Making a life changing decision, you might be able to help me greatly.

D

digital83

CAGiversary!
Its been a crazy ass week. Long story short many things have happened (work & family-wise) and many things have become quite clear to me. Ive come to what you would call an epiphany. Im basically tired of working at a job ive been at for 6 years. NYC mind you- 'nuff said! its gotten to the point where ive greatly questioned the direction my life has taken just to live comfortably in this overpriced, beautiful, ugly city. i have alot of money coming to me at the end of this year, enough to make a big investment in myself and my future.

I wanna open a high end urban clothing store/boutique/lounge in the vein of any popular NYC boutique (Alife, FlightClubNY, Supreme, Yellow Rat Bastard, etc. etc.) in a suburban/country section of PA where my family is. This area is an untapped demographic of mixed races but predominantly Caucasian who all pretty much share a love for all things "urban" (Hip-Hop, Skating, Sneakers, Gaming, Parties, etc). Id basically have a monopoly! Thats something i wouldnt mind having! I have an impeccable sense of style from baggy to classy to metrosexual;) and all points in between. So much that i get stopped in public and complemented/ asked for the spots i shop at. This has happened alot, i even made a lady catch a fit when she saw my leather Air Jordan messenger bag made out of a Jordan 3 sneaker and caused a big scene in public. So trust when i say i know a thing or too about fashion(its not easy to impress in a city that sees it all!)

My father believes in me so much that hes willing to invest and guide my vision of this store. Thats a first and i worked really hard to have that level of faith and trust with him so that alone is an accomplishment. Thats pretty much the background behind all of this. Ive done ALOT of thinking, calculating, worst case scenarios while having realistic expectations, etc. So what i wanna know is does anyone have any input/experience/advice for me? Anything to keep in mind? Have any stories from your shop?

BUT MOST IMPORTANT, Can anyone recommend me some RELIABLE, LEGIT WHOLESALERS OF AUTHENTIC, QUALITY, BRAND NAME URBAN CLOTHING?(Can be online or regional as long as they do shipping) i stress ALL CAPS because they must be all those things (i wanna build a place that sells quality authentic stuff at great prices so i can basically RUN THIS TOWN!) Thanks for reading this long train of thought and for any help. YOU HAVE NO IDEA HOW MUCH ID APPRECIATE IT. *must stress that too:)
 
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No personal experience, but I have always heard if you create your own business you wont start making a profit until five years later. Sounds like you have a pretty good idea about what you want to do though.
 
[quote name='digital83']I wanna open a high end urban clothing store/boutique/lounge in the vein of any popular NYC boutique (Alife, FlightClubNY, Supreme, Yellow Rat Bastard, etc. etc.) in a suburban/country section of PA where my family is. [/QUOTE]


Langhorne?
 
Id suggest looking into the brands sold in the area, see what kind of styles and brands are popular. Im from the Philly burbs and notice some things sell well in some areas, while a mile down the road it could be the complete opposite. If you want an idea of "urban" styles that people want, I know City Blue, urban outfitters (duh) are popular. As for buying wholesale, thats a different matter. Also being Korean, I know people that buy stuff on the cheap from China and the like, and resell, but none of it is name brand stuff. you have a number of options, but keep in mind that NYC is a different place than PA, and it might be wise to look around at the more successful places in the area.
 
[quote name='digital83']Its been a crazy ass week. ...

I wanna open a high end urban clothing store/boutique/lounge in the vein of any popular NYC boutique (Alife, FlightClubNY, Supreme, Yellow Rat Bastard, etc. etc.) in a suburban/country section of PA where my family is. This area is an untapped demographic of mixed races but predominantly Caucasian who all pretty much share a love for all things "urban" (Hip-Hop, Skating, Sneakers, Gaming, Parties, etc). Id basically have a monopoly! Thats something i wouldnt mind having! [/QUOTE]

Have you performed/consulted with an external firm for market research? It'd be a fatal assumption based on what you, friends, and your neighborhood perceive. Just because they may "like" a certain product, are you sure they'll actually buy it (try some focus groups)? You surely don't want only window shoppers, eh? (Just remember...all business plans should list an exit strategy just-in-case...)

Also, based on what was said earlier, profits are not year-one ventures unless you tap a market with a high demand and very small supply (think Zhu Zhu's during Christmas '09 and sales currently).
 
Another way is once you have a brick & mortor location to sell some of your stuff online to supplement your sales. People in other small areas may like what you sell but can't get to your store. This could also be done before the physical location is started once you have the stock to see how many folks actually are interested in the brands you are going to carry.
 
