Feature

How to Increase Profit in your Business

deborah_headDeborah Sterry has a fashion career spanning over 25 years within fashion retail and wholesale. She trained with Myer, was the Advertising Director for Sussan, former owner of Matisse Boutiques in Melbourne and is now owner and Creative Director for Threadz Pty Ltd, with labels including Threadz, Clarity and new label, Contrast.

Today, it isnot enough to invest in a fashion business and have the guarantee of success. The world economy and the changes in buying patterns and customer’s expectations have changed, so therein lies the necessity for boutiques to change their approach to business.

The formula for a profitable business is; Margin + product/mix + turnover + marketing/image = PROFIT

The `old formula’ is; Sales + product + turnover = $

The difference is the business is no longer driven by $ SALES and PRODUCT. The business model is driven by MARGIN and TURNOVER. Successful labels give you high turnover and high margin and in return the product must be reliable in quality, styling and delivery.

deb_imageImagine your store is 500 sq feet (average size of a fashion boutique);

1. What is your operating MARGIN? (incl. full price and markdown sales)
2. What should the average retail price point be?
3. What is the store image? who is your target customer?
4. How many labels should you carry?
5. What is the product mix? What should the ratio of indent labels to in season COD labels be?

All these questions are now attributed to the integrity and success of today’s fashion boutique.

Deborah Sterry and Ian Perkins will be guest speakers at the Fashion Exposed regional seminars on Monday August 29th from 2.30-3.30 to discuss, “The changing face of the Fashion Boutique – change how you do business today to succeed for tomorrow”. These one hour seminars are complimentary for Club Card Members and regional visitors. They are held in the hospitality suites at Fashion Exposed, seats are limited, so reserve your spot to avoid disappointment. Book now, visit here.

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