MISFIT
Turnover is vanity Profit is sanity
what margin can we achieve and can we get any discount. Margin is so important in any business and yes it is imperative that we get the best deal possible but it’s also so important not to give it away at the end of the season.
A It is not even the end of July and all the major High Street
retailers are in full sale. Mind you they barely seem to have been out of sale for the last 12 months. What does amaze me is the fact that independent retailers spend so much time and effort trying to offer something different to the Multiples but as soon as they go to sale the independent feels he or she must follow suit. Why ?
If you are offering something different and, as
always, you give service then do you really need to give away thousands of pounds at Sale time? The big multiples can afford to do this partly because of their buying power which rewards them with big discounts, but also so many suppliers nowadays help multiples with markdowns when it comes to sale time.
I am a big believer in clearing your stock at the end
of a season - and I mean the end of a season – but to be discounting in June, when the summer has barely started, seems crazy. I was speaking with a retailer in the North last week and he is hoping that he might get away without going to Sale at all. His view is that the stock is reducing well and rather than buy stock especially for the sale he is going to try to move from the Summer collection straight into Autumn stock. Mind you this retailer is a big fan of 4 season buying so he has plenty of stock coming in early.
One area the suppliers could improve is by looking closely at the retail price point of a product and working the cost back from this rather than taking their base cost and adding the required margin to create the cost price. So often retailers look at shoes and think, we could get more for that especially when the retail is some stupid price point of £47
10 • FOOTWEAR TODAY • AUGUST 2013
s we come to that time of year again it has got me thinking about profit margins. When we see the suppliers with the new season’s stock all we want to talk about is
rather than the normal £49 or £55. This would allow the retailer to achieve a bit more margin and not cost the supplier a penny.
We are also coming around to the trade fairs again. As I
have said previously I really hope all the suppliers are going to be at the major show and hopefully will make that bit of extra effort and not only have something new and exciting to look at but also be able to offer the independent retails that extra bit of margin maybe with an incentive to order early.
One area the suppliers could improve is by looking closely at the retail price point of a product and working the cost back from this rather than taking their base cost and adding the required margin to create the cost price. So often retailers look at shoes and think, we could get more for that especially when the retail is some stupid price point of £47 rather than the normal £49 or £55. This would allow the retailer to achieve a bit more margin and not cost the supplier a penny.
In return I strongly feel that the independent retailers should support the suppliers and spend time looking and listening to their sales agent and give him the respect he deserves. Whether you have had a good or a bad season there is no excuse not to spend a couple of days at the show. Please don’t say I’m too busy or I’m on holiday that week, the dates should have been in your diary for months. If you care about your business this is where it all starts and if you don’t do your homework you won’t succeed. You should be there and work from dawn to dusk.
I will be.............. see you there !! Please remember you can leave your comments at
misfitfootwear@hotmail.com
Readers wishing to send comments or suggestions for Misfit should contact:
Misfitfootwear@hotmail.com
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