Honestly when I ran a computer store how I found out where to buy stuff was I would go on trash nights to other stores and jump in their dumpsters (computer stores are mostly just paper goods thrown out I assume clothing stores are to) and I would rip off shipping labels from fed ex, ups boxes and thats where I got my ideas for looking to buy from. So I just started calling them and saying something along the lines of "I found out about you guys from a customer of yours and I would like to buy from you, what can you do for me?"


Then youd want to cruise your competition. Pick the top 5 stores like yours within a 1 mile radius of where you want to setup shop that have been around the longest and have the best reputation and go into them, ask about their return policies, see what their prices are, talk to the customer service folks, look at how they layout their merchandise, see what makes them the same and whats different and adopt those things. But also really watch out for things you dont like as a customer and make notes.


During your first year or two remember high markup items are what will net you the most cash. The little inexpensive things that sell fairly consistantly and have a high markup are what will carry you till your cash flow starts to even out.


Printed return policies will save your ass. Posting this by your register somewhere is nothing short of a insurance policy of someone trying to rip you off, and they will try and rip you off everyday.


For something like this online sales will play a big part as well but with clothing it will take I would guess more time for it to pay off. So a nice website is essential, even if you dont sell alot a pleasing website is also advertising for you to. People can contact you through it, they can find out your store information, they can give you money through it and it will help get your name out there.


Business cards are essential to, its cheap advertising. When you meet someone or have a friend you give a card to you give them 2 or 3 extra ones and ask them nicely to give them to someone they know since you do your business by word of mouth. I lost my job over a year ago at the hospital and now I do computer work, so I spent 120 bucks on 800 cards from kinkos and been doing that and its slow but it works.


Be geniune and friendly with your customers and dont force bland conversation on them. There are several non chain places around me I have been going to for years because the owner has treated me like a real person. Comic shop Ive been going into for over 20 years because the owner talks to everyone that comes in, he isnt pushy, never tries to "sell" anything and is a straight up guy. Hell now I work for him every sunday at his store. Or guy owns this kinda of dive mexican restaraunt but when I go in he is cleaning tables and he will stop and talk to everyone and people come in the door and call him by name and talk to him like a friend and thats how he built his customer base. If you have good customer service skills you can sell me a bucket of wet shit.


I could go on and on thought about the little things because unless your a giant mega chain thats worth billions its the little things that count, just setting up a store and waiting for people to walk in wont cut it.

So shoot me a PM if you need any help or suggestions, Ive helped build a company from ground up literally, hell I was in there building the tech benches, designing logos, painting the place and converting a old bank into a store as well as running it. If the guy who actually owned it wasnt such an asshole we would still be in business, we lasted 10 years though before he pulled the plug over his personal life.
 
As Caliburn stated, market research is very important. You could go one of two ways with this one.

1. Hire a company to do it (might be very expensive)

or

2. Go to a local university (maybe PSU?) and check out their marketing department. Tell them that you'd be willing to work with a group of marketing students and let them do the work as a project.

Good luck!
 
You're not going to get a wholesale license until you get some decent money behind you, a business plan, or proven sales.
 
Why not test the waters by opening an online shop. You can tinker around for little cash down until you figure out what works best and what items actually sell. Just a thought...
 
I mean this in the nicest possible way, but you are insane if you're thinking about opening a brand new retail business in this economy.

Open an Internet store/sell on eBay until you have a following & this shitty economy improves.
 
[quote name='Haggar']I mean this in the nicest possible way, but you are insane if you're thinking about opening a brand new retail business in this economy.

Open an Internet store/sell on eBay until you have a following & this shitty economy improves.[/QUOTE]

Agreed. Way too risky still.

You could ask BingBangBoom here who has a long thread here (in general gaming I think) about opening a Play and Trade video game store, which ended up failing pretty quickly--after a couple years of work to get it open.

If you want to start a business, do something online or eBay to minimize cost and resources put into it. If it fails, you're at least not out much.
 
How is now the worst time to start a business based on the "shitty economy"?

If anything it is far from it, and the best time to start a business. There are so many incentives for buying property now as well as loans from the SBA at a huge discount. Any COGS would be the lowest now compared to down the road so you can have an initially line of product to gain a small market segment. Branch out further once you feel out your consumer base.

...everything is cheaper now... how wouldn't having low startup costs now compared to a few years from now not be beneficial? Yea times are rough, but the good far outweighs the bad to starting now. Also, loan rates are very enticing to anyone right now and have rates that will not be this low for a long time.
 
[quote name='Steggy']How is now the worst time to start a business based on the "shitty economy"?

If anything it is far from it, and the best time to start a business. There are so many incentives for buying property now as well as loans from the SBA at a huge discount. Any COGS would be the lowest now compared to down the road so you can have an initially line of product to gain a small market segment. Branch out further once you feel out your consumer base.

