, for the end of the season with the remainder equal to zero. Yes, of course, to some extent correct, but also a little dangerous, because with this scenario, you can end the season without a trace. This fact will reduce the volume of trade. Also inevitably affect the work with the next season. Often, non-seasonal goods are readily bought by people due to a small price for it in a certain period of time. Therefore, summing up it is important to note that the remains in large quantities are very necessary to support the round trading year. Then you will always have the assortment, the demand for the goods, the loyal customers, and, of course, the turnover and the profit.
Finally, I want to tell you — always work with a good mood, give it to your customers, employees, if you work with sellers. In general, always work with enthusiasm, enjoy your favorite pastime, and you will always be successful and leading businessmen in the trade of things.
Successful sales to you.