...everything is cheaper now... how wouldn't having low startup costs now compared to a few years from now not be beneficial? Yea times are rough, but the good far outweighs the bad to starting now. Also, loan rates are very enticing to anyone right now and have rates that will not be this low for a long time.[/QUOTE]


It's going to be harder to get small business loans etc. Rates will be good if you can get one, but if you don't have much capital in hand banks aren't taking risks at the rate they were before.

But the main issue is consumers are still pinching pennies. Retails sales are still down in most categories as people are still out of work, getting furloughed, worried about lay offs still etc. As such people are cutting back on discretionary spending.

So you face all the challenges of opening a retail store you normally would--getting peole into your store instead of the chains etc. On top of it being an economic climate where people are still limiting their spending on luxuries.

So it will be a real challenge and likely doomed to fail unless you really offer something your area needs. i.e. you sell something not readily found around town, that isn't super expensive and out of people's budgets in this economy. Which is tough, as most people can get everything they need at big box stores which sell them for prices a small business can't if they want to turn a profit.

And given it's high end clothing, I'd really question the chances of that in the economy. Aren't sells on designer brands etc. especially down lately?
 
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I was all in to help you if you were going to open a restaurant. Then I saw you were going to open a clothing store and I laughed. Then I made this post. Good luck.
 
Quote** I was all in to help you if you were going to open a restaurant. Then I saw you were going to open a clothing store and I laughed. Then I made this post. Good luck.

I was gonna reply something real witty n smart ass but then i realized that you probably still live with your mom in West Bumblef@#$ and go to house parties wearing Lugz boots, Karl Kani Jeans, and a Starter hat with an orange bill. Your attempt at humor was lame. Just like the outfit above that is your uniform.
 
[quote name='digital83']Quote** I was all in to help you if you were going to open a restaurant. Then I saw you were going to open a clothing store and I laughed. Then I made this post. Good luck.

I was gonna reply something real witty n smart ass but then i realized that you probably still live with your mom in West Bumblef@#$ and go to house parties wearing Lugz boots, Karl Kani Jeans, and a Starter hat with an orange bill. Your attempt at humor was lame. Just like the outfit above that is your uniform.[/QUOTE]

Um. If I recall. Jimmy competed on Hell's kitchen and wears nothing like what you describe. If you can't handle a bit of sarcasm, you may want to consider thickening your skin before opening a business in the climate that we're in.
 
Keyword- competed...Jimmy from Hells Kitchen had nothing constructive to say. Just a pathetic attempt at weak humor. Trust me my skin is pretty thick. I just cant stand someone trying to be a wise ass during a serious inquiry. Everybody replied accordingly and he replied in a tone that said " hey hey look at me im funny im smart i work in a restaurant and got eliminated off Hells Kitchen cuz Chef Ramsay said i had no passion!" So please Jimmy dont hate on me cuz i have that passion that you sorely lack. Just because your popular on CAG that doesnt give u the right to shoot down peoples dreams. So please just stick to your head cheese or whatever your specialty is and ill stick to my shop.
 
[quote name='digital83']
I was gonna reply something real witty n smart ass but then i realized that you probably still live with your mom in West Bumblef@#$ and go to house parties wearing Lugz boots, Karl Kani Jeans, and a Starter hat with an orange bill. Your attempt at humor was lame. Just like the outfit above that is your uniform.[/QUOTE]What the fuck are any of the clothing you just mentioned?
 
I like that you've done all this number crunching and what not but you're lacking an actual supplier. So you really don't know the cost of anything you'll be buying to resell but yet you've got it all figured out.
 
You've gotta crawl before you walk, you can't pop out the vag and start running.

Do you know how much money it would cost to rent space for a store + stock the store + advertise the store + buy random stuff to decorate the store so it doesn't look like you just walking into a plain room with jeans in it + buy cash registers / credit card machines + hire people to work for you + any other random thing i've left out?

answer: probably shit-tons.

Do you know how many little small business clothing stores i've seen open and close near me, granted i live in a smaller town than you? Shit-tons again

I'm not gonna tell you not start your business, because i own a few small online businesses that make plenty of extra money for me, but if i were to try and run a brick and mortar store i'd probably be out of business quick. Brick and mortar stores have tons of overhead costs that you wouldn't have with a website.

If i were you I would stick with whatever job you currently have, and setup an online version of the business you are talking about. Try and get that going and start getting income from that. If its something people in your area would be interested in, put flyers and stuff up around your town promoting your website. If you can get your website making a decent amount of money to the point that you could possibly support yourself with it, then I'd maybe say start trying to sell in a brick and mortar store. That way if your not making any cash with B&M store you'll still be supporting yourself with the website income.
 
smileypopcorneating.gif


Ok, carry on!
 
I have no experience running a retail operation but one thing I can tell you from reading through hundreds of earnings reports, press releases and analyst updates is that retail is very tough right now. Don't get me wrong, retail is always tough but it is clearly more difficult out there now than it was 5 years ago. Something like 80% of all "mom and pop" retail operations fail in their first year.

SBA loan rates are pretty good right now but lending guidelines have got more restrictive in recent years. Your business plan needs to be top-notch and you will need to bring some personal cash to the table to even get your application looked at, at least 20% of the amount you are seeking.

People are still spending money but they are clearly NOT buying a lot of high mark up items. This is quite clear from the earnings reports that pretty much every high end retailer has put out the past 6 months or so. Margins have been cut drastically. Retailers have been making some pretty deep cuts just to move inventory which is something the larger stores can afford to do but this is probably something you would not be able to do.

Just keep that in mind because I'm pretty sure you aren't going to be able to undercut many of the larger stores and still cover your normal operating expenses.

I would have to agree with what several other posters have said already, start with an online store. Build an audience and then try for the retail store.....but personally if the online store was a success I wouldn't even bother with a retail store. There are just way to many costs and headaches associated with the running a brick and motor retail operation for my tastes.

Also, are you just planning on this store being a re-seller of existing labels or are you planning to sell your own designs? If you have such an incredible sense of fashion I would try the online store with some of your own designs. The potential reward for having your own designs become popular is far greater than it will be if you are just another store that sells over-priced clothes.
 
Don't really have any practical advice to offer but I would maybe do a bit more research into your chosen area and find out more of the demographics regarding the people that live there.

What class are the majority of the population? Do they seem to have a disposable income?! Are they any stores nearby that could be deemed competitors etc. Also, like other people have said, opening any new business in this economy is difficult so think long and hard before you make any rash decisions! Good luck!
 
I don't know anything about the retail industry, but one of my old friends, for quite awile sold clothes on the street around DC (you know, those small kiosk vendors,) and did stuff like flea markets. He made alot of great contacts in his time doing it, and eventually opened his own clothing store.

It's a minimal money investment, moderate time investment, and you'll probably learn a few things about how to conduct business while you plan your larger retail store.
 
Would be hard to do that selling expensive designer clothes like the OP wants to do though.

The people buying those aren't buying clothes from street vendors or at flea markets.
 
I cant figure if he is designing his own wares or just trying to sell other peoples stuff.

If you are creating your own stuff then a internet business is the way to go because is barely any over head and you can reach more people.

Coming right out of the gate and trying to open a full store might be a tad bit harder. Has anyone asked him if he has anything creditably other than "people stop me on the street?" Do you have a degree in accounting, business management, design, marketing, management?

If you are thinking of opening a store a few of those things are going to be required. I know you want to open the store but is there any proof that you can manage one once its open? Money isnt the only thing you need for your store to work.
 
Well, one good thing is that people can go to your store and get to try on the designer clothes before they buy.

But, it could also backfire - people would use your store as a dressing room then buy from places like JackThreads (or another one of those "invite-only" online retailers, which are getting popular, like ideeli, RowNine, etc) or more established places like Bluefly.
 
[quote name='parKer']Well, one good thing is that people can go to your store and get to try on the designer clothes before they buy.

But, it could also backfire - people would use your store as a dressing room then buy from places like JackThreads (or another one of those "invite-only" online retailers, which are getting popular, like ideeli, RowNine, etc) or more established places like Bluefly.[/QUOTE]



A invite only online clothing store? Do they have clothes that can not be found anywhere else? I am guessing the invite only serves only to stroke the egos of people who are members.

Pffft.
 
[quote name='Soodmeg']A invite only online clothing store? Do they have clothes that can not be found anywhere else? I am guessing the invite only serves only to stroke the egos of people who are members.

Pffft.[/QUOTE]

No idea. I'm not a member of any. I don't like buying clothes online. I just see ads for those invite-only stores when I get my VSL (Very Short List) e-mails.
 
[quote name='dmaul1114']Would be hard to do that selling expensive designer clothes like the OP wants to do though.

The people buying those aren't buying clothes from street vendors or at flea markets.[/QUOTE]

The point was that in the process or selling clothes on the street, you'll gain valuable contacts (something the OP seems to lack severly,) presentation skills and basic management skills you'll need to run a retail business.

One of the people my friend ran into had a contact in China. Next thing I knew he was flying to China to check out someone's wholesale business/factory to establish his own clothing line and set up an overseas partnership for goods. Never underestimate the people you meet on the street.

Might as well make the best use of your time while you get things together for a retail operation.
 
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